A woman uses the Ivy Bank app in this handout photo illustration. Image courtesy of Cambridge Savings Bank
Cambridge Savings Bank has launched a digital-only bank, joining several other Massachusetts community banks that offer online savings products to consumers nationally.
Ivy Bank is Cambridge Savings Bank’s new digital-only division, offering products with higher interest rates compared to those available through traditional banks. The bank is offering FDIC-insured online savings accounts and certificates of deposit, while providing “human-centric customer support to help consumers work towards reaching their financial goals,” Cambridge Savings said in a statement.
Digital bank customers have online and mobile platforms to manage accounts, deposit checks and transfer funds through
“Ivy was born out of our desire to meet customers where they are in this changing market environment and provide an opportunity for us to deliver a relationship-centric digital bank with the backing of our historic financial institution,” Wayne Patenaude, president and CEO of Cambridge Savings, said in the statement. “At Cambridge Savings Bank, we take great pride in helping our customers strengthen their financial well-being through our traditional distribution channels – and we are thrilled to be able to broadly extend that service model through the launch of our digital division, Ivy.”
Customer account openings take an average of five minutes, the bank said, and customers get immediate access to online and mobile banking. Ivy Bank is also offering concierge-style customer service with assistance through chat, email and phone.
A money management tool lets customers view all bank accounts in one place, including those held at other financial institutions. The tool also allows customers to see their spending by category, set and manage budgets, manage debt and view net worth, the bank said.
“For us at Cambridge Savings Bank, it’s simple; our customers always come first,” Katie Catlender, chief customer officer at Cambridge Savings Bank, said in the statement. “To that end, Ivy’s offerings are designed to better educate consumers about their financial lives, promote inclusive banking and provide a trusted digital platform with the security of a traditional bank.”
The minimum to open a savings account is $100. Accounts with a balance of at least $2,500 up to $1 million will receive a 0.61 percent annual percentage yield (APY). Balances of less than $2,500 will have an APY of 0.05 percent. CDs have 1-, 3-, and 5-year terms and require a $1,000 opening deposit. The 5-year CD currently has an APY of 1 percent.
Other Massachusetts community banks with digital banks include Salem Five, Fall River-based BankFive and Holyoke-based PeoplesBank.
