Institution for Savings has just raised the rate on its 40-month CD to 3.00% APY. The 125 bps increase has resulted in the 40-month CD’s highest APY since 2012. The minimum opening deposit is $500, with no stated balance cap.
The CD is also available as an IRA (Traditional, Roth, CESA, and SEP) earning the same APYs, with the same funding requirements.
In the past, Institution for Savings' competitive CD rates have been somewhat short-lived, lasting for about a month, more or less. 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.
Headquartered in Newburyport, 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, with Zip Codes used to determine eligibility.
While a limited number of the Bank’s products can be opened online, the 40-month CD can only be opened in person at any of 13 Massachusetts branches located in Beverly, Boxford, Gloucester, Hamilton, Ipswich (2), Middleton, Newburyport (2), Rockport, 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 grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.62% (excellent) based on December 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $435.76 million, an excellent annual growth rate of 19.93%. Please refer to our financial overview of Institution for Savings (FDIC Certificate # 90250) for more details.
Following the 2014 merger with Rockport National Bank, Institution for Savings has become “one of the region’s strongest and largest community banks.” With assets in excess of $3.3 billion, Institution for Savings is Massachusetts’ twelfth largest bank and one of the oldest mutual banks in the country.
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 CD Compares
When compared to the 380 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available within the Bank’s market area, Institution for Savings’ 40-month CD APY currently ranks first.
The above rates are accurate as of 5/16/2018.
To look for the best nationwide CD rates and the best CD rates in your state, please refer to our CD Rates Table page.