For about a year and a half starting in 2014, Institution for Savings seemed to produce one good CD rate after another. Since my last blog post in October 2015, Institution for Savings hasn’t had much in their product line to get excited over. That changed on Friday when the Bank raised the rates on its 24-month CD (2.00% APY), 36-month CD (2.25% APY), and 48-month CD (2.50% APY) - a mere two days after the Fed announced it was increasing the federal funds rate. As DA reader, scottj, said in a Forum post, “Well, that didn’t take long.”
The minimum opening deposit for any of these 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.
Historically, 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:
Six month's interest whether earned or not on terms 16 to 24 months.
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 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 about two years ago. Complete details are available on the Deposit Rates page.
|2.50%||$250k||-||Institution for Savings||36 Month Platinum Money Market CD|
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 24-month CD can be opened online, but the 36- and 48- month CDs are not listed on the online application and must be opened in person at any of ten Massachusetts branches located in Beverly, 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 1.07% (excellent) as of September 30, 2016. In the past year, Institution for Savings has increased its total deposits by $233.8 million, an excellent annual growth rate of 11.72%. Please refer to our financial overview of Institution for Savings for more details.
With assets in excess of $2.7 billion, Institution for Savings is Massachusetts’ 13th largest bank, and one of the oldest and stable mutual banks in the country. The following is 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 387 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’ 24-month CD APY currently ranks first.
When compared to the 379 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’ 36-month CD APY currently ranks first.
When compared to the 331 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’ 48-month CD APY currently ranks first.
The above rates are accurate as of 12/16/2016.