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UFB Direct Closes No-Min Savings and Starts New Tiered Savings Account

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UFB Direct is closing their no-minimum High Yield Money Market Savings Account. On its webpage in small print, it states that:
Product not available to new customers and access restricted to customers with existing High Yield Money Market Savings accounts after 06/21/2007.

It appears UFB is replacing this with the new tiered savings account account called the Absolute Savings. To receive the 5.31% APY a balance of over $10K is required. Balances from $5K to $10K earn 5.21% APY and all smaller balances earn 5.11% APY.The minimum opening deposit is $1. There are no monthly minimum balance fees.

Except for the tiered rates, the features of the Absolute Savings Account look the same as the old High Yield Money Market Savings. It comes with an ATM card. UFB will reimburse up to $4.50 per statement period for ATM fees charged when using other banks' ATMs.

Note, several readers have reported that UFB Direct does a hard credit inquiry when you open an account.

UFB Direct is now part of Sky Bank. Sky Bank is FDIC insured (FDIC Certificate # 5982).

Please see this UFB Direct post for more info on this bank.

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Comments
8 Comments.
Comment #1 by Anonymous posted on
Anonymous
The page mentions "access restricted to customers" with the account. So, this means the cutsomers who currently have this account already will not be shoved to the new tiered system anytime soon? I hope so

1
Comment #2 by Anonymous posted on
Anonymous
Looks like UFB Direct is starting to use Superior Savings of New England's favorite ploy of suddenly leaving a leading product with a low rate and coming out with a new one. That's a 0.8% drop on the MM Savings! Even the name "Absolute Savings" sounds similar to a name SSNE would use.

1
Comment #3 by Fotuton (anonymous) posted on
Fotuton
UFB is now part of Sky Bank and Sky Financial (Sky Bank's parent company)has now officially merged with Huntington (http://www.investquest.com/iq/h/hban/ne/finnews/hban060407.htm)
which also offers their Direct Huntington online savings account. I wonder how long this is going to last.

1
Comment #4 by Anonymous posted on
Anonymous
Actually today the rates for HYMM went to 4.5%, looks like the shoving has already began.

1
Comment #5 by Anonymous posted on
Anonymous
Could those with experience using UFB's ACH system please post as to speed, both inbound and outbound? Thanks.

1
Comment #6 by Don (anonymous) posted on
Don
This CSR email may be helpful:

Thank you for contacting the Banking Center. Yes, the rates for the High Yield Money Market Savings account changed last week and were reflected on the website. We have created a new account titled “Absolute Savings”, which has rates on par with the old High Yield Money Market Savings account. We are encouraging existing customers to send a secure email (Bank Mail) or send a fax authorizing us to transfer into the new Absolute Savings account. Everything will stay the same in terms of your account number, ATM card and PIN, log in information, etc. If you have an existing Free Checking Account linked to the HYMMS that link will then exist with the new Absolute Savings Account. Your business is important to us and we hope you continue to be a UFB customer.

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Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. At least they're making it easy for current customers to switch.

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Comment #8 by Joe (anonymous) posted on
Joe
Looks like UFB has changed their absolute savings rates again. As of 7/11 the interest rate is 5.18% for all three tiers...

1