Questions members frequently ask about Certificates of DepositGeneral GeneralWhat is a Certificate of Deposit (CD)?A Certificate of Deposit, also known as a CD, is a special type of deposit account that offers a higher rate of interest than a regular savings account. NuUnion CDs are fixed rate and this rate stays constant until the CD matures. How much money do I need to invest in a CD?NuUnion CDs start at $1,000 minimum. If you prefer, you can open a Select Saver CD with as little as $250, which pays more interest than a regular savings account. Why are CDs tiered?Tiers reward higher balanced CDs with a higher interest rate. You can reinvest the interest each month in your CD, or have the interest put in a different account. This allows you access to the earned interest before your CD matures. Is it better to have one CD instead of several smaller ones?You'll earn more interest with one, higher balanced CD. What if I put all my funds into one large CD to earn the higher interest rate and an emergency arises and I need some money?This is a common concern of traditional CDs. You may be interested in NuUnion's Access 7 Liquid CD, which allows a one-time no penalty withdrawal. If you need extra cash from your traditional CD, you can withdraw the amount you need, starting at a minimum of $1,000, but there is a penalty on the amount you withdraw early:
Is my money safe in a CD?NuUnion CDs not only offer guaranteed interest, they are insured up to $100,000 by the National Credit Union Administration (NCUA), the federal regulator and insurer for credit unions. IRAs are separately insured up to $250,000. What happens when my CD matures?You'll receive a notice 30 days before your CD matures that explains your options. Unless you choose not to renew, we'll automatically reinvest your funds for the same term at current interest rates. In either case, you have a 10 business day grace period after the maturity date to withdraw all or a portion of your money without penalty. How is my CD interest calculated?With a NuUnion CD, interest is compounded daily. Your interest rate is divided by the number of days in the calendar year and multiplied by your CD balance on a daily basis. Interest is posted to your account monthly. How do I withdraw the monthly interest from my CD?Because monthly compounding helps your savings grow more quickly, many NuUnion members opt to add the monthly interest to the principal of their CD. If you prefer, we can automatically deposit the interest into your Checking or Savings Account, or mail you a check each month. How can I get current rate and term quotes?Look here for CD rates and terms, or talk with a NuUnion representative who can help you determine your best investment option. How can I calculate the amount of interest my CD earns?Using basic information, our easy-to-use savings calculator can tell you how much your CD can earn. Actual earnings may vary slightly from these calculators. What is APY?APY is the acronym for annual percentage yield. This percentage rate reflects the total interest paid annually, based on the interest rate and the frequency of compounding for a 365- or 366-day period. How do I change my CD term at maturity?Just call our Member Contact Center and we will make the change for you. Term changes can only be made at maturity, not during the term of the CD. Access 7 Liquid CDIs there a minimum balance needed to open an Access 7 Liquid CD?The minimum balance for an Access 7 Liquid CD is $10,000. What is a liquid CD?A common concern of traditional CDs is the fact that they're not liquid - you can't access your funds. With NuUnion's Access 7 Liquid CD, you have the opportunity to make a one-time withdrawal without a penalty. What is the minimum that I can withdraw from my Access 7 CD?Your one-time, no penalty withdrawal can be made for any amount as long as the minimum balance remains $10,000. You can make additional withdrawals, starting at a minimum of $1,000; however, there is a 90 day interest penalty for these withdrawals. How can I make a withdrawal from my Access 7 CD?You may withdraw funds from your Access 7 CD at any of our branch locations or by contacting our Member Contact Center at 888.267.7200. Can the balance of my Access 7 CD go below $10,000?The balance must remain at or above $10,000 for the term of the CD. If your Access 7 CD balance goes below $10,000, it will be closed. What if my no penalty withdrawal closes my Access 7 CD?If your no penalty withdrawal closes the CD, you'll forfeit any interest that has accrued since the last interest posting on the CD. Can I add money to my Access 7 Liquid CD?During the 7-month term, you're not able to make deposits to the CD; however, you can add money during the grace period. Why do you specify that to open an Access 7 CD you need to bring money from other financial institutions?While funding the CD with money that you're transferring from other financial institutions to NuUnion is preferred, it's not an absolute to be eligible for this product. We look forward to deepening your relationship with NuUnion and would enjoy discussing the options that are open to you through NuUnion's products and services. Save to Win CDWhat kind of account is the Save to Win Certificate of Deposit (CD)?The Save to Win account is a special type of Certificate of Deposit that offers the opportunity to win prizes, in addition to earning regular interest. The term is 12 months with a minimum opening deposit of $25 and no monthly service fees. You can make one withdrawal during the 12 months with a $25 penalty fee. Unlimited deposits can be made to this CD. What kinds of prizes does the account offer?There is one annual grand prize of $100,000 that will be awarded among all participating credit unions. Monthly prizes include the following: Partnership Monthly Prizes: Winners will be randomly selected between all eligible account holders at all credit unions participating in the Save to Win program.
