Millbury National Bank (Millbury Savings Bank)

Table of Contents

1. Introduction
2. About Millbury National Bank
3. Routing Number & Banking Basics
4. Certificates of Deposit (CDs) – Overview
5. Millbury National Bank CD Rates (2025 Snapshot)
6. CD Terms and Requirements
7. How Millbury Compares to Competitors
8. Choosing a CD: Tips & Strategies
9. Opening & Managing CDs
10. Interest, Compounding & Taxes
11. Early Withdrawal Penalties
12. CD Ladders & Maximizing Returns
13. Alternatives to CDs (Savings/Money Market Accounts)
14. Risks and What to Watch
15. Customer Service and Branch Access
16. FAQs
17. Conclusion

1. Introduction

Millbury National Bank—also called Millbury Savings Bank colloquially—is a local community bank in Millbury, Massachusetts, founded in 1933. It offers personal and business banking services including checking, savings, money market accounts, Certificates of Deposit (CDs), and loans. Though small in assets, it serves its community with ratings of A health and FDIC+DIF insurance support

This guide explores key operational details including routing number, CD offerings, interest rates, and strategic insights for savers in 2025.

2. About Millbury National Bank

Headquartered at 18 Main Street, Millbury, MA 01527, Millbury National Bank is ranked as the 94th largest bank in Massachusetts, maintaining around $135 million in assets as of Q1 2025 with 23 employees and a single branch

It operates under strong capital ratios and notable return on assets (~0.29%) and equity (~3.4%) Deposit Accounts. The regulator is OCC; insured by FDIC and DIF as needed for amounts over $250K.

The bank offers Kasasa branded products (e.g., Kasasa Cash, Kasasa Saver) and community-centric savings and CD programs Deposit Accounts+2bankHometown+2Webster Five+2mnbonline.com.

3. Routing Number & Banking Basics

Millbury National Bank’s routing number is 011305202, used for both ACH transfers and Fedwire wire transfers in the U.S. mnbonline.com+6mnbonline.com+6Wise+6.

• Where to find it: On the bottom-left of checks, in online banking, or by contacting the bank directly.
• Why it matters: Routing number is essential for direct deposit, electronic payments, and peer bank transfers.

Always verify routing numbers with official bank sources before initiating transactions.

4. Certificates of Deposit (CDs) – Overview

Millbury National Bank offers Certificates of Deposit with fixed terms ranging from 91 days to 3 years. CDs come with guaranteed returns, FDIC-insured principal up to limits, and structured penalties for early withdrawal mnbonline.com+1mnbonline.com+1.

• Typical minimum deposit: $500 (or $1,000 for shortest term).
• Focused on community savers, emphasizing simplicity and reliability.

5. Millbury National Bank CD Rates (2025 Snapshot)

Latest rates as of mid‑2025 include:

Plus Platinum CD specials tailored for longer term higher yields:

• 1-year Platinum: 3.75% (APY 3.80%)
• 2-year or 3-year Platinum: up to 3.80% APY depending on deposit and customer status

These CD specials are prominently displayed on Millbury’s quoting section and rate tools.

6. CD Terms and Requirements

Minimum deposit:

• Standard CD: $500
• 91-day special: $1,000

Penalty for early withdrawal:

• 91-day CD: 30 days’ interest
• 6-month CD: 60 days
• 1 to 3‑year CDs: 180 days interest penalty.

Compounding: interest typically compounds monthly and credited quarterly or at maturity; verify when opening account.

Renewal policy: automatic renewal unless instructed otherwise; customers have grace period to withdraw or change terms.

7. How Millbury Compares to Competitors

While small compared to megabanks, Millbury’s CD rates are competitive for local depositors wishing in-person access. Large online banks may offer higher rates (e.g. 4.4%+ on short-term CDs), but may require higher minimums and have remote-only access.

Millbury’s 91-day special at 4.11% APY is especially attractive given its short commitment, while 6-month and 1-year offers exceed many larger banks’ standard rates.

Compare to national jumbo offerings around 4.4% on 6-month CDs—Millbury’s lower balance requirement and in-person branch access present a compelling trade-off.

8. Choosing a CD: Tips & Strategies

• Short horizon, short commitment: use 91-day CD at 4.11% to test rate cycles while maintaining liquidity.
• Balance vs term: deposit $500–1000 in CD to capture yield while minimizing locked-in funds.
• Platinum special CDs: for deposits over $500 and loyalty customers, aim for 1–3 year Platinum CDs at ~3.80% yield.
• Check auto-renewal dates: avoid getting locked in at lower prevailing rates—opt-out within grace period.
• Consider laddering: stagger CDs at different maturity dates (see Section 12) for liquidity and yield optimization.

