The Best CD Rates In Massachusetts June 2024 (2024)

Best CDs In Massachusetts 2024

To compile our list of the best CD rates in Massachusetts, we compared rates across multiple financial institutions. We also assessed potential terms, minimum deposit requirements and early withdrawal penalties to ensure we chose the best possible options.

Bread Savings

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Vault Verified

APY

5.25%

Term Length

1 year

Min. Deposit Requirement

$1,500

Early Withdrawal Penalty

180 days’ simple interest

Why We Chose It

Bread Savings offers one of the most generous CD rates available. This online bank doesn’t have any physical locations, but Massachusetts residents can open a new CD account here to help maximize their interest earnings. Read our Bread Savings review.

Pros

• High rate on 1-year CD
• Interest compounds daily
• Can auto-renew at maturity

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Cons

• Early withdrawal penalty amounts to 180 days of interest
• Relatively high minimum deposit
• Longer-term CDs have lower rates

Berkshire Bank

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Vault Verified

APY

5.00%

Term Length

6 months

Min. Deposit Requirement

$1,000

Early Withdrawal Penalty

3 months’ interest

Why We Chose It

Headquartered in Boston, Berkshire Bank is a local bank with physical branches available. Its six-month CD comes with an impressively high rate, and you can easily connect with a person if you have questions about your account.

Pros

• Generous rate on six-month CD
• Physical locations and online access
• Variety of CD terms available

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Cons

• Early withdrawal penalty amounts to 90 days’ interest
• Relatively high minimum deposit
• Longer-term CDs have lower rates

BMO Alto

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Vault Verified

APY

5.15%

Term Length

6 months

Min. Deposit Requirement

$0

Early Withdrawal Penalty

90 days’ interest

Why We Chose It

The BMO Alto six-month CD is worth considering. It offers an impressively high rate of 5.15% and no minimum deposit requirement; its flexible minimum deposit sets it apart from many competitors that require a larger initial deposit. Read our BMO Alto review.

Pros

• Generous rate on six-month CD
• No minimum opening deposit
• Several CD terms available

Cons

• Longer-term CDs have lower rates
• Early withdrawal penalty amounts to 90 days of interest
• Limited account options besides CDs

Vault’s Viewpoint: Overview of the Best Massachusetts CDs

Two of the best Massachusetts CD rates come from online banks. In general, online banks tend to offer higher deposit account rates than local banks. However, we also found that Berkshire Bank, which is local to Massachusetts, offers some generous CD rates.

When comparing different accounts, it’s important to look beyond rates. For instance, certain CDs have large minimum deposit requirements. If you don’t have a significant sum to deposit for months or years, a CD with a high minimum deposit probably isn’t the best choice. Besides rates and minimum deposits, you’ll want to compare terms and early withdrawal penalties.

Here’s a quick summary of the best Massachusetts CD rates and their terms and minimum deposit requirements.

Short-Term CD Rates in Massachusetts

Generally, short-term CDs have terms of a year or less. These accounts tend to offer higher rates than some of their longer-term counterparts. For instance, a six-month CD from BMO Alto has a 5.15% APY, while its two-year CD offers a 4.65% APY. Opting for a short-term CD could be wise if you’re seeking a high rate and don’t want your money to be tied up for too long.

Long-Term CD Rates in Massachusetts

As mentioned, your rates will probably be slightly lower if you opt for a long-term CD in Massachusetts. But it’s still possible to get a generous rate. Long-term CDs from Bread Savings, for example, offer rates above 4%, which could still result in some decent interest earnings.

Jumbo CD Rates in Massachusetts

Jumbo CDs tend to offer high rates, but they’re not always higher than regular CDs. These CDs often require deposits of $100,000 or more, so they’re only a good choice if you’re seeking a secure account for a significant sum of money. Jumbo CD terms range from a few months to a few years.

How Much Can You Earn With the Best CD Rates in MA?

Your earnings from a CD will vary depending on your rate, deposit amount and term. In general, you can expect to earn more when you deposit a large sum into a CD, but that isn’t necessarily the best choice for everyone. Consider your financial situation and what you can comfortably afford to deposit before opening a new CD.

Here are some examples of what you can earn with the best CD rates in Massachusetts if you make a $25,000 deposit.

How to Open a CD In Massachusetts

1. Compare options: Before opening a new CD account, you’ll want to compare available options. This will ensure you find a generous rate and a term that meets your needs. Look at what different local banks, credit unions and online banks have to offer.
2. Gather documentation: You’ll need to share personal information like your Social Security number, name, address, email, phone number and more to open a new account. The bank will also likely ask for a copy of a government-issued ID and a recent utility bill or mortgage statement to verify your address.
3. Open an account: While some banks let you open a CD online, others may require you to speak with a representative over the phone. The process of opening a new account can vary, so check with your chosen financial institution if you have questions.

Alternatives to a CD In Massachusetts

Savings Account

A high-yield savings account could be a great alternative to a CD in Massachusetts if you want a secure place to save for the short or medium term. Certain savings accounts may offer comparable rates to CDs, though savings rates are often slightly lower. That said, you won’t incur any penalties for withdrawing money from a savings account as you would with a CD, which is a valuable perk.

Individual Retirement Account (IRA)

If you’re seeking a long-term savings vehicle, an IRA could be an excellent option. These retirement savings accounts aren’t employer-sponsored, meaning you can open one on your own. They’re available through many popular brokerage firms.

While you can withdraw your contributions to an IRA at any time without penalty, you will incur a penalty if you withdraw any gains from positive market performance. That penalty amounts to 10% of the amount withdrawn. You’ll also pay taxes on withdrawals from an IRA.

Money Market Account

With some features of a savings account and others of a checking account, a money market account is a great choice if you’re seeking flexibility with your money. You’ll get rates comparable to high-yield savings accounts and check-writing capabilities or a debit card.

Opening a money market account could be a good choice if you have a high balance and want to earn interest but also want the option to spend directly from your account occasionally. Monthly transaction limits often apply.