Ivy Bank is the digital banking division of Cambridge Savings Bank, a Massachusetts-chartered mutual bank with a 192-year operating history. Launched in June 2021, Ivy Bank focuses on one job — competitive, transparent high-yield savings — without the bonus offers, promotional rate periods, or relationship-banking hoops common at other online banks. This review covers the High-Yield Savings APY, the $2,500 minimum balance rule, FDIC coverage, and how Ivy Bank stacks up against other top high-yield savings accounts.
Is Ivy Bank legit?
Yes. Ivy Bank is a division of Cambridge Savings Bank, which is Member FDIC (Cert #17870) and one of the oldest community banks in Massachusetts. Founded in 1834, Cambridge Savings Bank manages roughly $7 billion in assets and operates under the same federal deposit insurance program as any other U.S. bank. Ivy Bank deposits are aggregated with Cambridge Savings Bank deposits for FDIC limits — $250,000 per depositor for individual accounts and $500,000 for joint accounts.
Ivy Bank High-Yield Savings rate and features
The headline feature is a 3.85% APY¹ on balances of $2,500 or more, paid as a tiered variable rate. This is a market-competitive rate that runs roughly 10x the FDIC's national average savings rate⁴ — not a promotional teaser that expires after a short window. Balances between $10 and $2,499.99 earn 0.05% APY, and the bank caps the 3.85% APY tier at $1,000,000. Rates are variable and can change after the account is opened.
Account features include online and mobile access, ACH transfers to and from external accounts, and standard customer support backed by real Cambridge Savings Bank employees rather than a third-party service center. There is no monthly maintenance fee. Ivy Bank also offers Certificates of Deposit (3-month, 6-month, 1-year, 3-year, and 5-year terms), though CDs aren't the primary focus of the program.
Who Ivy Bank is best for
Ivy Bank's High-Yield Savings is a good fit for savers who can keep at least $2,500 in the account, want a transparent rate without minimum-deposit games, and value the regulatory track record of a community bank with nearly two centuries of history. It's especially useful as a sidecar savings account paired with your primary checking — money you don't need same-day, parked at a competitive rate. If you're shopping multiple high-yield savings accounts, Ivy Bank should be on your shortlist.
Who should skip Ivy Bank
California residents can't open an Ivy Bank account, so this product isn't an option there. If you can't reliably keep $2,500 in the account, the 0.05% APY on lower balances is uncompetitive — a no-minimum option like Capital One 360 Performance Savings or a higher-rate account from Western Alliance Bank is a better fit. Ivy Bank also doesn't offer a checking account or debit card, so it works as a savings sidecar rather than a primary bank.
How Ivy Bank compares to other high-yield savings accounts
Ivy Bank's 3.85% APY¹ slots into the middle of the current high-yield savings field. Western Alliance Bank pays 4.20% APY with no minimum balance, and Capital One 360 Performance Savings pays around 4.00% APY also with no minimum. The trade-off at Ivy Bank is rate stability backed by a 192-year-old institution rather than the highest possible headline rate. The comparison below shows how the three stack up on the metrics that matter most for savers.
How to open an Ivy Bank account
The application takes most customers under 10 minutes and is completed entirely online. You'll need your Social Security number, a government-issued ID, and an external bank account to fund the opening deposit of $2,500. After identity verification, Ivy Bank pulls the opening deposit by ACH from your funding account. Most accounts are open and earning the APY within one to two business days. There's no credit check tied to opening a savings account.
Fees and fine print
Ivy Bank's High-Yield Savings carries a $0 monthly maintenance fee and no minimum balance fee. The 3.85% APY¹ requires a balance of at least $2,500 and applies up to a maximum balance of $1,000,000; the tier above that does not earn the headline rate. Balances between $10 and $2,499.99 earn 0.05% APY. This is a tiered variable rate account — Ivy Bank can change the APY at any time. Federal regulation limits convenient withdrawals on savings accounts to six per statement cycle. As with any deposit account, fees may reduce earnings.
FDIC insurance and security
Ivy Bank deposits are insured by the FDIC up to $250,000 per depositor for individual accounts and $500,000 for joint accounts, through Cambridge Savings Bank (Member FDIC, Cert #17870). Because Ivy Bank and Cambridge Savings Bank share the same FDIC certificate, deposits at both are aggregated for insurance limits — they aren't separately insured. The FDIC's national average savings rate is the benchmark used for the "10x the national average⁴" comparison.
Looking for fixed-term savings instead? Ivy Bank also offers Certificates of Deposit in 3-month, 6-month, 1-year, 3-year, and 5-year terms, though CDs aren't currently the bank's promoted product.
Frequently asked questions
Ivy Bank FAQ
Disclosures: ¹ Rates effective as of 4/1/2026. Minimum opening deposit of $2,500. The minimum balance to obtain the 3.85% Annual Percentage Yield (APY) is $2,500. If your balance is between $10 and $2,499.99, the interest rate is 0.05% and the APY is 0.05%. The maximum account balance to receive the 3.85% APY is $1,000,000. This is a tiered variable rate account, and rates may change after the account is opened. Fees may reduce earnings. ⁴ National savings average rate as reported by the FDIC. Ivy Bank is a digital banking division of Cambridge Savings Bank, a Massachusetts state-chartered bank (Member FDIC, Cert #17870). Ivy Bank and Cambridge Savings Bank deposits are combined for FDIC insurance limits and not separately insured.
Pros
Competitive 3.85% APY¹: Roughly 10x the national savings average⁴ on balances of $2,500+.
192-year banking heritage: Backed by Cambridge Savings Bank, Member FDIC (Cert #17870).
No promotional gimmicks: Transparent variable rate — no expiring intro tier or direct-deposit hoops.
Cons
$2,500 minimum balance: Balances under $2,500 earn just 0.05% APY.
Not available in California: California residents can't open an account.
Savings-only: No checking, debit card, or relationship banking tools.