Union Bank, which has been acquired by U.S. Bank and no longer offers accounts to new customers, formerly offered certificate of deposit (CD) terms ranging from seven days to 60 months. Note that all of the following information applies only to existing accounts.
For rates information related to new CDs, check out our guide to U.S. Bank CD Rates.
If you already have a CD with Union Bank, your rate and term will stay the same until your certificate reaches maturity.
Union Bank Acquisition by U.S. Bank
Union Bank was acquired by U.S. Bancorp (U.S. Bank) in December 2022. All preexisting Union Bank CDs were transitioned to U.S. Bank in May 2023. Terms, interest rates and APYs remain the same for these until terms are up but certificates have been given new account numbers. Former Union Bank customers can manage their accounts on the U.S. Bank website, mobile app or at a U.S. Bank branch. All Union Bank branches have been converted as well.
Prior to the transition, Union Bank CD account holders should have received information related to the purchase of their accounts by U.S. Bank, along with this welcome letter. If you didn’t receive information or have questions, visit your local U.S. Bank branch or call 800-872-2657.
Overview of Union Bank Certificates of Deposit
Union Bank CDs were standard certificates available in terms between seven days and 60 months. Minimum opening deposits varied with shorter terms requiring deposits of at least $350 and longer terms requiring deposits of at least $2,500.
Union Bank CDs with terms up to three years automatically renewed at maturity for the same term with the interest rate in effect on the maturity date. If you didn’t want to renew your CD, you could withdraw funds on or within 10 days of maturity, known as the grace period. CDs with terms of 31 days or less had a three-day grace period.
Union Bank CDs had no monthly fees. Early withdrawal penalties applied for withdrawals made prior to maturity. Union Bank also offered individual retirement account (IRA) CDs.
Union Bank CD Rates
Union Bank stopped offering CDs and other banking products when it was acquired by U.S. Bank in 2022. Union Bank CD rates and terms will be honored by U.S. Bank until their maturity date. That means if you have a Union Bank CD already, your rate will stay the same for the remainder of your term. However, you will have a different account number.
How To Apply for Union Bank CDs
Union Bank stopped accepting applications when it was purchased by U.S. Bank, so you can not apply for Union Bank CDs. Check out the best CD rates available now with other banks and credit unions if you’re interested in opening a CD.
Alternatives to Union Bank CDs
If you have a CD with Union Bank, you’ll need to decide what to do with your funds once your term is up. You can continue saving with a U.S. Bank CD, transfer the balance to a CD with another bank or choose a CD alternative.
Popular alternatives to CDs include high-yield savings accounts, money market accounts and interest checking accounts. These all offer interest as well as more flexibility than most CDs.
High-Yield Savings Accounts
Savings accounts are ideal for stashing money for short-term financial goals, such as saving up for a vacation or a down payment on a car. Unlike CDs, you can access the money in a savings account at any time. However, banks may charge fees if you exceed a certain number of monthly withdrawals.
Savings accounts typically earn less interest than CDs but the best high-yield savings accounts may offer rates comparable to some CD terms.
Money Market Accounts
Money market accounts (MMAs) are another common alternative to CDs. MMAs are savings accounts that have some accessibility features in common with checking accounts. Like high-yield savings accounts, they can pay competitive interest rates. And like checking accounts, they often offer check-writing capabilities and may also include debit cards.
On average, MMAs pay a little more interest than savings accounts but less interest than most CDs, according to FDIC data. However, the best money market accounts may offer APYs comparable to the best CD rates. Some people prefer MMAs over savings accounts because they can give you more convenient options for accessing your cash. Both MMAs and savings accounts are FDIC-insured and highly liquid.
Interest Checking
Instead of opening a CD, savings account or MMA, you may decide you need to keep your money readily available for everyday spending. For this, a transaction account such as a checking account is best. High-yield checking accounts or interest checking accounts give you the flexibility to deposit and withdraw whenever you want while paying interest on your balance.
You won’t earn as much interest with a checking account as you would with a CD or savings account, but you will be able to access your money without restrictions.
Find The Best CD Rates Of 2024
Frequently Asked Questions (FAQs)
What is the CD rate at Union Bank?
Union Bank stopped offering CDs when it was acquired by U.S. Bank in 2022. Rates for existing Union Bank CDs will remain in effect until they reach maturity.
Is Union Bank a safe bank?
Both Union Bank and U.S. Bank are safe banks. Union Bank was covered by FDIC insurance up to the standard limit of per depositor for each account ownership category. U.S. Bank is also a Member FDIC bank.
Who owns Union Bank?
Union Bank is owned by U.S. Bank under the parent company U.S. Bankcorp. Prior to the acquisition, Union Bank was owned by the Mitsubishi UFJ Financial Group or MUFG.
