Have you ever heard of the Institution for Savings? Don't feel bad if the answer is "no," most people haven’t. However, the Institution is a bona fide savings institution that offers certificates of deposit, many times at rates higher than national averages. The Institution is keeping up with its reputation, currently offering a 40-month CD at an annual return rate of 2 percent, which is more than double the national average and surprising for a short term CD. The same 2 percent return offered applies to the bank’s 48-month and 60-month CDs as well.

The Institution is a historic mutual bank based in Massachusetts that was first established in 1820. Today, it represents a savings institution with a combined asset portfolio of $1.4 billion in its accounts. However, until 2006, the Institution did not operate much outside of its headquarters location in Newburyport. Since mid-2000s, the Institution now has multiple offices, still predominantly located in the same state.

An interesting aspect of the Institution is that it is a member of the Depositors Insurance Fund, which is different from the Federal Depositors Insurance Corporation, or FDIC. The DIF provides insurance on bank accounts in the Institution that exceed the FDIC limits and are located in a Massachusetts bank. This aspect gives savers a much larger level of protection above the current FDIC $250,000 per account limit at most national banks.

To deposit into a CD with the Institution for Savings a saver will need to provide at least a minimum deposit of $500. CDs offered range from a short period of 3 months to as long as 60 months. And early withdrawal will trigger interest penalties.