Dedicated to Deposits: Deals, Data, and Discussion

Special CD Rates at Urban Partnership Bank - Available Nationwide

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Urban Partnership Bank

Urban Partnership Bank is offering competitive rates on three of its CD specials: 2.42% APY 5-year CD, 1.46% APY 30-month CD and 1.16% APY 18-month CD. Mimimum deposit is $1,000, and the maximum balance is $99,999. These rates are listed in the bank's featured products page as of 9/7/2011. Update 9/20/11: These specials are no longer listed in the featured products page, but they are still listed in the bank's deposit rates page.

CD Application Details

According to the bank's CSR, these CDs are available nationwide. However, you'll have to mail the application and check. Application details are described in the bank's "open a personal account" page. I was told rates are typically updated on Tuesday. According to the bank CSR, the CD rate should lock based on the postmark date of your CD application. They do require a letter to close the CD. When the CD closes, you can receive the funds by check or by wire transfer. And if you have Urban Partnership Bank's online savings account, you can have the funds transfered into that account.

Early Withdrawal Penalty and Customer Service

Based on my limited experience with this bank, the customer service isn't the best. After searching the website, I called twice to find out the early withdrawal penalties. In the first call the CSR tried to connect me with one of their CD account specialists, but it was just before 9:00am CDT and they weren't in yet. The CSR asked for my number so I could be called back. I didn't receive a call back so I called again. This time the CSR put me on hold while she tried to find the EWP. After about 5 minutes on hold, I was disconnected. If you find out about the EWP, please leave a comment.

Update: A reader was able to receive the truth-in-savings disclosure from the bank and was kind enough to post the following info in the comments:

the early withdrawal penalty is 90 days of interest for CDs with original maturities of less than three years and 6 months of interest for CDs with original maturities of three or more years.

The reader also noted that the disclosure states that if you close your CD account before your accrued interest is credited, you will not receive that accrued interest. Interest on all CDs is credited quarterly.

History of Urban Partnership Bank

Urban Partnership Bank is a newly-chartered bank that was formed by a consortium of major U.S. financial institutions and philanthropic groups to acquire the failed ShoreBank in August 2010. ShoreBank was a community development bank that served distressed and underserved urban communities in Chicago, Cleveland, and Detroit. Urban Partnership Bank has continued this mission.

Before its closure, ShoreBank had been offering a competitive online savings account. Urban Partnership Bank has continued this savings account, and it remains fairly competitive. As of 9/7/2011, it has a 1.00% APY for balances up to $100K and 1.05% APY on balances over $100K. The bank has a pretty good FAQ page describing several of the account features including the ACH transfer service.

Overview of Urban Partnership Bank

For those who prefer to open a CD at a branch, the bank has branches in several parts of Chicago and also in Detroit and Cleveland.

It appears Urban Partnership Bank hasn't shed all of the financial problems of ShoreBank. Its financial health isn't the best. The bank has an overall health score at DepositAccounts.com of 2 stars (out of 5) with a Texas Ratio of 133.74% (poor) based on June 2011 data. Please refer to our financial overview of Urban Partnership Bank for more details. The bank has been a FDIC member since August 2010 (FDIC Certificate # 59051).

How these CD Rates Compare

Urban Partnership Bank's 5-year CD rate is the most competitive of the three special CDs. The only internet bank with a higher 5-year CD rate is Airbanking which has a 2.50% APY. For all-access credit unions, the best 5-year CD rate is 2.68% APY at Melrose Credit Union. Rates are accurate as of 9/7/2011.

Searching for Top CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

  Tags: Urban Partnership Bank, CD rates, Illinois, Ohio, Michigan

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Comments
4 comments.
Comment #1 by Anonymous posted on
Anonymous
According to the customer service representative, the early withdrawal penalty is 90 days of interest for CDs with original maturities of less than three years and 6 months of interest for CDs with original maturies of three or more years. She emailed me a copy of the truth-in-savings disclosure for verification.

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Comment #2 by Anonymous posted on
Anonymous
I should also state one technicality in the truth-in-savings disclosure that none of the customer service representatives or managers I spoke to seemed to understand. The disclosure states that if you close your CD account before your accrued interest is credited, you will not receive that accrued interest. Interest on all CDs is credited quarterly. Therefore, based on my interpretation of the disclosure document, you could potentially lose up to three months worth of accrued interest AND be charged the early withdrawal penalty depending on when you choose to close the account.

Of course, I don't know how it is handled in practice. The disclosure could simply be incorrect and any accrued but unpaid interest could indeed be paid upon early closure. Unfortunately, nobody I spoke to was able to provide me with a definitive answer. The CD head manager was supposed to call me back to clarify. I was told to expect a call within 10 minutes. It's been more than an hour.

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Comment #3 by KenBDG posted on
KenBDG
Thanks for the info on the early withdrawal penalties. Please let us know if you find out from that CD manager if you would lose the interest that hasn't been credited. I still haven't received a call back since my first morning call. They don't seem to be good at calling customers back.

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Comment #4 by pearlbrown posted on
pearlbrown
@#2 I have seen a similar clause in CDs, and expect it is intended for instances in which the CD is closed early.  Otherwise, the interest is expected to be paid at maturity.  I have never been told "yes your CD matures on 9/8/11 but the interest won't be paid until 9/30/11", for example.  The standard wording for CDs is "interest is compounded (daily, monthly, never=simple interest) and paid at maturity". 

As a precaution, I call the financial institution 1 month before maturity and a) confirm the current balance and the matured amount (to verify against my own records and calculations)  b)confirm how to close the account at maturity (letter, phone call, paperwork, etc)   c) confirm that the interest will be paid at maturity.    The long lead time is ample to work through any issues.

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