UFB Direct Premium Money Market Offers 2.45% APY
A year ago, UFB Direct unveiled its High Yield Money Market account, displacing the Money Market Savings account that had been part of the product line since 2012. The new High Yield Money Market account offered an initial 1.60% APY on all balances, while existing Money Market Savings accounts earned 1.41% APY.
UFB Direct’s history of adding new accounts with top rates, while keeping the old, lower rates accounts was evident again earlier this month, with the introduction of the Premium Money Market (2.30% APY, $25k+). UFB Direct’s newest account gained a little sparkle this morning: 2.45% APY on balances of $25k+. Balances up to $25k still earn 0.50% APY. Meanwhile, the High Yield Money Market continues to earn 1.60% APY on all balances.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 0.40*% | $25k | - | UFB Direct | UFB Premium Money Market - New Money | |
| OTHER TIERS: 0.10% → Up to $25k | |||||
The Premium Money Market requires a minimum deposit of $5k of new money, which is defined as “funds that did not originate from another Axos Bank or UFB Direct account.”
According to UFB Direct's Premium Money Market page, there is a $10 monthly maintenance fee if the daily average balance drops below $5k. If the Premium Money Market account is closed mid-cycle, any accrued interest will be forfeited. A zero account balance at the end of a statement cycle will result in a forfeiture in accrued interest and the account will be closed.
The Premium Money Market account has limited checking writing ability and a free Visa® debit card is available upon request. There is a $10 Excessive Transaction/Withdrawal fee for each transaction/withdrawal beyond the standard six allowed.
If you exceed the transfer limits on more than an occasional basis, we may convert
your account to one not subject to transfer limitations or close your account.
Availability
Headquartered in San Diego, UFB Direct offers its product line to all U.S. citizens and resident aliens, 18 years or older, who have a valid Social Security number and valid form of identification. Like all UFB Direct accounts, the Premium Money Market account must be opened online.
Deposits made to UFB Direct are held by Axos Bank (the former BofI Federal Bank), which is the oldest pure internet bank. With a strong financial history and assets in excess of $9.7 billion, Axos Bank is also part of the public company, Axos Financial, Inc.
Bank Overview
In October, BofI Federal Bank (previously known as Bank of Internet USA) became Axos Bank, with all its separate divisions rebranding as Axos, with the exception of UFB Direct, which remains a separate branch with its own website. UFB Direct operates under Axos Bank’s FDIC Certificate and shares its financial history.
UFB Direct/Axos Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 4.09% (excellent) based on September 30, 2018 data. The Bank has an above average capitalization level (10.15%), the result of holding $9.77 billion in assets with $992.22 million in equity. Please refer to our financial overview of UFB Direct/Axos Bank (FDIC Certificate # 35546) for more details.
In August 2018, Axos Bank announced it would acquire approximately $3 billion in deposits and 40,000 customers from Nationwide Bank. Regulatory approval came through in September and the acquisition was completed in November. Axos also acquired four other companies in 2018: robo-advisor WiseBanyan, clearing firm COR Clearing LLC, a trustee and fiduciary services business from Epiq Systems, and all deposits from the banking arm of Modern Woodmen of America.
How the Premium Money Market Compares
When compared to the nationally available Money Market accounts tracked by DepositAccounts.com that are not limited by a low balance cap, UFB Direct’s Premium Money Market Account APY currently ranks first, regardless of minimum balance requirement.
The above rates are accurate as of 1/25/2019.
To look for the best MMA rates, both nationwide and state specific, please refer to our Money Market Accounts Rates Table page.
1) UFB Direct’s history of adding new accounts with top rates, while keeping the old, lower rates accounts was evident again earlier this month, with the introduction of the Premium Money Market.
This is not the first time they've done this. To keep at the top rate with UFB, you'll have to watch them everyday. Still it is possible at the cost of complicating your finances and ACH external accounts at other, better banks with additional accounts opening and closing year round.
2) According to UFB Direct's Premium Money Market page, there is a $10 monthly maintenance fee if the daily average balance drops below $5k.
UFB is a laggard and seldom ups its rates (or creates new accounts with better rates for that wonderful hassle you love so much) so there's more mental overhead if you want to move your money. Either leave $5k earning a lower rate to avoid $10/mo from eating into your interest or close the account. Closing your account also has additional mental overhead as:
3) If the Premium Money Market account is closed mid-cycle, any accrued interest will be forfeited. A zero account balance at the end of a statement cycle will result in a forfeiture in accrued interest and the account will be closed.
While CIT is experimenting with rate shenanigans based on activity, this is the only bank I know of that will take back all of your interest if you do not stick it out until the end of the month. While it is not nearly as onerous as my ranting may make it appear, it is about as consumer unfriendly as you can get and I feel it is flat out theft.
YMMV and I don't know what constitutes a red flag for you but I'd recommend avoiding UFB like the plague. There are many competitors offering better rates or better service and terms without even mentioning that their online statements have been broken for months and I cannot confirm if external transfers work any longer as they "lost" all linked accounts a while ago.
I full disclose that I have an axe to grind with UFB. However, none of the above is hyperbole. As of this writing, they might be the worst bank I have ever done business with, and that includes Bank of America.
However, a positive feature that STILL exists is :
FREE checks!
(EDIT: but you still have to pay $5 for shipping)
That CU has a $25 minimum versus the $5 at most. But, their share account gets their best savings rate. (Unlike many)
Bottom line is I should probably close it because its obsolete with shared branches and all and I already have memberships at 2 other local CUs. None of which I actively use anymore.
The shared branch I go to, NEVER has a competitive deal so I never have joined. It means I cannot use their drive thru. But they make you go inside for shared branch transactions even if you are a member. So, no reason to join.