Dedicated to Deposits: Deals, Data, and Discussion

2.75% 12-Month CD and Other Competitive CD Rates at First Trade Union Bank - Available Nationwide

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First Trade Union Bank
First Trade Union Bank continues to offer competitive rates on its CDs. I first posted on the bank in February when I focused mostly on their High & Mighty Savings Account. The rate has gone down on that account, but it's still over 3% as of today (see post). The CD rates have also gone down, but they continue to be competitive. Some of the better deals include a 2.75% APY 12-month CD and a 3.00% APY 24-month CD. Below is a list of the CD rates and terms as listed on the bank's rate table as of 3/26/09:
  • 2.25% APY 6 months
  • 2.75% APY 12 months
  • 2.75% APY 15 months (with step-up option)
  • 2.90% APY 18 months
  • 3.00% APY 24 months
  • 3.10% APY 30 months
  • 3.25% APY 36 months
  • 3.50% APY 48 months
  • 3.75% APY 60 months
Minimum deposit for most of the CDs is $500, and the maximum opening deposit is $99,999. The bank also offers IRA CDs.

I've confirmed with the bank that people in any state can apply online for the CD or the savings account. According to the first page of the application, your initial deposit must be made by check. According to the CSR, the rate does not lock until they receive your check. I was told you can include a note to instruct them to call you before they open the CD to ensure you don't lock into a rate that's much lower than when you applied. At maturity, I was told you can request a wire transfer (cost is $20). There's a 10 calendar-day grace period.

Some CD details from the bank's CD page and terms and conditions include:
  • For CDs that pay interest monthly or quarterly, you can choose to have it credited to your First Trade Checking, NOW or Statement Savings, or receive a check
  • statements sent quarterly
  • Early withdrawals penalty is 12 months interest for terms 12 months and longer (harsher than average)
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 (based on 12/31/08 data) and 4 stars (sound) at Bankrate.com (based on 9/30/08 data). The bank has been FDIC insured since 1987 (FDIC Certificate # 32551).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
  Tags: Massachusetts, New York, First Trade Union Bank, CD rates, Rhode Island, IRA rates

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Comments
2 comments.
Comment #1 by Banking Guy (anonymous) posted on
Banking Guy
An anonymous reader commented about his/her experience with First Trade Union Bank. The reader reported several problems in trying to apply for an account with this bank.

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Comment #2 by Anonymous posted on
Anonymous
I am not that surprised with the delay with processing a mailed in application. It is best to open an account directly at a branch office or via online where you have a hard copy confirmation. Mailed deposit checks can be slow to process sometimes. If the bank doesn't have a good check processing department, then you can expect delays.

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