Competitive CD & IRA CD Rates at United Central Bank in Several States
Banks sometimes offer higher rates on IRA CDs than regular CDs. That's the case with United Central Bank which is offering IRA CD rates that are 25 basis points higher than its regular CD rates. The most competitive IRA CD rates are 1.51% APY for 18 months and 1.56% APY for 2 years. Even though the 18-month regular CD rate is 25 basis points lower, this still makes for a competitive CD with a 1.26% APY. Minimum deposit is $1,000 for regular CDs and $500 for IRA CDs. These rates are listed in the bank's rates page as of 9/20/2011.
United Central Bank also offers CDARS to businesses. CDARS allow customers to open a CD with million-dollar balances and remain fully FDIC insured. However, the one issue with CDARS is that the rates are usually much lower than regular CDs. For example, United Central Bank lists a 18-month CDARS with a 0.58% APY which isn't even half of the regular CD yield. Refer to the bank's rate table for all the CDARS rates.
In addition to CDs, United Central Bank offers an installment savings account called the Super Saver Installment CD. In an installment savings account, you make equal monthly deposits during the term rather than one initial deposit like a CD. However, like a CD the rate is fixed during the term. The rates are higher than the CD rates, but you have to be careful in comparing these rates to CD rates. The yields range from 1.51% APY for a 1-year term to 2.53% APY for a 5-year term. These rates are listed in the bank's rates page as of 9/20/2011.
Another interesting deposit product is the Global Money Market account which currently has a top rate of 1.75% APY. However, this requires a minimum balance of $10 million. I think this is the highest tier that I've seen for a money market account. Rates used to be more competitive for lower tiers, but currently, they are a little low: 0.90% APY $75K-$300K and 0.85% for under $75K. These rates are listed in the bank's rates page as of 9/20/2011.
United Central Bank used to have an online application for some its products, but if you click on the "open accounts online" link on the front page, it takes you to a page that says "Online account opening is coming soon!".
I used the bank's chat service to ask about opening an account. According to the CSR, a branch visit is required.
United Central Bank has quite a few branches in several of the major US cities. In 2009 they acquired Mutual Bank after Mutual Bank was closed by regulators. So UCB now has branches in the Chicago metro area; in Staten Island, New York; Edison, New Jersey; and Houston, Texas. In addition to the old Mutual Bank branches, UCB has branches in other parts of Texas, in California, Georgia, Maryland and Virginia. Some of the major cities include Los Angeles, Austin and Dallas.
United Central Bank has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas Ratio of 131.18% (poor). Please refer to our financial overview of United Central Bank for more details. The bank has been a FDIC member since 1984 (FDIC Certificate # 25330).
How These Rates Compare
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