Certificates of Deposit
Certificates of Deposit are always a good investment and an important part of your investment portfolio.
- The interest rate on your account will remain the same until the maturity date of your certificate.
- Interest is computed using the daily balance method which applies a daily periodic rate to the principal in the account each day. Interest is accrued daily and will be credited to your account at maturity. If the maturity date is one year or greater, interest will be credited and compounded semi-annually or annually depending on the original terms of your certificate of deposit.
- After the account is opened, you may not make deposits into or withdrawals from the accounts until the maturity date, except with the consent of the bank. (If this is an IRA Certificate of Deposit, you may be eligible for withdrawals without penalty.)
- The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings.
Early Withdrawal Penalty
| Term | Penalty |
| 7 - 31 days | Fee will equal all interest earned |
| 32 days - 1 year | 90 days interest |
| Greater than 1 year - 18 months | 135 days interest |
| Greater than 18 months - 2 years | 180 days interest |
| Greater than 2 years - 30 months | 225 days interest |
| Greater than 30 months | 270 days interest |
Each depositor at Farmers & Merchants Union Bank is insured up to $100,000 by the Federal Deposit Insurance Corporation.
Apply for an account online.
