Posted by William Charles on February 21, 2019
Savings Accounts

Published on February 21st, 2019 | by William Charles

161

[Unavailable]EBSB Direct – High Yield Statement Savings – 2.5% APY ($5,000-$1,000,000)

Actually it’s still unavailable, I saw the option to open the statement savings account but you need the high yield statement savings for the 2.5% APY rate. Sorry for the confusion.

Update 2/21/19: Deal is available again. Hat tip to readers Schmekel

Update 1/10/19: Currently unavailable.

Update 12/11/18: This offer was around for a few weeks in October, and they’ve now brought the offer back again.

Offer at a glance

  • Interest Rate: 2.5% APY
  • Minimum Balance: $5,000
  • Maximum Balance: $1,000,000
  • Availability: Nationwide?
  • Hard/soft pull: Unknown
  • ChexSystems: Unknown
  • Credit card funding: None
  • Early account termination: $25 if closed within 180 days
  • Monthly fees: None
  • U.S. Citizen: Yes
  • Insured: FDIC & DIF

The Offer

Direct link to offer

  • EBSB Direct is offering 2.5% APY on balances $5,000 to $1,000,000

Avoiding Fees

This account has no monthly fees to worry about. There is an early account termination fee of $25 if the account is closed within 180 days.

Our Verdict

This is the current best high yield savings account. It isn’t 100% clear if it’s available nationwide or not as some people have reported being denied due to the product being unavailable out of state, only to be told that they should have been approved. Some people have also suggested in the past if EBSB raise rates they don’t raise those rates for existing customers so something to keep in mind. This is 0.25% higher than the next best rate though, so might be worth considering for some.

Hat tip to EDUARDO BAEZ

 



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Keith
Keith

Note that this account earns no interest on the first $5,000, so you’re better off with the 2.2% at PNC (for example) if you’re not putting in more than somewhere around $41,700.

[Moderator update: This is incorrect. As long as your balance is over $5,000 the FULL balance earns at 2.5% APY]

arizonapv
arizonapv

Keith, many banks have a min requirement. It doesn’t mean that the first $5,000 doesn’t earn 2.5%, it just means that you need at least 5,000. Capital One 360 is like that. You need at least $10,000 for the entire bal to earn 1.85%

tempperson
tempperson

On the EBSB Direct website for this account it says “No interest will be paid on daily balances less than $5,000”.

tempperson
tempperson

Seems like Arizonapv is correct. Disregard my comment below please. Here’s the language in the Agreements/Disclosures: “The interest rate in each tier will be paid on the entire balance in your account.”

Keith
Keith

You are correct. I misread their terms.

Careful not to let your balance grow to $1,000,000 then!

Looney Tunes
Looney Tunes

It earns no interest if you have less than $5,000 in the account, you’ll still earn the 2.5% on that first $5,000 if you have more than $5,000 in the account.

UPDATE: Didn’t see your response arizonapv before I commented but we basically are saying the same thing.

AD
AD

Just for reference, you need a balance above $50k for this account to be better than a 2.25% account.

more info
more info

That assumes you get zero APY on the first $5K, even though you have more than this amount in the account. That doesn’t seem to be the situation and you get 2.50% on the entire amount once your (average cycle) balance is above $5K.

CreditHunter
CreditHunter

Incorrect. They pay 2.50% on balances of $5k or higher, including your the first $5k. Already confirmed with a rep.

Other tidbits:
-$2,500 minimum balance to avoid $8 monthly maintenance fee.
-If account is closed within 180 days of opening there is a $25 fee.
-No fees on external transfers, daily limit of $150k for external transfer withdrawals.
-Incoming wire fee of $15

arizonapv
arizonapv

Thank you for the extra info. It is appreciated.

CreditHunter
CreditHunter

Disregard the $2,500 minimum balance to avoid maintenance fee info I posted above – that’s for one of their other accounts.

ritholtz
ritholtz

How do i setup external transfer account. I need to transfer money from other account into this account. I do not find option to add a external account.

arizonapv
arizonapv

ritholtz ritholtz, I have set up 4 so far. Here is how you do it: click on Pay and transfer (it’s a tab)
then manage external transfer accounts
at bottom of page that opens, click on “add an external transfer account”

Frito Pendejo
Frito Pendejo

Ugh if I didn’t already have an array of 3% accounts I would totally jump on this, but that half percent is still worth the maintenance now that I have everything set up. 2.75% and I’m switching over.

Lia
Lia

What 3% account if you dont mind, thanks

Victor Romero
Victor Romero

Yes. Can you share what 3% accounts you have please?

arihalli
arihalli

Frito, i have the Heritage acct – which works fine. But do you mind if i ask you which accts you use and which you recommend? Thanks….

