Ivy Bank 1-Year CD Offers Rate-Leading APY

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Deal Summary: 1-year CD, 4.85% APY, $1k minimum deposit, $1 million maximum balance.

Availability: Internet bank, available nationwide except in California.

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
5.00%$10$1mIvy Bank1 Year CD
Rates as of March 31, 2023.

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.25%$10$1mIvy Bank3 Year CD
2.60%$10$1mIvy Bank5 Year CD
Rates as of March 31, 2023.

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If your account has a maturity of one year: The fee we may impose will equal 90 days simple interest on the amount withdrawn subject to penalty.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 Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty.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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
4.50*%$2.5k$1mIvy BankHigh-Yield Savings
OTHER TIERS: 0.05% $10 - $2.5k
Rates as of March 31, 2023.

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.

Related Pages: savings accounts, 1-year CD rates, nationwide deals, Internet banks

Comments
Ivy Bank Raises High-Yield Savings Rate Again
Deal Summary: High-Yield Savings, 2.30% APY on balances of $2.5k and above, $2.5k min/$1m max deposit.

Availability: Internet bank, accounts offered nationwide except in California.

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....

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Ivy Bank Continues To Push High-Yield Savings Rate Upward
Deal Summary: High-Yield Savings, 1.70% APY on balances of $2.5k and above, $2.5k min/$1m max deposit.

Availability: Internet bank, accounts offered nationwide except in California.

Massachusetts-based Ivy Bank (digital division of Cambridge Savings Bank) has been aggressively increasing its High-Yield Savings APY since early June. With a total of 85 bps added in three rates increases in the last four weeks, the High-Yield Savings account currently earns 1.70% APY on balances of $2.5k to $1 million. Balances of less than $2.5k continue to earn 0.05% APY.

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Ivy Bank Ups High-Yield Savings Rate Again
Deal Summary: High-Yield Savings, 1.50% APY on balances of $2.5k and above, $2.5k min/$1m max deposit.

Availability: Internet bank, nationally available except in California.

Just ten days ago, Massachusetts-based Ivy Bank (digital division of Cambridge Savings Bank) added 30 bps to its High-Yield Savings rate. Another 35 bps were added yesterday, boosting the rate to 1.50% APY on balances from $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...

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Ivy Bank Pushes High-Yield Savings Account Rate Upward
Deal Summary: High-Yield Savings, 1.15% APY on balances of $2.5k+, $2.5k minimum/$1m maximum deposit.

Availability: Internet bank, nationally available except in California.

Massachusetts-based Ivy Bank, a digital division of Cambridge Savings Bank, has upped its High-Yield Savings rate to 1.15% APY on balances of $2.5k+; 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...

Continue Reading
Ivy Bank Boosts High-Yield Savings Account Rate
Deal Summary: High-Yield Savings, 0.70% APY on balances of $2.5k+, $2.5k minimum/$1m maximum deposit.

Availability: Internet bank, nationally available except in California.

Ivy Bank, a digital division of Cambridge Savings Bank, has raised the rate on its High-Yield Savings from 0.61% APY to 0.70% APY on balances of $2.5k+; balances of less than $2.5k 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.

FAQs

Ivy Bank’s website contains a lot of useful information, including a...

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