At the beginning of the week, Central One Federal Credit Union (Central One) introduced a 15-Month Certificate Special earning 5.50% APY. This limited-time offering can be opened with a $1k minimum deposit of new money, which is simply defined as funds not currently on deposit in a Central One account. While Central One also has a 15-month Premium Certificate Special that requires a $10k minimum deposit and a Premium Checking account with a minimum direct deposit of $1.5k, the APY is the same 5.50%.
The 15-Month Certificate Special is also available as an IRA Certificate Special, earning the same APY with the same deposit requirements.
Early Withdrawal Penalty
As stated in the Rates & Service Charges document, the Early Withdrawal Penalty reads as follows:
For account terms of more than 12 months, the penalty is equal to six months’ dividends on the amount withdrawn.
The penalty is calculated as a forfeiture of dividends that have been or would be earned on the amount withdrawn. If the account has not yet earned enough dividends or if dividends have previously been withdrawn, the penalty will be deducted from the principal balance.
According to CSR, partial withdrawals are allowed.
Headquartered in Shrewsbury, Massachusetts, Central One Federal Credit Union’s field of membership (FOM) was expanded more than two years ago and now includes U.S. citizens and residents aliens who live, work, worship, attend school, volunteer, or own a business in all of Worcester County, as well as 113 communities in Middlesex and Norfolk Counties.
Family/household members of a current Central One member are also welcome to apply, as are businesses and legal entities located in the FOM.
Joining Central One and/or opening a Certificate Special can be done online or at any of five full-service Massachusetts branches located in Auburn, Northborough, Shrewsbury, Westborough, and Worcester.
Minimum deposit of $5 in Owner Voting Share account required.
Funding and Other Details
The following information is from a conversation with CSR.
- Funding – ACH, wire ($5 fee), or debit card ($2k max), or shared branch transaction.
- CO-OP Shared Branch Participant – Yes.
- Dividends – Compounded/credited monthly and can be withdrawn penalty free.
- Maturing Funds – Cashier’s check to address on file or internal transfer to a Central One savings/checking account.
- Beneficiaries – Unlimited, percentages available, Social Security numbers are not required.
- Grace Period – 10 calendar days before automatic renewal.
- Credit Check – ChexSystems.
Credit Union Overview
Central One Federal Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 2.12% (excellent) based on March 31, 2023 data. In the past year, Central One has increased its total non-brokered deposits by $11.74 million, an above average annual growth rate of 1.8%. Please refer to our financial overview of Central One Federal Credit Union (NCUA Charter # 8218) for more details.
Established in 1952 to serve New England Electric System employees, Central One Federal Credit Union is currently the 18th largest credit union in Massachusetts, with nearly 38,000 members and assets in excess of $774 million.
About a year ago, Central One named Devon Lyon as its new president/CEO, following the retirement of David L’Ecuyer after 32 years of service. According to a Credit Union Times article,
L’Ecuyer joined Central One in 1990 as an assistant manager and was promoted to manager of operations a year later. By 1994, he was named CEO. During his CEO tenure, the credit union grew assets from $110 million in 1994 to its current assets of $737 million, while loans increased from $67.3 million to $532 million, according to NCUA Call Reports. Central One’s membership also expanded from 14,132 to 37,435.
How the 15-Month Certificate Special Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $10k or less, only one credit union has a higher rate than currently offered on the Central One Federal Credit Union 15-Month Certificate Special. The following table compares the 15-Month Certificate Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 9/1/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.