Middlesex Savings Bank CD Rates

Middlesex Savings Bank 3-Month CD

5.00% APY

Middlesex Savings Bank serves customers in Eastern Massachusetts with about 30 local branches. If you live near a branch, you may want to consider opening a certificate of deposit (CD) account because many of the interest rates compare well with the best available CD rates. With a minimum deposit requirement of just $250, accounts are also accessible to many customers.

You can also use any CD term as part of an individual retirement account (IRA). This could appeal to you if you’re unhappy with banks that only have terms of up to five years in length. (Middlesex Savings Bank has terms of almost six years in length.) There are also special CDs just for use in an IRA.

Continue reading to learn more about the CDs at Middlesex Savings Bank and how they can help you to meet your savings goals.

To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.

Standard CDs

Freedom Platinum CDs

Retirement CDs

3-Month CD Interest Rate Comparison

Overview of Middlesex Savings Bank CDs

Middlesex Savings Bank serves Eastern Massachusetts with about 30 branches. Its headquarters is in Natick. The bank does allow customers to open and fund a CD account online.

In general, available CD terms range from three months up to 71 months (nearly six years). All terms offer higher interest rates if you also have certain checking accounts with the bank. The minimum deposit you need in order to open an account is $250. As long as you maintain at least $10 in your account, interest will continue to accrue. Interest will credit monthly to your account and you have the option to transfer interest earnings to another account you have with the bank.

If you want to save for retirement, it is possible to use all terms in an IRA. Middlesex Savings Bank also offers an Adjustable Rate Retirement CD with term lengths between 12 and 18 months. The minimum deposit is just $10 and the interest rate adjusts depending on federal interest rates.

Withdrawing principal from your account will result in an early withdrawal penalty. The amount of the penalty depends on your term length and how much you withdraw. Terms of less than 12 months come with a penalty equal to three months’ interest on the amount that you withdraw. Terms of 12 months or more have a penalty equal to six months’ interest on the amount you withdraw. Keep in mind that withdrawing from a retirement account may result in additional penalties.

You can avoid a penalty by waiting until your account reaches maturity to make changes to your account. After your CD’s maturity date, Middlesex Savings Bank will provide you with a 10-day grace period. You can make any deposits, withdrawals or changes to your account in that time. That includes changing your CD term or closing your account. If you don’t close your account, it will automatically renew at the end of the grace period for another CD of the same term length.

How Much You Earn With Middlesex Savings Bank CDs Over Time

The interest rates from Middlesex Savings Bank are competitive and so you will earn decent interest no matter which term you choose. You can generally maximize your earnings by choosing a longer term, but terms of two years or more all have the same rate.

Another simple way to maximize your earnings is to leave any interest earnings in your account. You won’t pay a penalty for withdrawing interest, but you won’t earn as much because having more in your account will increase the effects of compounding interest.

The table below shows what your approximate total balance will be based on different initial deposits and term lengths.

How Middlesex Savings Bank CD Rates Compare to Other Banks’

Overall, Middlesex Savings Bank has competitive interest rates. But while rates are high, it’s still possible to find higher rates elsewhere. Make sure to compare CD rates from a few banks before you open any accounts. In particular, you should compare rates if you want a long-term CD.

If you are specifically looking for a short-term CD, consider a bank like Ally. Ally has competitive rates on longer terms as well, but its short-term rates are its best. As an online bank, Ally does not have any physical branches that you can visit. However, it also doesn’t require a minimum deposit (though you can earn a higher rate by depositing at least $5,000).

Another bank to consider is Capital One. The one-year CD term from Capital One is usually very competitive and its longer terms (three and five years) are also high. There is no deposit minimum for opening an account.

For customers who prefer working in person or with a local bank, Needham Bank also serves Eastern Massachusetts. With that being said, it has a higher minimum deposit than Middlesex Savings Bank ($1,000) and its rates aren’t the highest. Your best bet would be to look for terms with special rates.

Those looking specifically at retirement accounts should consider a broker like Edward Jones. Edward Jones has some of the highest rates on the market and its terms extend up to 10 years. It does require a $1,000 minimum deposit, but earnings from the high rates may outweigh the higher price tag for some customers.

Should You Get a Middlesex Savings Bank CD Account?

Middlesex Savings Bank has high interest rates. If you are looking for a CD term of about two years or less, not many places will have higher rates. If you want a term of more than two years, you can certainly find higher rates elsewhere. Those who specifically want to save for retirement should also consider other options. If you do plan to open a CD with Middlesex Savings Bank, make sure you look into its checking accounts. You can earn higher rates on a CD when you also have certain checking accounts.