Leader Bank (MA) Ups 5-Year CD Rate

Earlier this week, Leader Bank raised the rate on its 5-year CD (2.25% APY). The minimum deposit is $1k, with no stated balance cap.

Since March 2011, the 5-year CD has had ten rate changes, and this week’s rate increase puts the 5-year CD’s APY at its highest level.

According to CSR, the Early Withdrawal Penalty is 18 months of interest. The fine print on the Deposit Rates page states,

Checking account may be required to open CDs, ask a representative.

CSR stated that the checking account requirement is decided on a case-by-case basis.

Zeugma Savings and Checking Accounts

More than three years ago, I wrote about Leader Bank’s Zeugma Savings and Checking accounts. The Zeugma Checking does not earn any interest on qualifying balances, but instead earns up to 1% cash back on debit card purchases. The Zeugma Savings account earns 2.05% APY on qualifying balances up to $50k. More detail about the Zuegma account can be found in my October 2013 blog post.

The word “zeugma” intrigued me, and after doing a little research I understand what the word means, but I’m not exactly sure of its relevance to the savings and checking accounts. According to Merriam-Webster, zeugma is “the use of a word to modify or govern two or more words usually in such a manner that it applies to each in a different sense or makes sense with only one (as in 'opened the door and her heart to the homeless boy').” Just another addition to the “collateral information” I’ve collected through my research for DepositAccounts.com.

Availability

Leader Bank’s market area for its CDs is the greater Boston metropolitan area and must be opened at any of seven Massachusetts branches located in Arlington (3), Belmont, Burlington, Boston, and Cambridge.

Leader Bank’s Zeugma Checking and Savings accounts (and e-Savings account) can be opened online, with residents of Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, Rhode Island, and Vermont eligible to apply.

Bank Overview

Leader Bank (FDIC Certificate # 57134) has an overall health rating of "A+" at DepositAccounts.com, with a Texas Ratio of 0.57% (excellent) based on September 30, 2016 data. In the past year, Leader Bank has increased its total deposits by $175.45 million, an excellent annual growth rate of 26.08%. Please refer to our financial overview of Leader Bank for more details.

Leader Bank was established in 2002 and is currently Massachusetts’ 33rd largest bank with assets in excess of $1.1 billion. Since early 2011, Leader Bank has participated in the Small Business Banking Partnership (SBBP) program. SBBP is designed to promote small business lending and job creation and is a collaboration between Massachusetts banks and the Massachusetts Department of Treasury.

From April 2011 through March 31, 2016, Leader Bank has closed 298 small business loans
and lines of credit in Massachusetts, totaling nearly $42.4 million of committed lending, thanks
in large part to the SBBP. These loans have helped to create over 830 jobs in the Commonwealth.

How the CD Compares

When compared to the 325 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available to within the Bank’s market area, Leader Bank’s 5-year CD APY currently ranks fourth.

The above rates are accurate as of 12/23/2016.

To look for the best nationwide CD rates and the best CD rates in your state, please refer to our CD rates table or our Rates Map page.