bank rates

Bay State Deal: A 2.25% Savings Account

Although there are a couple of annoying catches to this deal, North Middlesex Savings Bank is offering a very good rate on savings accounts in suburban Boston.

That is three-quarters of a point more than the best nationally available savings accounts are paying.It’s paying 2.25% APY on the first $10,000 in its “Simply Save” account.

That’s three-quarters of a point more than you can make with the best nationally available savings accounts.

Unfortunately, deposits over $10,000 don’t earn a little less. They earn a lot less. Just 0.25% APY.

There’s also a very unusual requirement savers must meet to retain this high rate.

Not only must these accounts be opened at one of the bank’s seven branches southwest of Lowell, customers must go back to a branch each month and add $50 or more to their account.

And when we say go back to a branch, we mean you must give the money to a teller. You can’t use direct deposit or an ATM.

Miss a visit and the return on the entire balance falls to 0.25% for that month.

We can’t recall a bank imposing such a ridiculous requirement on savings account holders before. So we asked why North Middlesex feels compelled to do so.

“It’s a way to get to know our new customers and recognize them when they come into the bank,” Susan Casserly, manager of the Littleton branch, told us.

Uh-huh. We still don’t like it.

But compare that 2.25% rate with the best returns on savings accounts from scores of other banks in our database and you may decide it’s worth the effort.

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Comments (2)
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  1. CrankySaver said:
    on July 9th at 02:54 pm

    Interest.com recently posted a great deal on 15-year mortgages – the interest-saving loans many borrowers use to refinance their homes. It says AimLoan is charging just 3.875% with no points. That is pretty amazing, and the offer is available in 43 states. I guess that’s what happens when mortgage rates fall to new record lows four weeks in a row.

  2. DealMaven said:
    on July 16th at 03:04 pm

    The rate has been reduced to 2.05% APY. But that’s still better than you can earn on most CDs.