"You'll work with bankers you know and trust."

JoAnne Joyner, Windsor Branch Manager

CDs & IRAs

Your Farmers Bank Certificate of Deposit(s) was issued to you with a specific interest rate and maturity date, and we will honor these existing terms. When your personal certificate nears maturity, you will receive a renewal notice from the bank that includes your TowneBank account number. Most account numbers will not change. Whenever necessary, we can reference all former Farmers account numbers. At maturity, normal TowneBank terms and conditions will apply. For additional information, please refer to the ‘Consumer Deposit and Time Deposit Account Agreement and Disclosure Terms’ mailed to you in our Member Information Guide.

Interest Payments

Interest on your CDs and IRAs will continue to be paid as it has in the past. If you received an interest check in the mail or if your interest was transferred to your account, this will continue on the same schedule as before. 

Interest Calculations & Early Withdrawal Penalties

  • Beginning on Monday, April 17, Farmers CDs and IRAs will have interest calculated using the daily balance method.
  • CDs that renew will use actual days to calculate interest. Every fourth year, there are 366 days instead of 365, resulting in a fraction of a difference of interest paid in that fourth year. 
  • Normal TowneBank early withdrawal penalties apply as of Monday, April 17. 
  • For detailed information please refer to the Consumer Deposit Account and Time Deposit Account Agreement and Disclosure.

On January 13, 2023, Farmers Bank became a Division of TowneBank, and the two banks became a single deposit institution under the FDIC. To provide a grace period for depositors, the FDIC permits separate insurance coverage for six months following mergers. After that time, deposits held under each trade name – Farmers Bank and TowneBank – will  NOT be separately insured but will be combined to determine whether a depositor has exceeded the $250,000 federal deposit insurance limit. 

The FDIC has a special merger rule for CDs. See below: 

If... And... Then...
Farmers CD matures within 6 months after January 13, 2023 is renewed for the SAME amount and the same term... CD remains separately insured until the first maturity date after the 6-month period.
Farmers CD matures within 6 months after January 13, 2023 is renewed for a DIFFERENT amount or term... Separate coverage is provided only for the six months following the merger date. 
Farmers CD does not mature within 6 months after January 13, 2023 The CD will be separately insured until its maturity date. 

If you have deposit accounts at both Farmers Bank and TowneBank that exceed the standard insurance amount of $250,000, please talk with your relationship banker or visit www.fdic.gov and select ‘Deposit Insurance.’ Accountholders should note that they may qualify for additional FDIC insurance coverage, well above the $250,000 standard if certain requirements are met.

Frequently Asked Questions

  • When your personal certificate nears maturity, you will receive a renewal notice from the bank that includes your TowneBank account number. Most account numbers will not change. Whenever necessary, we can reference all former Farmers account numbers.
  • Yes, if you were able to access your CD or IRA account through online banking at Farmers Bank, you will still have access to these accounts when you log into the Towne-Personal Online Banking system on April 17. Please visit our online banking page to get details on what to expect.
  • On January 13, 2023, Farmers Bank became a division of TowneBank, and the two banks became a single deposit institution under the FDIC. To provide a grace period for depositors, the FDIC permits separate insurance coverage for six months following mergers. After that time, deposits held under each trade name - Farmers Bank and TowneBank - will not be separately insured but will be combined to determine whether a depositor has exceeded the $250,000 federal deposit insurance limit. Talk to your banker about coverage if you have deposits at Farmers Bank and TowneBank.

    You can view detailed information about the FDIC changes here. 

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