Union Bank (MI) 1-2-3 Rewards Checking Has Competitive Blended APY


Deal Summary: 1-2-3 Rewards Checking, 3.05% APY ($15k-$25k), 1.51% APY ($1k-$15k), 0.05% APY (up to $1k). Blended 2.07% APY on qualifying balances up to $25k.

Availability: Nationwide

Michigan-based Union Bank has been offering its 1-2-3 Rewards Checking for about three years and the original tiered APYs are still in effect. The 1-2-3 Rewards Checking is structured differently than the vast majority of reward checking accounts, as it offers four different APYs on portions of qualifying balances. The 3.05% APY ($15k-$25k), 1.51% APY ($1k-$15k) and 0.05% APY (up to $1k) result in a blended APY of approximately 2.07% APY. Qualifying balances over $25k earn 0.05% APY, with non-qualifying balances not earning any interest.

3.05*%$15k$25kUnion Bank (MI)1-2-3 Rewards Checking
OTHER TIERS: 0.05% Up to $1k | 1.51% $1k - $15k | 1.54% $25k+
Rates as of November 29, 2022.

The monthly qualification requirements include,

  • At least 15 debit card purchases ($15 minimum each)
  • At least $1k of direct deposit(s)
  • At least one ACH debit (automatic bill or online bill payment)
  • Receive e-Statements

A 1-2-3 Rewards Checking account can be opened with $100 minimum deposit. A monthly minimum average balance of $1k is required to avoid the $10 monthly service charge. While there is no reimbursement of “foreign” ATM fees, all Union Bank ATM and debit cardholders can use any Comerica Bank ATMs free of charge for withdrawals. Unlimited check writing is available and a free debit card will be issued following account opening. There is a limit of one 1-2-3 Rewards Checking account per Social Security number.


Headquartered in Lake Odessa, Michigan, Union Bank has a physical presence in two Western Michigan counties and three Central Michigan counties, but its entire product line is available to all U.S. citizens and resident aliens through the Bank’s new Virtual Branch app.

According to CSR, the Virtual Branch allows customers to do every type of transaction that can be done in-branch, as well as account management.

Before opening a 1-2-3 Rewards Checking account, a Virtual Bank account must be established. As stated on the new Virtual Branch landing page,

How do I sign up for Virtual Banking?

    1. Download the UB Virtual Banking app from the App Store or Play Store

    2. Create a profile or opt for a quick call login

    3. Log in to your profile with your email address

    4. Select a video session login

Opening a 1-2-3 Rewards Checking account can also be done at any of the seven full-service Michigan branch locations, but an appointment is required; all branch lobbies (Ada, Dimondale, Hastings, Lake Odessa (2), Mulliken, and Westphalia) are currently closed to walk-in traffic. Union Bank’s Locations page lists the unique phone number for setting appointments at each of the seven branches.

Bank Overview

Union Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 13.90% (above average) based on September 30, 2020 data. In the past year, Union Bank has increased its total non-brokered deposits by $51.34 million, an excellent annual growth rate of 32.27%. Please refer to our financial overview of Union Bank (FDIC Certificate # 14722) for more details.

Opening its doors for business in 1934, Union Bank was the new “union” of two Lake Odessa banks that didn’t survive FDR’s bank holiday. With assets in excess of $245 million, Union Bank is currently the 58th largest bank headquartered in Michigan.

How the 1-2-3 Rewards Checking Compares

When compared to the High Yield Rewards Checking Accounts tracked by DepositAccounts.com that are available nationwide and have maximum qualifying balances of at least $25k, Union Bank’s 1-2-3 Rewards Checking blended APY currently ranks second.

The above rates are accurate as of 1/18/2021.

To look for the best Reward Checking Account rates, both nationwide and state specific, please refer to our High Yield Reward Checking Account Rates Table page.

Related Pages: Lansing checking accounts, Grand Rapids checking accounts, reward checking accounts, nationwide deals

  |     |   Comment #1
Way too much work and easy to sc rew up. I'll pass.

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