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Common Questions

Money Market Accounts
Certificate of Deposit Account

Common Questions: Money Market Accounts

What is a Money Market Account and why should I invest in one?
A Money Market Account is a type of savings account offered by a bank. These accounts normally pay higher interest than traditional savings accounts and sometimes require a higher minimum balance. Federal regulations also limit the number of transfers you can make each month. Consider a Money Market Account if you want a higher rate of return on savings and don’t need frequent access to your funds. Total deposits, including Money Market Accounts, are FDIC-insured to the maximum amount allowed by law.

How often can I make withdrawals from my Money Market Account1?
Federal regulations limit you to six transfers each month to another account.

How much money do I need to open a Money Market Account?
You can open a Union Federal Money Market Account with only a $2,500 deposit. You earn the same extraordinary Money Market rate no matter how much you deposit in your account.

How is interest calculated on my Money Market Account?
Interest on your Money Market Account is compounded daily and credited monthly.

How can I contact customer service?
You may call customer service toll-free at 888-226-0819.

Common Questions: Mortgages

With so many different types of mortgages, how do I know which one is right for me?
The mortgage loan best for your situation depends on a variety of factors, including the type (fixed- versus adjustable-rate), interest rate and term. With many options available, we can help you find a mortgage that meets your needs perfectly. Call a Loan Officer today at 800-992-0278.

What is the standard debt-to-income ratio limit for mortgages?
A standard ratio used by lenders limits the mortgage payment alone to 28 percent of the borrower's gross income and the mortgage payment combined with all other debts to 36 percent of the gross income.

What are the benefits of mortgage refinancing?
Refinancing can provide a number of benefits: a lower interest rate, shorter or longer repayment period, different loan type (from an adjustable- to a fixed-rate mortgage or vice versa) or cash out. To determine if refinancing is a reasonable option for you, call us today at 800-992-0278.

Is interest on my mortgage tax-deductible?
Interest on a mortgage loan is often tax-deductible. Consult your tax advisor for specific details.

Common Questions: Certificate of Deposit Account

What is a Certificate of Deposit (CD) and why should I invest in one?
A Certificate of Deposit (CD) is a form of time deposit, meaning it will mature on a given date, which depends on the term of the CD. Consider a CD if you want a fixed rate for a specific term and do not need regular access to your money. Total deposits, including CDs, are FDIC-insured to the maximum amount allowed by law.

Can I make withdrawals from my CD account?
In general, you can withdraw the interest earnings on a CD at any time without an interest penalty. Withdrawals of principal - the amount originally deposited - are allowed only during a 10-day grace period that occurs at the end of the CD term. Withdrawals of principal any other time during the term of the account may be subject to an early withdrawal penalty. The amount of this penalty is disclosed in your Rates and Fees schedule.

What is the minimum amount and term required to open a CD?
You can open a traditional CD with as little as $100 and for a term of only 3 months. Union Federal CDs are available only at our Rhode Island branch.