DCU Unveils Competitive 13-Month Promotional CD

Massachusetts-based DCU has added a 13-month Promotional CD (5.39% APY) to its product line. This limited-time offer can be opened with a $500 minimum deposit, with no stated balance cap.

DA readers may remember that the DCU 12-23 month Jumbo CD ($25k minimum) was increased to 5.39% APY in early December. That rate has dropped to 5.13% APY, coinciding with the launching of the 13-month Promotional CD.

Early Withdrawal Penalty

As stated in the Certificate Terms and Conditions document, the Early Withdrawal Penalty reads as follows:

2. If the term is twelve (12) to thirty-five (35) months, You shall forfeit an amount equal to the lesser of:

(a) All dividends (accrued and posted) for 90 days on the amount withdrawn, or
(b) All dividends on the amount withdrawn since the date of issuance or renewal
not to be less than 7 days’ dividends on a new certificate.

Partial withdrawals are allowed, but any withdrawal made within 90 days of account opening will reduce the principal.

Availability

Headquartered in Marlborough, Massachusetts, DCU’s field of membership (FOM) is varied and includes an easy membership requirement (EMR) for all U.S. citizens and resident aliens, 18 years or older, with a valid Social Security number.

The DCU Membership Eligibility page lists eight “Participating Organizations” that anyone can join to qualify for DCU membership. Six of the Participating Organizations (listed below) can be joined when opening a DCU membership.

• Merrimack River Watershed Council (MRWC), memberships start at $35.
• New England Chapter, PRRT&HS, $15 annual dues
• OARS (Organization for the Assabet, Sudbury & Concord Rivers), memberships start at $30.
• Reach Out for Schools, memberships start at $10.
• Sholan Farms, memberships start at $25.
• SOLF (Southborough Open Land Foundation), memberships start at $25.

Residency: Individuals who live, work, worship, or attend school in portions of the Massachusetts communities of Chelmsford (northern portion), Lowell, Tewksbury (western portion) or Worcester are eligible to join. Individuals who live in 11 named Massachusetts condominium communities or four named New Hampshire condominium communities are also eligible to join.

Employment: Employees/retirees of more than 820 Participating Employers also qualify for membership.

Personal Relationship: Immediate family members of a current DCU member are welcome to apply. Immediate family is defined as “spouses, domestic partners, children, grandchildren, parents, grandparents or siblings (including adoptive, in-law, and step relationships).”

The DCU Member Eligibility page provides more details about joining.

Account Opening

Joining DCU and/or opening a 13-month Promotional CD can be done online or at any of 19 Massachusetts branches located in Acton, Andover, Burlington, Fitchburg, Framingham, Franklin, Leominster, Lexington, Littleton, Lowell, Marlborough (3), Tyngsboro, Waltham, Westborough, and Worcester (3). There are also four New Hampshire branches located in Hudson, Manchester, Merrimack, and Nashua. Branch appointments are available and can be scheduled online.

Opening a Primary Savings account ($5 minimum) establishes a DCU membership. (The Primary Savings account currently earns 6.17% APY, but is capped at $1k).

Existing DCU members can also open a 13-month Promotional CD using the DCU Digital Banking platform.

Funding and Other Details

The following information is from the DCU website and a conversation with a Member Services representative.

• Funding – ACH limited to $250 (not an error), debit card (limited to $25), internal transfer, check mailed to DCU, Shared Branch transaction. Funds must be on deposit at DCU before a CD can be opened.
• CO-OP Shared Branch Participant – Yes.
• Ownership – Individual, joint, or trust.
• Dividends – Compounded daily and credited monthly; can be transferred monthly to a DCU checking or savings account.
• Maturing Funds – Cashier’s check to address on file or internal transfer to DCU savings account.
• Beneficiaries – None, per se. DCU requires that a Totten Account be set up “to pass funds to a name beneficiary.”
• Grace Period – 5 calendar days before automatic renewal.
• Credit Check – Soft pull through Equifax.

Credit Union Overview

DCU has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.55% (excellent) based on September 30, 2023 data. In the past year, DCU has increased its total non-brokered deposits by $1.67 billion, an excellent annual growth rate of 19.15%. Please refer to our financial overview of DCU (NCUA Charter # 23521) for more details.

DCU is currently the largest credit union headquartered in Massachusetts, with more than 1,100,000 members and assets of nearly $11.2 billion. The original Digital Federal Credit Union was established in 1979 by the Digital Equipment Corporation (DEC) as a benefit for its employees.

From being the third credit union in the U.S. with a web site to being one of the first financial institutions to debut an iPhone and Android application that allows members to make a check deposit by taking a picture of their check, DCU is dedicated to providing members with convenience, cost effective banking options, and innovative technology.

How the 13-Month Promotional CD Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, have fixed rates, and have minimum deposit requirements of $10k or less, two banks and two credit unions have higher rates than currently offered on the DCU 13-Month Promotional CD. The following table compares the 13-Month Promotional CD to the four highest-rate similar length-of-term CDs from other banks/credit unions with nationwide market areas.

The above information and rates are accurate as of 2/6/2024.

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