Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.
Updated on Wednesday, July 1, 2020
EBSB Direct’s CD rates
EBSB Direct 15-month CD
- Minimum opening deposit: $1,000
- Minimum balance amount to earn APY: $1,000
- Early withdrawal penalty: 6 months interest
EBSB Direct currently offers only a single CD term: 15 months. It has offered different CD terms in the past and may change what is available in the future as they create new promotions. But for now, the EBSB Direct CD is available for 15-months and that’s it. The good news is this 15-month CD offers a fantastic interest rate.
However, it does come with a sizable early withdrawal penalty. If you take money out early or close your account before the end of the term, EBSB Direct will charge a penalty of six months’ worth of interest, cancelling out a sizable chunk of your return.
If you sign up for this account, you also need to pay attention to when the CD will end. Unless you give them other instructions, EBSB Direct will automatically enroll you in an East Savings Bank of Boston 18-month CD at the end of your term, which has a substantially lower interest rate. While EBSB Direct will give you advance notice that your CD is about to end, it’s up to you to tell them not to automatically renew it.
You can only sign up for the EBSB Direct 15-month CD online. You cannot apply in-person at a bank branch or by mail. As part of its online application, you will need to provide your personal information, upload a form of ID and make the initial deposit to set up your account.
How EBSB Direct’s CD rates compare
With only one term available, EBSB Direct does not offer any variety for its CDs. But what it lacks in quantity it makes up for in quality as its 15-month CD interest rate is one of the best in the country for this length of time. If 15 months happens to match your savings timeline, it’s well worth considering this account.
We aren’t crazy about how at the end of the term, this CD auto-renews into an 18-month CD with a much lower interest rate, unless you tell EBSB Direct otherwise not to do so. That might lock savers who lose track of time into a product they don’t want. The early withdrawal penalty of six months’ worth of interest is also steep for a short-term CD.
If you need a CD that lasts a different length than 15 months or want to see what else is available, these other CDs are also fantastic options for your money.
EBSB Direct’s money market account
EBSB Direct Money Market Special 3
Minimum Balance Amount
$10 to less than $10,000
$10,000 to less than $2 million
$2 million or more
- Minimum opening deposit: $2,500
- Monthly account maintenance fee: $8 (waived for minimum daily balance of at least $2,500)
- ATM fees: None if using ATMs at EBSB or through the Allpoint® network. Otherwise, $2.50 per withdrawal.
- ATM fee refunds: None
- Overdraft fees: $35 per transaction, up to a maximum of six items, $210 per day.
To open an EBSB Direct Money Market Special 3 account, it takes at least $2,500. While the interest rate at the deposit minimum is decent, where this account really shines is if you can deposit $10,000 or more up to $2 million. For this amount, the interest rate increases significantly.
Another reason to avoid small deposits is because if your minimum daily balance falls below $2,500, the account charges an $8 per month maintenance fee. This would quickly wipe out your interest earnings.
With the Money Market Special 3 account, you can make free withdrawals from EBSB ATMs as well as any ATM that is part of the Allpoint® network. Since Allpoint® ATMs are worldwide, this comes in handy for people who live outside of Boston and don’t have an EBSB branch nearby.
As this is a money market account, you can only make six pre-authorized transactions per monthly statement cycles which includes checks as well as automatic, online and phone transfers, per Regulation D. EBSB Direct charges a $15 fee on every transaction over this limit.
You can only sign up for the EBSB Direct Money Market Special 3 account online. You cannot apply in-person at a bank branch or by mail. As part of its online application, you will need to provide your personal information, upload a form of ID and make the initial deposit to set up your account.
How EBSB Direct’s money market account compares
If you plan on depositing at least $10,000, the EBSB Direct money market account is a terrific choice. It offers one of the best interest rates in the country for accounts with over $10,000 up to $2 million. We also like that, thanks to EBSB’s partnership with the Allpoint® network, you can make free withdrawals from 55,000 ATMs around the World.
On the other hand, if you deposit less than $10,000, this account is not as impressive. The interest rate is still better than what you’d receive at a large national bank but that’s a pretty low bar. Other online banks offer better interest rates for small deposits and don’t have the costly monthly maintenance fee for accounts of less than $2,500.
If you’re looking for a smaller money market account that doesn’t meet EBSB Direct’s high deposit limit or just want to see what else is out there, here are some of the other best money market accounts available today.
Overall review of EBSB Direct’s banking products
EBSB Direct can get away with only offering two types of accounts because they are both extremely impressive. Its 15-month CD and money market account offer interest rates that compare well even against the best accounts in the country.
The bank does have some downsides that give us some pause. The money market account is not great for smaller account balances, and we also don’t like how the 15-month CD auto-renews to another CD with a lower interest rate, unless you specifically tell EBSB Direct not to do this. Still, the high interest rates on these accounts go a long way toward making up for these issues.
If you want more of a full-service package with checking and savings accounts, or an IRA to go along with your deposits, you won’t be able to handle all these needs through EBSB Direct alone. But if you want a top-of-the-line interest rate on a large money market account or a short-term CD, give this online bank a look.