Union Bank Has Nationally Available 18-23 Month CD


Deal Summary: 18-23 month CD, 2.75% APY, $10k minimum deposit, $1 million maximum deposit.

Availability: Nationwide

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$1mUnion Bank (San Francisco, CA)18 - 23 Month CD
OTHER TIERS: 0.15% $350 - $10k
Rates as of September 24, 2018.

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maturity terms of more than one year, the greater of 1) 181 days’ simple interest at the rate being paid on the amount withdrawn; or 2) the compensating penalty.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that interest rate difference, we calculate the amount of simple interest that could have been earned on the amount withdrawn for the number of days remaining in the current term of the original time deposit.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.

The 18-23 month CD can be opened online, or in-person at any of 353 branches located in California (322), Georgia (1), Illinois (1), New York (1), Oregon (3), Texas (2), and Washington (21).

Bank Overview

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.

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.

Related Pages: 1-year CD rates, nationwide deals

SYC   |     |   Comment #1
Interesting. These CD rate ranges are somewhat better than its subsidiary/division for on-line savings, PurePoint Financial, is currently offering: 2.5% for 18 months and 2.75% for 24 months. When will other major banks with on-line savings units follow suit?
anonymous   |     |   Comment #2
I tried to do a test drive on the bank's online application. Perhaps I did something wrong, but this was my experience. The account selection portion of the application lists checking, savings and money market accounts -- no CDs. So I just clicked on "next" without making a selection. I got the message "selection required." I selected a savings account and clicked on "next", hoping I'd be asked if I wanted to open any additional accounts. No such luck -- I was directed to the personal info page.

Maybe I did something wrong, or maybe CD options appear later in the process, but I don't know if you can actually open the CD online.
ChasinRates   |     |   Comment #8
I called the bank. The CSR I spoke to confirmed that I can't open on-line but could open over the phone.
Bozo   |     |   Comment #3
For those in the Bay Area who already have (or have access to) accounts at both First Republic and Union Bank, this is superb. The current 18-month special at First Republic (2.50%) is bested by Union Bank by 25 bps. Both have local branches within a short drive. In this rate environment, 18 months seems the "sweet spot".
?   |     |   Comment #4
You can get an equivalent rate at Andrews for a 9 month CD.
With rates on the rise, why lock in anything for longer than necessary?
Captain Obvious
Captain Obvious   |     |   Comment #5
Hold on!

Is that true?
TheBombingRange   |     |   Comment #7
Yes it is indeed true, join the American Consumer Council with code "Andrews" or "consumer", then use your ACC Member Number to register for Andrews. Andrews has been somewhat of a pain to deal with in terms of opening up an account there, slow phone wait times, you don't get your member number right away (takes about two days), they can't pull more than $10,000 for the CD in one shot, etc, but check out that post here for more info: https://www.depositaccounts.com/banks/andrews-federal-credit-union/offers/
dmprisk   |     |   Comment #10
Andrews compounds Quarterly and no Trust accounts
jipl   |     |   Comment #11
I have 3 CD's with Andrews FCU that are all vested in a trust account
larry   |     |   Comment #12
So you lose f$100 in Quarterly vs. Daily with a max $250k over 5 years in a 60 month CD. So you lose a lot less if you compare it for 9 months with lower limits. Simply ridiculous not to take a "sweet spot" CD over this.
deplorable 1
deplorable 1   |     |   Comment #14
Look the stated APY is the the APY! It does not matter what the term is or how it is compounded as all that goes into the APY calculation. The APY is there for exactly that reason to compare rates at different institutions accurately. A apples to apples comparison. The Andrews 9 month CD IS 2.75% APY for a 9 month period. The APR is 2.722%. If you don't believe me go here:
Plug in the APR and the compounding frequency(monthly for the Andrews CD) and this calculator will give you the APY. For the Andrews CD it is 2.75622%.
deplorable 1
deplorable 1   |     |   Comment #17
Whoops I left it at monthly compounding by mistake it should have been 2.74991.
#13 - This comment has been removed for violating our comment policy.
Bogie   |     |   Comment #15
Why are you so obsessed with trolls? Just ignore them.
Some people with poor logic and/or math skills aren't necessarily trolls.
deplorable 1
deplorable 1   |     |   Comment #16
The APY for the Andrews CD IS still 2.75% it does not matter the compounding frequency as that has already been figured int the APY calculation. I'll prove it go to:
Plug in the numbers for the Andrews CD the corresponding APR is 2.722% and the quarterly compounding. It comes out to 2.74991 rounded up to 2.75% APY
alan1   |     |   Comment #6
The article states that the CD can be opened "in-person at any of 353 branches located in California (322), Georgia (1), Illinois (1), New York (1), Oregon (3), Texas (2), and Washington (21)."

