Ivy Bank 1-Year CD Offers Rate-Leading APY
Although I’ve written about the High Yield Savings account offered by Ivy Bank (internet division of Cambridge Savings Bank) several times in the past year, I haven’t written about the CD product line since Ivy Bank opened its virtual doors in August 2021. Following a substantial 185 bps increase this week, the 1-year CD currently earns 4.85% APY. The minimum opening deposit is $1k, with a maximum account balance of $1 million.
The Ivy Bank CD product line is small, with only a total of three CDs available. The 3-year and 5-year CD rates remained unchanged this week. While many banks currently have mildly inverted CD Yield Curves, Ivy Bank’s present inverted CD Yield Curve is the most dramatic.
As stated in the CD Truth-in-Savings disclosure, the Early Withdrawal Penalty reads as follows:
If your account has a maturity of one year: The fee we may impose will equal 90 days simple interest on the amount withdrawn subject to penalty.
In the transaction limitations section, early withdrawals of principal are explicitly allowed subject to the early withdrawal penalty:
You may make withdrawals of principal from your account before maturity. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty. Except in cases of complete withdrawal, no such withdrawal before maturity shall reduce the remaining balance of the account below the $1,000 minimum balance.
High-Yield Savings
The High-Yield Savings (HYS) currently earns 4.05% APY on balances of $2.5k and above. The HYS was part of the Ivy Bank inaugural product line, with an initial 0.61% APY that was in effect for about seven months before a series rate increases began (which was competitive during this period.) Between March 2022 and December 2022, a total of 344 bps have been added.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 4.50*% | $2.5k | $1m | Ivy Bank | High-Yield Savings | |
| OTHER TIERS: 0.05% → $10 - $2.5k | |||||
More details about the HSY can be found in the August 22, 2022 blog post.
Availability
Headquartered in Cambridge, Massachusetts, Ivy Bank is an internet bank that opened its virtual doors for business in July 2021, when Cambridge Savings Bank announced the launch of Ivy Bank, its “digital-only division.”
U.S. citizens and residents of the United States (with the exception of California residents), 18 years or older, with a valid Social Security number and a valid e-mail address are eligible to open an account. Opening CD can only be done online.
Account Opening
Funding and Other Details
The following information is from the CD Truth-in-Savings disclosure and a Live Chat with CSR.
- Funding – ACH, domestic wire, debit/credit card ($1k max), or check.
- Interest – Compounded/credited monthly and can be “paid electronically to another Ivy Bank account every month.”
- Maturing Funds – ACH or cashier’s check to address on file.
- Beneficiaries – Maximum two beneficiaries with equal shares; name, DOB and Social Security number required.
- Grace Period – 10 calendar days before automatic renewal.
Bank Overview
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 2.35% (excellent) based on June 30, 2022 data. In the past year, the Bank increased its total non-brokered deposits by $121.75 million, an above average annual growth rate of 2.85%. 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 $5.6 billion, Cambridge Savings Bank is Massachusetts’ seventh largest bank and the 234th largest bank in the country.
How the 12-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, no banks or credit unions have higher rates than currently offered on the Ivy Bank 12-Month CD. The following table compares the 12-Month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
The above information and rates are accurate as of 1/17/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
