United Bank (CT) Ups 19-Month Flex CD, 3.15% APY
Connecticut-based United Bank has raised the rate on its online 19-month Flex Up CD to 3.15% APY. The minimum opening deposit is $500, with no stated balance cap. The Flex Up option is “the flexibility to make up to five (5) deposits to your CD during the initial term.”
As stated on the Deposit Rates page, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity of more than one year, the fee
we may impose will equal 180 days interest on the amount withdrawn.
Beneficiaries can be named and require Social Security numbers. Updating beneficiaries can be done by mail, using the form available for download on the Account Disclosures page.
Thanks to DA readers, psychoslowmatic and RZ, for their great back-and-forth Forum posts about the 19-month Flex Up CD.
30-Month CD
Another United Bank promotion is the 30-month CD, which currently earns 3.30% APY.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 3.30% | $500 | $500k | United Bank (CT) | 30 Month CD Special - In Branch Only |
This in-branch offer requires a minimum $500 deposit to open, but a $50k minimum deposit comes with two years of Amazon Prime.
Amazon Reward – During account opening and for each annual anniversary of the account opening you will be awarded an annual Amazon Prime subscription code, within 6 weeks of the account opening or anniversary or the account opening date.
The reward is only available with an initial deposit of $50,000 or more. A minimum balance of $50,000 must be maintained to continue earning the rewards.
Advantage Money Market
In the past two years, I’ve written several times about the Advantage Money Market (AMM), a limited-time promotion that United Bank offers quite regularly. The AMM is again being offered with an improved APY of 2.30%. As with previous offerings, the promotional rate comes with a 180-day rate guarantee. The minimum balance to earn the stated APY is $1, but the minimum opening deposit is $500 of new money; there is no stated balance cap. There is also a limit of “one promotional rate account per customer.”
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 2.30% | $1 | - | United Bank (CT) | Advantage Money Market - 180 Day Promo Rate (Online Only) |
The AMM, like the 19-month Flex Up CD, is available online in 25 states. More details about the AMM can be found in my August 2018 blog post.
Availability
Headquartered in Hartford, Connecticut, United Bank’s primary market area includes the Connecticut counties of Fairfield, Hartford, Tolland, and New Haven, and Western Massachusetts, including Worcester County, but the Bank regularly offers special products online on a limited basis.
There is a drop-down menu on the first page of the online application listing the states in which the 19-month Flex Up Certificate is offered. Those 25 states are California, Connecticut, Delaware, Florida, Georgia, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, and Washington.
While the 19-month Flex Up CD and the Advantage Money Market must be opened online, United Bank has 34 Connecticut and 21 Massachusetts branches, for transactions that require a brick-and-mortar setting like the 30-month CD.
Bank Overview
United Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.26% (excellent) based on June 30, 2018 data. In the past year, United Bank has increased its total non-brokered deposits by $400.12 million, an excellent annual growth rate of 9.09% APY. Please refer to our financial overview of United Bank (FDIC Certificate # 18203) for more details.
In 2014, Connecticut’s Rockville Bank and Massachusetts’ United Bank merged to become one of New England’s largest community banks. United Bank currently has deposits in excess of $5.3 billion, with nearly 200,000 customer accounts. In May, the Bank announced an agreement to purchase of six of Webster Bank’s branches, which are located in Connecticut (2), Massachusetts (3), and Rhode Island. The purchase is expected to be finalized in the fall of 2018. According to a May 22, 2018 press release,
United Bank will assume approximately $120 million of branch deposits in the transaction, which is expected to close in the fall of 2018, pending regulatory approval.
United Bank will assume the personal and business banking deposits only at these six branches, including checking, savings, overdraft lines of credit tied to checking accounts, IRAs and CDs belonging to households and business customers.
How the Flex Up CD Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available in the online market area, United Bank's 19-month Flex Up CD APY currently ranks first.
| Interest Rate | CD Length of Term | Credit Union/Bank |
|---|---|---|
| 3.15% APY | 19-Month Flex Up CD | United Bank |
| 3.04% APY | Online 19-Month CD | MutualOne Bank |
| 3.00% APY | 16-Month Fall CD Special | Premier America Credit Union |
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table.
How the Advantage Money Market Special Compares
When compared to the Money Market accounts tracked by DepositAccounts.com that are available within the online market area and are not limited by low balance caps, United Bank’s Advantage Money Market APY share the top rung with Northpointe Bank’s Ultimate Money Market APY.
| Interest Rate | Account Name | Credit Union/Bank |
|---|---|---|
| 2.30% APY | Advantage Money Market Special | United Bank |
| 2.25% APY | MMDA Online Special | Pacific National Bank |
| 2.15% APY | Yield Pledge Money Market | TIAA Bank |
To look for the best MMA rates, both nationwide and state specific, please refer to our Money Market Accounts rates table page.
The above rates are accurate as of 11/2/2018.
Someone could invest $500 today, collect 3.15% for the next 19 months, never invest another penny in this CD, and would sacrifice the additional interest that $500 could have earned over that period. That's the risk. That may be an unacceptable risk to some. For others, this product may seem to be a "good idea."
If it was no penalty CD, I'm in with all the cash lying around, even the present interest that I receive from the other CDs.
Judging by some of the other posts here, several are ignoring just that. They clearly lack our experience.
For those with ability to comprehend, the pivotal aspect of an add-on CD is the buy-in cost, which in this case is VERY reasonable ($500). It's an insurance policy, insurance against the possibility of falling CD interest rates going forward. With only a $500 buy-in, this is inexpensive insurance indeed! And the bank actually pays you over 3% interest on your insurance "premium" and even returns it to you, in full, after 19 months! Such a deal!!
Finally, anyone who thinks they know with certainty the direction interest rates will take is an unvarnished fool. Smarter people than that do not mind shelling out a small amount for insurance. Once you put in your $500 there is no obligation to invest more. But you do have the option to invest more. In a falling interest rate environment that option could turn out to be quite valuable. And on that I speak from past experience a couple of times over.
If you need insurance, how about buying $10K per month on 3.5% or more CD for the next 18 months. You will be ahead of everyone else for earning the maximum rates while waiting to lock on much longer CDs in the next 18-19 months, should there be any changes in the FED policy. Time is money, waiting for Godot to show up, may never happen.
Ken will soon have a whole special place for commentary like yours and others very soon.
This is a 19 month add-on with a $500 buy-in. It's an insurance policy that costs $500. I like the deal.
A savings account is a place were you put money away for something special you want.
A CD is LIKE a savings account, but if you change your mind about that special thing you wanted, you have to PAY for not living up to your commitment. it's a Gangster Saving Account
Let me know when you find a Saving Account that pays 3.15% and you'll see a 300 post blog figuring how you qualify.
I see it as a good insurance against falling rates. One can just commit only $500 and still have 5 chances over the next 1.5yrs to add to it if rates fall lower than 3%. At the same time, even if rates go up, $500 @ 3.15% is no big profit loss. From now to 2020 is a long time and rates can drop as quickly as it has gone up or it may keep rising. Not even the analysts are 100% sure which way the wind blows a year from now
transfer from them to CD
The information we provide here is only general information. Future deposits into this account would be mailed in or made at a United Bank branch location.
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