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Are You Ready for a Cashless Society?UFB Direct's New Absolute Savings Account Now 5.31% on All Tiers
POSTED ON BY Ken Tumin
UFB Direct made a change yesterday to their new Absolute Savings Account making it look like the old High Yield Money Market Savings Account. All tiers of the Absolute Savings Account now have the yield of 5.31% APY. They've kept the three tiers in the rate table, so they can go back to tiered rates in the future. Previously, the yield was 5.11% APY for balances up to $5K, 5.21% APY for balances between $5K and $10K, and 5.31% APY for balances over $10K.
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:
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.
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.
The interest rate in now 5.19% while yesterday it was 5.18%.
i will be checking the interest rate everyday now on.
Remember the heavy advertising for the Reach Out America plan? The advertising quietly changed to the Reach Out USA plan with virtually the same rates. Few people noticed the change and almost no one thought it was significant. However, they gradually started to raise the rates on the Reach Out America plan for all the customers who signed up for that. People didn't notice the gradual increases and still saw all the commercials for the lower-priced USA plan and didn't figure out what was going on.
Occasionally, a TV station reporter hired mainly for their looks not their brains would do a piece on long distance rates and interview a very *sincere* spokesperson for the long distance company who always had the canned answer "All anyone needs to do is ask to be put on the lower plan. We encourage our customers to check regularly for the best plan for their needs."
One aspect of UFB I've found useful is their contract with UPS. You can send an envelope with a check for deposit through UPS direct to UFB in Indianapolis without charge, where I live the process takes overnight. I wrote a check on the 18th, UPS got it to UFB the 19th when it was deposited. That beats the ACH transfer system at most banks I've tried.
The form for this is here.
The only hitch was that the recipient on the UPS aystem was listed as "Affinity Financial, 45 N Pennsylvania St Fl 3, Indianapolis, IN 46204-3139" while the UFB form showed "The Huntington National Bank
45 N. Pennsylvania St., 5th Flr.
Indianapolis, IN 46204"
I needed to supply this info to my UPS office when I sent my deposit.