9. Opening & Managing CDs

Steps:

1. Visit branch or apply via online route tools (if digital enabled).
2. Present ID, funding of at least $500 (or $1,000 for specials).
3. Select term and CD type (standard vs Platinum).
4. Provide routing number and account details for interest credit.
5. Review penalty and renewal terms.

Manage:

• Use online banking to track maturity dates and interest posting.
• Keep track of certificates separately from checking/savings for clarity.

10. Interest, Compounding & Taxes

• Interest is taxable in the year it’s credited, even if not withdrawn.
• Compounding frequency can affect effective yield slightly; confirm whether monthly or quarterly.
• Receive Form 1099‑INT from bank for tax reporting.

11. Early Withdrawal Penalties

Millbury’s early withdrawal penalties are structured to discourage premature withdrawal while preserving earned yield:

• 91-day CD: 30 days of interest forfeited
• 6-month CD: 60 days
• 1–3 year CD: 180 days interest penalty

These are standard among community banks and reflect their need to reinvest funds for term durations.

12. CD Laddering & Maximizing Returns

CD laddering involves splitting funds into multiple CDs with staggered terms (e.g., 3‑mo, 6‑mo, 1‑yr, 2‑yr) to provide periodic access and hedge rate fluctuations. Example with $4,000:

• $1,000 into 91-day CD (4.11% APY)
• $1,000 into 6‑month CD (3.89% APY)
• $1,000 into 1‑year Platinum CD (3.80% APY)
• $1,000 into 3‑year CD (3.29% APY)

Each maturity gives a chance to reinvest at higher rates if market improves.

Laddering also helps navigate early withdrawal needs without major penalty.

13. Alternatives to CDs

Millbury offers Kasasa Cash & Kasasa Saver accounts with variable rates if qualification requirements are met:

• Kasasa Cash checking: up to ~4.07% APY depending on activity and balance.
• Kasasa Saver synced with Kasasa Cash: up to ~1.98% APY

Money market accounts may offer modest variable returns, but typically under CD yields unless rate environment shifts upward sharply.

Consider savings or checking for flexibility—CDs for higher locked-in return.

14. Risks and What to Watch

• Rate risk: locking into multi-year CDs may yield less if rates rise.
• Liquidity risk: early withdrawal penalties reduce effective return.
• Auto-renewal risk: re-entering at lower prevailing rates if not withdrawn timely.
• Insurance limits: FDIC + DIF cover up to $250K each—ensure aggregate deposits do not exceed limits.

15. Customer Service and Branch Access

With a single branch—14 employees in Millbury—customer service is personalized and community-oriented. Services include in‑person assistance, web-based tools, and call support (508‑865‑9521).

The route calculator and online request forms offer initial quote; but full application may require branch visit

FDIC and DIF dual coverage ensure full protection beyond standard FDIC limits.

16. Frequently Asked Questions (FAQs)

Q1: What is Millbury National Bank’s routing number?
A: 011305202 for both ACH and wire transfers

Q2: Can I open a CD online or must I visit the branch?
A: Initial quote may be online, but most account openings, especially CDs, require in-person verification.

Q3: Are the 91‑day and 6‑month CDs promotional?
A: Yes, they are special rates available as of mid‑2025 but subject to change. Standard rates for long‑term CDs are lower.

Q4: Can I roll over my CD at maturity to a new rate?
A: Yes—within the grace period you may reinvest or withdraw funds; automatic renewal otherwise.

Q5: Is interest compounded monthly or quarterly?
A: Typically monthly compounding; confirm with bank representative or product disclosure.

Q6: Are these CDs FDIC-insured?
A: Yes—up to $250K per depositor per entity, plus additional coverage via Depositors Insurance Fund (DIF) for amounts above FDIC limits.

17. Conclusion

Millbury National Bank, while modest in size, offers solid and competitive CD rates—notably the 91-day special at 4.11% APY, 6-month at 3.89%, and 1-year & 3-year Platinum CDs at ~3.80% APY. The bank’s single-branch structure provides strong local service, and its FDIC + DIF coverage gives depositors added confidence.

For savers seeking short-term flexibility or laddering strategies, Millbury’s CD products offer practical value. While rates may not match national online banks on longer-term jumbo CDs, the low deposit minimums, community access, and stable terms make Millbury a viable choice for conservative savers in Massachusetts.