UFB Direct Preferred Savings and Money Market Are Now Rate Leaders
Less than a month ago, California-based internet bank UFB Direct introduced two new accounts: UFB Preferred Money Market and UFB Preferred Savings, both of which offered 4.55% APY. As of yesterday, UFB Direct has upped the rate on both accounts to 5.02% APY.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 5.02*% | - | - | UFB Direct | UFB Preferred Savings | |
| 5.02*% | - | - | UFB Direct | UFB Preferred Money Market |
As stated by a UFB Direct official,
Please note that existing customers with a UFB Preferred product [Savings or Money Market] will not have to do anything as the rates will be reflecting accurately on their account details page.
If you have either a UFB Preferred Money Market and/or a UFB Preferred Savings account, feel free to leave a comment if your rate was increased automatically.
UFB Preferred Money Market and Savings Account Details
Note: while the UFB Preferred MMA landing page and the UFB Preferred Saving landing page each lists five balance tiers ($0, $10k, $25k, $50k, and $100k), the new 5.02% APY currently applies to all tiers.
According to the UFB Preferred MMA landing page, there is a $10 monthly maintenance fee if the daily average balance drops below $5k. If the UFB Best Money Market account is closed mid-cycle, any accrued interest will be forfeited.
According to CSR, the UFB Preferred Money Market account offers limited checking writing, with a free ATM card 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.
Other than the UFB Preferred Money Market Account’s potential monthly maintenance fee and checking writing capabilities, there is essentially no difference between the UFB Preferred Money Market Account and the UFB Preferred Savings Account. As stated on the MMA landing page,
The UFB Preferred Money Market offers the security
of a savings account with check-writing privileges.
ACH Transfer Limits and Hold Times
According to CSR, there are limits on ACH transfers initiated through UFB Direct during the first six months following account opening: $10k per day and $25k per rolling month; thereafter, the limits are $100k per day and $250k per rolling month. In response to the UFB Direct February 23, 2023 blog post, DA reader, Evil_Capitalist, provided the following comment.
I've got a UFB account and was using them for a couple of weeks last year when they had the highest rate back then. I found their website to be a bit MEH, but the thing that caused me to leave for another bank was their glacial like funds transfer times. Up to (9) days in some instances to move money IN.
Unlike some of the other top rate online banks out there right now, they also don't provide you an immediate deposit credit for deposits. They make you wait until the funds transfer has been 100% completed before the deposit shows up on your balance. They will often still put a HOLD on those funds even after waiting a very long time for them to even show up!
I would advise anyone thinking of moving their cash into UFB to consider all of the above. Granted... I left UFB about 5 months ago, so things may have changed, but I was just on the site this morning and nothing looks any different in terms of the web UI.
The following is a comment made by DA reader, 111, as part of a November 2022 Forum post discussion.
I've had a small free checking account with UFB for years. Each I time I have to request them to convert my savings account to a “new” savings account to get the higher rate (like today), I make sure I can still transfer internally to checking, with no limits. There are no “new account” ACH transfer restrictions on the checking account because it's not new. Also, of course, I can always transfer everything to checking and then write a check if I really want to vamoose. And in any case, I usually initiate the ACH (whether debit or credit) from another FI, where I know the rules and limits.
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, a UFB Preferred Money Market Account or UFB Preferred Savings account must be opened online.
Bank Overview
In October 2018, BofI Federal Bank (the former 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 6.64% (excellent) based on June 30, 2022 data. In the past year, UFB Direct/Axos Bank has increased its total non-brokered deposits by $2.71 billion, an excellent annual growth rate of 26.17%. Please refer to our financial overview of UFB Direct/Axos Bank (FDIC Certificate # 35546) for more details.
Established in 2000, Axos Bank is the oldest pure internet bank. It’s currently the 14th largest bank headquartered in California and the 113th largest bank in the country with assets in excess of $16 billion and more than 394,000 customer accounts. Axos Bank is part of the public company, Axos Financial, Inc.
How the UFB Preferred Money Market Account and UFB Preferred Savings Account Compare
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 Preferred Money Market Account and Preferred Savings Account APYs currently rank first.
| APY | Account Name | Credit Union/Bank |
|---|---|---|
| 5.02% | UFB Preferred Money Market Account (no min/no max) | UFB Direct |
| 5.02% | UFB Preferred Savings Account (no min/no max) | UFB Direct |
| 5.01% | Max Savings via MaxMyInterest (no min/no max) | Customers Bank |
| 4.65% | Money Market Account ($1k min/$500k max) | Brilliant Bank |
| 4.60% | Digital Money Market ($2.5k min/no max) | Republic Bank of Chicago |
| 4.55% | CFG High Yield Money Market via ($1k min/no max) | CFG Bank |
The above information and rates are accurate as of 3/14/2023.
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.
Mals is correct...I'm right now looking at my Charles Schwab CD Rate table as
I post this (1:30 PM). Quite a few 18 month-ers paying a nice 5.40% also.
I have a UFB account, but I am not a fan. They do not credit deposits until the ACH has literally cleared which can take up to 9 days most of the time. Their website is also on the funky side. Slow and bloated with often missing accounts and links that a refresh is required.
SO GLAD I have all my free cash sitting over at Primis Bank still earning that 5.03% APY, with 180 degree polar opposite experience. Excellent website performance and INSTANT Deposit Credit for ALL deposits up to and including all 6 figure additions to your balance! 5.03% APY on 200 to 250k over 9 days adds up. Primis pays you for it. UFB sits on your money that whole time and gives you ZERO!
And yes, I believe UFB sucks...not just because they don't provide free checks.
All Hail PRIMIS!
And it was about two weeks later.
UFB Direct was my first venture into "online" only banks and immediately created concerns when my 125K ACH transfer from my credit union disappeared for nine days and, once posted had not earned a penny. Their robot support (evo) was frustrating and the call center in India for support, maddening. Eventually, I reached domestic support and received the courtesy and competence one should reasonably expect in a banking relationship.
That said, I have not made a subsequent deposit and have an exit strategy. I have another 150K looking for a new home while gathering a less than exciting 3.80% APY at Sallie Mae bank. Though tempted by the 5.02% APY, leaving that kind of money inert for ten days while UFB Direct floats it is untenable. Republic Bank also mentioned in comments does a hard pull on your credit. Why any of these institutions need a hard pull on incoming deposits is beyond me. No one should need to reduce their FICO score to make a deposit.
Wish there were more reliable banks like Ally and Sallie Mae offering competitive rates without all the Consumer bank crap. Missed Primis unfortunately.
So much for existing customers with a UFB Preferred product not having to do anything to get the new rate.