UFB Direct's 5% Money Market Promo

More banks are following ING Direct and HSBC's lead with high-rate promotions. UFB Direct just started a promotion for their Jumbo Money Market Account which has a $50K minimum. New customers earn 5% APY on their Jumbo Money Market Accounts until the end of May. UFB Direct also raised the standard rate on the Jumbo MMA from 4.75% to 4.80%. Just last week, the Jumbo MMA APY was increased from 4.50% to 4.75%. The no-minimum savings account APY remains at 4.40%.

UFB Direct also increased the rates on their CDs. The APY on the 6-month CD with an $8K minimum was increased from 4.90% to 5.05%. The 12-month CD with an $8K minimum is now at 5.20% APY.

As I mentioned in the post last week, UFB Direct made some large rate cuts on their money market accounts in early March. They started to reverse this last week. Perhaps the March rate reduction was an attempt to improve profitability for the first quarter. Their financials are weak with a Bankrate.com rating of 1 out of 5 stars. Sky Financial Group is still on track to acquire UFB Direct's parent, Union Federal Bank.