Mechanics Cooperative Bank (Mechanics Co-op) is currently offering a 2.75% APY on its 27-month CD Special, which can be opened online or in-branch. The minimum deposit for the CD Special is $2.5k, unlike the $500 minimum for its other CDs.
DA has been tracking the 27-month CD Special for more than seven years, with rates that were not competitive until the past three months. In the past eight months, a total of 190 bps have been added to this CD Special in three rate increases.
As stated in the Schedule of Rates and Fees, the Early Withdrawal Penalty read as follows:
CDs with Maturities of One (1) Year but less than Three (3) Years: the fee that we may impose will equal six (6) months interest on the amount withdrawn subject to penalty.
According to CSR, the CD can be funded through ACH (no limits), but maturing funds can only distributed either by wire ($25 fee) or by cashier’s check. There is a seven calendar day grace period before the 27-month CD automatically renews into a 30-month CD.
Share Insurance Fund
In addition to being insured by the FDIC, deposits at Mechanics Cooperative Banks are insured by the Share Insurance Fund (SIF), a private fund owned by member co-operative banks. All deposits, no matter how large, are “always fully protected.” According to SIF's website,
Since its inception, the Share Insurance Fund has preserved the enviable claim of member co-operative banks that no depositor has ever lost a dollar in any Massachusetts co-operative bank.
Headquartered in Taunton, Massachusetts, Mechanics Cooperative Bank’s in-branch market area includes Bristol and Plymouth Counties, in southeast Massachusetts.
A portion of the product, including the 27-month CD Special, can be opened online by U.S. citizens, 18 years or older, who reside in either Massachusetts or Rhode Island.
Mechanics Cooperative Bank also has eight full-service Massachusetts branches, located in Bridgewater, Fall River, North Dighton, Somerset, Swansea, Taunton (2), and Westport.
Mechanics Cooperative Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 3.65% (excellent) based on March 31, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $6.86 million, an above average annual growth rate of 1.74%. Please refer to our financial overview of Mechanics Cooperative Bank (FDIC Certificate # 26634) for more details.
Mechanics Cooperative Bank was founded in 1877 and was the fifth “cooperative association” to be established in Massachusetts. The very first cooperative association was founded in 1831 in Philadelphia, with its purpose being to help “members to save systematically and to loan these savings to those who needed immediate funds.” In 1887, the Governor of Massachusetts signed a bill that chartered,
associations for the purpose of accumulating the savings of its members, paid into such corporations in fixed periodical installments, and the lending of such funds so accumulated to its members, they to be known as “Co-operative Savings Fund and Loan Associations.
How the CD Special Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available within the Bank’s online market area, Mechanics Cooperative Bank’s 27-month CD Special APY currently ranks fourth.
The above rates are accurate as of 6/19/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.