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Best of, Earning Interest

The Best Credit Union CD Rates – January 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

The top credit union CD rates
Source: iStock

Certificates of deposit (CDs) are a great way to safely store your savings at a financial institution, as they offer a guaranteed rate of return, and CD rates tend to be higher than those on traditional savings accounts. Maybe you’ve even heard that credit union CD rates offer higher returns—but is that really the case?

On average, yes. As of September 2018, the average one-year credit union CD had a 1.10% annual percentage yield (APY), compared to the 0.87% APY average among one-year bank CDs.

Using data from DepositAccounts.com, another LendingTree company, we identified the top one-year credit union CD rates, as of January 7, 2019. We then eliminated any credit union with a health rating lower than a B and identified the top three offerings in three categories: restricted, no cost, and best banking app. If there was a tie by APY, we went with the product with the lower minimum deposit. Here are the best one-year credit union CD rates.

Best CD rates for credit unions with no cost to join

The thing about credit unions is that they’re not usually just open to anyone. You usually need to meet some membership criteria in order to get in and get access to all of their really nice products. These credit unions, however, will let you in for free regardless of your personal details. (Note: Only two credit unions met our criteria for this list.)

Unify Financial Credit Union – 1-Year Share Certificate, 1.75% APY, min. deposit $1,000

UNIFY Financial Credit Union
Unify FCU offers the highest interest rates on CDs (which it calls share certificates) of any credit union with no cost to join. The interest rate on their 12-month CD, for example, is 1.75%, compared to the national average of 0.92% in June. You would earn $17.50 on a $1,000 deposit. If you withdraw your money early, however, you’ll face a penalty of 90 days’ worth of interest.

LEARN MORE Secured

on UNIFY Financial Credit Union’s secure website

NCUA Insured

NASA Federal Credit Union – 1-Year Share Certificate, 1.25% APY, min. deposit $1,000

NASA Federal Credit Union
If the rigid inflexibility of CDs makes you leery, NASA FCU might be your best bet. They have a lot of flexible certificates, such as add-on certificates that let you start with as little as $250, and bump-rate certificates that let you opt for a one-time interest rate increase if rates go up. You can even take out a loan from your certificate should you need the cash before it’s matured. You can join NASA FCU with a complimentary membership to the National Space Society.

If you do need to make an early withdrawal, you will face a penalty of 180 days’ worth of interest.

LEARN MORE Secured

on NASA Federal Credit Union’s secure website

NCUA Insured

Best credit union CD rates with restricted memberships or membership fees

Each of these credit unions have restricted membership criteria, but don’t let that scare you away. If you don’t meet their membership criteria, it’s possible to make a small donation to their charity of choice in order to become eligible for membership. Furthermore, these credit union CD rates offer some of the highest-returning share certificates out of any category.

USAlliance Financial – 12 Month CD, 2.80% APY, min. deposit $500

USALLIANCE Financial
Membership to USAlliance Financial is open to anyone who lives, works or worships in certain counties of Massachusetts, the city of West Haven, Conn., and a few districts in New York. However, if you don’t qualify by location, you can qualify by giving USAlliance authorization to make you a member of various organizations, including the American Consumer Council, if you aren’t already a member of these organizations. Keep in mind that these organizations may request fees.

Once you’re a member of USAlliance Financial, you can open a 12-month CD with a great rate of 2.80% by depositing a minimum of $500. Their early withdrawal penalty equals 180 days’ worth of interest earned on the amount you withdraw.

LEARN MORE Secured

on USALLIANCE Financial’s secure website

NCUA Insured

Partner Colorado Credit Union – 12 Month CD Special, 2.80% APY, min. deposit $500

60 Month CD Special from Partner Colorado Credit UnionMembership to Partner Colorado Credit Union is open to anyone willing to donate $5 to the Partner Colorado Foundation. The credit union will help you make the donation when you’re ready to open an account. You may want to first find out if you’re eligible through the other fields of membership prior to opening an account.

Once you’re a member of Partner Colorado Credit Union, you can open the 12-month CD Special with a minimum of $500. Their early withdrawal penalty is 90 days interest.

