Bank United paying 5.25%

[gavinmccallister]

I found this bank that pays 5.25% on a savings account and pays 5.50% on a 12 month CD. Here is the link: Bank United

[sweeps]

Good find, Gavin. $5,000 minimum. Also I was reading the disclosure:

If you close your account before interest is credited you will not receive the accrued interest.

This is unusual for a savings account, it almost should be labeled a 1-month CD.

[darkstar]

yeah 5000 minimum is a bit too much

[twins0203]

Umbrella Bank has 5.25% APY 1 YR CD's w/ a 1k Minimum.

[ken1706]

This is a good find. The rates are very competitive. The minimum is high but similar to many online banks.

It looks like BankUnited is starting this internet branch. The more competition the better.

In the online application, it appears they use Cashedge which is the same company used by HSBC. According to the application, you can fund the account with ACH. However, a CSR who I spoke with didn't know about this feature. She said it can only be funded by check. I'm not sure if she was completely familiar with this internet account.

The CSR also said that the 4.75% is only guaranteed through May 1st. Then we'll see if this 4.75% is only a teaser rate or if Bank United is planning to remain competitive in the online savings accounts. For a high minimum, I expect higher rates.

About losing interest for the month that you close the account, this is common for savings accounts. EmigrantDirect has a similar policy. One person had transfered most all of his money out of ED near the end of the month and only kept less than $1. ED closed the account because of the balance of under $1 and didn't pay him interest for that month. He wasn't too happy.

[sweeps]

Originally Posted by ken1706

About losing interest for the month that you close the account, this is common for savings accounts. EmigrantDirect has a similar policy.

Seriously? That's a huge negative for me.

EDIT: I guess it's not too big of a deal, as long you as you withdraw every dime down to the minimum balance, and then close after you get the final month's interest...

[joseblanco]

http://www.businessweek.com/magazine...eek+exclusives

Look under "camoflaged losses" and read about Bank United's exposure to negative amortization option arm mortgages. I think you'd agree that any conservative saver would think twice about trusting their savings to a bank that heavily exposed to such an unstable mortgage product.

[gavinmccallister]

I checked their site and was happy to see the higher rates I am going to consider locking in more of my money at the higher rate especially if the rates are looking to head down, any opinions on this?

[WellManicuredMan]

Originally Posted by Sweepsplayer

Seriously? That's a huge negative for me.

EDIT: I guess it's not too big of a deal, as long you as you withdraw every dime down to the minimum balance, and then close after you get the final month's interest...

Yeah, but like you said, it's not really a big deal since they have a minimum of only $1. And if you're taking your money out to switch banks then you can just wait until the 1st of the month to do it. It's the people that don't know about this policy that get screwed. But it's really easy to avoid losing your interest for the month.

[LuxLiving]

Gavin, I'm assuming then that you are investing only a portion of your assets in this manner and the rest or another portion going to gold as you intimated with your post in another thread about gold?

So, what is your opinion? Is our money safer in a bank located perhaps nowhere near us or in gold in our hot little hands or in a bullion vault? Now you have my curiousity up!

[gavinmccallister]

I only own 4 gold coins I bought them from a broker at Swiss America.com.

I want to find the best savings interest rate that I can find, I am considering the 12 month CD with Bank United.

[gavinmccallister]

6 month CD now paying 5.50% and the savings account is paying 5.35% with a $5000.00 minimum