CD Rates in Massachusetts May 2024 | Bankrate (2024)

How to find the best CD rates in Massachusetts

There are three main components you should consider when choosing a CD: the term length, the yield and the penalty for early withdrawal.

Choosing the CD term

A CD term is the length of time your money is slated to stay within the account. Terms typically range anywhere from seven days to 10 years, though some banks offer terms even longer than a decade. To find the right term for you, consider how long you can park your cash in the account without needing to withdraw it. Unless you're opening a no-penalty CD, you'll likely need to pay a penalty for withdrawing your money before the CD's maturity date.

You'll also want to consider the minimum opening deposit when choosing your term. While some banks don't have a minimum deposit requirement, others may ask for a relatively standard $500 or $1,000 minimum deposit. If you're interested in a jumbo CD, you'll likely need around $100,000 to open an account.

Choosing the yield

Getting the best yield is probably the most important factor for most consumers when choosing a CD. Thanks to historic interest rate hikes by the U.S. Federal Reserve, yields on CD rates have soared over the last three years. Top-notch rates for CDs surpass 5 percent APY in today's market, but not all institutions are offering yields that high. In general, big institutions such as Bank of America and Chase Bank are still offering lackluster rates compared with online-only banks like Ally Bank and Marcus by Goldman Sachs.

But choosing a CD based solely on the highest yield may not always be the right move. If you suspect you may need to withdraw your money before a CD matures, you'll likely need to pay an early withdrawal penalty, which could even eat at some of your principal (the money you originally invest in a CD).

Mind the early withdrawal penalties

Banks typically impose an early withdrawal penalty if you withdraw some or all of the principal before a CD matures. Early withdrawal penalties range widely from bank to bank. A relatively standard early withdrawal penalty for a 12-month CD could range anywhere from three to six months of interest. And some banks may even impose a flat fee on top of that penalty, further ratcheting up the cost of withdrawing from a CD before maturity.

Here, you'll want to consider your risk tolerance, balancing the term and the yield with the associated penalty. If you're more likely than not to withdraw early, you may want to consider a CD with a lower yield but a softer penalty.

Short-term vs. long-term CDs

Whether to invest in a short-term or long-term CD is dependent on your financial situation.

Massachusetts residents who don't need to touch their money for a couple of years may find that long-term CDs are their best bet, as it locks in a high yield even if banks slash rates down the road. Long-term CDs in today's market have the potential to outpace inflation. As such, if you have enough cash, now might be a good time to invest in a CD ladder.

Residents of the New England state who don't want to tie up their money for too long will still find high, perhaps even more favorable, yields for short-term CDs. Moreover, these CDs shave off some of the risk associated with early withdrawal penalties, since your money is locked down for a shorter amount of time.

How to compare CD rates in Massachusetts

Massachusetts residents should consider CDs available only in their region. The most popular banks in Massachusetts by number of branches include Citizens Bank, Bank of America and Santander Bank. Each of these banks offer CDs, though the competitiveness of these deposit products vary widely. If you already bank with one of these institutions, or another Massachusetts-based bank, it may be worth calling to inquire about the CD offerings.

But Bay Staters should also consider CDs that are available nationwide. Online-only banks offering CDs typically allow anyone to open an account, and these tend to offer higher rates than those offered by big institutions. If you choose to open a CD at an online bank, you may also consider opening other deposit accounts at the same bank, as it makes it easy to transfer funds (such as credited interest that can be withdrawn without penalty) between accounts.

Research methodology

Since 1976, Bankrate has been a leading publisher of rates and personal finance articles. It is also often cited by some of the most respected and well-known publications and websites. The Bankrate promise is that we strive to help our readers make smarter financial decisions, adhering to strict principles of editorial integrity and transparency.

Bankrate’s editorial team is made up of five banking experts. These experts have researched many banks and at least twice a month go to bank websites to make sure readers stay up to date on the latest rates and bank products.

We select banks that have high annual percentage yields (APYs) and that are popular and broadly available, and we include some of the largest banks.

Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.


years of industry expertise


deposit rates tracked


APY verification


banks reviewed

CD Rates in Massachusetts May 2024 | Bankrate (2024)


CD Rates in Massachusetts May 2024 | Bankrate? ›

CD Rates Forecast 2024

The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024.

What is the projected CD rates in 2024? ›

CD Rates Forecast 2024

The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024.

