In the past three months, Massachusetts-based Ivy Bank (digital division of Cambridge Savings Bank) has continued to increase its High-Yield Savings APY, with the latest rate increase occurring on Friday. With a total of 145 bps added in six rates increases in the last eleven weeks, the High-Yield Savings account currently earns 2.30% APY on balances of $2.5k to $1 million. Balances of less than $2.5k continue to earn 0.05% APY.
A High-Yield Savings can be opened with a minimum $2.5k deposit and total deposits are capped at $1 million. The opening deposit can partially be made by credit/debit card and is limited to a maximum $1k deposit.
The High-Yield Savings was part of the product line when Ivy Bank made its debut in August 2021. The initial 0.61% APY was in effect for about seven months before a series of three rate increases began. Since the beginning of March 2022, a total of 169 bps points have been added.
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.
Regarding outbound transfer limits, DA reader scottj reported a transfer out limit of $25k for new customers that will be increased after four months.
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 also offers an Indexed Savings account, which currently earns 2.00% APY (205 bps higher than in March 2022). 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 (2.23% as of August 19, 2022). An example of that indexing occurred in late 2018 and early 2019 when the One-Month Treasury Yields were around 2.40%, which was higher than most online savings account rates at that time.
Headquartered in Cambridge, Massachusetts, Ivy Bank is the “digital-only division” of Cambridge Savings Bank, the eighth largest bank headquartered in Massachusetts. Ivy Bank opened its virtual doors for business in July 2021.
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 five accounts Ivy Bank offers (including the High-Yield Savings account) 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 2.35% (excellent) based on March 31, 2022 data. In the past year, the Bank increased its total non-brokered deposits by $247.24 million, an excellent annual growth rate of 5.85%. 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 $5.3 billion, Cambridge Savings Bank is currently the eighth largest bank headquartered in Massachusetts and the 243rd largest bank in the country.
Depositors Insurance Fund (DIF)
Our growth requires that CSB exit the Depositors Insurance Fund (DIF) as of October 30, 2021. The DIF insures deposits above the Federal Deposit Insurance Corporation (FDIC) limits at member banks. The larger banks in Massachusetts, including all commercial banks and federally chartered banks, are not covered by DIF.
All CSB deposit accounts that are open as of October 30, 2021, other than certificates of deposit (CDs), will continue to be insured under DIF until October 30, 2022. CDs that have not matured as of October 30, 2021 will also continue to be insured under DIF until they reach maturity.
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 APY ranks third.
The above information and rates are accurate as of 8/22/2022.