Best CD Rates in Massachusetts
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Looking to grow your savings in the Bay State? Explore top CD rates from leading banks and find the best options to boost your earnings.
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Here are some banks and credit unions with the best CD rates in Massachusetts:
- mph.bank:
60-Month Callable CD - 4.45% APY - Western Alliance Bank:
3-Month High-Yield CD - 4.40% APY - Sallie Mae Bank:
10-Month High-Yield CD - 4.35% APY - Generations Bank:
36-Month Callable CD - 4.35% APY - First Financial Northwest:
18-Month High-Yield CD - 4.25% APY - First Mid Bank & Trust:
9-Month High-Yield CD - 4.25% APY - First Mid Bank & Trust:
6-Month High-Yield CD - 4.25% APY - Ponce Bank:
4-Month High-Yield CD - 4.25% APY - Blue Federal Credit Union:
7-Month High-Yield CD - 4.25% APY - Sallie Mae Bank:
27-Month High-Yield CD - 4.25% APY - RiverWorks Credit Union:
3-Month CD - 4.50% APY - Leader Bank:
6-Month CD - 4.50% APY - Service Federal Credit Union:
6-Month CD - 4.50% APY - BankProv:
5-Month CD - 4.40% APY - MutualOne Bank:
6-Month CD - 4.33% APY - Walpole Co-operative Bank:
7-Month CD - 4.25% APY - Rockland Federal Credit Union:
7-Month CD - 4.25% APY - OneLocal Bank:
6-Month CD - 4.25% APY - Hanscom Federal Credit Union:
3-Month CD - 4.25% APY - St. Anne's Credit Union:
3-Month CD - 4.25% APY
Looking for a CD in Massachusetts?
You might be spoiled for choice. Massachusetts banks and credit unions offer some competitive CD rates with various terms. A CD with a good enough rate can set you with months or years worth of passive income.
Check out the highest CD rates in Massachusetts today.
Best National Bank CD rates in Massachusetts
If you're looking for a reputable large national bank, some offer decent CD rates from time to time. Check out these special rates for Massachusetts residents:
- State Employees' Credit Union (NC):
18-Month CD - 4.40% APY - Charles Schwab Bank:
1-Year CD - Up to 4.35% APY - America First Credit Union:
6-Month CD - 4.35% APY - Huntington:
5-Month CD - 4.34% APY - Fifth Third Bank:
3-Month CD - 4.27% APY - Mountain America Credit Union:
60-Month CD - 4.25% APY - Citizens Bank:
5-Month CD - 4.15% APY - PNC Bank:
4-Month CD - 4.10% APY - Valley National Bank:
3-Month Fixed Rate CD - 4.00% APY - Capital One:
1-Year CD - 4.00% APY
Best Local Bank CD rates in Massachusetts
If you prefer getting a CD with a local Massachusetts bank, here are some of the highest CD rates you can consider:
- Leader Bank:
6-Month CD - 4.50% APY - BankProv:
5-Month CD - 4.40% APY - MutualOne Bank:
6-Month CD - 4.33% APY - Walpole Co-operative Bank:
7-Month CD - 4.25% APY - OneLocal Bank:
6-Month CD - 4.25% APY - Haverhill Bank:
4-Month CD - 4.00% APY - Methuen Co-operative Bank:
6-Month CD - 4.00% APY - Liberty Bank:
6-Month CD - 4.00% APY - BankGloucester:
12-Month CD - 4.00% APY - Cornerstone Bank:
6-Month Certificate - 3.90% APY
Best Credit Union CD rates in Massachusetts
Credit unions can offer very competitive rates and other perks to their members. Check out these credit unions in Massachusetts with impressive CD rates:
- RiverWorks Credit Union:
3-Month CD - 4.50% APY - Service Federal Credit Union:
6-Month CD - 4.50% APY - Rockland Federal Credit Union:
7-Month CD - 4.25% APY - Hanscom Federal Credit Union:
3-Month CD - 4.25% APY - St. Anne's Credit Union:
3-Month CD - 4.25% APY - Tremont Credit Union:
6-Month Certificate - 4.05% APY - Community Credit Union (MA):
3-Month CD - 4.00% APY - Mass Bay Credit Union:
6-Month CD - 4.00% APY - Liberty Bay Credit Union:
6-Month CD - 4.00% APY - Brotherhood Credit Union:
6-Month CD - 4.00% APY
Best Online CD rates in Massachusetts
Online banks are typically available to most people, although certain restrictions may still apply depending on where you live.
