Taunton Federal Credit Union Adds Rate-Leading 13-Month CD Special

Caveat Lector

The rates offered on the TFCU non-special CDs are ridiculously low, ranging from 0.25% APY to 1.10% APY. TFCU is mirroring the recent behavior of many banks and credit unions: using CD Specials with competitive rates to increase deposits, rather than raising rates on their standard CDs. This is a great example of why it is important not let to a CD Special automatically renew as a standard CD: miss the 10-day grace period and your rate-leading 13-month CD Special becomes a 12-month CD – likely with a very low rate. (As of this writing, the TFCU 12-month CD earns 0.45% APY.)

Early Withdrawal Penalty

As stated in the Account Disclosures document (page 4), the Early Withdrawal Penalty reads as follows:

We will impose a penalty if You withdraw any of the funds before the maturity date. For Accounts with a term to maturity equal to 12 months, but less than 24 months, the penalty imposed will equal 270 days' dividends.

According to CSR, the 13-month CD Special can only be closed early: no partial withdrawals are possible. Closing a 13-month CD Special within 9 months of opening will reduce the principal.

Availability

Headquartered in Taunton, Massachusetts, Taunton Federal Credit Union’s field of membership (FOM) is community-based, with individuals who live, work, worship, or attend school in the Massachusetts counties of Barnstable, Bristol, or Plymouth, or the Rhode Island counties of Bristol, Kent, Newport, or Providence, eligible to join.

Individuals who live, work, worship, or attend school in the Rhode Island towns of Charlestown, Exeter, Hopkinton, Narragansett, New Shoreham, North Kingstown, Richmond, or South Kingstown also qualify.

Immediate family member of current TFCU members are also welcome to apply.

Account Opening

Joining TFCU can be done online or at any of five Massachusetts branches, located in Middleboro, New Bedford (2), and Taunton (2).

A Primary Share Savings Account establishes your TFCU membership and requires a minimum balance of $5. A passbook style account is also available.

Joining TFCU and opening a CD Special simultaneously can be done at any of the above-mentioned branch locations. If joining TFCU online, a CD Special can be opened by phone (508.824.6466) after the membership application is approved.

Existing TFCU members can open a CD Special at any of the above-mentioned branches, by phone (508.824.6466), or through the TFCU Online Banking platform.

Funding and Other Details

The following information was obtained from the TFCU website and a conversation with CSR.

Initial Funding – ACH, wire ($15 fee), internal transfer, or check (if opening in-branch).
CO-OP Shared Branch Participant – Yes.
Ownership – Individual or joint personal or business accounts; “no institutional funds will be accepted.”
Dividends – Compounded/credited monthly and can be paid out by check to the address on file.
Maturing Funds – Cashier’s check to address on file or internal transfer to a TFCU savings account.
Beneficiaries – Unlimited with equal shares; Social Security number required for all beneficiaries.
Grace Period – 10 calendar days before automatic renewal as a 12-month CD.
Credit Check – None.

Credit Union Overview

Taunton Federal Credit Union has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.79% (excellent), based on June 30, 2023 data. In the past year, TFCU increased its total non-brokered deposits by $60.98 million, an excellent annual growth rate of 25.82%. Please refer to our financial overview of Taunton Federal Credit Union (NCUA Charter # 5602) for more details.

On a cold November day in 1947, Gerard Bonenfant established the Taunton Municipal Credit Union in the basement of Taunton City Hall. Each week, Mr. Bonenfant would collect as little as 25¢ from City Hall workers, recording the deposits in a hand-written ledger book. Within a year, Taunton’s police and fire departments were included in the FOM, and soon thereafter, loans up to $100 were granted to the Credit Union’s members. In 1950, several other Taunton City departments, including the Taunton Municipal Lighting Plant, were added to the FOM. More than 75 years later, Taunton Federal Credit Union serves nearly 19,000 members in three southeast Massachusetts counties and nearby Rhode Island.

How the 13-Month CD 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, no banks or credit unions have higher rates than currently offered on the Taunton Federal Credit Union 13-Month CD Special. The following table compares the 13-Month CD 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 10/3/2023.

To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.