NuUnion Monthly Prizes: Winners will be randomly selected between all eligible account holders at NuUnion.
How does the account work?A Save to Win CD helps you build savings while also giving you chances to win a grand prize of $100,000, plus monthly cash prizes. The more you save, the more opportunity you have to win. For every $25 increase in your monthly balance at month end, you get one entry into a monthly prize drawing. You'll be allowed a maximum of 10 entries per month. There will be one annual grand prize of $100,000 to be awarded in January 2011. Does the account need to be kept open a certain amount of time?Yes. The Save to Win CD needs to be kept open for 12 months. There are penalties for early withdrawal, including account closure. Can a Save to Win CD account be opened on a business account?No. Save to Win CD is only for personal accounts. How do I open a Save to Win CD?You can open by visiting a branch location or calling 888.267.7200. You must be a resident of Michigan to win and 18 years of age or older. Can I have multiple Save to Win CDs under one tax ID number?No. Each member can only have one Save to Win CD. Members of the same household can each have one Save to Win CD, as long as they meet other eligibility requirements. Can the prize be awarded to a joint member?As long as the person is one of the account owners, the prize may be distributed to them. NuUnion will try to notify the primary member first, but if that person is not available to pick up the prize, we can award the prize to a joint member. Can children open this account? Can I open a Save to Win CD if a child is joint on the account?No. The Official Rules state that the account is available only to members 18 years or older. Children cannot be primary or joint on a Save to Win CD. Can my deposits be for any amount?Yes. The number of prize entries is based on the increase in your monthly balance. One month you could make two deposits of $50 each for a total of $100 and get four entries. Another month you could make two deposits of $25 each and ten deposits of $10 each for a total $150 and get six entries. You'll receive ONE entry in the monthly prize drawing for every $25 increase in monthly balance on deposit in the account. The maximum number of entries per member per month is 10. If I deposit $100, then withdraw the money within a short time, do I still get four chances to win prizes?If you deposit $100 at month end and then withdraw it soon after the drawing for that month, you will not get any entries for the following month. You'll have to deposit at least $25 over and above the $100 balance you had at the end of the previous month. There is only ONE withdrawal allowed during the term of the certificate (12 months) with a $25 penalty fee. If I have a monthly increase of $49.83, will I receive one or two entries?You would only receive one entry. There will be no rounding-up. Will I be taxed on my winnings?NuUnion is required to send a 1099 form to any member who receives $600 or more in prizes during a calendar year. The Official Rules specify that each winner is responsible for reporting and paying applicable state and federal taxes. For the grand prize drawing, the 1099 will be sent to the winner by Arrowhead Promotion and Fulfillment Company, the prize administration vendor for the account. What day will the drawings for the monthly prizes be held?Drawings for monthly prizes will be conducted within fourteen days of the end of the month. For example, the drawing for July's entries will be held in August. When and how will I receive my monthly prize?Winners will be notified by phone during the following month. For example, if you win July's monthly drawing, you'll be notified in August. The monthly cash prizes will be deposited to your NuUnion Savings Account as interest and be listed as an Interest Adjustment. Can I win multiple prizes?A member cannot win more than one prize in a month, but can win multiple months and even consecutive months. All monthly prize winners are eligible for the grand prize drawing. Is each month's drawing separate from the other months' drawings?Yes, each month's ending balance stands on its own for the drawing. The number of entries is determined by the monthly balance increase. How long is the Save to Win CD going to be offered?Save to Win CD will be offered through December 2010. Does the account need to be kept open for a certain amount of time before it's eligible to win?No. You're eligible to win as soon as the account is open with the prize entries based on the increase in your balance at the end of each month. In what order are the prizes drawn?The prizes are drawn with the highest value prize being drawn first, followed by each prize in order of value, with the lowest value being last. If a member's name is drawn for more than one prize in a single month, they win the prize of highest value and another member's name is drawn for the lower-value prize. When will the Grand Prize Drawing be held?The drawing for the grand prize will be held in early January 2011.
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