LEARN MORE Secured

on Partner Colorado Credit Union’s secure website

NCUA Insured

PenFed Credit Union – 1-Year Money Market Certificate, 2.80% APY, min. deposit $1,000

PenFed Credit Union
PenFed has an outstanding APY of 2.80%. With a minimum deposit of $1,000, you could earn $24.50 in one year. Interest is compounded daily and posts to accounts monthly. However, be aware of the steep early withdrawal penalty. If you withdraw funds before the year is up, you may forfeit all interest accrued up to that point.

Eligibility for this credit union is mainly based on military status, governmental employment status, affiliation with certain associations and organizations or relation to eligible members. However, if you don’t qualify through those criteria, getting a membership to this credit union is not difficult if you’re willing to pay a one-time fee of $17 to either Voices for America’s Troops or the National Military Family Association.

LEARN MORE Secured

on PenFed Credit Union’s secure website

NCUA Insured

Connexus Credit Union – 12 Month Certificate, 2.80% APY, min. deposit $5,000

12 Month Certificate from Connexus Credit Union With a $5 donation to the Connexus Association, anyone can join Connexus Credit Union. The Connexus Association assists educational institutions by providing scholarships and financial information. Once you become a member of the credit union, you’ll be able to open their 12 month CD with a $5,000 deposit.

If you’re able to deposit $5,000 into Connexus’s 12 month CD, you’ll earn $140 by the end of the term. However, if you withdraw funds early, you’ll be penalized with 90 days’ worth of interest.

LEARN MORE Secured

on Connexus Credit Union’s secure website

NCUA Insured

Alliant Credit Union – 12-17 Month Share CD, 2.65% APY, min. deposit $1,000

Alliant Credit Union
With a minimum deposit of $1,000, you could earn an APY of 2.65% on a 12-17 month CD. An early withdrawal penalty of 90 days’ worth of interest may be imposed if you withdraw funds prior to the CD’s maturity date.

With a $10 donation to Foster Care to Success, you can easily become a member of Alliant Credit Union. You can also become a member if you are an employee or retiree of certain organizations, related to existing Alliant members, or live or work in qualifying communities.

LEARN MORE Secured

on Alliant Credit Union’s secure website

NCUA Insured

Best CD rates for credit unions with the best mobile apps

By their very nature, CDs aren’t something that require constant attention, poking, and prodding. It’s a set-it-and-forget-it kind of a deal, so you won’t need any spiffy banking apps to use CDs.

But, if you’d like to switch all of your banking to the same institution that holds your CDs, it might be a wise idea to consider one of these credit unions if you’re a digital junkie. Most credit unions lag behind their bank compatriots in terms of mobile banking apps, but these credit unions offer top-notch mobile apps, according to MagnifyMoney’s 2017 mobile banking app analysis.

Redstone Federal Credit Union – 12 Month MemberPlus Regular Share Certificate, 1.99% APY, min. deposit $1,000

Redstone Federal Credit Union
You can’t just make a simple donation to join to Redstone Federal Credit Union if you fail to meet their membership criteria. You need to be a government employee or contractor, a member of the military, reserve, or National Guard, or affiliated with a number of organizations listed on their website among other options.

However, if you do qualify for membership, you could earn an APY of 1.99% with a minimum deposit of $1,000. Redstone FCU has compounding and non-compounding certificates, which allow you to have the option to withdraw interest earned or not throughout the term of the certificate.

LEARN MORE Secured

on Redstone Federal Credit Union’s secure website

NCUA Insured

Eastman Credit Union – 1-Year Investment Certificate, 2.00% APY, min. deposit $1,000

Eastman Credit Union
Eastman Credit Union also has pretty restrictive membership requirements. You’ll have to be an employee (or a family member of an employee) of one of their select employers, or live in certain parts of Tennessee, Texas, or Virginia.

Eastman CU is another one of the rare credit unions that allow you to withdraw your dividends penalty-free before the maturity date, although again, doing so will lower your total returns. Currently, you can earn an interest rate of 2.00% on a 12-month CD with a minimum deposit of $1,000. If you withdraw your money before the CD matures, you’ll owe a penalty fee of anywhere between seven days’ worth of dividend earnings or all of your dividend earnings.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

Wright-Patt Credit Union – 1-Year Certificate, 1.97% APY, min. deposit $500

Wright-Patt Credit Union
Unlike many credit unions, you can’t just make a simple donation to join Wright-Patt CU if you fail to meet their membership criteria. You need to live in certain areas of Ohio, be associated with Wright-Patterson Air Force Base, or be an employee of their select employer group, among other options.

