Union Bank's current savings account rates

Union Bank offers several savings products, and the interest rate you earn depends on which account you choose and how much you deposit. As of now, Union Bank's standard savings account pays rates that vary by branch location and account type — the bank does not publish a single national rate online. You will need to contact your local Union Bank branch or call their customer service line to learn the exact rate for your specific account.

Union Bank also offers money market accounts and certificates of deposit (CDs), which typically pay higher rates than regular savings accounts. Money market accounts usually require a larger minimum deposit and allow limited monthly withdrawals. CDs lock your money for a set term — ranging from a few months to several years — and pay a fixed rate for that entire period.

The rates Union Bank pays change regularly based on Federal Reserve decisions and market conditions. A rate that was accurate three months ago may no longer be current. Before opening an account or moving money, confirm the rate directly with the bank rather than relying on outdated information.

Key Takeaways

  • Union Bank's savings account rates vary by location and account type, so you must contact your local branch or call customer service to learn your specific rate.
  • Money market accounts and CDs at Union Bank typically pay higher rates than regular savings accounts but come with higher minimum deposits or lock-in periods.
  • Interest rates change frequently in response to Federal Reserve policy, so a rate quoted weeks ago may no longer apply.
  • The interest Union Bank pays is compounded and credited to your account on a schedule set by the bank — usually monthly or quarterly.

How to find Union Bank's current rates

Union Bank does not post savings rates prominently on its website the way some online banks do. Your best option is to call the customer service number on the back of your debit card or visit a branch in person. When you call, have your account number ready and ask specifically for the current Annual Percentage Yield (APY) on your account type.

If you are shopping for a new account, tell the representative whether you want a regular savings account, money market account, or CD, and ask what the minimum deposit is for each. Rates often differ based on deposit size — a savings account with $25,000 may pay more than one with $1,000. Ask whether the rate is may provide for a specific period or whether it can change at any time.

You can also visit a Union Bank branch location and ask a banker to walk you through the current offerings. This is especially useful if you want to compare a CD ladder — opening multiple CDs with different maturity dates so money becomes available at staggered intervals.

Why Union Bank rates may be lower than online banks

Union Bank is a traditional brick-and-mortar bank with physical branches, which means it has higher operating costs than online-only banks. Those costs are reflected in lower interest rates on savings products. An online bank with no branches may pay 4.0% APY on a savings account, while Union Bank might pay 0.5% to 1.5% on the same product.

You may earn more interest by moving money to an online savings account or CD from a bank like Marcus, Ally, or American Express Personal Savings. However, if you value in-person service, the ability to deposit cash at a branch, or the convenience of having all your banking in one place, the lower rate may be a trade-off you accept.

Compare the rates Union Bank offers against rates at other banks before deciding where to keep your savings. The difference between 0.5% and 4.0% on $10,000 is $350 per year — money that stays in your account instead of the bank's.

How interest is calculated and paid

Union Bank calculates interest on your savings account balance using daily compounding, which means the bank figures out how much interest you earned each day and adds it to your balance. That new balance then earns interest the next day, creating a compounding effect over time.

The bank credits the interest to your account on a regular schedule — typically monthly or quarterly, depending on the account type. You will see the deposit appear in your account on the same day each month or quarter. The interest is yours to keep; you do not have to do anything to receive it.

Union Bank reports the interest you earn to the IRS on a Form 1099-INT if your total interest for the year exceeds $10. You will owe federal income tax on that interest at your ordinary income tax rate. Some states also tax savings account interest, so check your state's rules.

Minimum deposits and account requirements

Union Bank's minimum deposit to open a savings account is typically $100, though this varies by account type and may differ by branch. Money market accounts usually require a higher minimum — often $2,500 or more. CDs may have minimums ranging from $500 to $10,000 depending on the term length.

Some Union Bank savings accounts charge a monthly maintenance fee if your balance falls below a certain threshold — often $300 to $500. Ask whether the account you are considering has a fee and what you need to do to avoid it. Linking a checking account, setting up direct deposit, or maintaining a higher balance can sometimes waive the fee.

If your balance drops below the minimum at any point, the bank may close the account or convert it to a different product. Read the account agreement carefully so you understand the rules before you open it.

CD rates and terms at Union Bank

Union Bank offers CDs with terms ranging from as short as 30 days to as long as 5 years or more. Longer-term CDs typically pay higher rates than shorter ones — a 5-year CD might pay 4.5% while a 6-month CD pays 3.0%, for example. The exact rates depend on market conditions and change regularly.

When your CD matures, Union Bank will either return your principal plus interest or automatically renew it at the current rate for the same term. Read the renewal notice carefully; if you do not want to renew, you must withdraw the money within a grace period — usually 7 to 10 days — or the bank will lock it up for another term.

If you withdraw money from a CD before it matures, you will pay an early withdrawal penalty. This penalty is typically a certain number of months' worth of interest — for example, 3 months of interest on a 1-year CD. The penalty reduces the amount you receive, and in some cases you may get back less than you deposited.

Frequently Asked Questions

Does Union Bank pay interest on checking accounts?

Most Union Bank checking accounts do not pay interest, or pay a very small amount. Some banks offer interest-bearing checking accounts, but they typically require a high minimum balance and pay rates lower than savings accounts. Ask your branch whether they offer any checking products with interest.

Can I move my savings to a higher-paying account without closing my current one?

Yes. You can open a new savings account, money market account, or CD at Union Bank while keeping your existing account open. Transfer money between them as you wish. However, federal rules limit you to six transfers or withdrawals per month from savings accounts; exceeding this limit may result in fees or account closure.

What happens to my interest if I withdraw money mid-month?

Union Bank calculates interest on your daily balance, so if you withdraw money on the 15th of the month, you earn interest only on the balance you held from the 1st through the 14th. You do not lose interest you already earned, but you earn less for the remainder of the month because your balance is lower.

Is my savings account insured if Union Bank fails?

Yes. Union Bank is a member of the Federal Deposit Insurance Corporation (FDIC), which insures deposits up to $250,000 per account holder per bank. If Union Bank were to fail, the FDIC would return your money up to that limit. Money in a savings account, checking account, and CD are each insured separately, so you could have up to $750,000 insured across three account types.

How often do Union Bank's savings rates change?

Union Bank can change rates at any time without notice, though most changes happen in response to Federal Reserve rate decisions. The Fed typically meets eight times per year, and banks often adjust their rates within days of a Fed announcement. Check with your branch every few months to see whether rates have moved.