The Berkshire Bank's 18-month CD Interest Rate Continues to Rise

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The interest rate on The Berkshire Bank's (NY) 18-month CD has been steadily rising since October 2013, and is currently at 1.20% APY. The minimum opening deposit for this CD is $1K, with a balance cap of $500K; it is also available as an IRA. Interest is compounded daily and may be withdrawn before the CD matures.

The Early Withdrawal Penalty, as described in The Berkshire Bank's Account Agreement and Disclosure, is substantial:

"The early withdrawal penalty will be one-half (1/2) the interest that would be due on the CD over the entire term of the CD, regardless of the length of time the funds remained on deposit, subject to the following limits. The minimum penalty is 7 days simple interest. The maximum penalty is 270 days simple interest. It is possible that all or part of the penalty will be deducted from principal."
APYMINMAXINSTITUTIONPRODUCTDETAILS
1.10*%$10k$500kThe Berkshire Bank18 Months CD
1.10*%$10k$500kThe Berkshire Bank18 Months IRA
0.55%$500$100kThe Berkshire BankSuper Security Checking
Accounts mentioned in this post. Rates as of December 8, 2016.

The Berkshire Bank is also offering a new Super Security Checking account earning 1.00% APY. When I first saw the name, I read it literally and thought it was an account with extra, high-tech safeguards; in fact, it's an account designed for those with monthly Social Security deposits. This account (limited to one per household) is for new customers and new money, or those existing customers who maintain a CD with The Berkshire Bank .

To qualify for this Super Security Checking account, the following requirements must be met:

  • Minimum $100 opening deposit
  • Monthly direct deposit(s) from Social Security
  • Maintain a minimum daily balance of $500
  • Debit card associated with Super Security Checking account

Please refer to The Berkshire Bank's products page for full details.

Availability

The Berkshire Bank is a New York State chartered bank serving customers in NYC, Upstate New York, and portions of New Jersey (metropolitan New York City). While offering online banking for certain transactions, opening an account or purchasing a CD requires an in-person branch visit. The Berkshire Bank has branches in New York City (3), Brooklyn (4), Upstate New York (Goshen, Harriman, Bloomingburg), and Teaneck, New Jersey.

Bank Overview

The Berkshire Bank of has an overall health rating of A at DepositAccounts.com, with a Texas Ratio of 4.56% (excellent) as of March 31, 2014. The Berkshire Bank holds $763.01 Million in assets, with $128 Million in equity, resulting in an excellent capitalization rate of 16.78%. Please refer to our financial overview of The Berkshire Bank for more details.

Established in 1989, The Berkshire Bank (FDIC Certificate # 27503) considers itself a community bank located in the financial capital of the country. Following the acquisition and merger with Goshen Savings Bank in 2001, The Berkshire Bank expanded its market to Upstate New York, continuing Goshen Savings Bank's 130-year tradition of serving and supporting the community.

How the Rates Compare

18-month CD

When compared to similar length-of-term CDs, as tracked by DepositAccounts.com and available to New York State residents, The Berkshire Bank's 18-month CD ranks well:

  • 1.25% APY 18-month CD Greater Hudson Bank (with checking)
  • 1.25% APY 18-month CD Eastbank (promotional)
  • 1.20% APY 18-month CD The Berkshire Bank
  • 1.10% APY 18-month CD Doral Bank NY

Super Security Checking

The requirement of a Social Security deposit makes the Super Security Checking unique, and therefore difficult to compare like-products to like-products. When based solely on interest rates, compared to other checking accounts as tracked by DepositAccounts.com. and available to New York state residents, The Berkshire Bank's Super Security ranks equally well:

  • 4.00% APY The Bank of Greene County, Free e-checking ($1K max)
  • 1.00% APY The Berkshire Bank, Super Security Checking ($500 min, $100K max)
  • 0.85% APY Doral Bank NY, Gold Interest Checking (no max cap)
  • 0.76% APY Bank5 Connect, Connect Checking ($100 min)

The above rates are accurate as of 8/17/2014.

To search for nationwide CD rates and CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

To find the highest rates on checking accounts in your state and nationwide, please refer to our checking account rate table.

Comments
Anonymous
Anonymous   |     |   Comment #1
Thank you, Ken, for featuring shorter term CDs like this.  When the bottom falls out, as it inevitably will, people with five and seven year investments will wish they had a lot more short CDs.  And so-called "laddering" will not help them, either . . . . not enough, anyway.

My best short term CD right now is one I have at CommunityWide CU, 2% on a one year CD.  Ho boy, I sure wish that deal would come back!!!! 
Anonymous
Anonymous   |     |   Comment #2
One year from now you will have earned 1.2% on your short-term CD portfolio, with new rates perhaps only slightly higher, while prudent followers of DA will continue to receive a steady stream of earnings of at least double that on their laddered CDs, with the opportunity to reinvest their maturing CDs into higher yielding ones.
Anonymous
Anonymous   |     |   Comment #3
Oh how I envy your prescience!!  It's not fair that God gave to you, and to you alone, the ability to know where interest rates are headed!

You are wasting your gift, though.  With forecasting ability like yours, other folks would already possess sufficient wealth to allow living on a balmy island in the South Pacific!

Uh, on second thought wait just a moment.  Are you posting from the South Pacific? 
Anonymous
Anonymous   |     |   Comment #5
If 1-yr rates suddenly jumped to 2% there would be so much cash flowing in the banks would drown. Tens of millions of "savers" are holding cash in their local banks at near ZERO interest. In the past, these same "savers" regularly purchased short-term CD's, something they won't do at today's rates.

The bottom line is people with long-term CD's over 3% will probably do just fine, especially those with intelligent ladders. Many posters refuse to say precisely what they want...a speedy return to 5% rates on short-term deposits. What they miss is that another massive transfer of wealth is underway and it's not over...by a long shot. I've watched people retire, take lump sums over 100K and then it sit in a near-zero money market for two years. In the meantime, stocks earned 30%.     
Anonymous
Anonymous   |     |   Comment #4
#1.  It is the net difference in dollars over the respective terms, i.e. the delta is what matters...just looking at "numbers" is not income comparison..."they" are getting a higher rate now that may still be good (overall) if "the bottom falls out."
hoho
hoho (anonymous)   |     |   Comment #6
You can get a 2.3% CD at Synchrony Bank.  If you closed early and with the EWP  (Penalty is also tax deductable) you would get 1.15% at 1 year, 1.53% at 18 months and 1.72% at 2 years.  So if rates go up above these (Which I doubt  will happen anytime soon) you can just close the CD and get a higher rate (I did that with Penfed when they had the 3% CD last year) but if not at least you get 2.3 for 5 years unless the bank fails or has in the DA a clause that gives them an out (Like Ally).  If the Fed raises rates they will most likely go up slowly.
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