You can earn $8.80 on a 12-month CD with just a relatively small $500 deposit. However, if you’re able to deposit $100,000 or more, you’ll earn an APY of 2.07%, which will return $1,870 in interest. Early withdrawal penalties vary depending on the original term of your CD, however they’ll be anywhere between 5-12 months’ worth of dividends.

LEARN MORE Secured

on Wright-Patt Credit Union’s secure website

NCUA Insured

Delta Community Credit Union – 1-Year Certificate, 1.60% APY, min. deposit $1,000

Delta Community Credit Union
There are many ways to join Delta Community CU, such as living in certain parts of Georgia, being a member of one of their select employers, or being a member of one of their partner organizations. Interestingly, citizens of many countries like Argentina, France, and Peru are also eligible to join.

Delta Community CU used to be the lowest-earning credit union on our list, but recently increased the APY on this product from 1.10% to 1.60%. The early withdrawal penalty is 90 days’ worth of interest on a 12-month CD.

LEARN MORE Secured

on Delta Community Credit Union’s secure website

NCUA Insured

 

3 questions to consider before opening a credit union CD

Banks are more likely to call their products certificates of deposit, while credit unions often refer to them as share certificates. Aside from the name, the biggest difference between the two is that credit unions have higher average annual percentage yields (APYs) than traditional banks, as of September 2018. That’s good news: It means more money back in your pocket when the CD matures (i.e., reaches the end of its term and is available for withdrawal).

There really is no difference in safety between depositing money in a CD with a credit union versus a bank, as long as they participate in either the National Credit Union Administration (NCUA) for credit unions, or the Federal Deposit Insurance Corporation (FDIC) for banks.

According to Neal Frankle, a Los Angeles-based Certified Financial Planner with Wealth Pilgrim, deposits of up to $250,000 per financial institution are “backed by the full faith and credit of United States Government, so it’s pretty solid.”

For the most part, choosing a CD at a bank or a credit union boils down to your preference as a consumer: Do you want to be a bank customer or a member of a credit union? Here’s a primer on the differences.

The biggest advantage of credit union CDs over bank CDs is that you can likely earn more interest. But with both products, the longer the CD term, the more interest you will earn. And with a CD laddering strategy, you can have the best of both worlds: frequent access to your money, yet you can still keep it locked away in high-interest, long-term CDs.

Beyond that, the disadvantages of opening a credit union CD are the same as if you’re opening a CD with a bank. You can’t access that money without paying an early withdrawal penalty until the CD matures. While CDs do offer some of the highest rates for any financial product you’re likely to come across at a bank or credit union, they still don’t really earn great interest. If you’re investing for the long-term (like retirement savings), your money is better invested in the riskier (but higher-earning) stock or bond market.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Best of, Earning Interest

The Best IRA CD Rates – January 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Top IRA CD rates
Source: iStock

Perhaps you’ve decided to build a CD ladder within your IRA, or maybe you’re looking for a safe way to store your retirement cash for a specific period of time. Whatever the reason, you’re interested in getting an IRA CD and, understandably, want to know what products will give you the best rate of return.

You can get an IRA CD with terms ranging from three months to more than six years, with interest rates generally increasing with the term length. There are lots of options, so we’ve rounded up the top IRA CD rates that are available right now for a variety of terms. You’ll select your IRA CD terms based on your CD-ladder master plan or whenever you’ll need access to your money.

Every month, we choose the best IRA CD rates using data from another LendingTree company DepositAccounts.com, a database of offerings at more than 17,100 banks and credit unions. On January 7, 2019, we sorted the products by APY, then eliminated institutions with a health rating below a B. We then eliminated products that are not available nationwide. From there, we chose the IRA CD with the highest APY among products with a minimum deposit no greater than $5,000. Here are the best options. (Average CD rates referenced below are based on DepositAccounts.com data as of December 6, 2018.)

