MUFG Union Bank, National Association, which is better known as Union Bank, has recently raised the rate on its 36-47 month CD to 2.75% APY for deposits between $10k and $999,999.99. Although Union Bank's Rates page shows a maximum amount of $100k, CSR confirmed that the maximum deposit is just below $1 million. Deposits of $350 to $9,999.99 earn only 0.35% APY.
|2.75*%||$10k||-||Union Bank (San Francisco, CA)||36 - 47 Month CD|
|OTHER TIERS: 0.35% → $350 - $10k|
|0.35*%||$350||-||Union Bank (San Francisco, CA)||36 - 47 Month IRA Time Deposit (Traditional, Roth, CESA)|
While Union Bank offers the 36-47 month CD as an IRA, it earns 0.35% APY, regardless of minimum deposit. While that may seem a bit odd, it really isn’t: until ten days ago, the 36-47 month CD also earned 0.35% APY on all deposit levels. The recent increase of 245 bps has given the 36-47 month CD its highest rate in more than eight years.
Here’s another interesting piece of information: based on current data, Union Bank’s 36-47 month CD APY is 20 bps higher than that of the 36-month Online CD APY offered by PurePoint Financial, Union Bank’s online division.
As stated in the Time Deposit Accounts disclosure, the Early Withdrawal Penalty reads as follows:
For maturity terms of more than one year, the greater of 1) 181 days’ simple interest at the rate being paid on the amount withdrawn; or 2) the compensating penalty.
We calculate the compensating penalty on a 365-day basis as follows:
1) We subtract the interest rate being paid on your original Time Deposit account from the rate we would pay on a new Time Deposit account in the amount of your original Time Deposit account with a term equal to the number of days remaining in the term.
2) Using that interest rate difference, we calculate the amount of simple interest that could have been earned on the amount withdrawn for the number of days remaining in the current term of the original time deposit.
The Time Deposit Accounts disclosure also mentions that promotional rate CDs require having a Union Bank personal or business checking account in order to receive the promotional rate. According to CSR, the 36-47 month CD is not officially labeled as a "promotional rate," and therefore does not require a checking relationship.
Headquartered in San Francisco, Union Bank’s primary market area includes California, Georgia, Illinois, New York, Oregon, Texas, and Washington, although a portion of its product line is available nationwide through online application.
The 36-47 month CD can be opened online, or in-person at any of 353 branches located in California (323), Georgia (1), Illinois (1), New York (1), Oregon (3), Texas (2), and Washington (22). The branches in Georgia, Illinois, New York and Texas provide services for commercial business customers only.
Union Bank has an overall health grade of "A" at DepositAccounts, with a Texas Ratio of 2.63% (excellent) based on December 31, 2017 data. Union Bank has an excellent capitalization level (14.20%), the result of hold $118.54 billion in assets with $16.83 billion in equity. Please refer to our financial overview of Union Bank (FDIC Certificate # 22826) for more details.
Union Bank is currently the largest bank in California, with assets in excess of $118.5 billion and more than 2 million customer accounts. The Bank’s parent company, Mitsubishi UFJ Financial Group (MUFG) is the fifth largest financial group in the world, with total assets of more than $2.4 trillion.
How the CD Compares
When compared to the 204 similar length of term CDs tracked by DepositAccounts.com that are available nationwide, Union Bank’s 36-month CD APY currently ranks second regardless of minimum deposit.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.85% APY||3-Year CD ($500 min/no max)||KDStateBank|
|2.75% APY||36-47 Month CD ($10k min/$100k max)||Union Bank|
|2.73% APY||3-Year CD ($2.5k min/no max)||State Bank of India|
The above rates are accurate as of 5/19/2018.
To find the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.