Here are the top online CDs available:
- Greenwood Credit Union:
1-Year CD - 4.50% APY - First Internet Bank:
6-Month CD - 4.49% APY - mph.bank:
60-Month Callable CD - 4.45% APY - Popular Direct:
12-Month CD - 4.40% APY - Limelight Bank:
6-Month CD - 4.40% APY - Sallie Mae Bank:
11-Month CD - 4.35% APY - My eBanc:
12-Month CD - 4.35% APY - Bask Bank:
12-Month CD - 4.30% APY - Walpole Co-operative Bank:
7-Month CD - 4.25% APY - Synchrony Bank:
13-Month CD - 4.25% APY
Best Jumbo CD Rates in Massachusetts
Have a substantial amount to save? Jumbo CDs may offer higher rates compared to standard CDs. But they typically require a minimum deposit of $100,000 or more.
Here are the top Jumbo CDs:
It's smart to compare both regular CDs and Jumbo CDs. Even if you have over $100k to save, it's not always necessary to choose a Jumbo CD if a regular CD fits your goals.
Yes. Like standard CDs, your deposits in Jumbo CDs are federally insured up to $250,000 by the FDIC for banks and NCUA for credit unions.
Best CD Rates in Massachusetts by Term
Looking to open a CD with a specific term? Here are some of the highest CD rates in Massachusetts by CD term:
Best 3-month CDs in Massachusetts:
- RiverWorks Credit Union:
3-Month CD - 4.50% APY - Hanscom Federal Credit Union:
3-Month CD - 4.25% APY - St. Anne's Credit Union:
3-Month CD - 4.25% APY - MutualOne Bank:
3-Month CD - 4.13% APY - Service Federal Credit Union:
3-Month CD - 4.00% APY
Best 6-month CDs in Massachusetts:
- Leader Bank:
6-Month CD - 4.50% APY - Service Federal Credit Union:
6-Month CD - 4.50% APY - RiverWorks Credit Union:
6-Month CD - 4.50% APY - MutualOne Bank:
6-Month CD - 4.33% APY - OneLocal Bank:
6-Month CD - 4.25% APY
Best 1-year CDs in Massachusetts:
- Walpole Co-operative Bank:
12-Month CD - 4.25% APY - Service Federal Credit Union:
12-Month CD - 4.25% APY - Rockland Federal Credit Union:
1-Year CD - 4.00% APY - BankGloucester:
12-Month CD - 4.00% APY - Newburyport Five Cents Savings Bank:
12-Month CD - 3.85% APY
Best 2-year CDs in Massachusetts:
- Metro Credit Union (MA):
24-Month CD - 3.85% APY - Rockland Federal Credit Union:
2-Year CD - 3.75% APY - Workers Credit Union:
24-Month CD - 3.50% APY - St. Anne's Credit Union:
24-Month CD - 3.15% APY - Service Federal Credit Union:
24-Month CD - 3.00% APY
Best 5-year CDs in Massachusetts:
- Metro Credit Union (MA):
60-Month CD - 3.85% APY - Hanscom Federal Credit Union:
60-Month CD - 3.75% APY - Energy Credit Union:
60-Month CD - 3.51% APY - Middlesex Savings Bank:
60-Month Certificate - 3.50% APY - Workers Credit Union:
60-Month CD - 3.50% APY
What Is a CD?
A certificate of deposit (CD) is a savings account where you deposit a fixed amount for a fixed number of months or years. In exchange, you earn a fixed APY that applies for the entire term.
The APY on a CD is often higher than what you get on a regular savings account. However, you can't withdraw your money until the CD matures. The lock-in period is why banks can offer you high rates. You lose convenient access to your money in exchange.
If you withdraw early, be ready to pay early withdrawal penalties. It can range anywhere from 3 months to 1 year's interest, depending on the term.
Usually, no. CDs are considered low-risk investments. Your deposits are federally insured up to $250,000 for banks or credit unions that are FDIC or NCUA members. But, you can lose some of your money to penalties if you withdraw early enough.
How Much Interest Does a CD Earn?
Let's say you deposit $10,000 in a 1-year CD with a 5% APY. After a year, you'd earn $500. How much you earn on a CD depends on the term, APY, and the amount in your CD.
In general, the longer the term, the higher the APY, and the bigger the amount, the higher your interest earnings will be.