The best IRA rates in January 2019

Term

Institution

APY

Minimum Deposit Amount

3 months

Bethpage Federal Credit Union

2.00%

$50

6 months

CommunityWide Federal Credit Union

2.30%

$2,000

12 months

First Internet Bank

2.83%

$1,000

18 months

First Internet Bank

2.90%

$1,000

2 years

First Internet Bank

3.03%

$1,000

3 years

Mountain America Credit Union

3.35%

$500

4 years

Georgia Banking Company

3.35%

$500

5 years

United States Senate Federal Credit Union

3.56%

$1,000

 

3 Month IRA CD – Bethpage Federal Credit Union, 3 Month IRA (Traditional, Roth)

12 Month IRA from Bethpage Federal Credit UnionThree-month regular CDs are earning an average interest rate of 0.46% APY currently. Bethpage Federal Credit Union is exceeding that, with an interest rate of 2.00% APY with their 3-Month IRA CD. You only need a small minimum deposit of $50.

LEARN MORE Secured

on Bethpage Federal Credit Union’s secure website

NCUA Insured

6-Month IRA CD – CommunityWide Credit Union, 6 Month IRA (Traditional, Roth)

Communitywide Federal Credit Union

Six-month IRA CDs typically earn a little bit better, but they’re normally still not great. CommunityWide Federal Credit Union, however, is breaking that norm by offering the highest interest rate at 2.30% APY for deposits of $2,000 and over. That translates into earnings of $22.87 if you were only to deposit the minimum amount. Compare that to the average of all regular 6 month CDs, at 0.78%.

LEARN MORE Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

1-Year IRA CD Rates – First Internet Bank, 12 Month IRA (Traditional, Roth)

First Internet Bank
Regular one-year CDs earn an average interest rate of 1.27% APY. First Internet Bank, however, is offering a one-year IRA CD at 2.83% APY. You’ll need a $1,000 minimum deposit to earn $28.90 in interest once the CD matures.

LEARN MORE Secured

on First Internet Bank’s secure website

Member FDIC

18-Month IRA CD Rates – First Internet Bank, 18 Month IRA Certificate (Traditional, Roth)

18 Month IRA from First Internet Bank18-month regular CDs earn an average interest rate of 1.49% APY. First Internet Bank on the other hand, is currently offering 2.90% APY on an 18-month IRA CD. You’ll need a minimum deposit of $1,000 to open the account.

LEARN MORE Secured

on First Internet Bank’s secure website

Member FDIC

 

2-Year IRA CD Rates – First Internet Bank, 24 Month IRA (Traditional, Roth)

24 Month IRA from First Internet BankTwo-year regular CDs earn an average interest rate of 1.60% APY. First Internet Bank, on the other hand, is currently offering 3.03% APY on a 2-year IRA CD. This would translate into earnings of $63.17 with a minimum $1,000 deposit.

LEARN MORE 

Member FDIC

3-Year IRA CD Rates – Mountain America Credit Union, 3 Year IRA (Traditional, Roth)

3 Year Term Deposit Plus from Mountain America Credit UnionThree-year regular CDs are earning an average interest rate of 1.77% APY currently. Mountain America Credit Union is exceeding that, with an interest rate of 3.35% APY with their 3-year IRA CD. You’ll need a minimum deposit amount of $500 to open this account.

LEARN MORE Secured

on Mountain America Credit Union’s secure website

NCUA Insured

 

4-Year IRA CD Rates – Georgia Banking Company, 4 Year IRA Certificate (Traditional, Roth)

Four-year regular CDs are currently earning an average interest rate of 1.92% APY. Georgia Banking Company claims the top interest rate for these IRA CDs, with an interest rate of 3.35% APY. It’s interesting enough to note that Mountain America Credit Union’s 3-year IRA is the same rate. You need a $500 minimum deposit to open this account.

on Georgia Banking Company’s secure website

5-Year IRA CD Rates – United States Senate Federal Credit Union, 60 Month IRA (Traditional, Roth, SEP)

60 Month IRA from United States Senate Federal Credit Union Five-year IRA CDs hold the top spot for interest rates out of any category on our list. National averages for a regular 5-year CD is 2.21% APY, however United States Senate Federal Credit Union outperforms the average with a 3.56% APY on its 5-year IRA CD for members. The minimum deposit is $1,000 to earn this APY, but you can earn an APY of 3.62% if you deposit a minimum of $20,000 and an APY of 3.69% if you deposit a minimum of $60,000.

