Ivy Bank's 4.00% APY Savings Account: What You Need to Know Before You Open One

A 4.00% APY on a savings account is still a solid deal in today's rate environment, and Ivy Bank is offering exactly that — nationwide, with no monthly fees as long as you keep at least $2,500 in the account. But there are a few wrinkles worth understanding before you move your cash over, including a fee that kicks in if your balance dips, a penalty for closing too soon, and a withdrawal limit that could trip you up if you like to move money around.

The rate is good — but it's tiered

Ivy Bank advertises 4.00% APY, and that's what you'll earn as long as your balance sits between $2,500 and $1,000,000. That's a competitive rate for a savings account with no ongoing hoops to jump through.

The catch is what happens below that threshold. If your balance drops to anywhere between $10 and $2,499.99, the rate collapses to 0.05% APY. That's not a typo — it's a fraction of what you'd earn elsewhere. So this account really only makes sense if you can comfortably park at least $2,500 there and leave it alone.

Also worth noting: this is a tiered variable rate, which means Ivy Bank can change it after you open the account. The 4.00% figure was effective as of 9/22/26, so check the current rate before you commit.

Watch out for the $15 monthly fee

The account has no monthly fee — until your balance falls below $2,500. At that point, Ivy Bank charges $15 per month. Combined with the rate drop, dipping below the minimum is a double hit.

There's also a $15 early termination fee if you close the account within 180 days of opening it. That's not huge, but it's the kind of thing that stings if you open an account, decide it's not for you, and want to move on quickly. Plan to stick around for at least six months if you're going to bother opening it.

Moving money in and out: the limits you should know

Ivy Bank lets you fund the account through bank transfers, mobile deposit, wire transfer, or check. One detail from the fine print: if you use a credit or debit card for part of your opening deposit, that portion is capped at $1,000.

Withdrawals are where things get more restrictive. Ivy Bank limits transfers and withdrawals to six per calendar month. That's a common cap for savings accounts, but it's worth keeping in mind if you tend to move money around frequently.

New customers also face an outbound transfer limit of $25,000, which gets raised after four months. If you're planning to move a large sum in and then out again quickly, that cap could get in the way.

• Six transfers/withdrawals per calendar month
• New-customer outbound transfers capped at $25,000 until month four
• Card-funded portion of opening deposit limited to $1,000
• Maximum of two beneficiaries per account

Who this account makes sense for

If you've got $2,500 or more sitting in a low-yield savings account and you don't need to touch it often, Ivy Bank's 4.00% APY is a reasonable place to put it. The account is FDIC insured, interest compounds daily, and there's no monthly fee as long as you stay above the minimum.

It's less appealing if your balance fluctuates, if you like to move money between accounts frequently, or if you're in California — Ivy Bank isn't available there. And if you're the type who opens accounts to chase rates and closes them when something better comes along, the 180-day early termination fee is a reason to think twice.

One more thing: Ivy Bank is backed by Cambridge Savings Bank, a Massachusetts institution with a long history. For FDIC insurance purposes, the two are treated as a single entity, so if you already have deposits at Cambridge Savings Bank, make sure your combined total stays within insured limits.

Bottom Line

• 4.00% APY applies to balances from $2,500 to $1,000,000 — below $2,500, the rate drops to 0.05%.
• A $15 monthly fee applies if your balance falls under $2,500, and there's a $15 fee for closing within 180 days.
• Withdrawals are capped at six per calendar month, and new customers face a $25,000 outbound transfer limit for the first four months.
• Not available in California; FDIC insurance applies, but Ivy Bank and Cambridge Savings Bank share one insurance limit.

Common Questions