United Bank Brings Back Advantage Money Market

Connecticut-based United Bank has brought back its Advantage Money Market (AMM) with a new rate – 2.10% APY. 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.”

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.

Please refer to your statement, online banking or call us for the standard rates and tiers on our Advantage Money Market account.

The problem I had with that statement when I wrote about the Advantage Money Market (AMM) in May still exists today: there is no “standard rate” listed. There’s only one rate on the website and it’s currently 2.10% APY.

The fine print also states,

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.

According to CSR, established AMMs qualify for the new 2.10% APY, but the rate is NOT automatically adjusted. It is the customer’s responsibility to call the Bank to request the new rate. CSR also mention that,

• Following the rate guarantee period, the APY may be lowered (no lower than 1.00% APY), but the Bank will not officially notify you of any change.
• Check writing is available, and United Bank provides 100 free checks.
• There is a limit of five externally linked accounts.
• ACH transfers initiated from United Bank are limited to $5k per day for the first 90 days following account opening, but this can be raised to $100k day if you contact the Bank thereafter. There is no monthly limit. As CSR said, “You can always just write a check.” Incoming transfers are limited to $250k per day, with no monthly limit.

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.

Thanks to the DA reader whose email about the return of United Bank’s Advantage Money Market made a dreary Sunday morning better.

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.

There is a drop-down menu on the first page of the online application listing the states in which the Advantage Money Market Special 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 Advantage Money Market Special must be opened online, United Bank has 35 Connecticut and 21 Massachusetts branches, for transactions that require a brick-and-mortar setting.

Bank Overview

United Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.61% (excellent) based on March 31, 2018 data. In the past year, United Bank has increased its total non-brokered deposits by $277.52 million, an excellent annual growth rate of 6.46% 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 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 currently ranks first.

The above rates are accurate as of 8/20/2018.

To look for the best MMA rates, both nationwide and state specific, please refer to our Money Market Accounts rates table page.