NEW YORK – RateWatch, a premier banking data and analytics service owned by TheStreet, Inc. (NASDAQ: TST) reported today that there was once again little movement in deposit rates, as savers continued to suffer from the Federal Reserve’s policy of keeping the short-term federal funds rate in a historically low range of zero to 0.25% for over five years.
“Federal Reserve Chairwoman Janet Yellen faced some difficult questions during her testimony before the Senate Banking Committee last week, and Senator David Vitter (R., La.) even said the U.S. economy was on a “sugar high” from the central bank’s policy,” said Philip van Doorn, TheStreet’s Senior Bank Analyst. “Nonetheless, Yellen’s policies are seen as a continuation of former Fed Chairman Ben Bernanke’s policies as the U.S. economy continues its slow recovery.”
NATIONAL AVERAGE RESULTS – $10K
In the Greater Boston Region area, the average 5-year CD rate sat at 1.28%, higher than the national average of 1.13%. Rates on the 5-year CD ranged from 0.1% on the low end to 2.0% at the high end, which can be found at Institution for Savings In Newburyport. The average 3-year CD rate in Greater Boston Region was 0.86% with a range of 0.05% to 1.6% found at Northern Bank Trust Company. And if you are on the market for a 1-year CD, take a look at Institution for Savings In Newburyport, which currently offers a rate of 0.75% as compared to the Greater Boston Region average of 0.41%. Other top rate issuers can be found in the tables that follow.
GREATER BOSTON REGION AVERAGE RESULTS – $10K
TOP RATE ISSUERS – $10K
This is a list of issuers with top interest rates in the Greater Boston Region area. The issuer’s Financial Strength Rating is an independent, unbiased evaluation of quarterly regulatory statements. Institutions are assigned a letter grade of A-E with “A” representing the highest rating based on a review of many aspects of financial safety including capitalization, asset quality, profitability and liquidity. For more information, visit www.weissratings.com/help/what-our-ratings-mean.aspx. Information is believed to be accurate, but not guaranteed.
Money Market
Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Salem Five Direct
800-850-5000
www.salemfivedirect.com
B
1
1.0
Blue Hills Bank
617-361-6900
www.bluehillsbank.com
C+
10000
0.25
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B
1000
0.25
Needham Bank
781-444-2100
www.needhambank.com
A-
2500
0.25
Cambridge Trust Company
617-876-2790
www.cambridgetrust.com
B+
2500
0.2
1 Month CD
Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Bristol County Savings Bank
508-528-2666
www.bristolcountysavings.com
B-
1000
0.2
Century Bank Trust Company
617-629-0929
www.century-bank.com
C+
1
0.1
Enterprise Bank Trust Company
978-459-9000
www.enterprisebanking.com
C+
2500
0.1
Cambridge Trust Company
617-876-2790
www.cambridgetrust.com
B+
1000
0.05
Boston Private Bank Trust Company
617-912-1900
www.bostonprivatebank.com
B
1000
0.05
3 Month CD
Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B
1
0.5
Bristol County Savings Bank
508-528-2666
www.bristolcountysavings.com
B-
5000
0.25
Century Bank Trust Company
617-629-0929
www.century-bank.com
C+
1
0.25
Needham Bank
781-444-2100
www.needhambank.com
A-
2500
0.25
Avidia Bank
978-562-2222
www.avidiabank.com
C
1000
0.25
6 Month CD
Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B
1
0.5
Northern Bank Trust Company
781-937-5423
www.nbtc.com
C+
500
0.4
Century Bank Trust Company
617-629-0929
www.century-bank.com
C+
1
0.35
Needham Bank
781-444-2100
www.needhambank.com
A-
2500
0.35
Middlesex Savings Bank
508-653-0300
www.middlesexbank.com
B
10
0.35
1 Year CD
Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B
1
0.75
Needham Bank
781-444-2100
www.needhambank.com
A-
1000
0.75
Northern Bank Trust Company
781-937-5423
www.nbtc.com
C+
500
0.65
Salem Five Direct
800-850-5000
www.salemfivedirect.com
B
10000
0.65
Middlesex Savings Bank
508-653-0300
www.middlesexbank.com
B
10
0.6
2 Year CD
Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B
1
1.0
Needham Bank
781-444-2100