According to the Bank's website, the locations in Georgia, Illinois, New York and Texas offer "services for Commercial business customers only." (Location search tool at https://blw.unionbank.com/blw/branches/All-State-Branch-Page)
Ann   |     |   Comment #9
According to the phone rep ChasinRates spoke to, you can also open the CD by phone.
dmprisk   |     |   Comment #18
Heads up! I went in and talked to customer service person, he showed me with a print out, that if you put in more then 99,999.99 or 100,000.00 or more the rate is 2.68 and he says the APY stays the same as the promoted 18-23 month rate. (deposit of 10,000.00-99,999.99 which shows 2.71 rate 2.75 APY.). I told him no way, I have a website that you can run the numbers and if you pay the 2.68 rate then the APY is 2.72 APY
I entered 99,999.99 @ 18 months 2.71=4148.59 total interest you will receive in 18 months, then I put in 100,000.00 @2.68%=4101.74 total interest you will receive in 18 months so you lose 46.85 dollars in 18 months by depositing anything over the 99,999.99 and the rate is not 2.75 you get 2.72 APY.
alan1   |     |   Comment #19
dmprisk wrote: I told him no way, I have a website that you can run the numbers and if you pay the 2.68 rate then the APY is 2.72 APY

It all depends on what numbers you run. GIGO.
According to Union Bank's "Time Deposit Accounts Disclosure" (p. 2 of PDF, p. 1, print edition):
"Annual Percentage Yield (APY) – The total amount of interest paid on an account, based on the interest rate and the frequency of compounding and, unless otherwise noted, is for a 365-day period (366-day period in a leap year), and is expressed as a percentage."

Note the words: unless otherwise noted".

At p. 6 of the PDF (p. 5 of the print edition), it is clearly stated that interest for CDs of $99,999.99 and under are calculated as stated above. It is also clearly noted that interest on CDs of
$100,000 -$999,999.99 is calculated on the basis of 1/360th of the annual interest rate.

Union Bank is fortunate to have an employee as competent and knowledgeable as the person that was rudely dismissed by being told "No way".
deplorable 1
deplorable 1   |     |   Comment #20
That is the strangest CD term I have ever seen but the CSR was 100% correct. If you take the 2.68% and divide it by 360(instead of 365) you get .00744 for the daily compounding rate. Now multiply .00744 by 365(1 year) and you get the APR which is 2.7156%. Now plug that rate into your APR calculator and you should get 2.7527% APY. Amazing how 5 days makes that much difference.
Well   |     |   Comment #21
I probably dropped by the bank at the wrong time today. It was about 4:15PM when I dropped by 400 California branch, and I guess they are ready to go home.

There were no customers in the branch except me. I told them to open a 18 months CD. then a lady began to ask if I have the "Coupon" handy? I knew that I don't need one, so I said NO.

She pulled up my account, and saw that I already had an 18 months CD. She told me that I cannot have a second promotion CD. Her reason was that everyone can only have one promotion CD, and she also pretended to confirm with her manager on the phone. I asked:"What's the max amount?", but she answered me:"everyone can only have one promotion CD". Not make sense at all.

When I was on the street, I called Union Bank, and the Rep on the phone told me that there're no max amount for the 18 months CD, and I don't need a coupon because it becomes standard rate now.

Next time I think I should drop by earlier!!!
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The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact feedback@depositaccounts.com to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.