LEARN MORE Secured

on United States Senate Federal Credit Union’s secure website

NCUA Insured

 

6+ Year IRA CD Rates – PenFed Credit Union, 7 Year IRA (Traditional, Roth, CESA)

7 Year IRA from PenFed Credit UnionPenFed Credit Union offers the highest term for their seven-year IRA CD, at 3.40% APY. That’s less than United States Senate Federal Credit Union which offers a 3.56% APY for a five-year IRA CD. Still, with PenFed Credit Union’s seven-year IRA CD, you would earn $263.70 on a minimum deposit of $1,000 when the IRA CD matures.

LEARN MORE Secured

on PenFed Credit Union’s secure website

NCUA Insured

3 questions to consider before opening an IRA CD

Opening an IRA CD generally requires filling out a form or talking to a banker. You’ll have to have a way to fund your IRA CD, whether that’s rolling over an existing retirement account into an IRA CD or depositing cash into the product. The same limits that apply to IRA contributions apply to IRA CDs: $5,500 per year ($6,500 if you’re over age 50) of your own money across all your IRA accounts each year, and you can do a rollover once per year.

Unless you’ve invested in a bump-up IRA CD, you won’t be able to take advantage of a higher rate until your CD matures. Withdrawing funds from an IRA CD before they mature will result in a stiff penalty. Bump-up IRA CDs give you a chance to increase your interest rate to a higher level if it’s available, but you’re generally only allowed to do this once or twice during the life of the CD.

You can either use the direct-transfer method or the indirect-transfer method. The direct transfer method requires setting up your new IRA account filling out a form authorizing the bank or credit union to transfer money from the old account into the new account. The indirect transfer method involves you asking for a check from your old IRA account. You have up to 60 days to deposit that check into your IRA CD to avoid incurring a penalty.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

TAGS: ,

Advertiser Disclosure

Reviews

OneUnited Bank Review: Checking, Savings, CD, Money Market and IRA Accounts

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1982
Total Assets$0.7B
LEARN MORE OneUnited Bank’s secure websiteMember FDIC

OneUnited Bank has become the nation’s largest African-American-owned bank through a strategy of acquiring small, black-owned community banks across the United States. The bank launched in 1968 in Boston, adopted its current strategy in the mid-1990s and finally took its current name in 2002.

Today, the majority of its owners and nearly all of its directors are African-American. The bank’s CEO and its chief operating officer, both African-American, own a controlling stake in the company.

OneUnited Bank is a registered Community Development Financial Institution, specifically aimings to help out the underserved African American community. Keep in mind, however, that the bank is still owned by its shareholders, and like any other bank is designed to make a profit.

OneUnited Bank operates six physical branches in California, Florida and Massachusetts. Much of its business, however, comes from people opening accounts online, which you can do from anywhere in the U.S. as long as you’re a citizen. OneUnited Bank is also a member of the 30,000-strong MoneyPass ATM network, where you can get cash surcharge-free.

Given the bank’s noble mission, are its deposit accounts still equally as good? We’ll put them to the test in this review.

OneUnited Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.40%

Savings

OneUnited Bank UNITY E-Gold Savings

2.10%

American Express National Bank High Yield Savings Account

on American Express National Bank’s secure website

Member FDIC

0.90%

CD Rates

OneUnited Bank UNITY Gold 1 Year E-CD

2.75%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

1.05%

CD Rates

OneUnited Bank UNITY Gold 2 Year E-CD

2.90%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

Member FDIC

1.30%

CD Rates

OneUnited Bank UNITY Gold 4 Year E-CD

3.10%

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

OneUnited Bank’s checking account options

UNITY E-Gold Checking

Be careful about this account’s monthly fee — it’s really high.
APYMinimum Balance to Earn APY
0.40%
$100
  • Minimum opening deposit: $500
  • Monthly account maintenance fee: $20, unless you meet the requirements to waive the fee. If you opt for paper statements, you’ll be charged another $2 per month.
  • ATM fee: None. However, you may still have to pay a surcharge fee from the ATM owner.
  • ATM fee refund: None
  • Overdraft fee: $37 per item, on up to six items per day. However, the bank won’t charge you this fee unless your account is overdrawn by more than $10. If you set up a backup account for overdraft protection, you’ll instead pay $15 per transfer.

