In the past 16 months, Massachusetts’ Institution for Savings has been prolific in offering competitive CDs. Since May 2014, the Bank has had twelve CDs mentioned either in a DepositAccounts.com Forum post or blog.
The latest CDs du jour are the 15-month CD (1.50% APY) and 30-month CD (2.00% APY). The minimum opening deposit for either CD is $500, with no maximum balance cap. Both CDs are also available as IRAs (Traditional, Roth, CESA, and SEP) earning the same APYs, with the same funding requirements.
These two CDs might sound familiar; I first wrote about them in early February 2015, when the rates were first increased. Since then, the APYs have bounced up and down with five rate changes for each CD. Historically, Institution for Savings’ competitive CD rates last for a month, give or take.
As stated on Institution for Savings’s Certificate of Deposits information page, the Early Withdrawal Penalty reads as follows:
Three month's interest whether earned or not on terms 12 to 15 months
Nine month's interest whether earned or not on terms 25 to 47 months.
Platinum Money Market/CD Combo Accounts
For those with large balances, the MMDA/CD Combo Accounts may be an option. Institution for Savings began offering a Platinum MMDA (1.00% APY, $250K min) and a Platinum 36-month CD (2.50% APY, $250K min) combination earlier this year. Complete details are available on the Deposit Rates page.
|2.50%||$250k||-||Institution for Savings||36 Month Platinum Money Market CD|
|1.00*%||$250k||-||Institution for Savings||Platinum MMDA|
Institution for Savings’ market area is Massachusetts’ North Shore region, which is loosely defined as the coastal area between Boston and New Hampshire.
Accounts are available to U.S. residents, 18 years or older, who live in the market area. The Bank’s online application uses Zip Codes to determine market area eligibility. (The bank’s online application is time sensitive, so I have not provided a direct link.)
The 15-month and 30-month CDs are not listed on the online application and must be opened in person at any of 11 Massachusetts branches located in Beverly, Byfield, Gloucester, Ipswich (2), Middleton, Newburyport, Rockport, Rowley, Salisbury, and Topsfield.
Institution for Savings also has six Educational School Banks located in Beverly, Boxford, Byfield, Ipswich, Newburyport, and Topsfield. These Educational School Banks are open when school is in session, with limited hours of operation..
Institution for Savings has an overall health rating of "A+" at DepositAccounts.com, with a Texas Ratio of 3.54% (excellent) as of June 30, 2015. In the past year, Institution for Savings has increased its total deposits by $388.72 Million, an excellent annual growth rate of 26.96%. Please refer to our financial overview of Institution for Savings for more details.
In 2014, Institution for Savings was named the Top Employer by The Boston Globe for the second consecutive year, and for the third time in four years. In the past seven years, Institution for Savings has appeared in The Boston Globe’s Top Employer list.
This is still my favorite description of a financial institution’s history. Imagine it being the prologue of a Ken Burns film, as read by Sam Waterston.
In 1820, 34 prominent citizens of the City of Newburyport sent a request to the Massachusetts General Court requesting to incorporate an institution "for the purpose of receiving money on deposit and investing the same to the best advantage of the owners thereof."
On January 31, 1820, that charter was granted, creating the third savings bank in the Commonwealth. The Institution for Savings was born. Opening deposits totaling $465.10 were collected on the first day.
How the CDs Compare
When compared to the 268 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available to Massachusetts residents, Institution for Savings’ 15-month CD currently ranks second.
When compared to the 322 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available to Massachusetts residents, Institution for Savings’ 30-month CD currently ranks first.
The above rates are accurate as of 10/1/2015.
To search for nationwide CD rates and CD rates in your state, please refer to the CD rates section of DepositAccounts.com.