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Small Business - Frequently Asked Questions

Business Savings Accounts

1. Account Transaction Limitations

2. Interest

3. Minimum Balance Requirements

4. Early Withdrawals

5. Electronic Access

6. Business Deposit Overdraft Protection

1. Account Transaction Limitations

1.1 Are there any transaction limitations on business savings accounts?
Yes. Federal regulations limit certain types of transfers from your business savings account to a combined maximum of six per calendar month. Excess activity charges apply.  These include the following transactions:
  • Automatic transfers to another deposit account at Union Bank (including Deposit Overdraft Protection)
  • Automatic transfers to another institution
  • Telephone transfers, including Telephone Banking or Automated Customer Service
  • Online transfers

1.2 Which transactions are available without limitation for business savings accounts?
There is no limitation on the following types of transactions:
  • Deposits
  • ATM cash withdrawals and transfers
  • Withdrawals made in person or by mail or messenger at a Union Bank branch
  • Transfers made in person at a Union Bank branch
  • Telephone withdrawals when you request a check be mailed to you

1.3 Are there any transaction limitations on business money market accounts?
There are limitations on the following transactions for a business money market account to a combined maximum of six per statement period, or calendar month when the statement period date was requested to be on a specific day. Excess Activity Charges apply.
  • Checks, POS transactions, or debit card purchases
  • Automatic transfers to another deposit account at Union Bank
  • Automatic transfers to another institution
  • Telephone transfers, including Telephone Banking or Automated Customer Service
  • Online transfers

1.4 Which transactions are available without limitation for business money market accounts?
There is no limitation on the following transactions:
  • Deposits
  • ATM cash withdrawals and transfers
  • Withdrawals made in person or by mail or messenger at a Union Bank branch
  • Transfers made in person at a Union Bank branch
  • Automatic transfers to repay your Union Bank loan
  • Telephone withdrawals if you request a check be mailed to you

1.5 Are there any transaction limitations on Business Time Deposit Accounts?
Yes. After you have opened the account, you may not make additional deposits into, or withdrawals from, the account until the maturity date. Withdrawals prior to maturity are subject to an Early Withdrawal Penalty or Compensating Penalty.
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2. Interest

2.1 How is the interest calculated on business savings accounts?
The interest on a business savings account is compounded daily using a 365-day year (366 days each leap year) and calculated on the collected balance. 
 
2.2 What is a collected balance?
The collected balance consists of the account balance at the end of each banking day, excluding any funds from deposited checks drawn on other financial institutions that have not yet been made available to us by the Federal Reserve Bank or other correspondent bank. 
 
2.3 How is the interest rate determined for business savings accounts?
The interest rate is determined by the bank; it is subject to market conditions and can change as often as daily. 
 
2.4 When is the interest paid on business savings accounts?
Interest earned on your account is paid to the account on the last business day of the calendar quarter. If the account is closed during a quarter, the interest accrued is paid on the closing date. 
 
2.5 How is the interest calculated on business money market accounts?
We use the daily balance method to calculate the interest on a business money market account. This method applies a daily periodic rate to the principal in the account each day. 
 
2.6 What is the "tiered interest" rate of business money market accounts?
Interest rates may vary depending on different balance ranges. Each day your collected balance will fall within one of the balance range tiers. The interest rate for that particular balance range applies to the entire collected balance in your account that day. From time to time, the same interest rate may apply to more than one tier. 
 
2.7 When is the interest paid on business money market accounts?
Interest for your account is compounded monthly using a 365-day year (366 days each leap year) and credited to your account monthly. 
 
2.8 How is the interest rate determined for Business Time Deposit Accounts?
The interest rates for Business Time Deposit Accounts are set by the bank and are subject to market conditions and your account balance and term. 
 
2.9 When is the interest paid on Business Time Deposit Accounts?
The frequency with which you choose to receive your interest payment depends on the term of your Business Time Deposit Account. For terms of seven through 31 days, interest may be paid only at maturity. For terms of 32 days to one year, interest may be paid monthly, quarterly, semi-annually, annually, or at maturity. For terms greater than one year, interest must be paid at least annually and may be paid monthly, quarterly, or semi-annually. 
 
2.10 How is the interest paid on Business Time Deposit Accounts?
Interest may be paid to your Union Bank checking or savings account, reinvested to your Time Deposit account (except for Payment Bond Time Deposits), or paid by check on its maturity date.
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3. Minimum Balance Requirements

3.1 Do business savings accounts have minimum balance requirements?
Yes, our business savings accounts require a daily minimum balance to avoid a monthly service charge. Please refer to our Compare Business Savings Accounts page for details.  
 
3.1.a Is a checking account required with a Business Preferred Savings Account?  
Yes, a business checking account is required to be linked to a Business Preferred Savings Account.     
 
3.1.b What happens if the business checking account linked to the Business Preferred Savings  Account reaches a negative balance or is closed?
Customers will be notified that their Business Preferred Savings Account may be converted to a regular Business Savings Account. 
 
3.2 Do business money market accounts have minimum balance requirements?  
Yes, our business money market accounts require a daily minimum balance to avoid a monthly service charge. Please refer to our Compare Business Savings Accounts page for details.

3.2.a Is a checking account required with a Business High Rate MoneyMarket Account?
Yes, a business checking account is required to be linked to a Business High Rate MoneyMarket Account.

3.2.b What happens if the business checking account linked to the Business High Rate MoneyMarket Account reaches a negative balance or is closed?
Customers will be notified that their Business High Rate MoneyMarket Account may be converted to a Business MoneyMarket Account.
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4. Early Withdrawals

4.1 Is there an early withdrawal penalty for business savings and business money market accounts?
No. Withdrawals can be made at any time. 
 
4.2 Is there a penalty for withdrawing funds from a Business Time Deposit Account prior to the maturity date?
Yes. When you invest in a Business Time Deposit Account, you agree to keep the principal on deposit with us for the term you have selected. If you withdraw all or a portion of the principal prior to the maturity date of the deposit, the bank may assess an Early Withdrawal Penalty or Compensating Penalty, whichever is greater. 
 
4.3 How does the bank assess an Early Withdrawal Penalty on a Business Time Deposit Account?
The penalty is assessed based on the term of the Business Time Deposit Account and the amount being withdrawn. It may be necessary to deduct all or a portion of the penalty from the principal amount of the account. 
 
4.4 What's the difference between the Compensating Penalty and the Early Withdrawal Penalty?
The Compensating Penalty is designed to protect the bank during periods of increasing interest rates. The penalty for withdrawing funds before the account's maturity date is the greater of the Early Withdrawal Penalty or the Compensating Penalty.
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5. Electronic Access

5.1 Is ATM access available with all business savings options?
No. ATM access is available only for business savings and business money market accounts, not for Business Time Deposits. 
 
5.2 Can I access all business savings options online?
No. Presently, you may access business savings and business money market accounts with Internet Business Banking, Online Banking, or Web cash management services. Online access is not available for the Business Time Deposit Accounts.
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6. Business Deposit Overdraft Protection

6.1 What does Business Deposit Overdraft Protection cost?
You are charged for this service only when you use it. The charge is $10 each time a transfer is made. 
 
6.2 What dollar amount is transferred?
The transfer of available funds from your business savings account to your business checking account is made in the exact amount of the overdraft on the checking account. 
 
6.3 What happens if there are insufficient funds in my checking, savings, or money market account (source account)?
If you do not have sufficient available funds in your source account to cover the overdraft amount in your checking account and the Business Deposit Overdraft Transfer Fee, no transfer will be made.
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