This is OneUnited Bank’s premium-level checking account. Unfortunately, this account does not allow you to use paper checks. You’ll have to do all of your transactions via debit card, ATM cash withdrawal or online transfer. If you need to deposit a check that someone’s written to you, however, you can still deposit it with the bank’s mobile app.

This checking account comes with a pretty steep monthly fee. You can get it waived in one of two ways, however. If you keep at least $5,000 in your checking account, you won’t have to pay the fee. Similarly, if you make at least 10 debit card transactions and receive a direct deposit, you won’t have to pay the fee for that month.

The main benefit of opening this checking account is that you can earn interest on your balance, as long as you have at least $100 in your account. There aren’t any other perks that come with this account, such as rewards or ATM surcharge fee reimbursements.

How to get OneUnited Bank’s UNITY E-Gold Checking account

You can open the UNITY E-Gold Checking account online. You’ll need to be a U.S. citizen and send in a copy of your driver’s license to apply for an account.

LEARN MORE Secured

on OneUnited Bank’s secure website

Member FDIC

UNITY E-Style Checking

This checking account is cheaper than the bank’s UNITY E-Gold Checking account but doesn’t earn interest.
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $10, unless you meet the requirements to waive the fee. If you opt for paper statements, you’ll be charged another $2 per month.
  • ATM fee: None. However, you may still have to pay a surcharge fee from the ATM owner.
  • ATM fee refund: None
  • Overdraft fee: $37 per item, on up to six items per day. However, the bank won’t charge you this fee unless your account is overdrawn by more than $10. If you set up a backup account for overdraft protection, you’ll instead pay $15 per transfer.

This checking account is a little bit cheaper, but it still ranks as an expensive account. You can get the fee waived if you keep at least $500 in the account, however, or if you make at least 10 debit card transactions and receive at least one direct deposit each month.

This checking account also comes with several limitations. It doesn’t earn any interest, and you won’t be able to write paper checks with this account. Again, you’ll have to make all of your transactions digitally, with a debit card or by withdrawing cash from an ATM — although if someone writes you a check, you can deposit it into your account through the bank’s mobile app.

Other than that, this account doesn’t offer anything special.

How to get OneUnited Bank’s UNITY E-Style Checking account

You can apply for this account online. You’ll need to be a U.S. citizen and have a valid driver’s license that you can copy and send in to the bank to verify your identity. If you already have an account with OneUnited Bank, you can simply log into the online banking page and opening this account as well.

LEARN MORE Secured

on OneUnited Bank’s secure website

Member FDIC

U2 E-Checking

This is a second-chance account designed for people who’ve had problems being approved for a checking account in the past.
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $12, plus an extra $2 if you want your paper statement mailed to you each month.
  • ATM fee: None. However, you may still have to pay a surcharge fee from the ATM owner.
  • ATM fee refund: None
  • Overdraft fee: $37 per item, on up to six items per day. However, the bank won’t charge you this fee unless your account is overdrawn by more than $10. If you set up a backup account for overdraft protection, you’ll instead pay $15 per transfer.

Have you had trouble managing your checking account in the past, such as frequently overdrawing your account? If so, you might be surprised to find out that your checkered past can prevent you from getting another checking account in the future. If that’s the case, you may still be able to qualify for a second-chance checking account like this one at OneUnited Bank.

That’s not to say this is a nice account, however. It comes with a $12 monthly fee, and there’s no way to get the charge waived like you can with the bank’s other checking accounts. If you opt for this account, we suggest opening a fee-free checking account as soon as you’re able to qualify for one. Like the rest of OneUnited Bank’s online checking accounts, you won’t be issued any paper checks with this account. You must do all of your transactions entirely online, by debit card, or by withdrawing cash from an ATM.

