More Information

Helping members save money so they have it when they need it is one of City of Boston Credit Union’s founding principles. Whether you’re saving for long-term goals like retirement or your children’s college education, mid-term goals like your first home purchase, or short-term goals like vacations or holiday gift-giving, we can help you achieve your goals faster and safer than other financial institutions.

All deposits at City of Boston Credit Union are insured by the NCUA and MSIC for balances up to $600,000.00 for individual accounts and $1,200,000.00 for joint accounts.

Share Deposit (Savings)

A Share Deposit (Savings) Account establishes your membership in City of Boston Credit Union. This account provides an easy way to save, delivering competitive dividends.

Features:

$25.00 minimum balance maintains your membership.
ATM access available
Free Online Banking and Audio Response access available.
Can serve as Overdraft Protection for your NOW Checking Account.
Dividends are calculated on the daily balance and paid monthly.

Money Market Account

The Money Market Account (MMA), with the flexibility of a Share Deposit Account, features daily deposits and withdrawals. It entails a higher minimum balance than the Share Deposit Account in order to deliver higher interest rates. The MMA uses a Three Tier structure, Tier I has a minimum deposit of $1,000.00, Tier II has a minimum deposit of $20,000.00 and Tier III has a minimum deposit of $50,000.00. The higher the deposit tier, the higher the dividend.

Overall, the MMA gives a higher yield than a Share Deposit Account.
The MMA keeps money liquid for CBCU members.
Dividends are calculated on the daily balance and paid monthly.
All shares are insured in full to the statutory limits.

How to Open Your Money Market Account

If you're currently a City of Boston Credit Union Member click here to download a Money Market Form. Print and complete the form, then mail or deliver to any of our locations.
Initial $1,000.00 transfer or deposit must be made to meet the minimum balance.

Share Certificates (CDs)

A Share Certificate Account features a stated maturity date, high interest rates, and a $500 minimum balance. At City of Boston Credit Union, these accounts deliver the highest yield in exchange that funds remain on deposit until specified maturity date. "Jumbo" certificates are also available with a minimum balance of $50,000 paying higher yields, compared to regular term certificates with the same maturity. The terms on a Share Certificate Account range from 6 months to 5 years with a penalty imposed for early withdrawal.

Terms are from 6 to 60 months.
Current Rates
Share Certificate Specials

Penalties for early withdrawals

On 6 Month Term = 1 Months Interest
On 12 Month Term Through and Including 36 Month Term = 3 Months Interest
On 48 Month Term Through and Including 60 Month Term = 6 Months Interest

Individual Retirement Accounts (IRAs)

City of Boston Credit Union provides Savings and Term Certificate IRA Accounts, including ROTH IRAs. With a tax consultant, you can arrange the details. Rollovers from other institutions by Members are welcome. The Term Certificates on IRAs fall into the one, two, or three year categories, with automatic renewal under the prevailing rates.

Contributions may be made in annual "lump sums" or by regular deposits to the IRA Savings throughout the year.
Dividends are paid monthly.
IRA Share Certificates are available with a minimum deposit of $500 and with terms of 12, 24, or 36 months. Higher yields are available for certificates of $50,000 or more and with terms of 12, 24, or 36 months.
Updates on IRA Savings and IRA Share Certificate rates are posted on our rates page.

Traditional IRA Savings Account

A traditional IRA allows tax deferrment on earnings until withdrawn. Also, certain retirement contributions may be tax deductible in the year they are made. (Consult a tax advisor regarding your deductibility.)

IRA (CD) Share Certificates

Earn higher dividends with an IRA Share Certificate. IRA Share Certificates are available after a minimum deposit of $500. Higher yields are available for deposits of $50,000.00 or more.

Roth IRA (CD) Share Certificates

The Roth IRA features tax-free withdrawals for certain retirement distribution reasons after a five-year holding period. Since Roth IRA contributions are non-deductible and taxed in the year they are earned, Members (those expecting to be in a higher tax bracket when they retire) may benefit more from a Roth IRA than from a traditional IRA. Unlike the Traditional IRA, there is no requirement to begin taking distributions at age 70 1⁄2.

