United Bank's Online Advantage MMA APY Guaranteed For 6 Months
Approximately nine months ago, United Bank unveiled its new online Advantage Money Market (AMM), which was initially offered at 1.10% APY (up to $500k). In mid-December, the rate was increased to 1.35% APY, promoted as a “limited time offer.” Two weeks later, it dropped to 1.25% APY, where it remained for most of the next seven months.
The rate bounced up three weeks ago, with balances up to $500k now earning 1.36% APY; balances of $500k+ continue to earn 0.05% APY.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 1.36*% | - | $500k | United Bank (MA) | Advantage Money Market Special (Online Only) | |
| OTHER TIERS: 0.05% → $500k+ | |||||
The new 1.36% APY is also guaranteed for six months, following account opening. The fine print on the Deposit Rates page states:
The promotional rate and tiers will be in effect for 180 days from the date the account is opened after which the standard rates and tiers that apply to the Advantage Money Market will be the rates and tiers in effect.
The variable interest rate that would have been in effect (but for the introductory rate) is currently the same as the promotional rate. This rate is not tied to an index or formula and is determined solely at our discretion and may go down after the introductory promotional period ends.
Over the weekend, DA reader, NYC Doug, posted a comment on the Salem Five Direct eOne Savings blog post that focused on United Bank’s AMM.
In contrast with Salem, United's 1.35% rate was supposed to drop down to 1.25% after one year. Instead they automatically extended it when they began offering the higher rate as standard to new customers this year.
There is a monthly service fee of $15, which will be waived if “a daily minimum balance of $2,500 or more is maintained in your account.” Withdrawals made at United Bank or Allpoint ATMs are fee free, but there is a $2.50 fee per transaction when using an outside of network ATM.
Many thanks to NYCDoug for his reminder about the Advantage Money Market.
Availability
Headquartered in Vernon Rockville, Connecticut, United Bank’s primary market area includes Western and Central Massachusetts, and the Connecticut counties of Hartford, Tolland and New Haven.
As listed on the online application, the market area for the online Advantage Money Market now includes 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. (The number of states on this list has nearly doubled since I wrote about the Advantage Money Market in December.)
United Bank has 33 Connecticut and 21 Massachusetts brick-and-mortar branches, but the Advantage Money Market must be opened online.
Bank Overview
United Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 5.39% (excellent) based on March 31, 2017 data. In the past year, United Bank has increased its total non-brokered deposits by $167.8 million, an excellent annual growth rate of 4.07% 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 bank. With a combined 290+ years of operation, the Banks have joined to “combine the proud legacies of two strong, independent-minded community banks to create the premier community bank in New England.” United Bank is currently the third largest bank headquartered in Connecticut, with assets in excess of $6.6 billion and more than 200,000 customers accounts.
How the Advantage Money Market Compares
When compared to the Money Market accounts tracked by DepositAccounts.com that require “non-Jumbo” deposits and are available within the Bank’s online market area, United Bank’s Advantage Money Market APY currently ranks second.
The above rates are accurate as of 8/22/2017.
To look for the best MMA rates, both nationwide and state specific, please refer to our Money Market Accounts rates table or our Rates Map page.
DA reader RichReg also posted this about United Bank;
" don't forget..! ......Checking Capabilities!
...with first batch of 40 checks FREE, so even easier liquidity than most."
For me, that's an awesome convenience perk that shouldn't go unmentioned.
And to/from these five external financial institutions you can initiate inter-bank transfers at United of no more than $5,000/day, and $30,000/month. So their favorable customer retention policy also involves retention of cash, slowing the speed of your money, at least via ACH.
Of course, you can always write a check!