www.needhambank.com
A-
1000
1.0
Salem Five Direct
800-850-5000
www.salemfivedirect.com
B
10000
1.0
Northern Bank Trust Company
781-937-5423
www.nbtc.com
C+
500
0.9
Century Bank Trust Company
617-629-0929
www.century-bank.com
C+
1
0.8
3 Year CD
Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Northern Bank Trust Company
781-937-5423
www.nbtc.com
C+
500
1.6
Needham Bank
781-444-2100
www.needhambank.com
A-
1000
1.25
Salem Five Direct
800-850-5000
www.salemfivedirect.com
B
10000
1.1
Avidia Bank
978-562-2222
www.avidiabank.com
C
1000
1.05
Bristol County Savings Bank
508-528-2666
www.bristolcountysavings.com
B-
5000
1.01
4 Year CD
Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B
1
2.0
Needham Bank
781-444-2100
www.needhambank.com
A-
1000
1.5
Hingham Institution for Savings
781-749-2200
www.hinghamsavings.com
B+
500
1.5
Avidia Bank
978-562-2222
www.avidiabank.com
C
1000
1.31
HarborOne Bank
508-895-1450
www.harborone.com
1
1.3
5 Year CD
Financial Strength
Rating
Minimum to Earn
Interest ($)
APY(%)
Institution for Savings In Newburyport
978-462-3106
www.institutionforsavings.com
B
1
2.0
Salem Five Direct
800-850-5000
www.salemfivedirect.com
B
10000
2.0
Dedham Institution for Savings
781-329-6700
www.dedhamsavings.com
C+
1000
1.76
Needham Bank
781-444-2100
www.needhambank.com
A-
1000
1.75
Hingham Institution for Savings
781-749-2200
www.hinghamsavings.com
B+
500
1.75
Data is surveyed weekly with averages calculated each Monday afternoon from RateWatch’s unbiased national interest rate survey of over 96,000 financial institution locations across the United States.
More About CDs:
CDs, or certificate of deposits, are bank-issued promissory notes wherein an investor deposits money for a set amount of time and, provided the money remains untouched, receives interest on the total sum when the investment matures.
While the money can’t be accessed during that time (without incurring penalties), the advantage of a CD over a regular savings deposit is the higher rate of interest. Typically, a CD can be taken out on as few as three-month terms but can range to up to five years; generally, the longer the timeframe the higher rate of interest.
CD Laddering:
To provide further financial security, a CD laddering strategy offers conservative investors the opportunity to stagger their capital across numerous deposits set to expire at different intervals. Not only does this hedge against variable rate fluctuations by offering a guaranteed return at a locked-in interest rate, it also increases liquidity given that one CD will mature at predictable and established intervals.
Using an example of a five-year ladder strategy, an investor would divide his or her money amongst one-, two-, three-, four-, and five-year CDs. Once the one-year deposit matures, he or she will reinvest the money into a five-year CD, and will do so every subsequent year upon each CD’s maturation. In this way, the investor has a CD that matures each year and thus, steady income from the interest on the maturing investments.
Nevertheless, investors must keep in mind that the onus of developing a ladder strategy is on the investor, not the bank or financial institution. In developing a strategy, map out each rung of the ladder, determining how long you want to invest for, the kind of return you are targeting and the length of time you can tolerate not having access to the principal and interest.
About RateWatch
For over 20 years, RateWatch has been the premier provider of competitive interest rate and product information to financial institutions across the United States. Consistently providing top quality, highly relevant data RateWatch maintains the largest database in the industry with deposit, loan, and fee information monitoring over 96,000 locations. Rate surveys, product comparisons, financial strength reporting, local/regional/national averages, fee reporting, specialty reports and more are available. To learn more about RateWatch, visit www.rate-watch.com. RateWatch is a division of TheStreet, Inc.
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