Union Bank's current savings rates

Union Bank offers several savings account products, and the interest rate you earn depends on which one you open. As of now, Union Bank's standard savings account pays a rate that varies by branch location and account type—the bank does not publish a single national rate online. Your actual rate depends on your state, your opening deposit, and whether you maintain a minimum balance.

The most direct way to find your specific rate is to call your local Union Bank branch or visit a branch in person, since rates are set regionally rather than nationally. You can also check the Union Bank website for your state, as some regions post rates there, though not all do. If you are considering opening an account, ask the banker for the current Annual Percentage Yield (APY) in writing before you commit.

Key Takeaways

  • Union Bank's savings rates vary by state and branch location, so the rate one person earns may differ from another's even with the same account type.
  • The bank does not publish a single national savings rate; you must contact your local branch or check your state's Union Bank website to learn the current APY.
  • Your rate may depend on your opening deposit amount and whether you maintain a minimum balance throughout the month.
  • Rates change over time and are set by the Federal Reserve's actions, so the rate you see today may not be the rate you lock in next month.

How Union Bank sets its savings rates

Union Bank, like all banks, bases its savings rates on the federal funds rate set by the Federal Reserve. When the Fed raises rates, banks typically raise what they pay on savings accounts. When the Fed cuts rates, savings rates fall. Union Bank then decides how much of that Fed rate to pass on to customers—some banks pass on more, some less, depending on their strategy and how much they need deposits at that moment.

Union Bank also sets different rates for different account types. A money market account may pay more than a basic savings account. A high-yield savings product, if the bank offers one in your state, would pay more still. The bank may also offer promotional rates for new customers for a limited time, then drop the rate after the promotion ends.

Comparing Union Bank to other banks

Union Bank's savings rates are typically lower than what online-only banks and some credit unions pay. Online banks like Marcus, Ally, and American Express have lower overhead costs and often pass those savings to customers in the form of higher APYs. Credit unions sometimes pay more on savings accounts than traditional banks do, though not always.

If you are deciding between Union Bank and another institution, compare the actual APY you would receive at each, not just the headline rate. Ask whether there are monthly fees that reduce your earnings, whether you must maintain a minimum balance, and whether the rate is may provide or promotional. A slightly higher rate at a bank with a $25 monthly fee may actually earn you less than a lower rate with no fees.

What affects the interest you actually earn

Your balance is the biggest factor. If you keep $500 in the account, you earn interest on $500. If you keep $50,000, you earn on $50,000. The rate itself matters less than the combination of rate and balance. A 0.01% APY on $100,000 earns more than a 4.5% APY on $100.

Timing also matters. Interest compounds daily at most banks, meaning the bank calculates interest on your balance each day and adds it to your account. Some older accounts compound monthly or quarterly, which earns you slightly less. Ask Union Bank whether your account compounds daily or less frequently.

Fees reduce your earnings directly. If Union Bank charges a monthly maintenance fee, that comes out of your interest. Some accounts waive the fee if you maintain a minimum balance or set up direct deposit. Read the account agreement carefully to understand what fees explore and how to avoid them.

How to find Union Bank's rate for your state

Start by visiting unionbank.com and looking for your state. Some Union Bank websites list current rates; others do not. If your state's site does not show rates, call the branch nearest you. Have your phone ready and ask for the current APY on their standard savings account, any high-yield or money market options, and what the minimum opening deposit is.

When you call, also ask whether the rate is may provide or promotional. A promotional rate might be higher for the first three months, then drop to a lower permanent rate. If you are opening an account, ask the banker to confirm the rate in writing or to show you the disclosure document that lists it. That document is your proof of what you were promised.

What happens to your rate over time

Union Bank can change your savings rate at any time, though they must notify you before the change takes effect. If the Fed raises rates, Union Bank may raise yours. If the Fed cuts rates or if Union Bank decides to lower its rates to reduce costs, your rate will fall. You will receive notice by mail or email, usually 30 days before the change.

This is why comparing rates matters less than understanding how rates move. If you lock in a rate today and the Fed cuts rates next month, your rate will likely fall too. If you want a may provide rate, you would need a Certificate of Deposit (CD), which locks in a rate for a set term—but you cannot withdraw the money without a penalty.

Frequently Asked Questions

Does Union Bank have a high-yield savings account?

Union Bank offers different products in different states. Some regions have money market accounts or other higher-rate savings products; others do not. Contact your local branch to ask what savings products are available in your area and which pays the highest rate.

What is the minimum deposit to open a Union Bank savings account?

The minimum opening deposit varies by state and account type. Some accounts require $25 to open; others require $100 or more. Call your local branch or check your state's Union Bank website to confirm the minimum for the specific account you want.

Can I move my money to a different bank if Union Bank's rate is too low?

Yes. You can close your Union Bank account and move your money to another bank at any time with no penalty on a savings account. There is no lock-in period like there is with a CD. If you find a bank paying significantly more interest, switching is free.

How often does Union Bank change its savings rate?

Union Bank can change rates at any time, though changes usually happen when the Federal Reserve changes its rate or when the bank adjusts its strategy. You will receive written notice before any change takes effect. Check your statements or contact the bank if you want to know when your rate last changed.

Is the interest I earn on a Union Bank savings account taxable?

Yes. The interest you earn is taxable income. Union Bank will send you a 1099-INT form at the end of the year if you earned $10 or more in interest. You report this on your tax return. This is true at any bank, not just Union Bank.