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Personal Banking: Frequently Asked Questions

Time Deposits (CDs)

1. Time Deposit (CD) Account Options

2. Time Deposit (CD) Account Fees

3. Time Deposit (CD) Account Features

1. Time Deposit (CD) Account Options

1.1 What is a Time Deposit (CD)?

A Time Deposit account, also called a CD (short for certificate of deposit), lets you earn a higher rate of interest for a preset period of time. A CD is a great fit if you don't need immediate access to your funds.

1.2 What is the minimum opening deposit?

The minimum opening deposit for a non-IRA CD is $350 for a term of 32 days to 60 months, or $2,500 for a term of 7 to 31 days.

The minimum account opening amounts for Union Bank® IRA CDs are: $350 for a Fixed Rate IRA CD for terms 90 days to 60 months, $500 for an 18-Month Variable Rate IRA CD, and $25,000 for a Retirement Income IRA CD (must be age 59 1/2 or older to open an account) or a Bonus Rate IRA Rollover Account (new deposits only).

1.3 What happens at the maturity date?

CDs automatically renew for the same term, but at the interest rate in effect on the maturity date, unless you withdraw the funds on or within 10 days after the maturity date called the grace period (three day grace period for CDs with a maturity term of 31 days or less).

1.4 How is interest paid?

CDs offer a range of interest options. Non-IRA CDs feature fixed tiered rates that are paid monthly, quarterly, semiannually, annually, or, if the term is one year or less, at the maturity date. IRA CDs pay fixed- or variable-rate interest quarterly.

Interest is compounded daily except on deposits of $1 million or more, for which simple interest applies. The IRA Bonus Rate Rollover Time Deposit pays an additional 0.25 percent interest for the first 12 months for an account with a term of 36 to 59 months and for the first 24 months on a term of 60 months.

1.5 Can I make deposits or withdrawals?

Deposits and withdrawals typically must be made at maturity or during the grace period to avoid penalties, except for IRA Variable-Rate Time Deposit, which allows electronic deposits of $10 or more and nonelectronic deposits of $25 or more.
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2. Time Deposit (CD) Account Fees

2.1 Is there a balance required to avoid a monthly fee?

There is no service fee for a non-IRA CD; however, early withdrawal or compensating penalties may apply if you withdraw funds prior to maturity.

2.2 Is there a balance required to avoid a custodial fee for an IRA CD?

A $25 annual custodial fee will be assessed to your IRA plan unless you meet one of the following waiver criteria:
  • You have a combined fair market value of at least $25,000 in all of your Union Bank IRA plans (excluding Small Business Retirement Plans1 and Coverdell Education Savings Accounts) on December 31 of the year for which the annual custodial fee is being charged
  • You make a minimum contribution of $4,000 to one or more of your Union Bank IRA plans (excluding Small Business Retirement Plans and Coverdell Education Savings Accounts) by December 31 of the prior year
  • You are age 70 or older by June 30 of the prior year  
  • You are the primary owner of a Priority Banking® or a Private Advantage® checking account—no Annual Custodial Fee for one Union Bank IRA

2.3 If I withdraw funds from my IRA prior to maturity, do I have to pay early withdrawal or compensating penalties?

Early Withdrawal and compensating penalties are waived if one of the following exceptions for IRA withdrawals applies:
  • You have reached age 70 1/2
  • You have reached age 59 1/2 and are taking a prearranged schedule of systematic payments at least annually
  • You have reached age 59 1/2 and are transferring to another Union Bank retirement Time Deposit account (limited to once in a 12 month period)
  • Death, disability, or legal incompetence occurs
  • You convert the CD to a Roth IRA at Union Bank
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3. Time Deposit (CD) Account Features

3.1 Can I check my balance on the telephone or online?

Yes. You can check your balances and even handle some transactions over the telephone. Learn more about Telephone Banking. Online Banking customers can check CD balances online.
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