Who has the highest 12 month CD rate in Massachusetts? ›

Best CD rates in Massachusetts overall
APYTerm LengthInstitution Name
5.55%12 monthsSalem Five Cents Savings Bank
5.50%6 monthsRockland Trust Company
5.40%9 monthsNeedham Bank
5.35%3 monthsMiddlesex Savings Bank
16 more rows
5 days ago

Who is offering a 5% CD rate? ›

Highest current CD rates (overall)
Institution nameAPYMinimum opening deposit
Morgan Stanley5.05%$5,000
LendingClub Bank5.00%Contact institution for details
Newtek Bank5.00%$2,500
My eBanc5.00%$5,000
31 more rows

Is there a 6% CD rate? ›

The highest certificates of deposit (CDs) rates today are offered by Nano Bank (6.00%), Merchants Bank of Indiana (5.92%), Shoreham Bank (5.50%) and Vast Bank (5.50%). You can see the full list of the highest-paying CDs here.

Should I lock in a CD now or wait? ›

Waiting to open a CD could mean missing out on some stellar rates. Now, you can lock in high rates on both short-term and long-term CDs, and you can score some serious interest just by opting to deposit a larger lump sum into your CD.

How high will interest rates go in 2024? ›

Late last year, the Fed was widely expected to cut the benchmark federal-funds rate in 2024 as many as six times. But at the conclusion of its June 11 and 12 policy meeting, the central bank announces that it's keeping its rate target between 5.25% and 5.5%—right where it's been since July of 2023.

Should I buy a 12-month CD? ›

A shorter-term CD could help you take advantage of interest rate hikes. You could get hit with an early withdrawal penalty. Unless you have enough in liquid savings to fund emergencies, tapping your one-year CD before the term is up could cost you an early withdrawal penalty.

What is considered a good 6 month CD rate right now? ›

Compare the best 6-month CDs
Popular Direct certificates of deposit4.815.30%
Marcus by Goldman Sachs High-Yield certificates of deposit4.805.10%
Bask Bank Certificates of Deposit4.765.35%
Synchrony Bank certificates of deposit4.754.80%
7 more rows

What is the highest legal interest rate in MA? ›

Massachusetts has passed a number of laws designed to protect consumers and borrowers from exploitative lenders. These usury laws (also known as interest rate limits) are common throughout the country. In Massachusetts, the maximum amount of interest a borrower can charge is 6%.

Where can I get 7% interest on my money? ›

Why Trust Us? As of June 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

What is the best CD rate for $100,000 today? ›

Compare the Best Jumbo CD Rates
InstitutionRate (APY)Minimum Deposit
Third Federal Savings & Loan5.25%$100,000
CD Bank5.25%$100,000
Affinity Federal Credit Union5.25%$50,000
Justice Federal Credit Union5.25%$100,000
12 more rows

What is the CD rate for bank of Hope 2024? ›

*Promo Plus Certificate of Deposit: The Promotional APY (Annual Percentage Yield) of 5.35% for a term of 6 months, 5.25% for a term of 12 months are accurate as of 5/6/2024.

How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

Can you get 7% on a CD? ›

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

Are higher CD rates coming? ›

Currently, national average rates for a 1-year CD sit at 1.86% APY, up from 0.15% APY in April 2022. But with no change to rates since December 2023, it doesn't appear rates will continue to go up, at least significantly.

What will CD rates be in 2025 in the USA? ›

Similarly, the Fed's interest rate cuts are not expected to be overly drastic, but rather, gradual. What this means is that come this time next year, you may not be able to sign a 1-year CD at 5% (or slightly more) like you can today. But it's possible that you'll be able to lock in a 1-year CD at 4.5%, or 4.25%.

What is the money market prediction for 2024? ›

The national average rate for savings accounts will be 0.3 percent by the end of 2024, McBride forecasts, while predicting an average of 0.35 percent for money market accounts. At the end of 2024, the top-yielding nationally available money market account and savings account are projected to be at 4.45 percent APY.

What is the interest rate forecast for the next 5 years? ›

Projected Interest Rates In The Next Five Years

ING's interest rate predictions indicate 2024 rates starting at 4%, with subsequent cuts to 3.75% in the second quarter. Then, 3.5% in the third, and 3.25% in the final quarter of 2024. In 2025, ING predicts a further decline to 3%.

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