Leader Bank is one of the newer mutual savings banks in operation, having opened its doors less than twenty years ago, in 2002. It operates out of Massachusetts and caters to customers who come from a smattering of cities all across the state.
When it comes to its CD Rates, Leader Bank takes an unusual approach, particularly for a bank of its small size. In order to open and continue working with a CD account, you as a customer must maintain an account minimum of $1,000, which is also the minimum opening deposit. That said, if you are able to meet this fairly expensive minimum, you’re in luck: Leader’s annual percentage yields (APYs) are, relatively speaking, high for a regional bank, especially when you compare CD rates to those of other banks out there.
Unfortunately, the inevitable downside of maintaining a vast physical presence is the bank’s need to devote monetary resources to its brick-and-mortar storefronts. But with Leader Bank, you’ll still find many CD account options to choose from with a range of term lengths. You can decide which one will work best for you depending on factors like when you’ll need to tap into your savings, how much you can afford to stow away in the present and how long you can afford to wait for your investment to mature.
You can open a CD at Leader Bank from anywhere as short as three months to as long as five years. Unlike most banks, the APY rates attached to the CD accounts, which we have reproduced below, do not follow a linear fashion. Speak to a Leader Bank representative to understand which account would work best for you.
|CD Term||Minimum Deposit||APY|
|3-Month||$1,000||0.15%||Compare CD Rates|
|4-Month||$1,000||0.15%||Compare CD Rates|
|6-Month||$1,000||0.15%||Compare CD Rates|
|7-10 Month||$1,000||0.15%||Compare CD Rates|
|1-Year||$1,000||0.40%||Compare CD Rates|
|14-Month||$1,000||0.55%||Compare CD Rates|
|15-Month||$1,000||0.40%||Compare CD Rates|
|18-Month||$1,000||0.40%||Compare CD Rates|
|21-Month||$1,000||0.40%||Compare CD Rates|
|2-Year||$1,000||0.40%||Compare CD Rates|
|25-Month||$1,000||0.50%||Compare CD Rates|
|30-Month||$1,000||0.50%||Compare CD Rates|
|3-Year||$1,000||0.55%||Compare CD Rates|
|4-Year||$1,000||0.55%||Compare CD Rates|
|5-Year||$1,000||0.55%||Compare CD Rates|
3-Month CD Interest Rate Comparison
Overview of Leader Bank CDs
For a chain of its small size and limited presence, Leader Bank offers both an impressive range of CD account term lengths and a handful of unusually good APYs. In fact, the APY rates offered for CD accounts that last 30 months, 15 months and 5 years respectively are better than many of the best CD rates in the country. Because it serves a small local population, Leader Bank suggests an in-person consultation with one of its bankers so as to pair you with a CD that will best fit your financial goals.
Unfortunately, if you try to withdraw any amount of money before your CD reaches maturity, you will have to pay an early withdrawal penalty, which will typically be worth 90 days’ interest on the amount withdrawn. However, these figures can greatly vary, depending on your account terms or banking history. Your best shot at getting a clear estimate is meeting with a Leader Bank teller at your local branch.
How Much You Earn With Leader Bank CDs Over Time
The rates do the talking—the more you put into the account, the more you’ll make. Here’s the breakdown of some of Leader’s most common starting deposits and most-used CD terms, listed by initial deposit and rounded to the nearest dollar:
|Initial Deposit||6-Month CD||18-Month CD||5-Year CD|
How Leader Bank CD Rates Compare to Other Banks’
For such a small chain, Leader Bank’s CD rates stack up impressively against much larger competitors such as Ally Bank and Marcus by Goldman Sachs. However, it’s best to take into account that Leader Bank operates solely in one state, and as such, its client count and total assets are far lower than those nationwide competitors.
In fact, there aren’t any Leader Bank branches beyond Massachusetts, so its entire business operation is small and locally focused. All that said, here’s how Leader Bank measures up to Ally and Marcus by Goldman Sachs, two online banks, and Chase, a national bank with particularly low rates:
|CD Term||Leader Bank||Ally Bank||Marcus by Goldman Sachs||Chase|
Compare Leader Bank to Other Competitive Offers
Should You get a Leader Bank CD Account?
If you live in Massachusetts (especially near Lead Bank’s headquarters in Arlington) and have at least $1,000 to put away, opening a Leader Bank CD account may be an excellent choice with a good payoff. Leader Bank only has seven physical branches—in Belmont, Burlington, Arlington, and Boston—which means the operating costs are much lower than those of giant bank corporations like Chase or Citibank. This can go toward explaining its solid APY rates.
Furthermore, fewer customers means more attention for you. It is easy to make an appointment to speak with a bank teller at Leader.