United Central Bank’s 6 month CD rate: 2.00% APY
Here is a decent deal coming out of United Central Bank. (Thanks to BankVibe reader Trevor for sending it in). Currently they have a 6 month CD yielding 2.0% APY with a minimum balance of $1,000. I know how unappealing a 2.0% APY savings rate can seem, however you must take into account the current deposit rate climate. Compare 6 month CD rates.
United Central Bank is located in Dallas, Texas and is expanding at a fairly rapid pace. They were founded in 1987 and originally only served the community of Dallas but have since expanded to all of Texas and as well as a few bordering states.
United Central Bank’s financial product list:
- Interest Bearing Checking Accounts
- Certificates of Deposit
- Personal Loans
- Commercial Loans
- SBA Loans
- Internet Banking
- Cash Management
- Merchant Services
- Domestic and International Wire Services
The rates associated with their CDs (certificate of deposits) get less competitive with a longer maturity. In fact, their 60 month CD is only yielding 0.90% more than the 6 month rate, (2.90% APY and 2.00% APY respectively).
Another counter-intuitive aspect of their CD rates is that you will actually receive a lower interest rate for opening a jumbo CD. If you were to open this same 6 month CD but deposit $250,000 or more into the account you will only get a return of 1.75% APY. Traditionally, banks and credit unions will reward larger deposits with higher rates, I guess United Central Bank takes a different approach…
If you are after a higher interest rate for a large deposit, then you should opt for their “Global Money Market” account. Depending on your balance amount, you will most likely stand to earn some decent returns.
Global Money Market Rates (United Central Bank):
$1,000,000 yields 3.00% APY
500k – 999k yields 2.40% APY
300k – 499L yields 2.25% APY
75k – 299k yields 2.15%
Anything balance below $75,000 yields 1.95% APY. As a comparison, the current national average for money market rates sits at roughly 1.20% APY.
