Best CD Rates in Massachusetts for February 2024

Finding the best CD rates in Massachussets is easy with the onslaught of online banks offering high APYs and flexible terms.

Before investing your money in a CD, understand the terms, penalties, and options regarding bumping up the rates, adding onto the contributions, or withdrawing funds early.

We’ve located the best CD rates in Massachusetts to help you earn the most on your savings.

Best CD Rates in Massachusetts

Here are the best banks and credit unions in order of highest to lowest APY to help you make the most of your money:

  1. Valley Direct: 5.60% APY
  2. US Alliance Financial: 5.50% APY
  3. Service Credit Union: 5.25% APY
  4. Hanscom Federal Credit Union: 5.25% APY
  5. Quontic Bank: 5.05% APY
  6. Discover® Bank: 5.00% APY
  7. CIT Bank: 5.00% APY
  8. First Tech: 4.91%

1. Valley Direct

  • Minimum Deposit: $500
  • APY: 4.60% – 5.60%
  • Terms: 12 to 36 months

Valley Direct offers FDIC-insured online-only CDs with high APYs with terms of 12, 24, or 36 months. Their 36-month CD is a variable rate CD that ensures the rate remains 0.1% above the Federal Funds Target Rate upper limit.

You can fund all CDs up to $500,000, and early withdrawals incur a penalty. It takes only a few minutes to open and fund a CD at Valley Direct to grow your funds.

Pros:

  • High APYs with a variable rate option
  • Low minimum balance requirement
  • Anyone over 18 and a US citizen can open one

Cons:

  • Early withdrawal penalties
  • A small selection of terms

 


2. US Alliance Financial

  • Minimum Deposit: $500
  • APY: 0.75% – 5.50%
  • Terms: 3 to 60 months

US Alliance offers many CD options for members to choose from, including an 11-month no-early withdrawal penalty CD.

US Alliance also runs CD specials that will automatically renew at the lower, non-special rate if you don’t renew yourself. Each CD has a 7-day grace period after renewal to make changes.

US Alliance was originally for IBM employees, but today, they serve 150,000 members worldwide from various companies, including Pepsi and American Express. They also allow people from specific communities, colleges, churches, and organizations to join.

Pros:

  • Option for a no-penalty CD with a high APY
  • Various term options
  • Low minimum deposit requirement

Cons:

  • Special rates automatically rollover to non-special rates
  • You must be a member

3. Service Credit Union

  • Minimum Deposit: $500 to $25,000
  • APY: 0.80% – 5.25%
  • Terms: 3 to 60 months

Service Credit Union offers certificates, which are the equivalent of a bank’s CDs. They pay interest rates of 0.80% to 5.25% depending on the term and are NCUA-insured should the credit union go out of business (up to $250,000 per depositor). Service Credit Union compounds and pays interest monthly.

To become a member, you must be an active duty military personnel, work for the Department of Defense, work for one of the many partner employer groups, or be a member of the American Consumer Council or the Financial Fitness Association.

Pros:

  • Pays high APYs
  • Low barrier to entry for some terms
  • Can roll matured certificates into a new certificate

Cons:

  • You must belong to the credit union
  • Some terms require a $25,000 deposit to earn the higher APY

4. Hanscom Federal Credit Union

  • Minimum Deposit: $1,000
  • APY: 1.25% – 5.25%
  • Terms: 3 to 60 months

Hanscom Federal Credit Union offers monthly compounded interest on its share certificates with a  minimum $1,000 deposit. They offer a special term of 13 months for 5.25% APY and various other terms with lower APYs.

All certificates are automatically renewable at the same rate for the same term, or you can notify Hanscom that you want to cash out the CD at maturity before it matures.

You can become a member of Hanscom Federal Credit Union if you are a member of their partner organizations, your employer offers the C.U. as a benefit, you work for the federal government in Massachusetts, or you are active or retired military.

Finally, if you are a family member of anyone who meets the qualifications, you are also eligible.

Pros:

  • High APYs
  • Low initial deposit
  • Option to renew at the same rate

Cons:

  • Must be a member
  • The best rate is at 13 months

5. Quontic

  • Minimum Deposit: $500
  • APY: 4.30% – 5.05%
  • Terms: 6 months to 5 years

If you’re looking for the best CD rates in Massachusetts and want an online bank, check out Quontic. They have a low minimum deposit requirement and pay high APYs on most terms.

Don’t let the fact that it’s a digital bank scare you; they offer human support via phone or live chat to make it easy to get answers to your questions.

Like most banks, there’s an early withdrawal penalty if you withdraw funds early, but they compound interest daily, which makes your money grow faster than CDs that compound interest monthly.

Pros:

  • Low minimum deposit requirement
  • High APYs
  • No membership required

Cons:

  • No physical branches
  • Penalties for early withdrawal

 


6. Discover® Bank

  • Minimum Deposit: $2,500
  • APY: 2.00% – 5.00%
  • Terms: 3 months to 10 years

Discover® Bank offers attractive APYs with a large selection of terms, but they have hefty early withdrawal penalties, so don’t overcommit yourself.

The larger deposit requirement is something to consider, too, since you must tie up the entire amount of funds, and even CDs with a term of 1 year will cost six months of interest if you withdraw funds early.