How to get OneUnited Bank’s U2 E-Checking account

To open this account, you’ll need to apply online. You’ll also be required to send in a copy of your driver’s license to the bank so it can verify your I.D.

LEARN MORE Secured

on OneUnited Bank’s secure website

Member FDIC

magnifying glass

How OneUnited Bank’s checking accounts compare

OneUnited Bank only offers one interest-bearing checking account. While this rate is higher than average, it’s still not that great of an interest rate.

Furthermore, all of these accounts come with very high fees and few other perks. The bank will argue that it is possible to get the monthly fee waived for these checking accounts (except for its second-chance checking account, that is). And while that is true, that also still conveniently leaves the door open for them to charge you fees later if you aren’t able to meet the requirements each month, every month. That’s also to say nothing of the inconvenience of not being able to write a physical, paper check if you need it.

Instead, if you’re willing to do your banking online, why not choose one of these on our list of the best online checking accounts instead? These banks and credit unions won’t charge high fees and will offer you higher interest payments.

OneUnited Bank’s savings account options

UNITY E-Gold Savings

OneUnited Bank asks for a lot of money in order to make this account worth your while.
APYMinimum Balance to Earn APY
0.40%
$1,000-$24,999.99
0.50%
$25,000-$99,999.99
0.60%
Over $100,000
  • Minimum opening deposit: $1,000
  • Minimum balance to earn APY: $1,000
  • Monthly account maintenance fee: $5, unless you keep at least $2,500 in the account.
  • ATM fee: None. However, you may still have to pay a surcharge fee from the ATM owner.
  • ATM fee refund: None
  • Overdraft fee: $37 per item, on up to six items per day. However, the bank won’t charge you this fee unless your account is overdrawn by more than $10. If you set up a backup account for overdraft protection, you’ll instead pay $15 per transfer.

If you want to earn the highest rates possible on a savings account at OneUnited Bank, this account is your best bet. You’ll need to pack a lot of cash to open it, however. This account requires at least $1,000 to open the account, and you’ll need to keep at least that much in there to earn interest. We recommend waiting until you’ve got a larger amount of money saved up — at least $2,500 — because if you have anything less than this in your account, you’ll be charged a $5 monthly fee.

Like all savings accounts, this one is governed by federal rules that state you can only make six convenient (check, draft, debit card, telephone, internet, and preauthorized transfers) withdrawals per month from the account without penalty. You can make more than that, but you’ll be charged a $20 slap for each extra withdrawal beyond the sixth in a month. Cash withdrawals, however, are unlimited.

How to get OneUnited Bank’s UNITY E-Gold Savings account

As long as you’re a U.S. citizen, you can apply for this account online. You’ll need to provide a copy of your driver’s license with the application.

LEARN MORE Secured

on OneUnited Bank’s secure website

Member FDIC

UNITY E-Style Savings

This savings account is better for folks who don’t have a lot of money saved up yet.
APYMinimum Balance to Earn APY
0.20%
$200
  • Minimum opening deposit: $100
  • Minimum balance to earn APY: $200
  • Monthly account maintenance fee: $5, unless you receive at least one direct deposit into the account each month or have at least $200 in your account.
  • ATM fee: None. However, you may still have to pay a surcharge fee from the ATM owner.
  • ATM fee refund: None
  • Overdraft fee: $37 per item, on up to six items per day. However, the bank won’t charge you this fee unless your account is overdrawn by more than $10. If you set up a backup account for overdraft protection, you’ll instead pay $15 per transfer.

If you’re just starting out on your savings journey, you might not have the required $1,000 to open up a UNITY E-Gold Savings account. If that’s the case, this account might be a better fit for you. It only requires a $100 minimum opening deposit. But again, you may want to wait until you have a bit more saved. That’s because if you aren’t able to keep at least $200 in the account or receive at least one direct deposit, you’ll have to pay a $5 monthly fee. Given the low interest rate that this account offers, the monthly fees may eat away at your bank account balance over time.

You also are only allowed six certain transactions per month with this account due to federal Regulation D without penalty. If you need to make more than that, you’ll have to pay a $20 per withdrawal fee, which won’t be any fun. This doesn’t apply to cash withdrawals, however.

