Two months ago, Union Bank was offering a 36-47 month CD, earning 2.75% APY. In my May 19 blog post, some DA readers commented that the term length was too long for the stated APY. Perhaps the Bank took those comments to heart, because the 18-23 month CD now earns 2.75% APY on 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 0.15% APY.
|2.75*%||$10k||$1m||Union Bank (San Francisco, CA)||18 - 23 Month CD|
|OTHER TIERS: 0.15% → $350 - $10k|
While Union Bank offers the 18-23 month CD as an IRA, it earns 0.15% APY, regardless of minimum deposit. While that may seem a bit odd, it really isn’t: the 18-23 month CD earned 0.15% APY on all deposit levels until the end of April. The addition of 260 bps over the past three months has given the 18-23 month CD its highest rate in nearly nine years.
Here’s another interesting piece of information: based on current data, Union Bank’s 18-23 month CD APY is 25 bps higher than that of the 18-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maturity terms of more than one year, the greater of 1) 181 days’ simple interest at the rate being paid on the amount withdrawn; or 2) the compensating penalty.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that interest rate difference, we calculate the amount of simple interest that could have been earned on the amount withdrawn for the number of days remaining in the current term of the original time deposit.
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.
Union Bank has an overall health grade of "A" at DepositAccounts, with a Texas Ratio of 1.94% (excellent) based on March 31, 2018 data. Union Bank has an excellent capitalization level (13.94%), the result of holding $120.91 billion in assets with $16.85 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 $120 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 173 similar length of term CDs tracked by DepositAccounts.com that are available nationwide and require a minimum deposit of $10k or less, Union Bank’s 18-23 month CD APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.75% APY||18-23 Month CD||Union Bank|
|2.68% APY||18-Month Share Certificate Special||Interior Federal Credit Union|
|2.65% APY||18-Month Share Certificate||CommunityWide Federal Credit Union|
The above rates are accurate as of 7/20/2018.
To find the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.