Compliance Question of the Week

Can I advertise my certificate account as a CD or Certificate of Deposit?

This depends on whether the credit union is state chartered or federally chartered. Washington and Oregon state chartered credit unions are permitted to pay interest and/or dividends on accounts, while federally chartered credit unions are only permitted to pay dividends. CD’s, or Certificates of Deposit, are interest-bearing accounts. Therefore, if a credit union is state chartered AND offers interest accounts, it can offer a CD, or Certificate of Deposit. However, if a credit union is federally chartered, it cannot offer a Certificate of Deposit or CD because federally chartered credit unions cannot pay interest.

It is important to note that Trust in Savings states that an advertisement must never be misleading, inaccurate or misrepresent a credit union’s account agreement.

Related Links:

RCW 31.12.402(3)
ORS 723.152
12 CFR 707.2 (a)(5)(v)
Appendix C to Part 707


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, Compliance News.