Eastern Bank CD Rates

Eastern Bank Eastern Bank 3-Month Standard CD

0.05% APY

Eastern Bank operates over 120 branches in Massachusetts and Southern New Hampshire, and its headquarters are located in Boston, where it was founded in 1818. The bank offers several different certificate of deposit (CD) accounts with varying term lengths ranging from three months to over five years. 

Rates at Eastern Bank are much lower than the best CD rates we’ve seen, especially when compared to online options. However, customers with Eastern Bank checking accounts are eligible to achieve slightly higher rates on terms of one year or longer.

Terms for one year or longer require a relatively low $500 minimum deposit, but if you're looking to have quicker access to your money with shorter term lengths, you must be prepared to fork over the $2,500 Eastern Bank requires as a minimum deposit. 

To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.

Continue reading below to learn the ins and outs of CD options at Eastern Bank.

Standard CDs

Premier Account CDs

Premier Account CDs at Eastern Bank are available to customers with an Eastern Premier checking account. Rates are slightly higher for term lengths of 12 months or longer. 

Eastern Bank 3-Month Standard CD Interest Rate Comparison

Overview of Eastern Bank CD Rates

Eastern Bank offers a great deal of flexibility when it comes to deciding on a term length for your CD, with seven different term length categories and two sets of interest rates, one for those with an Eastern checking account and one for those without. While you are capable of applying for Eastern Bank CDs in person, it makes more sense to search for a higher rate if you’re comfortable with banking online. 

For term lengths shorter than one year, Eastern Bank has a minimum deposit requirement of $2,500, which is relatively high and may deter some potential customers. For longer term lengths, the minimum falls to $500. What this means is that if you’re looking to invest a smaller sum of money, you’ll need to be able to part with it for at least a year.

Although you should avoid touching your principal until your CD matures, sometimes there are unavoidable circumstances in which you need some of that money. In those instances, you will be forced to pay an early withdrawal penalty. If you’re withdrawing from a CD with a term length shorter than one year, then you will pay 91 days worth of simple interest on the amount you’re withdrawing, regardless of whether you’ve earned that interest to that point or not. So for instance, let’s say you invested $4,000 in a six-month CD. If you were to withdraw $1,000 after four months, you would pay a penalty of 12 cents (0.05% x 91/365 x $1,000). 

If the term length of the CD you’re withdrawing from is one year or longer, the penalty increases to 182 days worth of simple interest, earned or unearned. So, if you invested $4,000 in a 24-month CD and need to withdraw $1,000 after one year, you would pay a penalty of $1. As you can see, you would have to withdraw several thousand dollars early before your penalty rises above a few bucks. However, keeping that interest is likely the reason you invested in a CD in the first place, so do your best to avoid touching the principal until maturity.

Once your CD reaches maturity, you will have a grace period of 10 days to either withdraw your funds or place them in a different CD. If you do nothing, the bank will automatically renew you for another CD of the same term.

How Much You Earn With an Eastern Bank CD Account Over Time

Rates for all CD offerings at Eastern Bank are well below 1%, so don’t expect any lucrative returns. That said, you can still earn a fair bit of interest if you invest a large sum for a long time. Interest for term lengths up to 11 months is calculated as simple interest. For longer term lengths, the interest compounds monthly. This means that you won’t have the opportunity to gain as much interest you would with a CD that compounds daily or continuously. However, for shorter terms and/or lower investments, the difference is often pretty low, especially when dealing with rates on the lower end of the spectrum. The rates below are for a Premier Account. 

How Eastern Bank CD Rates Compare to Other Banks'

Eastern Bank CD rates don’t stack up particularly well with competitors, save for very large, national banks like Chase. For bankers in New England looking for an in-person experience, higher rates can be found at other regional banks such as Webster Bank. Additionally, online establishments like Marcus by Goldman Sachs offer significantly higher rates, often without a minimum deposit requirement.

All that said, rate size may not be the only factor you’re considering. You may be attracted to the relatively low early withdrawal penalties at Eastern Bank. You may also already have an Eastern checking account and want to keep your accounts under one roof. Eastern Rates below are for the Premier account. 

Should You Get an Eastern Bank CD Account?

If you are an existing Eastern Bank customer and you’re looking to consolidate your banking to one location, then you may be interested in opening an Eastern Bank CD account, particularly because you’ll be eligible for the Premier rates. If achieving the highest rates is your number one priority, however, then you may be better served heading to a different brick-and-mortar bank like Webster Bank or an online establishment like Marcus by Goldman Sachs.