*IRA Share Certificates are subject to penalties upon early withdrawal. Please see City of Boston Credit Union's Truth in Savings Disclosure for details.

IRA Features

Who Can Contribute?

Traditional IRA
Any individual is qualified to contribute if they or their spouse has earned income. Income limits determine whether the contributions are tax deductible.

Roth IRA
Individuals who meet the Adjusted Gross Income criteria in a tax year can make full contributions.

Married, filing jointly, $150,000 or less

Single, $95,000 or less

Partial contributions can be made up to the following phaseout ranges:

Married, filing jointly, $160,000

Single, $110,000

Tax Treatment

Traditional IRA
Your contributions to a Traditional IRA may be fully tax-deductible if any of the following apply:

Neither you nor your spouse participates in an employer-sponsored retirement plan.
You participate in an employer-sponsored retirement plan and your modified adjusted gross income (MAGI) is under $53,000 as a single taxpayer or $85,000 as married taxpayers filing jointly.
You do not participate in an employer-sponsored retirement plan, but your spouse does, and your joint modified adjusted gross income is no more than $159,000.

Roth IRA
All contributions are non-deductible. No deductions are allowed from current taxes.

(You should always consult a tax advisor regarding your deductibility.)

Deadline for Contributions

Traditional IRA
The tax-filing deadline (not including extensions) for 2007 contributions is April 15, 2008.

Roth IRA
The tax-filing deadline (not including extensions) for 2007 contributions is April 15, 2008.

Annual Contributions

Traditional IRA
If under age 50, limited to 100% of annual compensation or $4,000 maximum. If between, 50 - 70-1/2, limited to 100% of annual compensation or $5,000 maximum. Total contributions to combination of Traditional and Roth IRAs cannot exceed this amount in one year. Once age 70-1/2 reached contributions to Traditional IRA no longer accepted.

Roth IRA
If under age 50, limited to 100% of annual compensation or $4,000 maximum. If between, 50 - 70-1/2, limited to 100% of annual compensation or $5,000 maximum. Total contributions to combination of Traditional and Roth IRAs cannot exceed this amount in one year.

Tax Treatment of Distributions

Traditional IRA
All non-deductible contributions are received tax-free. All earnings and deductible contributions are taxed at ordinary income tax rate when withdrawn.

Roth IRA
Contributions are not taxable up withdrawal. Earnings are not taxable if the following two stipulations are met: distribution occurs after the fifth tax year since first contribution was made to the Roth IRA and one of the following distributions is made:

After age 59 ½
Due to Death
Due to Disability
First Time home buyer within the past 2 years

Application of 10% penalty Tax

Traditional IRA
A 10% premature distribution penalty applies unless the distribution is:

Made after 59 ½
Due to death or disability
Part of a substantially equal periodic payments
To pay certain medical expenses
To pay medical insurance premiums while unemployed
First time home buyer within the past 2 years
To pay higher education expenses.

Roth IRA
A 10% premature distribution penalty applies unless the distribution is:

Made after 59 ½
Due to death or disability
Part of a substantially equal periodic payments
To pay certain medical expenses
To pay medical insurance premiums while unemployed
First time home buyer within the past 2 years
To pay higher education expenses.

Note: This chart is for general information only and is not intended to provide specific advice or recommendations for individuals. We suggest you contact your tax advisor in regards to your personal IRA plan.

Club Accounts

City of Boston Credit Union offers four club accounts to help members save for special events throughout the year.

The Thrift Club account disburses in February;
Vacation Club in May;
All-Purpose Club account in August; and the
Holiday Club account disburses in November.

Members can open one club account or all four.

Payroll deduction is an effortless, systematic way to save.
If a club holiday account gets canceled before the annual payout, it may not be reopened for one year.
Dividends are paid monthly.
Club Accounts are closed and deposited into your savings account in the month indicated and start over automatically.