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OneUnited - Still Holding at 5.30%, And Now a $50 Bonus

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OneUnited Bank
Update 2/22/08: The yield fell today to 4.60% APY.
Update 2/4/08: The yield has fallen to 5.15% APY.

OneUnited Bank is still holding the yield on its UNITY Gold E-Savings Account at 5.30% APY. I've been expecting to see them follow all the other banks with rate cuts, but they continue to hang in there with a yield that has remained at 5.30% APY since December 2006.

I just learned about another perk of OneUnited. You can receive $50 in their Cash In/Cash Out promotion. The $50 will be automatically deposited to your account within 15 days after a new recurring direct deposit occurs at least monthly over 3 consecutive months. Visa debit card transactions also qualify, but the E-Savings Account doesn't come with a Visa debit card (only an ATM card). According to their FAQ page, any OneUnited Bank customer who holds a consumer account is eligible for this promotion. If you're already have an account, you don't have to sign up. Just meet the requirements. The offer expires June 30, 2008. One offer per customer. Thanks to the commenter who mentioned finding this promo at Bankaholic.

For a full review of OneUnited and the E-Savings Account, please refer to this December account review. Some of the downsides of this account based on the website and based on comments from readers include:
  • $1,000 minimum to open and earn interest
  • Interest is credited and compounded quarterly
  • Standard ACH transfer limits: outbound: $20k/day, $40k/month, inbound: $20k/day, $100k/month
  • ACH outbound transfers have been reported to take a week or more with at least 3 days in which the money is earning no interest
  • At least 9 day hold before your initial deposited funds are available
  • Reports that they're very slow in answering their secure e-mails

There have been a few good reports, such as some responsive customer service and inbound ACH transfers taking only 3 days to complete. You'll have to decide if the downsides outweigh the high yield. The problem is that they could do a major rate cut any day. But so far, they've done the best job of any bank at mantaining the high yield.

To read more about people's experience with OneUnited, please see my previous account review. If you have had good or bad experience with them, please leave a comment.
  Tags: OneUnited Bank, savings account

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Comments
13 comments.
Comment #1 by Roman (anonymous) posted on
Roman
I see also the invention of

"ACH Withdrawal Fee $1.00"

at

https://www.oneunited.com/disclosures/Online%20Truth%20In%20Savings%20Disclosure.pdf

As to me, too many negatives to fight with.

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
I had checked on this in 2006 when I first reported on this account. According to the CSR, there's only a $1 fee if you go over 3 per month. This hasn't been a complaint for those who have opened this account, so it appears their disclosure needs to be updated. But like you said, there are still many negatives.

1
Comment #3 by Anonymous posted on
Anonymous
I have had an account at one united since last summer. I agree with some of the comments in an earlier post that they don't set any speed records in answering e-mails or making money transfers but they also don't set any speed records in lowering their rates. I consider this account the same as a 3 months cd. I don't like the quarterly interest compounding but if you want to withdraw money you do it at the end of the quarter. This is not any different than closing your 3 mo cd. I do have a question for someone smarter than me [ I know there is a lot of you out there ]. If I put $1000 in an account paying 5% and compounding daily and put $1000 in this account paying 5.30% and compounding quarterly how much money do I have in each account at the end of the quarter.
Anyway, this is not an account for people who do a lot of transfering in and and out but when you look at some of the rates being paid today it looks pretty good to me.
Was looking at cd rates today and Indy-Mac [remeber they were almost begging for money a week or two ago] is offering 3.10% and 3.15% on 18 mo thru 3 year cd's. That's an offer I can refuse. Would appreciate an answer to my above question if anyone would want to take time to do it.
Thanks and happy rate hunting.

1
Comment #4 by Anonymous posted on
Anonymous
Does anyone know whether the $1 fee over 3 also apply to ACHs that initiate from external institutions as well?

1
Comment #5 by alchemista (anonymous) posted on
alchemista
I got the email for this promo and easily set up a new DD for a simple $50.

I found out while setting this up that you must log on to your online banking account once every 90 days or they simply inactivate your online account. In a way that's secure, but it also means I had to now give a few more people my SSN to get re-registered again.

I've had this account for a while now and it's been fine as a place to park for high yield.

1
Comment #6 by Anonymous posted on
Anonymous
So I found this APY calculator on web and it says in order to get an APY of 5% compounding daily, the bank is paying an interest rate of 4.88%. If you put $1000 in for 3 months at this rate compounding daily, you end up with $1,012.27 at the end of 3 months.

In the case of compounding quarterly, the bank needs to pay an interest rate of 5.2% to get an APY of 5.3%. If you put the same $1,000 into an account compounding quarterly, you have $1,013 at the end of the 3 months.

In the end, it looks like rate of compounding doesn't matter. You need to look at the APY because that is going to tell you where your best investment is.

1
Comment #7 by Anonymous posted on
Anonymous
Thanks for answering my question.
If I understand it correctly an account that compounds quarterly needs to pay about .25 % more in order to equal an account that compounds daily.

1
Comment #8 by jts (anonymous) posted on
jts
Is there a mximum on which the 5.30%APY can be earned?

Any answer to this:Anonymous said...
Does anyone know whether the $1 fee over 3 also apply to ACHs that initiate from external institutions as well?

1
Comment #9 by jts (anonymous) posted on
jts
from personal deposit agreement:"Fees on Inactive Accounts
All accounts are subject to the Bank’s standard service fees
whether or not the account is active. In addition, if there has
been no activity (such as deposit or withdrawal) on a
account for a period of 2 years (other than posting of
interest), the account will be considered to be “inactive” and
will be subject to a monthly inactivity fee."

1
Comment #10 by The Alchemist (anonymous) posted on
The Alchemist
I set up a new direct deposit to get this $50 bonus, and have it going in weekly for over 4 months. I still do not have the $50 bonus in my account. I've emailed the bank and gotten no response. I don't like calling this bank because they ask for your full SSN and a lot of personal information.

1
Comment #11 by Anonymous posted on
Anonymous
I also set up DD back in February. I responded with an email, and like you no response. Will wait until 6/30/08 when next interest is posted to see before calling. They did say 30 days from the last monthly (3) deposit.

1
Comment #12 by Anonymous posted on
Anonymous
Amazing! The bonus showed up today after my email last week.

1
Comment #13 by Anonymous posted on
Anonymous
I thought that I was the only one that did not get their bonus. The ad. said withing 15 days of meeting the requirements, but as yet no bonus. I have sent several emails, but still no bonus.
Other than that I have had no problems with the bank...the rate is decent

1