Another Internet Savings Account: OneUnited - 4.5%
Apr 22, 2006 - 10:29 AM by Ken Tumin
OneUnited Bank has just started an internet savings account that is currently paying 4.50% APY. It looks very similar to the typical online savings accounts. The minimum deposit and balance to receive the APY is $10. There are no monthly maintenance fees. One benefit over ING Direct or EmigrantDirect is that OneUnited Savings Account comes with an ATM card.
Here's an excerpt from OneUnited Bank's company profile page:
There's a long article from Block Enterprise with the history behind OneUnited which describes how the current chairman and CEO, Kevin Cohee, built the bank.
Although 4.50% APY isn't a great savings account rate, it's competitive. The rate equals the current rate offered by EmigrantDirect. Hopefully, with more online competitors, banks like ING, HSBC and EmigrantDirect will be forced to improve their rates. ING Direct seems to need as much competition as possible.
Credit for learning about OneUnited goes to this FW thread.
Here's an excerpt from OneUnited Bank's company profile page:
OneUnited Bank is the first Black-owned internet bank, the first Black-owned interstate bank and the largest Black-owned and managed bank in the country with offices in urban communities of California, Florida and Massachusetts. Its mission is to provide affordable financial services to support economic development in urban communities and maintain superior financial performance to maximize shareholder value.
There's a long article from Block Enterprise with the history behind OneUnited which describes how the current chairman and CEO, Kevin Cohee, built the bank.
Although 4.50% APY isn't a great savings account rate, it's competitive. The rate equals the current rate offered by EmigrantDirect. Hopefully, with more online competitors, banks like ING, HSBC and EmigrantDirect will be forced to improve their rates. ING Direct seems to need as much competition as possible.
Credit for learning about OneUnited goes to this FW thread.
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Weiwen (anonymous) - #1, Saturday, April 22, 2006 - 11:21 AM
FYI, One United Bank gets 4 stars with bankrate, meaning that's financials are above average.
http://www.bankrate.com/brm/safesound/commmm.asp?fedid=935308
Banking Guy (anonymous) - #2, Saturday, April 22, 2006 - 2:40 PM
Thanks for the info. Looks like a solid bank.
Banking Guy (anonymous) - #3, Saturday, April 22, 2006 - 2:52 PM
I'm afraid I missed a comment in the finding deals post before I posted this. That commenter had an important note from the Truth-In-Savings disclosure (pdf):
Interest compounds/credits quarterly, no interest earned if withdrawn before end of quarter.
I also noted the following on page 4:
ACH Withdrawal fee: $1.00
ATM Transaction at Non-Proprietary ATMs:
Withdrawal: $1.00
Deposit: $1.00
Inquiries: $1.00
So they seem to charge you when you use other banks' ATMs. Then there are the fees charged by the other banks.
Banking Guy (anonymous) - #4, Saturday, June 17, 2006 - 5:04 PM
OneUnited's savings account has reached 5% as of June 15, 2006. I have more up-to-date info on fees, ACH and other issues at this post.
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