Pros:

  • Wide selection of terms
  • High APYs
  • Easy access online

Cons:

  • High early withdrawal penalties
  • High minimum deposit requirement

 


7. CIT Bank

  • Minimum Deposit: $1,000 for term and no-penalty CDs; $100,000 for jumbo CDs
  • APY: 0.30% – 5.00%
  • Terms: 6 months to 5 years

CIT Bank offers an impressive selection of CDs, including no-penalty and jumbo CDs. If you’re looking for something short-term to help your money grow, CIT Bank offers a 5% APY on its 6-month CD, helping you earn daily compounded interest and making your funds grow.

If you need something more secure that allows early withdrawal, their 11-month CD offers no penalty for early withdrawal and still offers an impressive 4.9% APY.

If you want to deposit $100,000, the jumbo CD option is available in 2, 3, 4, or 5-year increments.

Pros:

  • Many options for consumers
  • Has a no-penalty option
  • No fees

Cons:

  • Longer terms have unattractive APYs
  • $1,000 is a high minimum deposit compared to others

 


8. First Tech

  • Minimum Deposit: $500
  • APY: 2.25% – 4.91%
  • Terms: 6 months to 5 years

First Tech offers options including fixed-rate CDs or bump-up CD options. Traditional or fixed-rate CDs have the same rates for the entire term. Bump-up CDs allow you to increase the rate if market rates increase.

First Tech doesn’t have a maximum balance allowed on its CDs, and the NCUA insures all funds up to $250,000 per depositor.

Pros:

  • Large selection of options
  • Attractive bump-up options
  • Low minimum deposit requirements

Cons:

  • You must be a member of First Tech Credit Union
  • Some terms have low APYs

 

Summary of the Best CD Rates in Massachusetts

Company APY Min. Dep. Requirement Compounding Frequency
Valley Direct 4.60% – 5.60% $500 Daily
US Alliance Financial 0.75% – 5.50% $500 Daily
Service Credit Union 0.80% – 5.25% $500 – $25,000 Monthly
Hanscom Federal Credit Union 1.25% – 5.25% $1,000 Monthly
Quontic 4.30% – 5.05% $500 Daily
Discover 2.00% – 5.00% $2,500 Daily
CIT Bank 0.30% – 5.00% $1,000 Daily
First Tech 2.25% – 4.91% $500 Daily

Types of CDs Available in Massachusetts

Before looking for the best CD rates in Massachusetts, determine the type you need. Each has different terms and requirements. Choosing the wrong CD could cost you more than you realize, depleting your earnings. Here’s what to consider.

Short-Term CDs in Massachusetts

Short-term CDs are for up to 12 months. They work well for the money you need rather soon, but you would like to earn some interest while the money sits.

Some banks offer short-term CD promotional rates, while others reward longer-term CDs. If you need your money soon but have little time to tie it up, consider a short-term CD with a great APY with interest that compounds daily.

Long-Term CDs in Massachusetts

Long-term CDs are 24 months or longer and are best for long-term goals. Remember, if you tie up your funds in a long-term CD and then withdraw the funds early, you’ll pay a penalty.

Each bank or credit union offers different long-term CDs. The most common terms are two to three years, but some banks offer them as long as ten years. However, pay attention to the APY to ensure it’s worth it.

Liquid CDs in Massachusetts

Liquid or no-penalty CDs allow more access to your funds without the penalty. Only some banks offer this option, and each has different requirements. For example, you may have to wait 7 to 30 days to withdraw the funds.

If you aren’t sure what you’re saving your money for or worry that an emergency may happen and you don’t have funds to cover it, a liquid CD can be the best option. You earn interest without the risk of paying a penalty if you need the funds.

Step Up/Bump Up CDs in Massachusetts

Step-up or bump-up CDs in Massachusetts allow you to get a higher rate if market rates increase. Most banks allow a ‘bump-up’ once during the CD’s term, allowing you to tie up your funds without worrying about losing out on rates.

Most bump-up CDs require higher minimum deposits and have strict terms with hefty early withdrawal penalties if you withdraw funds early.

Add-on CDs in Massachusetts

Most banks only allow you to contribute to a CD one time. If you have more money to invest, you must buy another CD. However, add-on CDs allow you to contribute more to an existing CD, allowing regular deposits and earning more interest.

Our Methodology

The BankBonus team has reviewed dozens of brick-and-mortar banks, online banks, credit unions, and fintech companies offering CD accounts in Massachusetts.

To provide you with accurate recommendations for the best CD rates in Massachusetts, we used the metrics below to assess each account:

  • APY: First and foremost, we evaluate CD offers based on how competitive their APY is
  • Compounding schedule: Another major factor we consider is the account’s compounding schedule, prioritizing banks that compound interest daily rather than monthly or quarterly
  • CD terms: We also consider the variety of CD term lengths each financial institution offers
  • Account minimum: Additionally, we look at each CD’s minimum opening deposit requirements and any ongoing account minimums
  • User experience: We carefully consider the ease of applying and managing CD accounts on each bank’s website and factor in reviews of the mobile app from the App Store and Google Play Store
  • Customer service: In our review process, we also explore each institution’s customer service channels, hours of availability, and third-party reviews

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