Union Bank is a full service American bank that is wholly owned by one of Japan’s three mega banks – MUFG Bank.

Union Bank has almost 400 branches (398) across the Pacific Northwest – Washington, Oregon and California and commercial offices in major cities such as Dallas, Houston, Chicago, and New York.

Their deposit account offering consists of checking, savings, money market and certificates of deposit, which they refer to as “Time Deposit Accounts.”

Most of Union Bank’s deposit accounts need to be opened at a local branch, however their money market account and Priority Checking account can be opened online.

For the purpose of this review we will focus on Union Bank’s fixed-rate CDs (certificates of deposit). Union Bank offers several flexible short-term CDs and mid-term CDs with durations ranging from just 7 days to 36 months.

As of January 2023, they also offer 3 promotional CDs with 15, 18 and 24 month terms. These are currently their highest yielding CDs and are limited time offers.

To see if Union Bank’s CDs are right for you, continue reading our review below.

Union Bank CD Rates + Account Details

Union Bank is member FDIC and consumer deposits are federally insured up to the applicable limits.

Union Bank has a minimum deposit requirement of $2,500 for their short term CD ranging from 7 to 31 days and a minimum deposit requirement of $350 for all other durations – including their 3 promotional offers.

Union bank also offers IRA CDs with terms ranging from 90 days to 36 months. The same APYs apply.

Promotional CD Rates

As noted, these are limited time offers that come with the same minimum deposit requirement of $350 that most of their standard CDs come with. See rates below.

To give these yields some context, the current national average for a 12 month CD and a 24 month CD sit at just 1.49% APY and 1.35% APY, respectively, according to FDIC data.

That said, top yields from online banks are now inching over the 4.25% APY mark for both terms.

Standard CD Rates

Union Bank’s standard CD rates (shown above) are not competitive at this time and do not keep up with the national average for any term.

Current national averages via FDIC Data:

• 6 months – 0.97% APY
• 12 months – 1.49% APY
• 36 months – 1.31% APY

Compounding and Crediting Interest

Union Bank compounds interest daily on their CDs and the interest can be paid out according to the account holder’s discretion. This added flexibility is a nice feature for those living off interest payments. Generally interest payments are paid monthly, quarterly, semi-annually or annually.

Early Withdrawal Fees

If you need access to funds prior to your deposit’s maturity date, Union Bank will impose an early withdrawal fee. They calculate the fee on a 365-day basis as follows:

Union Bank Early Withdrawal Fees

• For CD terms of 7 – 31 days: The greatest of 1) all interest earned on the amount withdrawn; 2) 7 days’ interest on the amount withdrawn; or 3) the amount of interest that could have been earned on the amount withdrawn for one-half the term.
• For CD terms of 32 – 91 days: The greater of 31 days’ simple interest at the rate being paid on the amount withdrawn; or 2) the compensating penalty
• For CD terms of 92 – 1 year: The greater of 1) 91 days’ simple interest at the rate being paid on the amount withdrawn; or 2) the compensating penalty.
• For CD terms of 1 year plus: The greater of 1) 181 days’ simple interest at the rate being paid on the amount withdrawn; or 2) the compensating penalty.

Union Bank has a fairly standard grace period of 10 days for all CD terms EXCEPT their short term 7 – 31 day option. This CD comes with a grace period of just 3 days in which you can add or withdraw funds to your deposit penalty free. If nothing is done during this grace period Union Bank will renew your CD for the same terms and the going APY at that time. Be sure to set up reminders for yourself if you wish to take action on your CD funds upon maturity. It should be noted that Union Bank will also send out reminders of your upcoming grace period.

Union Bank CD Rates VS Other Big Banks

As of 2023, Union Bank’s promotional CD rates are starting to surpass some of the best CD rates offered by other big banks such as Bank of America, Citibank, Chase and Capital One.

Take a look at the table below to compare Union Bank’s best CD rates to other big banks’ best CD rates.

Other Deposit Accounts offered at Union Bank

If you’re looking for a safe place to store some cash but want easier access to it, then you may want to consider one of Union Bank’s variable-rate savings products. They offer a money market account which can be opened online and a traditional savings account called the “Bank Freely” savings which needs to be opened at a local branch.

Money Market Account

Their money market account comes with a low APY of just 0.05% on all balances and you must maintain a $2,500 daily balance to avoid either a $9 or $10/month service charge. $9 if you opt for online statements and $10 if you choose paper statements.

Bank Freely Savings Account

The savings account is more lenient but comes with a lower APY. You can open their Bank Freely savings with any amount greater than $0 and there are no monthly service charges to worry about. That said, the APY is just 0.01% currently.