UFB Direct Adds New Savings and Money Market Accounts
Approximately three months ago, UFB Direct introduced its UFB Money Market account, which now earns 1.51% APY on all balances. Note: while the landing page lists two balance tiers ($0-$24,999.99 and $25,000 or greater), the 1.51% APY currently applies to both tiers.
Although the UFB Money Market account is a new account, it’s certainly not the first MMA offered by UFB Direct. In fact, it’s the fourth UFB Direct MMA I’ve written about in the past five years. UFB Direct has a history of adding new accounts with top rates, while maintaining the low rates offered by established accounts. In the beginning of the April, the UFB Premium Money Market (the predecessor of the UFB Money Market) offered 0.20% APY on balances of $25k and above. The UFB Premium Money Market is still listed in the Personal Deposit Account Agreement (dated May 16, 2022) even though it is not mentioned anywhere else on the UFB Direct website. When I asked about the UFB Premium Money Market, CSR’s response was “that account is no longer available.”
According to the landing page, there is a $10 monthly maintenance fee if the daily average balance drops below $5k. If the UFB Money Market account is closed mid-cycle, any accrued interest will be forfeited.
According to CSR, the UFB Money Market account has limited checking writing ability and a free ATM 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.
ACH Transfer
CSR stated that during the first six months following account opening, ACH transfers initiated through UFB Direct are limited to $10k per day and $25k per rolling month; thereafter, the limits are increased to $100k per day and $250k per rolling month.
UFB Savings
Like the UFB Money Market account, the UFB Savings account was added about three months ago and now earns 1.51% APY on all account balances. The UFB Savings and the UFB Money Market are essentially the same, except the UFB Savings account has no monthly service fee and no checking writing.
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 UFB 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 $14.7 billion, Axos Bank is also part of the public company, Axos Financial, Inc.
Bank Overview
In October 2018, 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.
As stated on the bottom of every page of the UFB Direct website,
All deposit accounts through Axos Bank brands are not separately insured by the FDIC
from other deposit accounts held with the same ownership and/or vesting at Axos Bank.
UFB Direct/Axos Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 8.14% (excellent) based on March 31, 2022 data. In the past year, UFB Direct/Axos Bank has increased its total non-brokered deposits by $1.01 billion, an excellent annual growth rate of 9.07%. Please refer to our financial overview of UFB Direct/Axos Bank (FDIC Certificate # 35546) for more details.
Established in 2000, Axos Bank is currently the 14th largest bank headquartered in California and the 118th largest bank in country with assets in excess of $14.7 billion and more than 394,000 customer accounts.
How the UFB Money Market Account Compares
When compared to nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, that do not require large balances or direct deposit and do not have small balance caps, the UFB Direct Money Market Account APY currently ranks third.
| APY | Account Name | Credit Union/Bank |
|---|---|---|
| 1.65% | Online Savings Account (no min/$5m max) | First Foundation Bank |
| 1.61% | Bask Interest Savings Account (no min/no max) | Bask Bank |
| 1.51% | UFB Money Market Account (no min/no max) | UFB Direct |
| 1.51% | Money Market Account ($1 min/no max) | Merchants Bank of Indiana |
| 1.50% | Personal Money Market (no min/no max) | Quontic Bank |
The above information and rates are accurate as of 6/24/2022.
To look for the best rates on liquid bank accounts, both nationwide and state specific, please refer to our Money Market Accounts Table and Savings Accounts Table.
They have pulled off this scam on clients multiple times: "Although the UFB Money Market account is a new account, it’s certainly not the first MMA offered by UFB Direct. In fact, it’s the fourth UFB Direct MMA I’ve written about in the past five years."
No thanks UFB, what a racket they have going on to exclude existing customers from earning a higher interest rate on their existing account.
I called and asked if ACH initiated outside UFB would be exempt from the limits , and they said NO, still limited. I have never encountered such a thing, but that's what I was was told .
Can Anyone confirm otherwise ?