The old High Yield Money Market Savings Account, is no longer "High Yield". The yield is now only 4% APY. So for existing customers, you definitely want to move over to the new Absolute Savings Account. In my last UFB post, a reader copied a reply he received from the UFB customer service stating that existing customers are being encouraged to change accounts. The reply stated:
We are encouraging existing customers to send a secure email (Bank Mail) or send a fax authorizing us to transfer into the new Absolute Savings account. Everything will stay the same in terms of your account number, ATM card and PIN, log in information, etc. If you have an existing Free Checking Account linked to the HYMMS that link will then exist with the new Absolute Savings Account.
As a reader had mentioned, UFB seems to be following a technique that has long been done by Superior Savings of New England in which they start a new high yield account while leaving the old account with a low rate (see post). KeyDirect has also used a similar tactic (see post). Perhaps these banks hope that many customers will just forget about their accounts, and let the money sit in the old account earning the low interest.
Please see my previous post for more info on this Absolute Savings Account and UFB Direct.