UPDATE 10/2/2018: The Money Market rate has gone up. The Online Money Market now earns 2.01% APY on all balances.
Florida-based BankUnited is the latest bank to add a nationwide online division. The newly opened BankUnitedDirect made its debut earlier this month, offering a fairly competitive Online Money Market that earns 1.90% APY on all balances. The Online Money Market requires a $2.5k minimum opening deposit and is capped at $250k.
BankUnitedDirect’s website uses BankUnited’s documentation, making it difficult to determine what does and doesn’t apply to the new Online Money Market. The following information is from BankUnitedDirect’s FAQs page:
How do I make deposits to my Money Market account?
- Wire transfer (fees may be apply)
- Online Transfers and Direct Deposit
- Mobile Deposit (must have BankUnited mobile banking app)
How many times can I withdraw from my BankUnitedDirect Money Market account
If you exceed the allotted transactions , we will notify you and you will be charged
a $9.00 Excessive Transaction Fee for each transaction over the limit. Please note if you exceed the transaction limitations 3 times, we may close your account.
A conversation with CSR provided the following:
- There is check writing ability and a debit card is available.
- The $15 monthly maintenance fee can be avoided with a $2.5k minimum daily balance.
- If the Online Money Market account is closed within 180 days of opening, there is a $15 early closeout fee.
- Two beneficiaries are allowed on the online application, and Social Security numbers are required.
BankUnitedDirect’s CD rates are not outstanding, but they outstrip the APYs offered on BankUnited CDs by 95 to 120 bps. Any of the CDs can be opened with a $1k minimum deposit, and are capped at $250k.
Partial withdrawals are permitted, and the Early Withdrawal Penalty reads as follows:
Terms of less than 90 days – an amount equal to 30 days interest
Terms of between 90-365 days – an amount equal to 90 days interest
Terms of 366 days or greater – an amount equal to 180 days interest
While CDs can be funded through ACH, there is no ACH transfer in place for maturing funds. The three options for accessing funds include a wire transfer, a cashier’s check, or a funds transfer into another existing BankUnitedDirect account.
BankUnitedDirect is the newly opened online division of Florida-based BankUnited. Legal U.S. residents, 18 years or older, with a valid Social Security number are eligible to open an account using BankUnitedDirect’s online application.
Unlike some online applications that must be completed in one sitting, an unfinished BankUnitedDirect online application will be “saved for 10 business days from the date served.”
At this time, BankUnitedDirect’s product line is limited to the Online Money Market account and six CDs, but according to CSR, the product line may be expanded in the near future.
As an online division of Florida-based BankUnited, BankUnitedDirect operates under the BankUnited’s FDIC Certificate and shares its financial history.
BankUnited/BankUnitedDirect has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 5.55% (excellent) based on June 30, 2018 data. In the past year, the Bank increased its total non-brokered deposits by $1.35 billion, an excellent growth rate of 7.24%. Please refer to our financial overview of BankUnited/BankUnitedDirect (FDIC Certificate # 58979) for more details.
According to the FAQs page,
Because BankUnitedDirect is a division of BankUnited, N.A., deposits
held in BankUnitedDirect are added together with deposits held
directly with BankUnited, N.A. for determining FDIC coverage.
BankUnited is the successor to BankUnited, FSB, which was seized by the Office of Thrift Supervision in 2009. The Bank was taken over by the FDIC, which transferred control to a private equity group, headed by North Fork Bank President, John Kanas. The new BankUnited opened its doors with $12.7 billion in assumed assets and $8.3 billion in assumed non-brokered deposits, and four years later, acquired the Herald National Bank (NY). BankUnited is currently the second largest bank headquartered in Florida, with assets in excess of $31 billion and nearly 185,000 customer accounts.
How the Online Money Market Compares
When compared to nationally available Money Market accounts tracked by DepositAccounts.com that require a similar minimum balance and are not limited by low balance caps, BankUnitedDirect’s Online Money Market APY currently ranks third.
The above rates are accurate as of 9/27/2018.
To look for the best Money Market account rates, either nationwide or state specific, please refer to DA’s Money Market Account Rates Table page.