When I discovered last week that Bay State Savings Bank had begun offering its CDs nationwide and, as a result, had instantly elevated the national 48-month lead to 2.00% APY, I’ll admit I was pretty tickled.
After all, we hadn’t seen a 2% yield on 4-year CDs since mid-February, with the top nationally available return from the banks on our CD Rates Leaderboard having since sunk to 1.85% APY.
So if that had me a little giddy, imagine my delight to learn another bank has expanded its CD availability from a limited territory to savers nationwide, and has ratcheted up the 48-month lead yet again.
EBSB Direct is the exciting newsmaker this time, paying 2.13% APY on 48-month certificates.
A minimum $1,000 deposit is required, and the early withdrawal penalty is 12 months’ interest should you cash in before maturity.
EBSB Direct is an online portal of East Boston Savings Bank. The brick-and-mortar parent company offers its CDs only to customers who can come into a Massachusetts branch to set up the account.
EBSB Direct, in contrast, only opens certificates of deposit online, and until recently, only for customers residing in six New England states.
All that has changed with a new policy at EBSB Direct, in which their online account system has been opened up to savers living anywhere in the 50 states.
Moving the top nationally available 4-year return to 2.13% APY on our Leaderboard is a pretty significant development.
When we added 48-month CD rates to our repertoire of the major CD terms we track on a daily basis at Bankaholic – last August – E-Loan led the term at 2.00% APY.
That top rate had never been surpassed since we began our tracking, and over the last two and a half months has suffered a series of downward revisions.
So to have one week bring us a new national bank that restored the top rate, and then the next week have another new leader boost the rate by an additional eighth of a percentage point … well, let’s just call that a good week for 4-year CDs.