Ivy Bank is a one hundred percent digital bank launched by Cambridge Savings Bank back in the summer of 2021.
Cambridge Savings Bank, founded in 1834, is one of the oldest and largest community banks in Massachusetts with over $5.3 billion in assets.
Ivy Bank offers just 5 deposit accounts per the time of this writing but many of them come with highly competitive APYs (annual percentage yields).
They have 3 fixed-rate CDs (certificates of deposit) with 1, 3 and 5 year terms and 2 variable-rate savings accounts. One is a standard high yield savings account and the other is an indexed savings account that is indexed to the one month treasury yield.
Ivy bank is federally insured by the FDIC through their parent company Cambridge Savings Bank and all consumer deposits are insured up to the applicable limits.
📌 Please Note: Ivy Bank and Cambridge Savings Bank are treated as the same entity by the FDIC, so the $250,000 deposit insurance is applied cumulatively to all accounts held at either bank per individual.
To see if Ivy Bank’s deposit accounts are right for you, continue reading our review below.
Ivy Bank CD Rates + Account Details
Ivy Bank only offers 3 CDs at this time. Their terms are 1 year, 3 years and 5 years. You can open any Ivy Bank CD with a minimum deposit of $1,000.
To put these yields into perspective, the current national average for 1 year and 5 year CDs sits at 1.54% and 1.37% APY, respectively, according to FDIC data.
The best 12 month CD rates from online banks, however, are inching over the 5.00% APY mark in anticipation of another Fed rate hike in early May.
Compounding and Crediting Interest
Interest on all Ivy Bank CDs is compounded and credited back to the account monthly. Ivy Bank does, however, give you the option to have your interest paid to another Ivy Bank account if you’d prefer. This is ideal for those who would like to use interest payments for living expenses.
Grace Period and Early Withdrawal Fees
Upon the maturity of your Ivy Bank CD, you will have a 10 calendar day grace period in which you may close out your CD or modify it. If nothing is done during this grace period and you haven’t provided them notice to close your CD, then it will automatically renew with the same term and the going APY at that time.
If you need access to the funds in your CD prior to its maturity you will have to pay an early withdrawal fee. Ivy Bank’s early withdrawal fees are as follows:
|Early Withdrawal Fee
|90 days’ simple interest on amount withdrawn
|180 days’ simple interest on amount withdrawn
|270 days’ simple interest on amount withdrawn
Ivy Bank Savings Accounts
Ivy Bank offers 2 savings accounts. Both are federally insured by the FDIC up to the applicable limits and both require a minimum opening balance of $2,500.
The 2 savings accounts offered are:
- High Yield Savings Account
- Index Savings Account
High Yield Saving Account
The high yield savings account can be opened online in minutes. The rate is also highly competitive. See table below.
|$0 – $2,499.99
To put this yield into context, the current national average is just 0.39% APY according to FDIC data, however, the best yields offered from online banks and credit unions with nationwide acceptance are now topping 4.80% APY with Ivy Bank being among the rate leaders.
There is a maximum balance allowance of $1,000,000 on this account.
Index Savings Account
The Index Savings Account is a unique offer. It’s an FDIC-insured online savings account that has its rate pegged to the 1 month treasury bill. At the beginning of each calendar month, Ivy Bank resets the rate based on the Treasury’s Daily Yield Curve Rates.
Per Ivy Bank, the “interest rate is determined by the 1 Month Treasury Yield as published by the U.S. Department of the Treasury’s Daily Treasury Yield Curve Rates at the close of business on the 15th day of each calendar month.” If the 15th is a weekend or holiday, they’ll move the date to the next immediate business day. You can learn more in their Truth-in-Savings disclosures.
Index Savings Account Rate
|$0 – $2,499.99
As with the high yield savings account, there is a maximum balance allowance of $1,000,000 on this account.
To put this yield into context, the national average for a money market account sits at just 0.57% APY according to FDIC data, however the top yields for online money market accounts are now inching over the 4.80% APY mark as they are with some online savings accounts.
Money Management Features
Ivy Bank has some noteworthy money management tools and features that are available to anyone who has a deposit account open with them.
These features go far beyond just insights into your Ivy Bank account. You can aggregate all of your personal financial data to get a holistic picture of your spending and your net worth.
You can link all of your investment and bank accounts as well as any credit cards, auto loans, personal loans and mortgages that you may have. This allows their software to provide you with visualizations of how you’re spending your money and how your net worth is changing over time.
You can also go beyond the visual tools aggregating your personal finance information. You can also take action on this data by setting up budgets by spending category and allocate a certain percentage of your income to it. You’ll be able to manage any loans or mortgages you have, see what’s left to pay and monitor payment dates.
Customer Sentiment and User Reviews
Ivy Bank fairs about average on 3rd party review sites with most star ratings sitting around 3 out of 5.
Their apps receive better ratings and reviews with their IOS app sitting at a 4.6 star rating out of 5 based on 70 consumer ratings and their Google Play app sitting at a 3.8 stars out of 5 based on 26 consumer reviews.
The biggest consumer complaints we found revolved around a slow customer service center and undisclosed transfer limitations.
See the following consumer review below:
Depending on what actions you take with your Ivy Bank account(s) you may encounter various fees from time to time. Below is their fee schedule outlining all the possible fees you may come across as an account holder.
|Monthly Maintenance (HYSA and Index Savings)
|Copy of any Doc
|Deposited Item Returned Unpaid
|Research (per hour w statement copies)