Introducing Ivy Bank
Ivy Bank is the online division of Cambridge Savings Bank, a regional institution headquartered in Cambridge, Massachusetts. Cambridge Savings Bank was founded in 1834 and currently manages over $6 billion in deposits, according to Federal Reserve data.
As an online bank, Ivy Bank lacks physical branch locations. You manage your account digitally through the website or mobile app. Its accounts are available to residents of every state except California. All Ivy Bank deposits are FDIC-insured up to the maximum permitted limit of $250,000 per depositor through Cambridge Savings Bank.
Ivy Bank Account Basics
Ivy Bank only has two account options: a high-yield savings account and a few certificates of deposit (CDs).
Ivy Bank High-Yield Savings Account
Ivy Bank High-Yield Savings Account earns up to 5.30% APY—one of the highest rates you’ll find. The bank also guarantees this interest rate until June 30, 2024. Locked APYs are rare among savings accounts, which are typically variable rate accounts. This makes Ivy’s offering similar to a CD without term requirements. But you’ll need a minimum deposit and balance of $2,500 to open the account and earn the highest advertised interest rate.
If your balance drops below the required minimum but stays above $10, you will earn 0.05% APY. Ivy Bank’s highest potential rate makes this one of the best high-yield savings accounts available, but its balance requirement is steep. Many similar online savings accounts have no minimums at all, including those offered by UFB Direct, Bask Bank and TAB Bank.
This account permits up to six withdrawals or transfers per month.
UFB Secure Savings
Annual Percentage Yield
Earn up to 5.25% APY*
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Earn up to 5.25% APY*
$0
$0
Ivy Bank High-Yield Certificates of Deposit
Ivy Bank High-Yield CDs come in terms of one year, three years and five years and earn between 2.60% to 5.00% APY. While its one-year CD is competitive with a yield of 5.00% APY, you’ll likely find better three-year CD rates and five-year CD rates at other institutions. All CDs require a $1,000 minimum deposit to open.
If you choose to withdraw funds early, you’ll pay a penalty equal to 180 days of interest for a one- or three-year term and 270 days of interest for a five-year term. However, you can withdraw accrued interest at any time without penalty. Ivy Bank CDs have a 10-day grace period at maturity.
| CD Term | APY |
|---|---|
|
1 Year
|
5.00%
|
|
3 Years
|
3.25%
|
|
5 Years
|
2.60%
|
Other Ivy Bank Products
Ivy Bank has no other products or accounts, so you’ll need to look to other banks for the best checking accounts and money market accounts. However, it has a money management tool built into its platform, which you can access after opening an account.
Ivy Bank Money Management Tool
The Ivy Bank Money Management tool is similar to many stand-alone budgeting apps. It allows you to view all of your financial accounts in one place, including accounts you have at other institutions. You can create a budget with custom categories and stay on top of your spending with tracking features and graphs showing your history and spending breakdown.
The Money Management tool can also help you pay down debt by building a debt payoff plan around your balances and interest rates with estimated repayment dates and the ability to set priorities. It also tracks your net worth across your linked accounts. You can access this tool through online banking and the Ivy Bank mobile app.
Ivy Bank Mobile Banking
Ivy Bank mobile banking gives you full access to all account management features. The Ivy Bank app has a rating of 4.7 out of 5 stars on the App Store and 3.7 stars on Google Play. Its features include the ability to view account balances, deposit checks and manage your budget.
Compare Ivy Bank With Other Banks
Ivy Bank may be a suitable option for high-yield savings and select CD terms, but you won’t be able to rely on this institution for all of your banking needs.
Ivy Bank vs. Capital One
Capital One is a large, full-service institution with far more banking products than Ivy Bank, including a free checking account, a teen checking account, a kids’ savings account, CDs and business bank accounts.
Capital One 360 Performance Savings Account earns a lower rate than Ivy Bank’s high-yield savings account, at 4.35% APY instead of 5.30% APY. But you can open an account with any amount, which is preferable to Ivy Bank’s $2,500 deposit minimum. Capital One also beats Ivy Bank when it comes to CDs, offering more terms, ranging from six months to five years, and often more competitive rates overall.
All accounts are available online, and Capital One offers limited in-person access at banking cafés and branches as well.
Ivy Bank vs. Marcus by Goldman Sachs
Marcus by Goldman Sachs is an online bank that goes head-to-head with Ivy Bank. You’ll find a high-yield savings account and high-yield CDs at both institutions, but Marcus also offers a few extra products. These include no-penalty CDs and bump-up CDs, as well as non-deposit accounts such as credit cards and investment accounts. Neither is a full-service bank.
When you compare high-yield savings, Ivy Bank and Marcus are similar, with an edge going to Ivy for its higher rate. However, you need at least $2,500 to earn that rate, and the Marcus by Goldman Sachs High-Yield Online Savings Account earns 4.40% APY with no minimum balance requirements.
Ivy Bank vs. Ally Bank
Ally Bank is a full-service online bank with many more products and services than Ivy Bank. You’ll find an interest-bearing checking account, a high-yield money market account, bump-up CDs, no-penalty CDs and more.
The Ally Bank Savings Account rate is currently 4.20% APY, which is slightly below Ivy Bank’s savings rate. However, Ally Bank has no minimum balance requirements, and its account comes with extra features like the ability to create savings buckets and use automatic tools to save more money.
Find The Best Online Banks Of 2024
Methodology
Forbes Advisor rates banks based on various factors, including their fees, interest rates and ATM networks, among other characteristics. We assign separate ratings to financial institutions and their individual products, such as checking accounts, savings accounts and certificates of deposit (CDs). We rate banks based on a scale of one to five stars, with one star as the poorest rating and five stars as the best.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
Frequently Asked Questions (FAQs)
Who owns Ivy Bank?
Ivy Bank is owned by Cambridge Savings Bank, a Massachusetts-based institution that was founded in 1834.
Does Ivy Bank have any fees?
Yes, Ivy Bank has some fees. Expect to pay $25 for outgoing wire transfers, $30 for stop payment requests and $25 for overdrafts up to three times daily. Ivy Bank doesn’t charge a fee if you overdraw your account $10 or less.
Is Ivy Bank a legitimate institution?
Yes, Ivy Bank is a legitimate and safe bank. It’s the digital banking arm of Cambridge Savings Bank in Massachusetts, a member of the FDIC (FDIC #17870).
How big is Ivy Bank?
Ivy Bank’s parent company, Cambridge Savings Bank, manages over $6 billion in assets. Digital-only Ivy Bank controls over $530 million in savings deposits as of August 2023.
