I live in Massachusetts so it was with particular interest that I did some research on the best savings account rates in the state. The average local savings account rate is .23% APY while the average online bank savings account rate is .84%, so I was looking for rates that were above average. What I found, is that while local savings rates cannot beat online rates, there are still come competitive local accounts. Online banks are currently offering the best rates on savings accounts.
But if you don't want to bank electronically, there are still competitive local banks and credit unions in Massachusetts.
- American Airlines Credit Union offers the best credit union rate in the state with a savings account that pays 0.75% APY with a $1 minimum balance. Like all credit unions, AA CU is not open to everyone. In order to join you must an active or retired employee of American Airlines, Inc., American Eagle Airlines, or the Air Transportation Industry. The Air Transportation Industry is a pretty broad category that covers government employees (TSA, FAA, etc.) as well as airport employees and onboard airline food services employees. When you become a member you can also sponsor membership for family members. As you can imagine, AA Credit Union has branches located at airports, so the closest branch in Massachusetts is at Logan Airport. Financially, the credit union looks strong with a Texas ratio of 5.14% versus the national average of 10.30%.
- Winchester Cooperative Bank is offering a 0.60% APY savings account with a $10 minimum balance. The bank was founded in 1893 and has approximately $500 million in assets. The bank has one branch located in Winchester, MA, which is about 10 miles outside of Boston. Financially, the bank has an average Texas Ratio of 19.77% and has shown good, steady asset growth - from $351 million in 2006 to its $500 million today.
- First Federal Savings Bank Of Boston is offering a 0.50% APY savings account with a $10 minimum balance. First Federal was founded in 1933 and has approximately $70 million in assets. It has one branch located in downtown Boston on School Street. Financially, the bank's Texas Ratio looks healthy at 7.85% although its Return on Equity is -6.26 so far in 2011. The bank seems to be shrinking itself. After growing assets from $51 million to $114 million in 2010, they dropped dramatically to $70 million in 2011.
- The Village Bank of Auburndale (Newton) is also offering a 0.50% APY rate with a $20 minimum balance. The Village Bank has eight branches thoughout the city of Newton and one branch in Wayland. Founded in 1910, the bank has approximately $680 million in assets. The bank's financials mirror the national average, with a Texas ratio of 23.33%.
Online Savings Account Rates
Another option is to consider opening a savings account online. Online savings account offer attractive rates, low minimum balances, and the convenience of banking from home. Some featured accounts are:
- Personal Savings from American Express offering 1.00% APY with $0 minimum balance.
- CNB Bank Direct is offering a 1.05% APY with a $1 minimum balance.
- Clear Sky Accounts offering a 1.04% APY rate with a $1 minimum balance.
To understand how earning half a percentage point can put a lot more money in your wallet over time, please visit our financial knowledge section.