Here's a simple CD calculator to see how much your CD can earn:
Yes, interest earned on CDs is subject to Massachusetts state income tax. Additionally, you must pay federal income taxes on interest earned on CDs.[1][2]
Short Term vs Long Term CDs
Short-term CDs are typically 1 year or less, and are ideal for short-term goals where you'll need access to your money soon. On the other hand, long-term CDs can go up to 10 years and offer the stability of a fixed APY for an extended period.
Choose a short-term CD if you:
- Are saving for a near-future goal
- Want to avoid the temptation of spending the money
- Expect interest rates to rise soon
Choose a long-term CD if you:
- Want to preserve capital and earn guaranteed returns
- Don't need the funds in the near future
- Expect interest rates to fall soon
What's better for you depends on your goals, how soon you'll need access to your funds, and the current financial environment.
Where to Find the Best CDs in Massachusetts?
If you're strictly looking at offers in Massachusetts, check out CD specials from community banks and credit unions. They may offer promotional CDs for a limited time, sometimes with specific opening criteria, but they usually come with good rates.
National banks may also offer CD specials that vary by location. There also may be some requirements to qualify.
Online banks typically give high CD rates too. Plus, the region is not restricted, so you can easily open a CD with them.
One of the highest CD rates in Massachusetts is RiverWorks Credit Union:
Pros and Cons of a CD
Pros:
- Fixed rate for a fixed term
- Usually offers higher APY than regular savings
- Keep earning at the same APY even if the interest rate drops
- Federally insured up to $250,000 by the FDIC or the NCUA
Cons:
- Can't withdraw until the CD matures
- Early withdrawal penalties can be costly
- Some restrictions like membership and minimum deposit
- Miss out on better APY and investments due to the fixed-term
If you can park your money for months or years, a CD is a good option to lock in high rates. But if you need easy access to your money, liquid accounts like a savings account might be a better choice.
Should I Get a CD?
Whether or not you get a CD depends on your goals. CDs are safe investments if you need to save money for the short term and want to lock in a good interest rate.
The big question is: can you afford to lose access to your funds for months or years? Remember that you usually can't withdraw your CD until it matures.
If you think you might need the money, you can opt for more liquid and convenient accounts instead. For example, many high-yield savings accounts offer a competitive APY and may be good alternatives.
- NexBank:
High-Yield Savings Account - 4.31% APY - CIT Bank Platinum Savings:
4.00% APY - Discover® Online Savings:
$200 Cash Bonus - UFB Portfolio Savings:
Earn up to 4.01% APY - Western Alliance Bank:
High-Yield Savings Premier - 4.30% APY
How to Choose the Best CD Rates in Massachusetts?
When you're hunting for a CD in Massachusetts, ask these questions:
- How long is the term?
You want a CD term that fits your financial goals. Some banks or credit unions may offer more term options in-branch. If you can, inquire with a branch near you. - What is the APY?
To maximize your earnings on a CD, look for the highest APY. Ask your local bank or credit union if they have CD specials in Massachusetts. - Are there any requirements or restrictions?
Some CDs may only be available for residents in a certain county. Some offers may also only be available to new customers. Be sure to ask before you open an account. - What is the minimum deposit required?
The CD may have a minimum deposit. If you can't commit to or meet the requirement, look for CDs with little to no deposit requirements.
Most CDs will have early withdrawal penalties. So if you need to close your CD before it matures, be prepared to pay the penalties. Or if you're not sure if you can commit, find no penalty CDs to avoid paying any fees.
What Are the Types of CDs Available?
Here's a list of different types of CDs that may be available in Massachusetts:
- Term CD: Standard CDs with a fixed rate for a fixed term
- No-Penalty CD: Allows you to withdraw money early without any penalties
- Jumbo CD: Requires large deposits (usually $100k+)
- IRA CD: Offers tax advantages for retirement savings
- Bump-Up CD: Increase your rate during your CD term
- Add-On CD: Add more deposits during your CD term
Bottom Line
Massachusetts has a variety of CD options to suit different financial needs. With many banks and credit unions operating in the state, you can find terms, APY, and features that fit your savings goals.
But some CDs may have certain restrictions for you to open.
To avoid the trouble, try online banks offering high-yield CDs. They typically won't have strict requirements to open a CD.
References
- ^ Tax Foundation. State Individual Income Tax Rates and Brackets, 2024, Retrieved 05/15/2024
- ^ IRS. Topic no. 403, Interest received, Retrieved 05/15/2024
Write to Del Exconde at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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