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The Best Cash Management Accounts in September 2020UFB Direct, Jumbo Money Market Rate Up But CD Rates Down
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POSTED
ON BY Ken Tumin
UFB Direct increased the rate on its Jumbo Money Market Account from 5.13% to 5.26% APY. The last rate change of this account was on July 18th when the rate went from 5.13% to 5.16% APY. This Jumbo Money Market Account requires $50K to earn interest. The no-minimum Money Market Savings account remains at 4.50% where it has been since early June.
UFB Direct's long-term CD rates declined today. This continues the trend seen at other banks of an increasingly inverted yield curve. Previously, all terms of one year and longer had an APY of 5.71%. The 1-year CD went down to 5.69% APY. The 2-year, 3-year and 5-year CD APYs declined to 5.49%, 5.47% and 5.50%. The 3-month and 6-month CD rate remained the same at 5.38% and 5.57% APY.
One thing to note about UFB Direct and its parent, Union Federal Bank of Indianapolis, is that it has improved its rating at Bankrate.com. It's now 4 out of 5 stars (sound). It had been as low as 1 star last April. I had thought this might have been due to its acquisition by Sky Financial Group, but this has not yet been completed and is not scheduled until this third quarter (see press release).
UFB Direct's long-term CD rates declined today. This continues the trend seen at other banks of an increasingly inverted yield curve. Previously, all terms of one year and longer had an APY of 5.71%. The 1-year CD went down to 5.69% APY. The 2-year, 3-year and 5-year CD APYs declined to 5.49%, 5.47% and 5.50%. The 3-month and 6-month CD rate remained the same at 5.38% and 5.57% APY.
One thing to note about UFB Direct and its parent, Union Federal Bank of Indianapolis, is that it has improved its rating at Bankrate.com. It's now 4 out of 5 stars (sound). It had been as low as 1 star last April. I had thought this might have been due to its acquisition by Sky Financial Group, but this has not yet been completed and is not scheduled until this third quarter (see press release).