The U.S. government has been trying to make it easier for American consumers, as well as small businesses and entrepreneurs, to save more money by providing free checking accounts that come with no fees. The Bankers Association of America (BAA) is making some changes in the future too based on new regulations from the Federal Reserve System which will require banks to invest a portion of their available capital into consumer loans such as mortgages or home equity lines of credit and student loans if they want access to certain benefits like FDIC insurance coverage for deposits under $250K
Union Bank CD rates are the interest rates that are offered on certificates of deposit. The bank offers a wide range of different terms and conditions, but Union Bank is one of the few banks that offer all-time high savings interest rates in 2022. Read more in detail here: union bank savings interest rates.
May 2022 update: Although many banks and credit unions around the country have started to raise CD rates in response to the Federal Reserve’s rate rise on May 4, Union Bank has yet to do so. In truth, Union Bank’s CD rates have been unchanged for almost two years. Details are provided below.
Union Bank is a full-service American bank owned entirely by MUFG Bank, one of Japan’s three megabanks.
Union Bank has 398 branches throughout Washington, Oregon, and California, as well as commercial offices in major cities such as Dallas, Houston, Chicago, and New York.
Their deposit account lineup includes checking, savings, money market, and certificates of deposit, dubbed “Time Deposit Accounts” by the bank.
Although most Union Bank bank accounts must be established in person, their Account in the Money Market and Priority Checking account may be created online.
We’ll concentrate on Union Bank’s fixed-rate CDs for the sake of this analysis. Union Bank provides a variety of flexible short-term and long-term CDs with terms ranging from 7 to 60 months.
Continue reading our evaluation below to learn whether Union Bank’s CDs are correct for you.
This article will teach you:
courtesy of unionbank.com
Consumer deposits are federally insured up to the appropriate limitations since Union Bank is an FDIC member. For short term CDs ranging from 7 to 31 days, Union Bank requires a minimum deposit of $2,500, while all other maturities demand a minimum deposit of $350.
IRA CDs are also available from Union Bank, with durations ranging from 90 days to 60 months. The APYs are the same.
|CD Term||Deposit Minimum||APY|
|7 – 31 days||$2,500||0.05%|
|32 – 89 days||$350||0.05%|
|90 – 179 days||$350||0.05%|
|180 – 364 days||$350||0.10%|
|12 – 17 months||$350||0.15%|
|18 – 23 months||$350||0.15%|
|24 – 35 months||$350||0.20%|
|36 – 47 months||$350||0.20%|
|48 – 59 months||$350||0.20%|
According to FDIC statistics, the current national average for a 12 month CD and a 60 month CD is merely 0.17 percent APY and 0.32 percent APY, respectively.
It’s also worth noting that Union Bank offers a tiered rate structure dependent on the size of the deposit. Although all categories presently pay the same APY, it’s realistic to expect Union Bank to provide greater rates on bigger balances in more favorable savings rate situations.
Interest on Interest
On their CDs, Union Bank accumulates interest everyday, and the money may be paid out at the account holder’s choice. For individuals who rely on interest payments, this extra flexibility is a welcome addition. In most cases, interest is paid monthly, quarterly, semi-annually, or yearly.
Fees for Early Withdrawal
Union Bank will charge you an early withdrawal fee if you require money before your account matures. On a 365-day basis, they compute the price as follows:
Union Bank Fees for Early Withdrawal
- For CD periods ranging from 7 to 31 days: The greater of 1) all interest earned on the withdrawn amount; 2) 7 days’ interest on the withdrawn amount; or 3) the amount of interest that might have been received on the withdrawn amount for one-half the period.
- The greater of 31 days’ simple interest at the rate being paid on the amount withdrawn or 2) the compensatory penalty for CD periods of 32–91 days.
- For CD periods ranging from 92 to 1 year: The compensatory penalty or 91 days’ simple interest at the rate being paid on the amount withdrawn, whichever is larger.
- For CD periods of one year or more: The compensatory penalty or 181 days’ simple interest at the rate being paid on the amount withdrawn, whichever is larger.
All CD periods at Union Bank include a 10-day grace period, with the exception of the short-term 7-31-day option. This CD has a 3-day grace period during which you may add or remove money from your deposit without penalty. Union Bank will renew your CD for the same terms and the same APY if nothing is done during this grace period. If you want to take action with your CD funds as they mature, set up reminders for yourself. It’s worth noting that Union Bank will send you notifications about your forthcoming grace period.
CD Rates at Union Bank vs. Other Big Banks
Union Bank had formerly given attractive CD rates, particularly on larger deposits, but their current offerings fall short of the national average.
They are, however, in line with other major banks such as Bank of America and Chase.
Since the FED’s most recent rate rise on May 4, only Capital One and Citibank have began boosting their deposit account rates.
Capital One has been the most active in this area, offering 1.25 percent APY on one-year CDs and 2.25 percent APY on 60-month CDs.
If you want a secure place to keep your money but also want easy access to it, one of Union Bank’s variable-rate savings products could be right for you. They provide an online Account in the Money Market and a regular savings account called the “Bank Freely” savings account that must be established in a local branch.
Account in the Money Market
Their Account in the Money Market comes with a low APY of just 0.05% on all balances and you must maintain a $2,500 daily balance to avoid either a $9 or $10/month service charge. $9 if you opt for online statements and $10 if you choose paper statements.
Savings Account with Unlimited Access
The savings account is more forgiving, but the APY is smaller. You may deposit any amount larger than The savings account is more lenient but comes with a lower APY. You can open their Bank Freely savings with any amount greater than $0 and there are no monthly service charges to worry about. That said, the APY is just 0.01% currently. into their Bank Freely savings account, and there are no monthly service fees to worry about. However, the current APY is just 0.01 percent.
Union Bank is a commercial bank that offers deposit and loan services in the U.S. Union Bank CD rates are available for a wide range of terms, with interest rates ranging from 0.01% to 6%. Reference: union bank time deposit rates.
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