Dedicated to Deposits: Deals, Data, and Discussion

3.00% 18-Month CD & 3.25% Internet Savings Account at First Trade Union Bank - Nationally Available

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First Trade Union Bank
Update 12/12/09: The High & Mighty Savings account rate is now 1.50% APY. CD rates have also fallen. Refer to the bottom of the post for the rate history.

First Trade Union Bank is offering competitive rates on its CDs and savings account. Some of the competitive CD rates include 2.85% APY for 13 months, 3.00% APY for 18 months and 3.50% APY for 36 months. Minimum deposit is $500. The bank's High & Mighty Savings account has a rate of 3.25% APY for balances over $2,500. These rates are listed in the bank's rate table as of the morning of 2/18/09.

Some features of the High & Mighty Savings described in their savings account page and in their savings comparison page (pdf) include:
  • 3.25% APY above $2,500; 0.50% from $10 to under $2,500 as of 2/18/09
  • $2,500 minimum to open
  • $2.50/month service charge for daily balances below $250
  • Interest accrues daily and is compounded and credited monthly
  • ATM card
  • link to checking accounts for electronic transfers. Update 3/08/09: A reader reported the following regarding electronic transfers: "no ACH service available with this account, so external accounts cannot be linked. They do seem to allow ACH transfers initiated by other banks though."

Update 2/19/09: I emailed the bank yesterday, and I received their reply stating that these internet accounts are available to people in any state. Here is the reply I received:
We do offer the accounts you mentioned to Individuals or Joint Account holders located in any state. However, you must be a U.S. Citizen to open an account online.

The FAQ that I found yesterday may refer to the non-internet accounts. That FAQ stated that they "process applications for deposit accounts and loans only from those individuals residing in Massachusetts, Rhode Island, Connecticut, New York and Southern New Hampshire."

The online application appears to allow funding via ACH transfers. At the start of the application I noticed it states the maximum opening deposit is $99,999.99. The second page of the application forces you to check the following acknowledgment: "By applying for an account, I also agree that my credit and account history may be reviewed with consumer reporting agencies." This could mean a hard credit pull which would temporarily ding your credit score. Another note regarding the online application is that not all CDs can be selected.

First Trade Union Bank is based in Boston with branches in Massachusetts, New York and Rhode Island.

The bank has some strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/08 financial data. The bank has been FDIC insured since 1987 (FDIC Certificate # 32551).

Rate History of the High & Mighty Savings Account:
12/12/09: 1.50% APY
11/07/09: 1.65% APY
10/03/09: 1.75% APY
08/07/09: 1.80% APY
06/25/09: 2.06% APY
04/20/09: 2.32% APY
04/10/09: 2.75% APY
03/13/09: 3.04% APY
02/28/09: 3.20% APY
02/18/09: 3.25% APY over $2.5K
  Tags: Massachusetts, New York, New Hampshire, First Trade Union Bank, CD rates, Rhode Island, savings account, Connecticut

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Comments
6 comments.
Comment #1 by Anonymous posted on
Anonymous
For the High and Mighty account at least, they don't do ACH funding. When you get to the end of the application, there's a signature card page that you have to print and mail along with a check for the initial deposit and a photocopy of your driver's license.

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Comment #2 by Anonymous posted on
Anonymous
The website does indicate that only people who reside in the New England area could apply for the accounts, but thanks for getting a clarification on that. Given the current trend, I don't think the high and mighty savings rate is going to remain high and mighty for long.

1
Comment #3 by Anonymous posted on
Anonymous
Note that there is no ACH service available with this account, so external accounts cannot be linked. They do seem to allow ACH transfers initiated by other banks though.

2
Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. I've updated the post.

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Comment #5 by ichaelm (anonymous) posted on
ichaelm
rate drop to 3.04

1
Comment #6 by Anonymous posted on
Anonymous
This page suggests they expect to have their own transfer system in July:

http://www.ftubhb.com/home/onl.onl_nao

1