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UFB Direct's New Absolute Savings Account Now 5.31% on All Tiers

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UFB Direct made a change yesterday to their new Absolute Savings Account making it look like the old High Yield Money Market Savings Account. All tiers of the Absolute Savings Account now have the yield of 5.31% APY. They've kept the three tiers in the rate table, so they can go back to tiered rates in the future. Previously, the yield was 5.11% APY for balances up to $5K, 5.21% APY for balances between $5K and $10K, and 5.31% APY for balances over $10K.

The old High Yield Money Market Savings Account, is no longer "High Yield". The yield is now only 4% APY. So for existing customers, you definitely want to move over to the new Absolute Savings Account. In my last UFB post, a reader copied a reply he received from the UFB customer service stating that existing customers are being encouraged to change accounts. The reply stated:
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.

As a reader had mentioned, UFB seems to be following a technique that has long been done by Superior Savings of New England in which they start a new high yield account while leaving the old account with a low rate (see post). KeyDirect has also used a similar tactic (see post). Perhaps these banks hope that many customers will just forget about their accounts, and let the money sit in the old account earning the low interest.

Please see my previous post for more info on this Absolute Savings Account and UFB Direct.
  Tags: savings account

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Comments
10 comments.
Comment #1 by Steve (anonymous) posted on
Steve
So why didn't they just keep the High Yeild Savings account, add tiers all with the same rate. This would still allow them to change it later. I closed my account with them last week, they wouldn't have lost me if they would have done it that way.

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Comment #2 by Anonymous posted on
Anonymous
Their interest rate is still high enough therefore I would not close my account.
The interest rate in now 5.19% while yesterday it was 5.18%.
i will be checking the interest rate everyday now on.

1
Comment #3 by Anonymous posted on
Anonymous
Asked them to convert my HYMM to Absolute saving on 7/10 they emailed me and I was told it would be converted the next day 7/11 still waiting on 7/13 if not converted by 7/16 I will close my account.

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Comment #4 by Joe (anonymous) posted on
Joe
I didnt have any problems, other than it always takes UFB a long time to respond to emails. Response time was over a day, but after they responded, they converted the account in just a few hours.

1
Comment #5 by Anonymous posted on
Anonymous
This is a technique that the long distance phone companies pioneered in the late 1980s and the 1990s.

Remember the heavy advertising for the Reach Out America plan? The advertising quietly changed to the Reach Out USA plan with virtually the same rates. Few people noticed the change and almost no one thought it was significant. However, they gradually started to raise the rates on the Reach Out America plan for all the customers who signed up for that. People didn't notice the gradual increases and still saw all the commercials for the lower-priced USA plan and didn't figure out what was going on.

Occasionally, a TV station reporter hired mainly for their looks not their brains would do a piece on long distance rates and interview a very *sincere* spokesperson for the long distance company who always had the canned answer "All anyone needs to do is ask to be put on the lower plan. We encourage our customers to check regularly for the best plan for their needs."

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Comment #6 by Anonymous posted on
Anonymous
They do that one more time and I am outta there... happened to me twice already and good thing I check them every couple of weeks otherwise I may not have noticed. Given the large balance I have with them it would be a big loss.

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Comment #7 by gary (anonymous) posted on
gary
UFB has been bought up by Sky and Sky has been bought by Huntington National Bank. If you go to the UFB website it mensions at the bottom small print that all deposit products are with Huntington. Huntington right now has a 4.6% on its Anywhere Savings, so the currently advertised UFB rate of 5.31 looks pretty good. However, if you go to the application page and click on "more information..." it says that the product is no longer available for new customers. But if you ignore this the site will let you apply (or at least start an application). Do we know if this 5.31% savings account is still valid? Won't Huntington drop the rate closer to its own?

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Comment #8 by Banking Guy (anonymous) posted on
Banking Guy
It's possible that Huntington will keep UFB Direct as a separate service. About the message stating that the product is no longer available, are you sure that's not the High Yield Money Market Savings Account? The Absolute Savings replaced that.

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Comment #9 by tresho (anonymous) posted on
tresho
This was posted on another topic but is most relevant to UFB customers, so I am posting it here also FYI.
One aspect of UFB I've found useful is their contract with UPS. You can send an envelope with a check for deposit through UPS direct to UFB in Indianapolis without charge, where I live the process takes overnight. I wrote a check on the 18th, UPS got it to UFB the 19th when it was deposited. That beats the ACH transfer system at most banks I've tried.
The form for this is here.
The only hitch was that the recipient on the UPS aystem was listed as "Affinity Financial, 45 N Pennsylvania St Fl 3, Indianapolis, IN 46204-3139" while the UFB form showed "The Huntington National Bank
45 N. Pennsylvania St., 5th Flr.
Indianapolis, IN 46204"
I needed to supply this info to my UPS office when I sent my deposit.

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Comment #10 by Anonymous posted on
Anonymous
Can anyone tell me if UFB does a hard pull for a new account?

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