4.25% 5-Month CD at OneUnited Bank in Los Angeles, Miami and Boston


Update 12/08/08: The CD rate has gone down. A reader reported this rate to be 3.75% APY as of today. Please check with the bank for the latest rates.

Update 11/29/08: OneUnited receives Cease and Desist Order from FDIC (see post).

OneUnited Bank is offering a special CD with an APY of 4.25% APY and a term of 150 days. Minimum deposit is $1,000. This special doesn't seem to be listed at the bank's website. A reader mentioned seeing this special, and I just called for additional details. According to the banking it's only available at the bank's offices. It's not available online or by mail. There are no other requirements (such as a checking account). She didn't know how long it will last. It's available as of today (11/25/08), but it could any at any time.

OneUnited also offers an online savings account that currently pays 3.75% APY with a $1,000 minimum balance. Unlike the special CD, this savings account is available online to people in any state. Refer to my OneUnited account review for details. The account has a history of high rates, but many readers have had problems with the bank's online application, the online banking and with their customer service. Refer to the account review post for all the readers' comments.

Branches are located in Los Angeles, Compton and Pasadena, California; Miami and Lauderdale Lakes, Florida; and Boston, Dorchester and Roxbury, Massachusetts.

OneUnited Bank has average financial ratings for soundness: 3 stars (adequate) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/08 data. The bank has been FDIC insured since 1982 (FDIC Certificate # 23966).

Thanks to the reader who emailed me news of this special CD.
Lincoln (anonymous)   |     |   Comment #1
Boycott OneUnited Bank and any bank that pays interest quarterly instead of monthly.

If you are paid interest quarterly and you close your account before the quarterly interest credit, you lose the accumulated interest earned since the last quarterly posting.

Most banks pay interest monthly. You deserve to get your interest monthly. The banks get their interest payments from loans and credit cards monthly.
Anonymous   |     |   Comment #2
I had an account here at one time but closed it out some time ago. I just didn't like this bank in general and especially the interest being paid quarterly. I would not recommend this bank
Anonymous   |     |   Comment #3
I even had trouble closing a zero balance account. They wanted a signed letter with a copy of my Driver's License too.

My first clue with this Bank should have been with the account opening process...took way to long with snail mail with access codes. Don't even try to have a PO Box mailing address as they don't respect that either, sending everything to physical address.

I won't shed a tear if this Bank is closed. They just don't get it. When you do internet banking as a division (not a hobby) you need to support it with adequate systems and proper staffing that understand both how the system works and the Bank's policies and procedures.

OC Steve
More Savings Account Rate Cuts - E*TRADE, EmigrantDirect and Others
Update: OneUnited just slashed the rate this Friday afternoon on its online savings account from 4.60% to 4.00% APY.

Online banks continue to cut their savings account rates. The cut at E*TRADE Bank was the most disappointing. The rate on their Complete Savings account fell from 4.10% APY to 3.45%. E*TRADE had kept this rate near the top since November 2007 when reports of their subprime problems came out. As I reported last month, E*TRADE's financial health seems to be improving, so perhaps they don't feel the need to offer the...

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OneUnited Cuts Online Savings Account Rate to 5.15% APY
I guess OneUnited Bank felt it couldn't hang on to 5.30% APY any longer. It finally cut the rate, but surprisingly, it's a modest cut of only 15 basis points. The new yield is 5.15% APY.

You have to wonder about OneUnited's strategy on this. Have they decided to do a bunch of small cuts rather than one large cut? After the recent massive Fed rate cuts, this new yield is still way above the competition.

For more details on OneUnited's online savings account, please refer to my account review, and for...

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

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Review of OneUnited Bank's Unity Gold E-Savings Account
Update 6/13/09: Unity Gold E-Savings rate has fallen from 1.75% to 1.51% APY.

Update 3/16/09: The yield has fallen to 2.25% APY. Note, OneUnited Bank's website only clearly shows the rate for their new E-CD (2.50% APY). I can only find the savings account rate in the Truth and Savings Disclosure. See bottom of post for the rate history.

Update 11/29/08: OneUnited received a Cease and Desist Order from FDIC (see post).

OneUnited Bank is one of the very few banks that have yet to cut the yield on their online savings account...

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5.30% Savings Account at OneUnited, Now Requires $1K
OneUnited Bank's rate on its UNITY Gold E-Savings account has recently been raised from 5.25% to 5.30% APY. However, I noticed it changed its minimum deposit requirement. It use to only require a $10 deposit. It now requires a $1,000 minimum opening deposit and to earn the stated APY.

Comments from readers regarding this bank and this savings account haven't been favorable. Many reported problems in the account opening, with customer service and with slow ACH transfers. Refer to this post for account details and this post for comments from readers....

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