Things that can affect BankUnited CD rates include the CD term lengths in question and the state of competition between financial institutions, says My Bank Tracker. BankUnited offered very low CD rates during 2014, due to the fact that the Federal Reserve had lowered its base interest rate to under 1 percent.
Generally speaking, CDs with longer terms pay higher CD rates, reports My Bank Tracker. This is expected since people who purchase long-term CDs face greater risk of losing money due to currency inflation. Institutions such as BankUnited attempt to lure customers from other banks by offering competitive CD rates.
Banks may offer higher CD rates in the hopes of finding customers for low-interest banking services, such as savings accounts or checking accounts, says My Bank Tracker. Deposits from bank customers are typically used by banks to invest in high-yield products, which provides significant profits for many banking institutions. Since the Federal Reserve also lends banks sums for investment purposes, very low Federal Reserve interest rates cause banks to have less interest in attracting retail customers.
In Februrary 2010, BankUnited was offering an interest rate of 3.25 percent for four-year CDs, says BroMoney. BankUnited was forced to exit the mortgage origination business in January 2016, says National Mortgage News.