Stan
Stan

How long have you had Heritage? I’m still waiting for my debit card from them. Are they reliable?

arihalli
arihalli

Stan, I have been with Heritage about 6 months. Very reliable. Impressed. Easy to get on the telephone. One has to have an acceptable ACH transfer (it has to be correctly done – but its easy). I just send over $10 from my Chase acct once per month. It reads as P to P or something like that. And I use the debt card 10 times on the first day of the month. I just go to gas station and do $1 transactions. 3.3% interest. The trick is to not spend a lot of money on the 10 transactions or the 3.3% profit vanishes.

Stan
Stan

Thanks for the lengthy reply. Do you withdraw any money out to other banks? I’m thinking of putting in $25,000, getting the interest, and then transferring anything over 25k since it doesn’t get the same 3.33 APY

arihalli
arihalli

Stan, i am just at the point where I have 24k. So, I haven’t had the need to remove the over 25k cap. But the transfer mechanism is sterling so should be no problem. I might very well open a second account. The lady told me that I do open a second acct, to do it, right on the site, so it captures the info from prior acct – and its less arduous. I might just go for a 2.5% account that doesn’t have debit requirements,etc. …. I think one can open as many 25k accts as one wants at Heritage in ones own name. I don’t know HOW they do this! I am afraid of a bank paying out so much interest, frankly. Doesn’t seem like it could last. Too good to be true?

Stan
Stan

Interesting about the 2 accounts. I would like to open a 2nd account but I’m just worried since there’s no branch in my state and something wrong with my account. What is the account you’re referring to that offers 2.5%

arizonapv
arizonapv

Stan, how about the EBSB account that is mentioned in the headline on this page? No hoops or requirements other than a min of $5k to earn 2.5%

Stan
Stan

Oops thanks! I was talking about Heritage bank I forgot I was chatting in a different bank’s page

Frito Pendejo
Frito Pendejo

Only a couple months. So far no issues, got my interest

Frito Pendejo
Frito Pendejo

Heritage, LMCU, Old Missouri, Evansville Teachers, Signature FCU.

Just closed Consumers Credit Union after the nerf.

Frito Pendejo
Frito Pendejo

You can’t get Old Miss unless you live in that state anymore, but the rest anybody can open (some require citizenship) and are reasonably easy to maintain with automated ACH and amazon debits

arizonapv
arizonapv

That’s one nice thing about EBSB, no hoops to jump through. I see how automations does make it easier to maintain though.

Frito Pendejo
Frito Pendejo

Its annoying to track all the account reqs. With the new 2.25 and 2.5% options, I would never recommend anybody bother with the 3% accounts unless they already have it set up.

arizonapv
arizonapv

+1

Brian
Brian

+1

Mike L
Mike L

Since it’s MA, the account is also DIF insured for balances over $250k.

arizonapv
arizonapv

I saw that it was DIF insured along with FDIC but I didn’t know what it meant, so I looked it up: The DIF is a private, industry-sponsored insurance fund that insures all deposits above Federal Deposit Insurance Corporation (FDIC) limits at Massachusetts-chartered savings banks.

Emporio
Emporio

I spoke to a CSR at the bank who stated that the bank does a Soft Pull on your consumer credit and performs a ChexSystems inquiry when you submit an account application. Also for those like myself that review bank health reports prior to opening bank accounts, their DepositAccounts.com health rating is an “A+” based on Q2 2018 data.

Shirley
Shirley

Has anyone confirmed that it is open nationwide?

Emporio
Emporio

Yes, I confirmed this with a CSR and successfully submitted an application from MN.

arizonapv
arizonapv

Yes, nationwide. I am in Arizona and was able to submit an application

Mikey
Mikey

Keep an eye on these banks near-term: ALL AMERICA/REDNECK, NORTHERN BANK and VIRTUAL. I expect they will match or even exceed the 2.5% rate soon (AA/RED is already at 2.5% on their 10K max account and would probably raise to 2.75%). Anything paying under 2% now seems so low, hard to believe just six months ago.

Brian
Brian

Agreed. Trying not to pounce on every new account that beats out the last one by a hair. I think we’ll see a lot of low-maintenance 3%-ers in the next 6 months. Now if one of them also has CC funding…

Sa
Sa

Funding options:
Send a personal check.
Make a direct deposit from my account at a different bank.
Transfer money from a different account.

Monica
Monica

I just opened a Pure Point account a few days ago. Is there a penalty if I transfer the money to EBSB?

Stan
Stan

I have a Purepoint. That can be your hub account.

Churningaway
Churningaway

I just opened a MemoryBank savings. Think I’m going to wait for the 2.75% and 3% savings accounts to start to trickle in before I move again

arizonapv
arizonapv

Does anyone know how to set up a beneficiary?

