Dedicated to Deposits: Deals, Data, and Discussion

5% No-Minimum Online Savings Account at OneUnited Bank

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OneUnited Bank just raised the rate on their Internet Savings Account from 4.50% to 5.00% APY. I had first reported on OneUnited Bank on April 22nd when the rate was 4.5%. Below is a list of the good and bad features of this savings account. Some of these details are from their disclosure (pdf) and some are based on info from my call with their customer service rep:

Positives
  • Only a $10 minimum opening deposit (See note below)
  • No monthly maintenance fees or balance requirements
  • Can be linked to checking or savings accounts
  • Free ACH deposits, up to 3 per month free ACH withdrawals
  • Unlimited linked accounts can be set up
  • APY applies to balances over $10
  • Online account opening process with trial deposits
  • ATM card available
  • No hard credit pull (just Chex System according to one CSR)

Negatives
  • ACH withdrawal fee of $1 after the 3rd withdrawal per month
  • $1 ATM fees at non-proprietary ATMs
  • Inactivity fee after 6 months of inactivity
  • Interest is credited and compounded quarterly
  • Accrued interest will not be paid if you close an account before the accrued interest has been credited
  • No Sign-up or referral bonuses

One United Bank has a 4-star rating (out of 5) from Bankrate.com (sound). As of last December, they have $541 million in total assets.

I would have thought that EmigrantDirect or HSBC would have been the first to hit 5%. Perhaps with this competition they'll make some decent rate hikes in the future.

Note: As of Dec 2006, OneUnited now requires a minimum initial deposit of $1,000 and a minimum balance of $1,000 to earn the top APY

[Edit 6/16/06: Correction made to ACH fee. CSR said there's only a $1 fee if you go over 3 per month]


Comments
11 Comments.
Comment #1 by latex_salesman (anonymous) posted on
latex_salesman
Negatives

* ACH withdrawal fee of $1... !!

Fughet aboudid...

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Perhaps if the ACH transfers are fast, it could be better than HSBC. For example, with HSBC, you lose at least 2 days of interest in transfers. If you have $3650 that is transfered out and you lose 5% interest on this for two days, that equals $1.

But I have to admit, I prefer no fees like this.

1
Comment #3 by Anonymous posted on
Anonymous
use an external bank to make the ach

1
Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Looks like the first 3 ACH withdrawals per month are free according to the CSR. I've updated the post with this info. Thanks to Bob in the finding deals post who noted this.

I was basing this on the last page of the disclosure with a table of fees. I missed the table on the bottom of page 3.

1
Comment #5 by Anonymous posted on
Anonymous
Why don't I hear anybody talking about the MBNA MMA? https://wwwa.applyonlinenow.com/DEPapp/Ctl/redirect?CV_sourceCode=HA00B&CV_start=mm
Its rate has been rising with MFR for quite long time.

1
Comment #6 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info on MBNA's money market accounts. I've posted on it here.

1
Comment #7 by Anonymous posted on
Anonymous
Any idea of how long it taks for an ACH transfer?

1
Comment #8 by Banking Guy (anonymous) posted on
Banking Guy
I received this comment in the finding deals post:

Beware of OneUnited Bank!!!!!! Their ACH is the worst on whole earth. It take 5-7 days to post
and your account is either locked or the funds are frozen until ACH is outstanding or
until the ACH is completed. Furthermore, once you initiate the transfer, there is no record anywhere that the request is received or confirmed. There is no place to set up any external
accounts. Every transfer must be entered manually every time. While initiating the ACH, You must enter all of your personal info over and over again. You can not cancel, modify or change anything after pressing the proceed button. No help available until you call CSR and make her cancel everything initiated and start all over again after a wait of 20 to 30 min. Stay away!!!!

Thanks
David

1
Comment #9 by Banking Guy (anonymous) posted on
Banking Guy
Latest information on OneUnited Bank as of July 13 is at this post

1
Comment #10 by R. C. Pao (anonymous) posted on
R. C. Pao
1/17/2007 rcpao

From OneUnited (actually di.ft.cashedge.com if you want to be picky):

Your Overall Limit is the total available outstanding amount at a point in time for all types of transactions, including inbound/outbound transactions. Your Daily and Rolling 30 day limits still apply to each individual type of transaction as listed below.
Your Overall Limit = $150,000.00


Daily Transfer Limit

Standard
INTO OneUnited $100,000.00
OUT OF OneUnited $20,000.00

Premium ($10.00 transaction fee for outgoing)
INTO OneUnited $2,000.00
OUT OF OneUnited $2,000.00


Rolling 30 day Period Transfer Limit

Standard
INTO OneUnited $150,000.00
OUT OF OneUnited $40,000.00

Premium
INTO $5,000.00
OUT OF $5,000.00


You can schedule whatever you like on the web form, but acceptance or denial due to limits comes later in an e-mail. If your request is accepted it you will also get an e-mail.

I made two outgoing transactions of $20,000 each. They each took 5 business days to complete. You cannot schedule your next transaction until the previous has finished or you will get a cancellation e-mail saying you are over your daily limit.

I do not believe these terms were in effect when I signed up or transferred my money in. I certainly did not get anything in the mail except quarterly statements. These terms were installed with the new Transfer Funds capability on their account site.

It used to be you had to fill out a very long web form and wait for someone to do what you asked. This took a long time and was prone to errors since there was no positive feedback that you entered your account numbers correctly. The new way is more in line with current practice except for the wierd transfer limits.

I would have expected terms like a money market of 6 withdrawls per month maximum (like eloan.com), but OneUnited seems unique with these terms.

Bottom line: if you need access to lots of money quickly, avoid OneUnited.

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Comment #11 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. This would be a major issue for those with large balances.

1