UFB Direct Adds New High Yield Money Market
UFB Direct has introduced a new product: the High Yield Money Market Account, earning 1.60% APY on all balances.
The minimum opening deposit is $5k, I believe. According to the UFB Direct's promotion page,
The minimum deposit amount to open a UFB
High Yield Money Market Account is only $5,000.
My uncertainty about the minimum deposit comes from the confusing layout on the Disclosure & Agreements (page 11). At the top of page 11 (right above UFB High Yield Money Market), is the statement “Minimum Deposit to Open Account: $100.00.” After taking a closer look, the $100 minimum deposit is actually a requirement for the Airline Rewards Checking, which is listed on page 10. The High Yield MMA’s $5k requirement is listed farther down on page 11.
Just to be sure, I did a Live Chat that only confused me more, as CSR stated, “The minimum to open the account is $100.00.” When I pointed out that the $5k requirement is on both the promotion page and the Disclosure & Agreements document, CSR politely thanked me for “providing that additional information,” but again stated the minimum deposit is $100.”
Whatever amount the minimum opening deposit is (and I’m going with $5k), it must be new funds. According to the fine print on the promotion page,
Must be new funds to receive stated rate. NOTE: “New Funds” is defined
as funds that did not originate from another BofI Federal Bank Brand.
The other Bofl Federal Bank Brands include Bank of Internet USA, BofI Advisor, Bank X, NetBank, Apartment Bank, Annuitants Federal Bank, and Virtus Bank.
According to the Disclosure and Agreements brochure, there is a $10 monthly maintenance fee if the daily average balance drops below $5k. If the High Yield Money Market Savings 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.
Thanks to DA reader, WheelinDealin, for reporting on the new account and rate in the DA Forum.
Money Market Savings Account
DA readers may remember UFB’s Money Market Savings account, which had been part of the product line since mid-2012. According to CSR and the Disclosure & Agreements (page 14), the Money Market Savings has been “grandfathered” and no longer available. CSR stated that existing Money Market Savings accounts should automatically become High Yield Money Market Accounts and earn the new 1.60% APY. CSR suggested calling UFB Direct to make sure your existing account earns the new APY.
UFB Premium Savings
About nine months ago, UFB Direct unveiled its new UFB Premium Savings account earning 1.30% APY; that rate is still in effect. In September, UFB Direct lowered the required minimum balance from $50k to $25k. Balances below $25k earn 0.20% APY.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 1.30*% | $25k | - | UFB Direct | UFB Premium Savings | |
| OTHER TIERS: 0.20% → Up to $25k | |||||
When the UFB Premium Savings account was launched, it was a rate leader. Now the 1.30% APY is low for internet savings accounts. I don’t see any reason for new customers to choose this account over the High Yield Money Market Account. In addition to the higher rate, the High Yield Money Market Account offers limited check writing/debit card usage, while the Premium Savings does not. If you’re an existing Premium Savings customer, you should call UFB Direct and ask them to increase your rate to 1.60% APY to match the High Yield Money Market rate. DA reader, WheelinDealin, reported that he was able to get this rate match when he asked.
The UFB Premium Savings account has no monthly maintenance fee, but there is a $10 fee for each transaction/withdrawal beyond the six allowed per monthly statement cycle. If the UFB Premium Savings 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.
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 High Yield Money Market Account account must be opened online.
Deposits made to UFB Direct are held by BofI Federal Bank, which is the oldest pure internet bank. With a strong financial history and assets in excess of $8.5 billion, Bofl Federal Bank is also part of the public company, Bofl Holding, Inc.
Bank Overview
As an internet division of BofI Federal Bank (previously known as Bank of Internet USA) UFB Direct operates under BofI’s FDIC Certificate and shares its financial history.
UFB Direct/BofI has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.80% (excellent) based on September 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $432.89 million, an excellent annual growth rate of 7.6%. Please refer to our financial overview of UFB Direct/BofI (FDIC Certificate # 35546) for more details.
How the High Yield Money Market Compares
When compared to the 175 nationally available Money Market accounts tracked by DepositAccounts.com, UFB Direct’s High Yield Money Market Account APY currently ranks second, regardless of minimum balance requirement.
The above rates are accurate as of 1/24/2018.
To look for the best MMA rates, both nationwide and state specific, please refer to our Money Market Accounts Rates Table page.
