East Boston Savings Bank serves customers in Massachusetts. Its interest rates on certificates of deposit (CDs) are competitive but they vary greatly by term. In some cases, the rates do not compare as well with some of the best CD rates on the market, but in other cases they do.
The account minimum of $1,000 isn’t the lowest around but is comparable to those at similar large banks. Shorter terms require a higher deposit. You have a lower minimum if you plan to open a CD with a retirement account, but you will also have to pay an annual fee with such an account.
Keep reading to learn more of the ins and outs of East Boston Savings Bank’s CD accounts.
|CD Term||Minimum Deposit||APY|
|6 Month||$2,500||0.30%||Compare CD Rates|
|9 Month||$2,500||0.40%||Compare CD Rates|
|12 Month||$1,000||0.45%||Compare CD Rates|
|13 Month Special||$1,000||1.26%||Compare CD Rates|
|14 Month Special||$1,000||2.20%||Compare CD Rates|
|16 Month||$1,000||1.56%||Compare CD Rates|
|18 Month||$1,000||0.50%||Compare CD Rates|
|19 Month||$1,000||1.61%||Compare CD Rates|
|24 Month||$1,000||0.65%||Compare CD Rates|
|25 Month Bump-Up||$1,000||1.41%||Compare CD Rates|
|30 Month||$1,000||2.21%||Compare CD Rates|
|36 Month||$1,000||1.00%||Compare CD Rates|
|48 Month||$1,000||1.25%||Compare CD Rates|
|60 Month||$1,000||2.15%||Compare CD Rates|
6-Months Special CD Interest Rate Comparison
Overview of East Boston Savings Bank CDs
East Boston Savings Bank, founded in East Boston in the mid-1800s, serves residents in Massachusetts with more than 30 branch locations.
CD accounts from East Boston Savings Bank, which range from six months to 60 months (five years), typically have a minimum of $1,000. Six-month and nine-month terms have a higher minimum of $2,500. Interest compounds and credits monthly for all terms.
If you want a CD for an individual retirement account (IRA), you only need a $500 minimum deposit. All CD terms are available as part of an IRA. That includes special CDs. One difference is that IRA CD accounts have an annual fee of $15.
In addition to standard CDs, East Boston Savings Bank offers bump-up CDs. These special accounts allow you to increase your interest rate once during your term. You can only increase if a higher rate is available from the bank. The only ways to increase your rate are by visiting a local branch or contacting a branch in writing.
When you earn interest in a CD account, you have the ability to transfer the earnings into another account with the bank. You can only make six transactions per year, which is also true of standard savings accounts.
You must wait until the end of your term to withdraw any of your principal. Once your account reaches maturity, East Boston Savings Bank will provide a 10-day grace period during which you can make any changes, deposits or withdrawals. If you do not close your account, it will renew at the end of the grace period. Accounts typically renew for another term of the same length, but this isn’t always true. You should ask about your specific CD term before you open an account.
If you need to withdraw any of your principal before your account’s maturity date, it is possible to do so but you will need to pay an early withdrawal penalty. The amount of the penalty will depend on how much you withdraw and the length of your term. Terms between six and 12 months have a penalty equal to three months’ interest. Terms over 12 months long up to 36 months will come with a penalty equal to six months’ interest. The early withdrawal penalty is 12 months’ interest for any term of longer than 36 months.
How Much You Earn With East Boston Savings Bank CDs Over Time
Interest earnings from East Boston Savings Bank will depend greatly on which term you choose. Longer terms generally have higher rates but this isn’t always the case. For example, the 30-month CD currently has a higher rate than the 36-month CD (and the 60-month CD for that matter).
Another thing to remember is that you will earn the most interest by leaving your interest in the account after it credits. Removing interest during your term will decrease overall earnings.
The table below shows what your approximate total balance will be based on different initial deposits and term lengths. Note than the six-month CD requires a higher account minimum and that the 30-month CD has a higher rate than all longer-term CDs.
|Initial Deposit||6-Month CD||12-Month CD||36-Month CD||60-Month CD|
How East Boston Savings Bank CD Rates Compare to Other Banks’
The CD rates from East Boston Savings Bank are competitive but they also vary greatly by term. For that reason, you should compare CD rates before opening any accounts.
Customers looking specifically for short-term CDs should look into Ally Bank. Ally has competitive rates for all term options, but its short-term rates are its best. There is no minimum deposit necessary for opening an account, but you can earn at a higher rate with an initial deposit of at least $5,000. Keep in mind that Ally is also an online bank. It does not have physical branches that you can visit.
You can find more competitive long-term rates with Capital One. Capital One does not require a minimum deposit. You can also get high rates with a broker like Edward Jones. Edward Jones accounts have a $1,000 minimum deposit but the rates are some of the highest available. Terms also range up to 10 years, so you can really focus on long-term goals like saving for retirement.
Customers who want to bank locally in Massachusetts could also consider Needham Bank. It serves Eastern Massachusetts customers and offers high rates. The account minimum at Needham Bank is $1,00 but terms of less than a year may require a $2,500 deposit (like East Boston Savings Bank).
|CD Account||East Boston Savings Bank||Ally Bank||Capital One|
Compare East Boston Savings Bank to Other Competitive Offers
Should You Get an East Boston Savings Bank CD Account?
Whether or not you should open an account with East Boston Savings Bank will depend on your individual savings goals. Some terms offer better rates than others and those terms may not align with your goals. If you’re primarily looking for a short-term CD, the rates are competitive but the $2,500 minimum may be too high for you. That may prompt you to consider banks like Ally that have lower minimums. You can also find higher long-term rates elsewhere. Even if your main goal is to work with a local bank, it is possible to find higher rates.