United Bank's Online Advantage MMA Nears Top Rate

United Bank has again raised the rate on its online Advantage Money Market (AMM), and is now offering 1.70% APY, guaranteed for six months. The minimum opening deposit is $500 and is capped at $500k; balances greater than $500k earn 0.05% APY. The minimum balance to earn the stated APY is $1.

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 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.

The AMM’s rate was increased in late July and was guaranteed for six months. When I wrote about the AMM rate increase in early January, it was unclear if existing accounts would receive the new higher rate or not. In January, CSR stated that once existing accounts had gone past the 180-day rate guarantee period, the “Advantage Money Market’s standard rate would apply, which at this time is 1.46% APY.” The only problem with that statement is that there is no “standard rate” listed: there’s only one rate on the website and, as of today, it’s 1.70% APY.

DA reader, rzelman, posted this comment earlier today:

I had opened this account in Sept 2017 for the high (at the time) rate offered. Today I received an email notifying me that the rate will be increased 5 basis pts to 1.50%. I noted however that the rate for this account on DA was posted as 1.7%. I called the bank who agreed to give me the higher rate and even offered an unpublished higher rate of 1.8% conditioned on an additional deposit of $50K and guaranteed for 6 months.

This is probably one of those “your miles will vary” situations, as I don’t see anything on the website about a possible 1.80% APY. It certainly doesn’t hurt to ask.

I spoke to CSR this morning and here’s what I learned:

• If the AMM rate goes up during your six-month guarantee period, your account is eligible for the new rate, but you have to contact the Bank to actually get the new rate.
• 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. It is the customer’s responsibility to manage the account, i.e., keeping track of rising and falling rates.
• There is check writing available and United Bank provides 100 free checks.
• While it was reported in the past that there was a maximum of five externally linked accounts, I was told there is no limit of the number of external accounts you can link.
• ACH transfers initiated from United Bank are limited to $5k per day, but this can be raised to $100k day if you contact the Bank; 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, rzelman, for his comment about his experience with United Bank’s AMM.

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.

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 4.71% (excellent) based on September 30, 2017 data. In the past year, United Bank has increased its total deposits by $430.51 million, an excellent annual growth rate of 10.36% 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, serving more than 205,000 customers and with assets in excess of $6.9 billion. 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.”

How the Advantage Money Market Special Compares

When compared to the Money Market accounts tracked by DepositAccounts.com available within the online market area, United Bank’s Advantage Money Market APY currently ranks second.

The above rates are accurate as of 2/24/2018.

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