Needham Bank is a small regional Bank based out of Massachusetts with 12 branches in the greater Boston and MetroWest area. They are a community-focused bank and have been since their inception in 1892 working out of the Needham Public Library.

That said, as of 2023 they now offer a suite of CDs (certificates of deposit) available to consumers throughout the country which can all be opened and managed online.

While many of their CDs come with fairly lackluster yields, they introduced a promotional 9 month CD in January that comes with an APY (annual percentage yield) that is quite competitive.

To see if Needham Bank and their CDs are right for you, continue reading our review below.

Needham Bank CD Rates + Account Details

Needham Bank is member FDIC and all deposits are federally insured up to $250,000 per depositor.

Neeham offers both standard CDs and IRA CDs. Standard CDs come with a minimum deposit requirement of $1,000 and IRA CDs come with a minimum deposit requirement of just $250.

Both IRA CDs and Needham’s standard CD currently come with the same rates and terms. Terms range from 6 months to 5 years.

CD Rates

To give these yields some context, the current national average for a 12 month CD and a 60 month CD sit at just 1.28% and 1.21% APY, respectively, according to FDIC data.

That said, some of the top yields offered by online banks and nationally available credit unions are now inching over 4.50% and 4.20% APY on the same respective terms.

Grace Period and Early Withdrawal Fees

Upon the maturity of your CD, Needham Bank provides you with a 10 calendar-day grace period in which you may modify your CD (either by deposit size or term) or close it out entirely. If nothing is done during this period, your CD will automatically renew with the same term and the going APY at that time.

If you need access to your funds prior to maturity, an early withdrawal penalty will be applied. They don’t outline the penalty on their website nor do they offer a “Truth in Savings” disclosure form.

Opening and Managing Your CD

All of Needham Bank’s CDs can be opened online and managed either online through their website or their consumer banking app for IOS and Android.

📌 Please note: Be sure to download the personal banking app and not their business banking app.

To open the CD, you’ll need the following:

• phone number
• email address
• physical address
• social security number
• drivers license (you will scan this in the application process)

To fund the CD, you’ll need the following:

• Current bank or credit union routing number
• Account number where the funds will be withdrawn from

Other Deposit Accounts Offered by Needham Bank

Needham Bank offers other deposit accounts besides fixed rate CDs. They also offer:

• a personal checking account
• a “Statement” savings account
• money market accounts (both standard and for IRAs)

The personal checking account can be opened with just $10 and comes with complimentary checks. It also comes with zero fees, has cash back rewards and provides a variable interest rate of just 0.05% APY.

The Statement Savings account can also be opened with just $10 and provides the same APY of 0.05%.

The money market accounts have no minimum deposit requirements but interest rates are tiered based on your balance amount. See the table below for tiers and rates.

To put the yields above into perspective, the current national average for a money market account sits at just 0.44% APY, however, the best yields from online banks are topping 4.00% APY.

All of the deposit accounts offered by Needham Bank (other than their CDs) come with variable rates that may change at any time.

Needham Bank’s CDs, checking account, savings account and money market accounts can all be opened online by consumers in all 50 states or in a branch for local customers (locate branches here).