BankUnited CD Rates for October 2024
Written by
Aja McClanahan
Edited by
Melanie Grafil
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BankUnited is an FDIC-insured financial institution with both physical branches and a prominent online presence. The bank offers a full line of personal and commercial banking services, including CD accounts. For those looking to hedge against inflation or earn just a tad more than a high-yield savings account, BankUnited’s certificate of deposit offerings for October 2024 could fit the bill.
Here’s more information about the terms and features of BankUnited’s personal CD product.
What Are the Current CD Rates at BankUnited?
BankUnited offers varying CD interest rates based on the term you choose. The term is how long you keep your funds on deposit with the bank.
Details for different CD terms are outlined below:
| CD Term | APY | Penalty amount |
|---|---|---|
| 6-Month CD | $1,000 / $250,000 | |
| 9-Month CD | $1,000 / $250,000 | |
| 12-Month CD | $1,000 / $250,000 | |
| 18-Month CD | $1,000 / $250,000 | |
| 24-Month CD | $1,000 / $250,000 | |
| 36-Month CD | $1,000 / $250,000 | |
APYs are accurate as of Oct. 11 2024, and CD rates may vary by location. Although you can check BankUnited’s website for CD rates, you may get different rates based on current promotions or how you open your account.
For example, a CD opened through the bank’s client care center may earn a different rate than the same type of CD opened in a branch or online. The bank’s website states that “Rates are subject to change at any time and are not guaranteed until the CD is opened.”
BankUnited CD requirements and penalties
If you decide to open a CD with BankUnited, you should fully understand the deposit requirements and any penalties associated with early withdrawals:
Deposit Criteria
- A minimum initial deposit of $1,000 is necessary for most CD terms.
- The most you can deposit for a CD with BankUnited is $250,000.
- You can only make additional deposits to your CD account when it reaches maturity and before it’s renewed.
Penalties for Early Withdrawals
As a BankUnited depositor with a CD account, you can withdraw any paid or credited interest without penalty during your CD’s term or at maturity. However, you can’t withdraw any principal from or redeem your CD before maturity unless the bank consents to the withdrawal.
Even with the banks’s consent, you may be subject to early withdrawal penalties:
| Term of CD | Penalty Amount |
|---|---|
| Less than 3 months: | An amount equal to 30 days simple interest on the amount withdrawn. |
| 3 to 12 months: | An amount equal to 90 days simple 12 months interest on the amount withdrawn. |
| More than 12 months: | An amount equal to 180 days simple 12 months interest on the amount withdrawn. |
Thanks!
What Are the Benefits of Opening a CD With BankUnited?
Take a look at some of the benefits you’d receive when you open a BankUnited CD.
FDIC-insured
Because BankUnited is FDIC-insured, you can expect your CD deposits of up to $250,000 to remain safe and secure against any potential loss due to bank failure. This security is a primary reason many investors choose CDs, despite lower yields compared to other types of investments.
Fixed Rate of Return
Another advantage of choosing a CD with BankUnited is the fixed return rate, no matter what the financial markets are experiencing. This predictable return provides protection against market volatility and allows investors to plan their finances with a reasonable degree of certainty.
Daily Compounded Interest
With BankUnited’s CDs, your interest compounds daily, unlike some banks that may only compound your interest earnings monthly or quarterly. Daily compounding can increase your earnings faster than depositing funds with other institutions that don’t do this.
Convenience and Access
This deposit account has no monthly account fees. You can access your CD account through BankUnited’s online platform, via internet browser or smartphone app.
Unless you notify the bank and request otherwise, your CD will automatically renew at maturity into a standard CD closest in length to the initial term. So, it’s important to watch out for communications from the bank as your CD term nears its end.
Money Market Account vs CD vs High-Yield Savings Account
A money market account usually offers more liquidity than a CD. This just means it’s easier to access your money due to more liberal withdrawal policies. Though these accounts typically allow you to write checks or use a debit card, they may also come with a higher minimum deposit and daily balance requirement. Your account could incur fees if you don’t maintain a certain balance.
High-yield savings accounts generally don’t beat the fixed high-interest rate of CDs, and there are usually no minimum deposit or daily balance requirements. Like a money market account, a high-yield savings account lets you withdraw money more frequently and without penalties. In this way, it’s a more liquid option, similar to a money market account.
On the other hand, a CD requires you to lock in your funds for a predetermined term in exchange for a higher fixed interest rate. However, withdrawing funds before maturity can result in penalties.
In essence, money market accounts and high-yield savings accounts give you more access to your money, though one has higher balance requirements. A CD account offers a more disciplined savings tool to help you reach your financial goals.
Why Are Interest Rates on CDs Dropping?
Due to the recent Fed rate cut, you’ll notice that more than a year out interest rates on CDs are dropping significantly. The interest rates on certificates of deposit, like many other saving and investment products, are influenced by the federal funds rate set by the Federal Reserve. The most recent interest rate cut from the Fed in September 2024 was the lowest drop noted in the last four years.
When the Fed lowers interest rates, it reduces the cost of borrowing money, making loans more affordable for consumers and businesses. On the flip side, financial institutions, like BankUnited, will also lower the rates they offer to depositors because their ability to earn profits on lending has also decreased with the Fed rate cut.
Alternatives to BankUnited CDs
Although the rates for BankUnited CDs are fairly competitive at least 12 months out, there are plenty of banks offering higher rates for longer terms. It’s a good idea to search online for banks offering CDs to compare which ones have better terms.
If the rates for CDs, in general, don’t align with your personal savings goals, other financial products such as high-yield savings accounts or money market accounts would also be great options to explore.
FAQ
- What is the best CD rate at BankUnited?
- BankUnited's highest CD rate is currently 4.50% for a 6-month term. However, this rate may change at any time, so check their website often for updates.
- What is the interest rate on a one-year CD at BankUnited?
- As of Sept. 30, 2024, BankUnited offers an APY of 3.00% for a standard 12-month CD.
- Should I get a CD or money market account?
- Choosing between a CD and a money market account depends on your need for liquidity and risk tolerance. CDs offer fixed rates and higher returns, while money market accounts allow easier access but often with lower rates.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Oct. 11, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
