The Village Bank is currently offering an 8-month CD Special, which earns 2.25% APY. Minimum opening deposit is $500, with no stated balance cap. The 8-month CD Special was added to the product line about two weeks ago. CSR mentioned that The Village Bank updates their rates every Wednesday, so there is a possibility the 2.25% APY will only be available through the end of the month.
According to CSR, the Early Withdrawal Penalty for the 8-month CD Special is 90 days of interest, with partial withdrawals allowed.
Funding can be done by ACH, wire, or by check (in-person or by mail). Maturing funds will be distributed through a bank check or wire transfer ($20 domestic/$40 international fee). There is a nine calendar day grace period before the CD Special automatically renews.
Only one beneficiary can be named, with a Social Security number required.
SIF Deposit Insurance
Large balances at The Village Bank are protected through the Bank’s Share Insurance Fund (SIF) membership. The SIF is a private, industry-sponsored insurance fund that insures all deposits above Federal Deposit Insurance Corporation (FDIC) limits at Massachusetts-chartered co-operative banks.
As stated on The Village Bank’s FAQs page,
Q. Are my deposit accounts insured?
A. Yes, The Village Bank provides FDIC and SIF insurance for your deposits. The first $250,000 of your deposits is insured by the Federal Deposit Insurance Corporation (FDIC). The Share Insurance Fund (SIF) insures all deposits above that amount.
Headquartered in Newton, Massachusetts, The Village Bank is the only remaining mutual community bank headquartered in the City of Newton. According to CSR, the market area is basically wherever there is a branch location, which includes a small portion of southeast Middlesex County.
The Bank’s online application uses Zip Code to determine eligibility. Given the Newton’s proximity to Boston (about 7 miles), I entered a Boston Zip Code. The response was “Unfortunately, this product is not available in your zip code.”
Opening an 8-month CD Special can be done online, or at any of nine Massachusetts branches, located in Auburndale, Newton Centre, Newton Highlands, Newtonville, Nonantum, Waban, Wayland, and West Newton.
The Village Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.04% (excellent) based on June 30, 2019 data. In the past year, The Village Bank has increased its total non-brokered deposits by $94.08 million, an excellent annual growth rate of 9.92%. Please refer to our financial overview of The Village Bank (FDIC Certificate # 26336) for more details.
The Village Bank was established in 1910 as the Auburndale Co-operative Bank and was not FDIC insured until 1985. Following the merger with the Newton South Co-operative Bank in 2003, the Bank re-branded as The Village Bank. While the word “village” suggests something small and/or quaint, The Village Bank is anything but small or quaint, with assets in excess of $1.2 billion and nearly 37,000 customer accounts. The City of Newton (population 85,000+) consists of 13 officially recognized villages, each with an individual downtown center, post office, and unique Zip Code. These 13 villages are all served by The Village Bank.
How the CD Special Compares
When compared to 371 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available within the market area, The Village Bank’s 8-month CD Special APY currently shares the top spot with CDs offered by two other local banks and two easy membership credit unions.
The above rates are accurate as of 10/24/2019.
Looking for the best CD rates, both nationwide and in your state? Please refer to our CD Rates Table page.