Vermont-based Union Bank has added a 3-year Step CD that offers a 2.62% blended APY. The minimum deposit is $25k, with no stated balance cap.
This is not a “step-up” CD, with an option for a rate bump during the term length, but a CD with three different APYs scheduled to go into effect at yearly intervals.
Year 1 – 1.50% APY
Year 2 – 2.25% APY
Year 3 – 4.00% APY
The 36-month CD is also available as an IRA (Traditional, Roth, and SEP), earning the same APYs at the same intervals, with the same funding requirements.
According to CSR, the Early Withdrawal Penalty (EWP) varies, depending on which year the withdrawn is made. The EWP is structured such that it seems designed to discourage breaking the CD.
Withdrawal Made In
18 months interest
12 months interest
6 months interest
Headquartered in Morrisville, Vermont, Union Bank has a market area that covers northern Vermont and northwestern New Hampshire.
Opening a 3-year Step CD must be done at any of 12 Vermont branches, located in Danville, Fairfax, Hardwick, Jeffersonville, Johnson, Lyndonville, Morrisville (2), St. Albans, St. Johnsbury (2), and Stowe. There are also four New Hampshire branches in Groveton, Lincoln, Littleton (2), and North Woodstock.
Union Bank’s online banking platform is currently limited to account management and bill payment services.
Union Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.43% (excellent) based on December 31, 2017 data. In the past year, Union Bank has increased its total non-brokered deposits by $36.97 million, an excellent annual growth rate of 6.93%. Please refer to our financial overview of Union Bank (FDIC Certificate # 14158) for more details.
Founded in 1981 as The Union Savings Bank and Trust Company of Morrisville, Vermont, the Bank owes its existence to the arrival of the railroad, which began service in 1872. Following the establishment of regular train service, Morrisville saw an economic boom. In 127 years of operation, the Bank has changed its name four times, each time shortening the name until Union Bank became the official name in 1983. Currently the second largest bank in Vermont, Union Bank has assets in excess of $745 million and more than 42,500 customer accounts.
How the Step CD Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts.com, which are available with the Bank’s market area, Union Bank’s 3-year Step CD APY (blended) currently ranks second, regardless of minimum deposit.
The above rates are accurate as of 4/23/2018.
Looking for the best CD rates, either nationwide or in your state? Please refer to our CD Rates Table page.