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Competitive 3-Year & 5-Year CD Rates at Union Bank - OR & WA Only

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Union Bank (San Francisco, CA)

Union Bank, N.A. is offering two competitive CD rates for residents in Oregon and Washington State. These are a 2.00% APY 5-year CD and a 1.50% APY 3-year CD. Minimum deposit is $350. These rates are listed in the Union Bank CD rate chart as of 5/24/2012. These are only shown when you select the states of OR or WA. The rates are much lower for California and other states.

I wasn't able to find a CD disclosure online which lists the early withdrawal penalty. I called Union Bank yesterday (1-800-796-5656), and asked about the EWP. The CSR said there isn't a fixed penalty (like 12 months of interest). However, he said he could only calculate the EWP based on the CD amount, term and APY. I suggested this 5-year CD with a 2.00% APY and a $10,000 deposit. He put these into his calculator tool, and it gave a EWP of $99.18. That comes out to about 6 months of interest. Hopefully, if you go to a branch, a banker will be able to provide you a CD disclosure with the EWP details.

Union Bank has several branches in WA and OR due to its acquisition of Frontier Bank which failed in 2010. Some of the WA and OR cities with Union Bank branches include Portland, Salem, Tigard, Arlington, Bellingham, Everett, Kirkland, Seattle and Tacoma.

Union Bank is a sizable bank with over $88 billion in assets. It has an overall health score at DepositAccounts.com of 5 stars (out of 5 stars) with a Texas ratio of 6.67% (excellent) based on December 2011 data. Please refer to our financial overview of Union Bank for more details. The bank has been a FDIC member since 1979 (FDIC Certificate # 22826).

How These CD Rates Compare

If you live in the Seattle area, you may want to check out Wings Financial Credit Union. It continues to have very competitive CD rates including a 2.22% APY 5-year CD and a 1.71% APY 3-year CD.

If you don't mind banking by mail or online, you can get higher 5-year and 3-year CD rates at two all-access credit unions. The best 5-year CD rate is 2.25% APY at Astera Credit Union, and the best 3-year CD rate is 1.76% at Melrose Credit Union.

If you prefer banks, you'll have to settle for lower rates. For CDs that are nationally available, the best 5-year CD rate is 1.81% APY at The National Republic Bank of Chicago, and the best 3-year CD rate is 1.55% APY at AmTrustDirect.

The above rates are accurate as of 5/24/2012.

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: Union Bank (San Francisco, CA), CD rates, Oregon, Washington

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Comments
Comment #1 by Anonymous posted on
Anonymous
Union Bank is definitely not a place to try out Ken's early withdrawal strategies.   Its deposit account contract provides, for long-term CDs, an EWP of the greater of (1) 181 days' interest and (2) a "compensating fee." The compensating fee is essentially a make-whole penalty based on rates at the time you redeem, which makes it virtually impossible to profit from closing the CD and opening a new CD elsewhere.

The bank provides much greater flexibility for customers having IRA CDs who are over 59-1/2.  You can essentially change the maturity and rate of the CD once a year.  The details (somewhat opaque) are in a separate IRA disclosure document.

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