How to get OneUnited Bank’s UNITY E-Style Savings account

If you already have another account with OneUnited Bank, opening this account is as simple as logging into the online banking page and opening this account as well. If you’re not yet a OneUnited Bank customer, you’ll need to apply for this account online.

LEARN MORE Secured

on OneUnited Bank’s secure website

Member FDIC

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How OneUnited Bank’s savings accounts compare

OneUnited Bank’s savings accounts follow a similar pattern as its interest-bearing checking account. Its UNITY Gold Savings account offers a higher-than-average rate, but it’s still a long ways off from being what we’d really call a “good” interest rate. Its UNITY E-Style Savings account, on the other hand, currently offers a lower-than-average interest rate. If earning the highest interest rates are what’s important to you, then we’d recommend one of these on our list of the best online savings accounts instead.

Furthermore, we don’t like the fact that these accounts come with monthly fees that you’ll always need to be on the lookout for.

OneUnited Bank’s CD rates

UNITY Gold E-CDs

OneUnited Bank doesn’t give you very many choices or very good interest rates with these CDs.
TermAPY  Minimum Balance to Earn APY
120 days0.20%
$500
120 days0.20%
$250,000
1 year0.90%
$500
1 year0.90%
$250,000
2 years1.05%
$500
2 years1.05%
$250,000
4 years1.30%
$500
4 years1.30%
$250,000
  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: For the 120-day CD, you’ll pay three months’ worth of interest. For the one- and two-year CDs, you’ll pay six months’ worth of interest. For the four-year CD, you’ll pay one year’s worth of interest.

You get only four options for term lengths with OneUnited Bank’s UNITY E-Gold CDs. There are also two interest rate tiers depending on how much you deposit into the CD (with $250,000 as the dividing line), however both tiers are currently offering the same interest rate for each term length offered.

It’s also important to note that even if OneUnited Bank does ever offer a higher interest rate on its $250,000 and up CD, it’s generally not a good idea to keep that much money on deposit with any one bank. FDIC insurance only covers you up to a maximum $250,000. Banks can and do fail, and if you have more than the maximum insured on deposit, you could lose your money if OneUnited Bank ever goes under.

When your CD matures, OneUnited Bank will automatically renew it for another term. You will have the option of withdrawing the money during a short 10-day grace period after it matures, however.

How to get OneUnited Bank’s UNITY E-Gold CDs

You can open these CDs by applying for them online if you’re a U.S. citizen. You’ll need to provide a copy of your driver’s license so that the bank can verify your identity.

LEARN MORE Secured

on OneUnited Bank’s secure website

Member FDIC

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How OneUnited Bank’s CD rates compare

We’re sad to report that the rates OneUnited Bank offers on its CDs are far below those of other banks. CDs can be a great way to save and earn higher rates long-term, but because you are setting money aside for the long run, we always recommend seeking out the highest interest rates possible. After all, you can’t move your money without paying penalties if you change your mind later.

That’s why we recommend these top-yielding CDs instead if you’re looking for a place to stash your cash long-term. You’ll earn far more money with these CDs, so you can reach your financial goals faster than you can with OneUnited Bank.

Overall review of OneUnited Bank’s banking products

OneUnited Bank makes a great promise: helping to provide financial services to the underserved African-American community.

But in terms of deposit products, this bank doesn’t appear too different than the big-name banks out there. Its bank accounts generally do provide higher-than-average rates, but just barely. And when you compare these rates to the top-yielding banks, OneUnited Bank is left in the dust by the competition.

Another strike against OneUnited Bank is the amount of fees it charges for its bank accounts. For example, its UNITY E-Gold Checking account comes with a $20 monthly fee. That’s a lot of cash to take away from customers.

At the end of the day, even though this bank has a noble mission, you need to know that it’s still privately owned. That means that the bank is still beholden primarily to its owners, and not to you.

Whether you decide to go along with OneUnited Bank’s low rates and high fees in support of its mission is up to you. We’ve provided you with the full picture for how this bank’s accounts work and how the bank operates, and now the ball’s in your court.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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