Posted by William Charles on December 16, 2016
Savings Accounts

Published on December 16th, 2016 | by William Charles

32

Unitedbank 1.25% APY Money Market Account Review [CA, CT, GA, ME, MD, MA, NJ, NY, PA, RI, TX, VA, WA]

Update: Rate decreased to 1.25% APY (from 1.35%) on 02/01/2017.

Note: This rate is not guaranteed at all and according to the comments they have a history of lowering rates quickly.

Offer at a glance

  • Interest Rate: 1.25% on balances up to $500,000, balances over $500,000 earn 0.05%
  • Minimum Balance: $500 to open, $1 thereafter
  • Maximum Balance: $500,000 for 1.3% rate
  • Availability: Must live in one of the following states: CA, CT, GA, ME, MD, MA, NJ, NY, PA, RI, TX, VA, WA
  • Hard/soft pull: Unknown 
  • Credit card funding: Up To $500
  • Monthly fees: $15, waivable
  • Insured: FDIC

Contents

The Offer

Direct link to offer

  • Earn a 1.25% APY on balances of up to $500,000 on UnitedBank’s Advantage Money Market account.

Avoiding Fees

This account has a monthly service fee of $15, this is waived if you have a daily minimum balance of $2,500 or more. They also charge a $2 fee if you use an out of network ATM.

Our Verdict

I don’t like the fact that there is big $15 monthly fee if you don’t maintain that daily minimum balance of $2,500. That being said, this is the highest basic savings account (no requirements for APY) currently available. Interested to know how much can be funded with a credit card and also if it’s a soft/hard pull. Let us know those datapoints in the comments below.



32 Responses to Unitedbank 1.25% APY Money Market Account Review [CA, CT, GA, ME, MD, MA, NJ, NY, PA, RI, TX, VA, WA]

  1. Dave says:

    The information that I received via voice support:

    No hard credit check
    Unlimited CC funding (wow!)
    Possible cash advance tho (check with your CC company)
    Website states Online Only, but can be opened via voice call
    Interest rate is not guaranteed for any length or duration

  2. Ed says:

    I have been down this road before with both UFB and CIT Bank and a “sensational” advertised rate. If you open this account you must absolutely check the rate on a DAILY basis. The rate can plummet suddenly and unexpectedly. And be prepared to quickly transfer the funds out (perhaps leaving $2,500 to avoid fees and in case the rate rebounds). If you get even 3 straight months of this rate I tip my hat to you.

    • Albrecht says:

      Can you share how unexpectedly it usually plummets, 10%, 20%?

      • Ed says:

        There is no rhyme or reason to the drop, and not necessarily on a Monday or 1st of the month as we might expect. In the past the rate has dropped as low as 25% of the “tease”. And if you dig deeper into United’s current rates on other products they are abysmal, which is exactly where this one will probably be after the big cash influx they’ll get from the promo. As I said, watch that rate every day. No warning of the drop. It’s like coming home from work and the wife is gone, and everything in the house with her.

  3. Jon S says:

    The online application limits credit card funding to $500.

  4. Theta B says:

    Tried applying but was turned down because they “could not verify my identity.”
    Could be because I answered one of their questions wrong (they’re actually kind of tricky), but it could also be because I’ve frozen my credit, which I guess is more likely. (i.e they tried a hard pull)

  5. Mike says:

    I took the bait since I had some cash arrive due to the CHASE bonus just paid and the corresponding balances reduced. Will be happy to report back. Sending over only the $2500 to avoid fees, will add more later depending on the stability off the rate. Can’t report on credit card funding, the banks that issued all off mine consider funding this new account to be a cash advance.

    • Erik says:

      how did you figure out that all your banks consider this funding a cash advance? did you run all the cards through their system? also, wouldn’t it make more sense to move all your money into this account ASAP instead of waiting to see if the rate is stable? the longer you wait, the less time you get with the higher rate.

      • Mike says:

        1) in checking various websites (including this one) I didn’t see a single comment suggesting even a “YMMV” with respect to my cards. All said NO for funding. And I was not willing to risk the temporary safety of 1.35% on cash advance fees and interest which would have more than eaten my profit.

        • Don says:

          Are you sure you saw comments for this particular bank? I Googled extensively and couldn’t find a single data point either way, including on this site.

  6. Erik says:

    another blog mentions that this account requires a hard pull. anyone actually verify after opening an account?

    • Don says:

      That other blog says it’s a hard pull, but it links to a “hard pull or soft pull?” page that doesn’t list UnitedBank at all.

      If anyone knows if this is, in fact, a hard pull (and, if so, which report is pulled), please post. Thanks.

  7. agustin says:

    This bank is incredibly annoying to deal with. I opened an account, the online interface is from 1992, guaranteed high blood pressure. I called to cancel the account and apparently there is a $10 fee for closing account within 90 days. Not worth the hassle. I was going to put a huge amount of savings here for the extra .35% interest but after dealing with them, I believe the guy above that they will probably slash the interest rate without warning.

  8. Ed says:

    12/30/16 Update: Rate has already fallen to 1.25%.

  9. Ed says:

    Rate is now 1.15 % as of 1/25/17

  10. Ed says:

    Rate increased to 1.25% effective 2/1/17.

  11. Alex says:

    A note on the account :
    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 Prime Money Market will be the rates and tiers in effect.

  12. Dan says:

    $500 CC funding limit. Chase Sapphire Reserve posted as a sale.

  13. Ed says:

    Rate has been stable at 1.25%. Here’s something I didn’t know until I opened the account: you “lock in” the rate for the first 180 days. I assume if the rate increases your rate would go up accordingly. I do know those who got in on the original promo of 1.35% and are still being paid that rate, I assume until their 6 months passes.

  14. Mike says:

    I’ve already put a note on my calendar to be ready to transfer funds around the time of the 180th day. Alex stated Prime Money Mkt rates would then go in effect. And earning only 0.35% is not even worth your or my time, much less a discussion.

    • Nick says:

      Actually I called United Bank and that’s not what I was told. The rep told me that because these accounts are relatively new they don’t know the exact rate (though it will be tied to some kind of index). So I would think customers will withdraw funds prior to the 180 day expiration due to the uncertainty. The money can always be deposited back if the rate at that time is acceptable. And since 1% and up is widely available elsewhere anything lower will surely result in educated DoC customers like us fleeing (and withdrawing) in a stampede.

  15. sheri says:

    FYI- i just noticed that they charged me the $15 service fee. I opened the acct last month and it took me a week to transfer over $2500, to avoid the fee. CSR said it was just automatic, despite the fact that I was just initially funding the acct. She credited my acct back the $15. So worth a call or SM.

  16. Mike says:

    6/30/17 Update: Learned via email that promotion rate has been extended six months (for a total of 12 months from account opening). I got in early at 1.35% but assume the extension would also apply to those who opened at the 1.25%. Happy to stay, there are no monthly hoops to jump through as long as the balance is $2500 or above. Good place for storing funds. And if needed their ACH out is QUICK: next day service with funds showing up at other bank.

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