Residents of Eastern Massachusetts who want to bank locally should consider Needham Bank. It generally offers about 10 certificate of deposit (CD) term options online with additional terms available in-person at a branch. Interest rates are competitive but not quite as high as some of the best CD rates on the market. The minimum deposit of $1,000 is also a bit high but not out of line with similar banks. Customers looking for an individual retirement account (IRA) CD may especially like that Needham Bank’s IRA options have just a $250 minimum.
Keep reading to learn more about how Needham Bank CDs work and whether you should consider one.
To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.
| CD Term | Minimum Deposit | APY | |
| 3 Month | $1,000 | 5.00% | Compare CD Rates |
| 6 Month | $1,000 | 4.75% | Compare CD Rates |
| 9 Month | $1,000 | 5.25% | Compare CD Rates |
| 1 Year | $1,000 | 5.00% | Compare CD Rates |
| 15 Month | $1,000 | 5.00% | Compare CD Rates |
| 18 Month | $1,000 | 4.00% | Compare CD Rates |
| 2 Year | $1,000 | 3.75% | Compare CD Rates |
| 3 Year | $1,000 | 3.50% | Compare CD Rates |
| 4 Year | $1,000 | 3.50% | Compare CD Rates |
| 5 Year | $1,000 | 3.50% | Compare CD Rates |
3-Month CD Interest Rate Comparison
Overview of Needham Bank CDs
Needham Bank serves Eastern Massachusetts residents with just under a dozen local branches. Even though it is a small bank, customers have the option to open many types of accounts, including CDs, online.
Interest compounds daily with all CDs but only credits monthly to your account. When the interest credits, you also have the option to transfer it to another account that you have with Needham Bank. The minimum for opening a CD account is $1,000. IRA CDs are available with the same term options as regular CDs, except the majority of the terms have a $250 minimum deposit.
You cannot remove any principal before the end of your term or you will have to pay an early withdrawal penalty. The penalty amount depends on the length of your CD term and how much you withdraw. Terms of one year or less have a penalty equal to three months’ interest on the amount you withdraw. Terms longer than one year have a penalty equal to six months’ interest.
It’s possible to avoid penalties by waiting until your CD reaches maturity to withdraw any of the principal deposit. At the end of your term, Needham Bank will provide a 10-day grace period. You can make any changes to your account, additions or withdrawals during that period. If you don’t close your account during the grace period, your CD will renew for another CD of the same term. The interest rate on the new CD will depend on the currently available rates.
How Much You Earn With Needham Bank CDs Over Time
A CD from Needham Bank will earn you a decent amount of interest because rates are relatively high. Having to meet the $1,000 account minimum, although a bit higher than some other banks, can also help you earn more than a lower deposit would. Longer terms have higher interest rates so you can earn the most by contributing to long-term CDs and leaving your interest in the account until it matures.
One thing to keep in mind is that your local Needham Bank branch may offer additional terms or special CD rates. Special CDs have the potential to earn you more than the standard rates listed above.
The table below shows what your approximate total balance will be based on different initial deposits and term lengths.
| Initial Deposit | 6-Month CD | 12-Month CD | 36-Month CD | 60-Month CD |
| $1,000 | $1,023.47 | $1,050 | $1,108.72 | $1,187.69 |
| $2,500 | $2,558.69 | $2,625 | $2,771.79 | $2,969.22 |
| $5,000 | $5,117.37 | $5,250 | $5,543.59 | $5,938.43 |
| $10,000 | $10,234.74 | $10,500 | $11,087.18 | $11,876.86 |
How Needham Bank CD Rates Compare to Other Banks
Needham Bank does not have the highest CD rates, but its rates are competitive with similar banks. If your primary goal is to earn as much money as possible, then make sure to compare CD rates from different banks before opening an account.
One name you might see is Ally Bank. Ally is an online bank that offers some of the most competitive CD rates. Its short-term CDs (one year or less) have particularly high rates, and that is an area where Needham Bank’s rates appear particularly low. There is no required minimum deposit for opening an account so you can also open a CD even if you can’t afford Needham Bank. Keep in mind that as an online bank, Ally does not have physical branches. You will be able to open and manage all your accounts online.
Another online bank to consider is Synchrony. Synchrony requires a no minimum deposit, and it also offers higher interest rates.
Another well-known bank worth considering is Capital One as they do not require a deposit minimum. Their rates aren't always as high as Ally's or Synchrony's, but they are competitive.
As noted, Needham Bank has a low minimum for IRA CDs. If you are most interested in saving for retirement, consider a broker like Edward Jones or Vanguard. Brokers typically offer some of the highest rates and term lengths up to 10 years long. Brokered CDs work slightly differently than traditional bank CDs, but those differences could offer you more flexibility in a retirement account. Edward Jones requires a minimum deposit of $1,000 but Vanguard could be better for savers who are a bit further along.
| CD Account | Needham Bank | Ally Bank | Capital One |
| 6 Month | 4.75% | 4.40% | 4.25% APY (as of 4/11/24) |
| 1 Year | 5.00% | 4.50% | 5.00% APY (as of 5/9/24) |
| 3 Year | 3.50% | 4.00% | 4.00% APY (as of 4/11/24) |
| 5 Year | 3.50% | 3.90% | 3.90% APY (as of 4/11/24) |
Compare Needham Bank to Other Competitive Offers
Should You Get a Needham Bank CD Account?
If you live in Eastern Massachusetts and you want to work with a local bank, Needham Bank could be a good choice. The CD rates are competitive, though you can certainly find higher rates elsewhere. The minimum deposit and term conditions are also quite standard among similar banks. Customers who want long-term CDs for an IRA should consider other banks (and brokers) as some specialize in long-term CDs.
The best thing to do, if you’re considering a Needham Bank CD, is to call or visit a local branch. You can open CDs online but a branch will be able to show you the latest rates, including for terms that may not appear online.
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