Institution for Savings is promoting two CDs on its website: 40-month CD (2.25% APY) and 60-month CD (2.50% APY). The minimum opening deposit for either CDs is $500, with no stated balance cap.
The CDs are also available as IRAs (Traditional, Roth, CESA, and SEP) earning the same APYs, with the same funding requirements.
In the past, Institution for Savings’ competitive CD rates last for a month, give or take. In other words, if you see something you like, don’t wait too long.
As stated on Institution for Savings’s Certificate of Deposits information page, the Early Withdrawal Penalty reads as follows:
Nine month's interest whether earned or not on terms 25 to 47 months.
Twelve month's interest whether earned or not on terms 48 months or higher.
Platinum Money Market/CD Combo Accounts
For those with large balances, the MMDA/CD Combo Accounts may be a viable option. More than two years ago, 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. 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|
|OTHER TIERS: 0.25% → Up to $250k|
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.)
While some of the Bank’s products can be opened online, the 30- and 60-month CDs must be opened in person at any of 13 Massachusetts branches located in Beverly, Boxford, Gloucester, Ipswich (2), Middleton, Newburyport, Rockport (2), Rowley, Salisbury, and Topsfield.
Institution for Savings also has five Educational School Banks located in Beverly, Boxford, Byfield, Ipswich, and Newburyport. 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 1.05% (excellent) as of December 31, 2016. In the past year, Institution for Savings has increased its total non-brokered deposits by $188.35 million, an excellent annual growth rate of 9.43%. Please refer to our financial overview of Institution for Savings (FDIC Certificate # 90250) for more details.
With assets in excess of $2.8 billion, Institution for Savings is Massachusetts’ 13th largest bank, and one of the oldest mutual banks in the country. The 2014 merger with Rockport National Bank resulted in “one of the region’s strongest and largest community banks.”
The following is one of my favorite descriptions of a financial institution’s history.
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 365 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available to within the Bank’s market area, Institution for Savings’ 40-month CD APY currently shares the top place with Triangle Credit Union’s 35-month CD Special APY.
When compared to the 319 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available to within the Bank’s market area, Institution for Savings’ 60-month CD APY currently ranks second.
*Note: Melrose Credit Union is currently operating under an NCUA conservatorship.
The above rates are accurate as of 5/10/2017.