Featured Savings Rates

Popular Posts

Featured Accounts

UFB Direct Dramatically Raises Rate On UFB Savings Account

POSTED ON BY

Availability: Nationwide (internet bank)

Since its launch date in October 2011, UFB Direct’s UFB Savings account APY has been on the "Rate Roller Coaster." Today’s rate increase (1.20% APY) puts the APY within ten basis points of the initial 1.30% APY, and a dramatic 100 basis points higher than the 0.20% APY of April 2013.

The minimum balance required to earn the 1.20% APY is $25K, with balances below $25K earning 0.20% APY. In addition, the stated APY requires new money, which is defined as funds that did not originate from another Bofl Federal Bank Brand. Those include Bank of Internet USA, BofI Advisor, Bank X, NetBank, Apartment Bank, Annuitants Federal Bank, and Virtus Bank.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.00*%$25k-UFB DirectUFB Savings
Accounts mentioned in this post. Rates as of December 4, 2016.

Today’s 80 basis point increase places the UFB Savings account in the top four of the Savings/Money Market accounts listed in DA’s most recent Best Bank Account Interest Rates Summary.

My enthusiasm for today’s rate increase is tempered by UFB Direct’s history of maintaining a top rate for only 3-6 months. Following the first rate cut, further smaller cuts are made, typically within 1-3 month intervals. The chart below shows the rate history of the UFB Savings account since launch date.

This type of behavior on a financial institution’s part illustrates one downside to rate chasing: banks frequently use a strategy of attracting customers with temporary promotional rates, in hopes that many customers won’t take the time or effort to move their money when the rates drop. Caveat emptor.

Thanks to DA reader, Philly, for his Forum post about the UFB Savings account.

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. All accounts at UFB must be opened online.

Bank Overview

UFB Direct (FDIC Certificate # 35546) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 5.39% (excellent) based on September 30, 2015 data. In the past year, UFB Direct has increased its total deposits by $1.52 Billion, an excellent annual growth rate of 46.54%. Please refer to our financial overview of UFB Direct for more details.

UFB Direct is a division of BofI Federal Bank (formerly called Bank of Internet USA). Deposits made to UFB Direct are held by BofI Federal Bank, which is the oldest pure internet bank. With a strong financial history and assets in excess of $6.2 Billion, Bofl Federal Bank is also part of the public company, Bofl Holding, Inc.

How the UFB Savings Account Compares

When compared to the 144 Savings Accounts tracked by DepositAccounts.com that are available nationally, UFB Direct’s UFB Savings APY currently ranks first, regardless of minimum balance requirement.

The above rates are accurate as of 1/29/2016.

To look for the best nationwide Savings Account rates and the best Savings Account rates in your state, please refer to our Savings Account rates table or our new Rates Map page.

Related Pages: UFB Direct, Reno, San Diego

Related Posts

Comments
Anonymous
Anonymous   |     |   Comment #1
Creative move...most think rates will/may be going down...here the focus is funding on loans!  I like it!
Anonymous
Anonymous   |     |   Comment #2
Serial bait and switch bank.
RichReg
RichReg   |     |   Comment #3
Not the best rate in the world but if there's no unreasonable maximum, might be worth a shot as long as its not too difficult to add and/or withdraw.
larryhouston
larryhouston   |     |   Comment #4
"Tier one structure of $0-$24,999 earns 0.20% APY. Tier two structure of $25,000 + earns 1.20% APY." 

If deposit $25,000, then $24,999 get 0.2% and $1 get 1.2%? Or $25,000 get $1.25%
RichReg
RichReg   |     |   Comment #7
Anything over $25K gets 1.20%...including the $25K.
glamke
glamke   |     |   Comment #5
History will almost certainly repeat itself here.  I've seen this happen twice before. Unless you're doing multiple accounts to the FDIC limit, its not worth the hassle for me.  
Anonymous
Anonymous   |     |   Comment #6
LMAO!  Déjà Vu All Over Again!
Anonymous
Anonymous   |     |   Comment #8
I can;t tell if this is available for only new accounts or existing accounts as well.  There is a requirement that the funds be new funds in order to receive the stated rate - see footnote disclosure.  I have an account that I kept at a paltry balance waiting for an opportunity like this but do not want to risk putting $$ there and only getting 0.2% or 0.4%.
Inforay
Inforay   |     |   Comment #9
The problem with many of these slightly higher rates is that these institutions use the rates to attract money into their savings accounts, and then lower the rates within a few months.  They presume that customers will not bother to withdraw their money.  This used to be a very common tactic with banks like UFB Direct, MyBankingDirect, Emigrant, etc.
RichReg
RichReg   |     |   Comment #12
That is so true... however, if you get all of your ducks in a row and set up your next-best bank (that has ACH capabilities) to include your UFB account as a funding option, then you can always pull the funds as soon as the UFB rate goes south. Problem with that is though, a lot of banks have a $2000 limit per day using ACH. Hmmmmm; decisions, decisons.....
Anonymous
Anonymous   |     |   Comment #10
Oh boy now I can retire!
Anonymous
Anonymous   |     |   Comment #11
Classic bait and switch.
Anonymous
Anonymous   |     |   Comment #13
If your looking for rate stability, AVOID this bank.
Anonymous
Anonymous   |     |   Comment #15
RE:"The minimum balance required to earn the 1.20% APY is $25K, with balances below $25K earning 0.20% APY. In addition, the stated APY requires new money
When compared to the 144 Savings Accounts tracked by DepositAccounts.com that are available nationally, UFB Direct’s UFB Savings APY currently ranks first, regardless of minimum balance requirement. " I do not think this is correct as you are only earning 0.2% on the $25000 of your balance, correct?
RichReg
RichReg   |     |   Comment #16
Does no one on this board understand the definition of minimum balance requirement?
Please read Comment #7.

The other bankrates Ken listed are the NEXT BEST RATES available where there is no minimum balance requirement.
Almost UFBer
Almost UFBer (anonymous)   |     |   Comment #17
Just tried to open an account there. Between submitting my application and the approval (about 3 weeks), they dramatically lowered the rate on new savings account from 1.2% to 1.0%. No reason to move my money there from my existing account at the other bank, where money transfers are much easier and always free. Bye bye UFB!
Jeffrey Wilens
Jeffrey Wilens   |     |   Comment #18
Confirmed effective June 13th they just lowered the rate to 1% from 1.25%.
Anonymous
Anonymous   |     |   Comment #19
Virus Bank offer:  Just got a call today 7/26/16 from a Relationship Manager at Virtus Bank, offering to move my USB Savings funds over to Virtus Bank (also a division B of I) with the enticement of a 12 month rate guarantee at the current interest rate of 1.00%.