D
D

Can you fund this account with a credit card to meet minimum spend?

arizonapv
arizonapv

No, you cannot fund with a CC. They only allow you to send a personal check, or transfer money in from a different bank. I did the 2nd option but my account still shows $0.00 even after verifying. It appears to take a while when pulling money compared to pushing.

datapoint
datapoint

Good direction for “regular savings” – Any idea if banks or credit unions will be raising HSA savings rates ? Currently using ConnexUS HSA which pays 2.00%

arizonapv
arizonapv

Has anyone been able to log in? How did you get your user id and password?

Vic
Vic

After completing the application, you will have to sign up first, in order to access the online banking.

CreditHunter
CreditHunter

I received an email from EBSB to verify trial deposits in the account that I am transferring funds from, and then after I verified, it took me to a page to create a login and password. However, creating a login and password didn’t end up working after 3 attempts, and their site completed the application anyway and provided me with my new account number and said my application was now complete. So I had to go back to their main site and manually sign up for online banking using all my personal information plus the account number. They must be experiencing some issue with the final step of the process.

arizonapv
arizonapv

The same thing happened to me. The site didn’t like my user id or password 3 times even though they met the requirements. I’ll have to go back to their main site like you did.

arizonapv
arizonapv

Do you know what the routing # is and how do I find it?

arizonapv
arizonapv

No one answered so I sent a SM. The routing # is: 211070120

Mikey
Mikey

It’s especially confusing since, at least for me, the account number also has nine digits like the routing number.

Jon
Jon

I’m still unable to log in. Signed up 10/5. Got trial deposits verified yesterday 10/9. But I have not received an account number so I cannot complete the online banking setup.

I tried calling but the rep just said wait until I receive the account number.

arizonapv
arizonapv

Jon Jon, Try this url: https://cibng.ibanking-services.com/EamWeb/Account/Login.aspx?orgId=184_211070120&FIFID=211070120&brand=184_211070120&appId=CeB&FIORG=184
Does this help? I am able to log in and then you can see your acct no. I agree it is a bit challenging to log in and get access.

Jon
Jon

I tried that previously. They want me to validate the login with a one-time security code, but the 2 phone numbers listed aren’t even mine. So it says to call them. When I did, that’s when they said to wait for an email with the account number. Something isn’t quite right here.

arizonapv
arizonapv

try ebsbdirect.com. I had to re-finalize my account. on the page that opens, near the bottom is “finalize your account” I kept getting the goofy odd phone numbers too until I re-finalized. Let me know if this helps. I’m telling you, it is really amazing once you get it all to work. Quite the challenge.

Jon
Jon

Finally got everything setup. Thanks. Had to make another call to customer service to get the account number.

Anonymous
Anonymous

Account opening page states

“If you are not an existing customer of East Boston Savings Bank you must be a U.S. Citizen and reside in; Massachusetts, New Hampshire or Rhode Island to open an account with us.”

So, if you are not a resident of those states, it looks like you will not meet the criteria to open an account.

CreditHunter
CreditHunter

You are seeing that message because you are using the wrong link. Make sure you go to ebsbdirect.com and not ebsb.com to open the account.

KH
KH

That was painful. First on-hold was 13 minutes before system disconnected me. Second on-hold was 17 minutes before a rep picked up. Problems to address… at end of app, it “accepted” my username and pword, but then refused to accept them when submitting. It just kept giving a generic error. After 3 tries, it moved forward with message that online banking access wasn’t created. I tried logging in anyway, and it “accepted” my username but, for the “one time code” verification, it gave me 2 bogus phone suffixes to use.

After finally getting through… 1) rep says the ebsbdirect.com website has “some issues.” Use the ebsb.com website to actually set up the online banking access after creating the savings or checking account at ebsbdirect. 2) the bogus phone numbers are a “feature” since they don’t recognize the user ID you enter… rep says they are giving bad info as a security precaution (so someone can’t socially engineer the last 4 digits of an actual user’s phone number).

I asked if the website problems, disconnects, and excruciating wait times were normal. Rep made a genuine effort to suggest it’s not. I don’t need to call my bank often, but when I do, listening to crappy music with constant “your call will be answered…” interruptions is not acceptable.

/2 cents

Jon
Jon

I have the same issue, but I don’t see how going to the main EBSB website helps you login. I get redirected to the same place and the phone number problem still exists.

Vic
Vic

According to CSR, ACH transactions (including direct deposits) in this account are not considered activity; in my case, I did not apply for an ATM card, so only a branch office visit, a mailed-in paper check deposit or some sort of communication with the bank will do.
Account holder will have to watch for notification of account becoming dormant and reverse that status, before the bank deems the account abandoned and charges a $50 fee for Abandoned Account Processing.

CreditHunter
CreditHunter

Probably understaffed. They’re offering the highest rate currently available for a regular savings account, not to mention all funds are insured with this bank up to $1 mil thanks to their location, so I’m sure they are getting inflows like crazy right now. Worth it in my opinion.

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