BankUnited, which has branches in Florida and the New York metro area, offers respectable interest rates on its certificate of deposit (CD) accounts, though some of the best CD rates on the market are still quite a bit higher. The minimum deposit to open an account is $1,000. That’s high but isn’t out of line with similar banks. Unlike some other banks, BankUnited does not offer higher rates for customers who contribute more to their account.
Whether or not you choose BankUnited will also depend on your individual goals. There are only six term options to choose from and the shortest is 12 months. So if you have a need for extra liquidity and aren't prepared to tie up your cash for a year, you'd be best served looking elsewhere for CDs with shorter tems. If parking that cash in a CD works with your financial strategy, you can reap the rewards of relatively robust interest rates.
Below is a rundown of the information you need to decide if a BankUnited CD account is right for you.
|CD Length||Minimum Deposit||APY|
|12 Month||$1,000||1.20%||Compare CD Rates|
|18 Month||$1,000||2.55%||Compare CD Rates|
|24 Month||$1,000||2.75%||Compare CD Rates|
|36 Month||$1,000||3.00%||Compare CD Rates|
|48 Month||$1,000||3.00%||Compare CD Rates|
|60 Month||$1,000||3.00%||Compare CD Rates|
12-Month CD Interest Rate Comparison
Overview of BankUnited CDs
BankUnited has its headquarters in Miami Lakes, Florida and the majority of its branches are in Florida. It also has some branches in the New York City metro area. You will need to live in one of those two areas to open a CD with BankUnited.
There are relatively few CD options from BankUnited (just six) and they range in term length from 12 months to 60 months. Longer CDs have higher interest rates. To learn the current interest rates, you should contact a local branch.
All CDs require a minimum opening deposit of $1,000 and compound interest daily. BankUnited will credit the interest to your account. You do not have the option to transfer interest to another account. If you want to withdraw the interest or the principal, you will need to wait until your CD reaches maturity.
At the end of your CD term, BankUnited will grant you a seven-day grace period in which you can make any changes, additions or withdrawals from your account. If you don’t make any changes during the grace period, your money (principal and interest) will automatically get reinvested into a new CD. It will have the same term length as your previous CD but the interest rate will depend on the current available rates.
In the case that you really need to remove funds early from your CD, BankUnited may allow you to do so. However, you will have to pay an early withdrawal penalty each time. The penalty is assessed on the amount of principal that you withdraw and varies with the length of your CD term. BankUnited will deduct the penalty from the interest you have earned, and if you haven’t earned enough to cover the penalty, BankUnited will take from your CD principal.
The early withdrawal penalty equals 30 days’ interest for CDs with a term of less than 90 days. Terms between 90 and 365 days have a penalty of 90 days’ interest. Any CD with a term length over 365 days has a penalty of 180 days’ interest.
How Much You Earn With BankUnited CDs Over Time
BankUnited has relatively high interest rates. That means you will earn good interest if you open one of its CDs. You will also earn a fair amount because it does not offer any CDs less than one year in term length. Even if you can only afford to contribute the minimum amount to the shortest CD (12 months), you will earn more than $10 of interest.
The highest interest rates come with longer CDs and so you will earn more with a 60-month CD than with a 12-month CD. Your earning power is also greater with long CDs because BankUnited compounds interest daily.
The table below shows what your approximate total balance will be depending on your initial deposit and your term length.
|Initial Deposit||12-Month CD||24-Month CD||36-Month CD||60-Month CD|
How BankUnited’s CD Rates Compare to Other Banks’
If your focus is CD terms of two years or less, you should compare CD rates at other financial institutions and consider an account with an online bank like Ally. Ally has competitive rates for short-term CDs and offers higher rates if you contribute more than $5,000. Because it is an online bank, you won’t be able to speak to a banker in person if you work with Ally. This is a disadvantage for some but the tradeoff is high rates.
If you are mostly looking for a CD with a long-term length, there are a few banks to consider. Capital One is one of the largest banks in the U.S. and has high rates. The 60-month (five-year) offering is strong. There is also no minimum for opening a CD. That makes Capital One a viable option for people of all financial levels.
For those who can afford the $1,000 minimum deposit, a brokered CDs is also be something to consider. A broker, like Edward Jones, will offer some of the highest interest rates on the market. Edward Jones has term lengths ranging from three months to 10 years. That makes it a great option if you’re investing for future goals. Brokered CDs work a bit differently than traditional banks though, so you should make sure to understand how they work before opening any accounts.
|CD Account||BankUnited||Capital One||Ally Bank|
Compare BankUnited to Other Competitive Offers
Should You Get a BankUnited CD Account?
A big consideration with BankUnited is that it only has local branches in two states. Most branches are in Florida, and some are in New York.
BankUnited does not have many CD options but does have good interest rates. Whether you’re looking for long-term or short-term CDs, you can find higher rates elsewhere. For example, online banks often have higher rates on short CD terms. However, you can feel confident that you’re earning decent interest with BankUnited.
You should look elsewhere if you want to create a CD ladder. A CD ladder is simply multiple CDs with staggered maturity dates so that they regularly pay interest. BankUnited doesn’t have many term options, which means you can’t create a robust ladder. If that’s your goal, consider other banks. Brokers may be a good choice as they usually have terms ranging from a few months up to 10 years. It’s useful to talk with a financial advisor if you have questions about the best way you can use CDs to save money.