Ivy Bank is an online-only bank backed by Massachusetts-based Cambridge Savings Bank. Established in 2021, it focuses on offering high-interest savings accounts to consumers across the country. The bank also offers certificates of deposit (CDs) with competitive annual percentage yields (APYs) and an impressive suite of financial management tools through its mobile app and online platform.
Opening an account with Ivy Bank may be challenging for some consumers. The minimum balance requirement for savings is $2,500, while the minimum for CDs is $1,000.
Ivy Bank has no local branches but its hours of operation are 9 a.m. to 6 p.m. Eastern time Monday through Friday and 10 a.m. until 2 p.m. ET on Saturday.
All rates and fees are current as of May 24, 2024, and are subject to change.
Ivy Bank
Savings accounts: | Earn up to 5.30% APY |
Certificate of deposit (CD) rates: | Earn up to 5.00% APY |
Pros
- Competitive APYs on all Ivy Bank accounts: The APYs on Ivy Bank accounts range from 2.6% to 5.30%.
- Extensive suite of financial management tools: The Ivy Bank mobile and online platform includes tools to help budget, track your net worth, and visualize your spending patterns.
- Variety of customer service options: Ivy Bank representatives can easily be reached via chat, phone, and email.
- Mobile check deposit: You can use the mobile app to deposit checks directly into your account.
Cons
- High opening balance requirements: To establish a savings account with Ivy Bank, you need a minimum opening deposit of $2,500.
- No checking or MMAs: Ivy Bank’s offerings are limited to savings and CD accounts. This may be challenging for those seeking a broader range of banking services, such as checking and money market accounts.
- Can’t pay bills: Ivy Bank doesn’t let you make external transfers to accounts you don’t own, so you can’t pay bills or send others money.
- Transfers can take up to four business days: Slightly longer than most other banks.
Who is Ivy Bank good for?
Because Ivy Bank has no in-person branches, it’s best for people who prefer to do their banking online. The robust online and mobile banking features let you access your account whenever necessary. There’s also a convenient mobile check deposit, so you don’t have to visit an ATM or send a check in the mail.
Also, Ivy Bank currently has some of the highest APYs on the market. If you’re looking to maximize your interest gains, Ivy Bank could be a good choice.
Who shouldn’t use Ivy Bank?
Ivy Bank only has two account options — high-yield savings and CDs. It’s not a good fit for someone who needs a checking account, money market account (MMA), or investment account. Also, if you plan on using your savings account to pay bills, you shouldn’t choose Ivy Bank. You’re limited to six withdrawals per month, and you can only make transfers to accounts that you own. That means you can’t pay bills to third-party providers at all.
Finally, because Ivy Bank is owned by Cambridge Savings Bank, its Federal Deposit Insurance Corp. (FDIC) insurance limits are combined. So, if you also have accounts at Cambridge Savings Bank and are close to the $250,000 maximum insurance, opening more accounts at Ivy Bank might put you over the limit.
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Ivy Bank rates and products
Ivy Bank offers high-yield savings and CD accounts with APYs that range from 2.60% to 5.30%. Neither account has any monthly fees.
High-yield savings account
The high-yield savings account has a limit of six total transfers and withdrawals per calendar month with this account. Withdrawals can only be made via electronic transfer, domestic wire transfer, or treasurer’s check.
There is a high minimum opening deposit of $2500, and you need to maintain that balance to keep earning the APY. If your balance falls below that, you’ll earn 0.05% APY. Balances under $10 won’t earn any interest. Interest compounds daily and is credited to your account monthly.
Ivy Bank savings rates compared to current top rates*
While Ivy Bank is a great option, some institutions offer higher interest rates. Compare the rates above to this list of competitors:
Certificates of deposit
The minimum deposit for a CD is $1,000, and the maximum balance is $1 million. Account holders may not make additional deposits to a CD until it reaches maturity.
Earned interest for an Ivy Bank CD is credited monthly, and you can have it deposited into another Ivy Bank account if you want (keep in mind that interest withdrawals reduce your APY). After your term ends, you have a 10-day grace period to move your money without an early withdrawal penalty before the CD renews.
Other services Ivy Bank offers
Ivy Bank’s additional services are limited. In addition to the account types already mentioned, it offers a comprehensive credit score program that allows users to stay abreast of their credit scores and obtain reports, among other features. The program also notifies users when changes are detected, such as a new account being opened or a change of personal information including address or employer.
Ivy Bank platform and customer support
Ivy Bank offers impressive online banking and mobile app platforms that allow customers to bank 24/7. Using either option, customers can check balances, obtain copies of statements, view account history, and transfer funds. The Ivy Bank mobile app can also be used to deposit checks.
The bank’s mobile and online platforms also feature a money management tool that allows users to create and manage their budget and track spending. In addition, the money management tool provides a visualization of a user’s net worth over time.
Customer service representatives for Ivy Bank can be reached via phone, chat, and email. The phone service hours are 9 a.m. to 6 p.m. ET Monday through Friday and 10 a.m. until 2 p.m. ET on Saturday. Chat representatives are available during the same business hours as well. In addition, Ivy Bank customers enrolled in online banking can submit secure emails via the banking platform.
Is Ivy Bank secure?
Ivy Bank has not had any data breaches in the past few years, making it one of the few digital banks to remain safe from hackers and cybercriminals. Its impressive security hub on its site offers many tips and best practices for keeping your information secure. Additionally, it follows security measures that comply with federal law, such as safeguarding computers and storing all files in secured buildings.
Ivy Bank user reviews
Most of the Ivy Bank reviews on the web are positive. Customers praise the ease of contacting customer service and their helpfulness in answering questions. Others praise the straightforward application and ability to earn high interest rates.
A few customers complained that transfers take a while to complete. According to Ivy Bank, transfers can take up to four business days, depending on the day of the week you start the transfer. Another customer had problems transferring money from their account to help a family member pay for a new car. However, Ivy does state in its terms that you are only allowed to make transfers to accounts in your name.
Compare Ivy Bank alternatives
Is Ivy Bank right for you?
On the whole, Ivy Bank is ideal for someone who has a large emergency fund they’d like to store at a bank with a high APY. Ivy Bank’s $2,500 minimum savings balance requirement is high for casual consumers but, if you’ve got more than that, Ivy Bank can be a good opportunity to maximize your interest earnings. However, if you need an account you can use to pay bills, write checks, or make ATM withdrawals, Ivy is not the right pick for you.
Frequently asked questions
Is Ivy Bank legitimate?
Yes. Ivy Bank is a division of Cambridge Savings Bank, a Massachusetts state-chartered bank and FDIC member established in 1834.
How do I set up an Ivy Bank account?
Ivy Bank accounts can be opened by completing an online application, which takes just a few minutes.
Is Ivy Bank an online bank?
Yes, Ivy Bank is an online-only bank.
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