Massachusetts-based Ivy Bank (digital division of Cambridge Savings Bank) started the month by increasing the rate on its High-Yield Savings (HYS) account to 5.00% APY and guaranteeing that APY through June 30, 2024. Balances between $10 and $2,499.99 earn only 0.05% APY. The minimum opening deposit is $2.5k and total deposits are capped at $1 million.
|5.30*%||$2.5k||$1m||Ivy Bank||High-Yield Savings|
|OTHER TIERS: 0.05% → $10 - $2.5k|
In a Forum post this week, DA reader, evol97, noted the rate increase; DA reader, Phart, highlighted the rate guarantee; and DA reader, Hooked, confirmed that existing HYS customers qualify for this rate guarantee. Thank you for the Forum post and the comments!
As stated in the HYS Truth-in-Savings document,
RATE INFORMATION – APY of 5.00% for balances greater or equal to $2,500 is guaranteed through June 30, 2024, after which will pay a variable rate that is subject to change.
FREQUENCY OF RATE CHANGES – We may change the interest rate on your account at any time after June 30, 2024.
THIS OFFER TO OPEN NEW ACCOUNTS AT THE GUARANTEED RATE MAY BE WITHDRAWN AT ANY TIME – The guaranteed rate will apply to all current accounts through June 30, 2024.
Ivy Bank’s website contains a lot of useful information, including a FAQs section, which is quoted below. Note, there have been a few changes in the past year, including important changes on inbound and outbound transfer limits. Inbound transfer limits have been increased. For outbound limits, general limits are no longer listed. According to the FAQ, customers must "log in to Online Banking to view your outbound limits."
How can I deposit funds to my Ivy Bank Savings account?
You can fund your account via:
- Plaid – Authentication
- Manual entry of your external bank routing and account numbers
You can make deposits to your account via:
- Mobile Deposit
- Domestic wire transfer
- Mail deposit
See the Ivy Bank Understanding Your Deposit Account Handbook for details.
What are Ivy Bank’s transfer limits?
- Online Banking eTransfer: $250,000 limit per transfer/day and up to $1,000,000 limit per calendar month
- Mobile Deposit: $50,000 per item limit and $100,000.00 rolling 30-day limit
- Wire Transfer: Up to maximum account balance ($1,000,000.00)
- Online Banking eTransfer: Log in to Online Banking to view your outbound limits.
- Domestic Wire Transfer: $250,000 per wire
How do I withdraw money from my Ivy Bank Savings account?
You can withdraw money from your account via eTransfer, Domestic Wire Transfer or Treasurer’s Check. Withdrawals and transfers made from your account shall only be made payable to one or more of the owners of the account from which the withdrawal or transfer was made.
Transfers and withdrawals from an Ivy Bank Savings account are limited to a total of six per calendar month. There is no excessive transaction fee, because Ivy Bank will not honor any transaction beyond the allowed six.
According to CSR, a maximum of two beneficiaries can be added to an account. Required information for each beneficiary includes name, address, date of birth, and Social Security number.
Indexed Savings Account
Ivy Bank stopped accepting applications for its Indexed Savings Account some months ago and provides no information on its website about the Indexed Savings Account. DA reader, freebird, noted in a recent Forum post that Ivy Bank had upped the rate on its Indexed Savings Account to 5.685% APY. The rate for daily balances of $2.5k+ resets at the beginning of each calendar month and is indexed to the One-Month Treasury Yield (5.57% as of October 5, 2023).
Many thanks to the DA readers who have shared Indexed Savings Account rate information. Your posts are greatly appreciated.
Availability and Account Opening
Headquartered in Cambridge, Massachusetts, Ivy Bank is the “digital-only division” of Cambridge Savings Bank, the seventh largest bank headquartered in Massachusetts. Ivy Bank opened its virtual doors for business in July 2021, offering two accounts – the High-Yield Savings and a 5-year High-Yield CD.
U.S. citizens and residents of the United States, 18 years or older, with a valid Social Security number and a valid e-mail address, are eligible to open an account. (The fine print on the Open an Account page reads “California residents are not eligible for Ivy Bank products and services.”)
Any of the four accounts currently offered by Ivy Bank (High-Yield Savings and three CDs) can only be opened online.
Ivy Bank is a digital banking division of Cambridge Savings Bank. Deposits at Ivy Bank and Cambridge Savings Bank are combined for the purpose of calculating FDIC insurance limits and are not separately insured.
Ivy Bank/Cambridge Savings Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.70% (excellent) based on June 30, 2023 data. In the past year, the Bank has increased its total non-brokered deposits by $258.45 million, an excellent annual growth rate of 5.87%. Please refer to our financial overview of Ivy Bank/Cambridge Savings Bank (FDIC Certificate # 17870) for more details.
Cambridge Savings Bank was established in 1834 and is one of the oldest and largest community banks in Massachusetts. With assets in excess of $6.6 billion, Cambridge Savings Bank is currently the seventh largest bank headquartered in Massachusetts and the 212th largest bank in the country.
How the High-Yield Savings Compares
When compared to nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, that do not require large balances or direct deposit, and do not have small balance caps, the Ivy Bank High-Yield Savings 5.00% APY isn’t that impressive. Although more than 47 financial institutions are currently offering a higher rate, the rate guarantee through the end of June 2024 significantly increases the intrinsic value of the 5.00% APY. The following is a sampling of rates offered by online banks.
The above information and rates are accurate as of 10/6/2023.