UFB Direct has raised the rate on its Money Market Savings to 1.41% APY. The 121 bps increase is the first rate change for the Money Market Savings in more than four years. The minimum opening deposit is $5k.
According to the Disclosure and Agreements brochure, there is a $10 monthly maintenance fee if the daily average balance drops below $5k. If the Money Market Savings is closed mid-cycle, any accrued interest will be forfeited. A zero account balance at the end of a statement cycle will result in a forfeiture in accrued interest and the account will be closed.
I first wrote about Money Market Savings about five years ago, when the account was added to the product line with an initial 1.15% APY. The first year was a rates roller coaster, with the APY finally landed at a dismal 0.20% APY in late April 2013. The following is a summary of the Money Market Savings APY’s rocky journey.
- 05/30/12 - 1.15% APY (launch)
- 07/14/12 - 1.25% APY
- 08/06/12 - 1.30% APY
- 09/04/12 - 1.10% APY
- 10/10/12 - 1.05% APY
- 10/29/12 - 0.95% APY
- 11/19/12 - 0.80% APY
- 04/24/13 - 0.20% APY
UFB Premium Savings
About four months ago, UFB Direct unveiled its UFB Premium Savings account and the initial 1.30% APY is still in effect. There has been one favorable change: the minimum balance requirement has been lowered from $50k to $25k. Balances below $25k earn 0.20% APY.
|1.30*%||$25k||-||UFB Direct||UFB Premium Savings|
|OTHER TIERS: 0.20% → Up to $25k|
Unlike the Money Market Savings, the Premium Savings requires a minimum opening deposit of $100 of new money. The fine print on the promotion page states,
Must be new funds to receive stated rate. NOTE: “New Funds” is defined
as funds that did not originate from another BofI Federal Bank Brand.
The other Bofl Federal Bank Brands include Bank of Internet USA, BofI Advisor, Bank X, NetBank, Apartment Bank, Annuitants Federal Bank, and Virtus Bank.
In a Live Chat, I was told that the opening deposit has to be new money, but “you can put more funds in from an existing account afterwards.”
The UFB Premium Savings account has no monthly maintenance fee, but there is a $10 fee for each transaction/withdrawal beyond the six allowed per monthly statement cycle. If the UFB Premium Savings is closed mid-cycle, any accrued interest will be forfeited. A zero account balance at the end of a statement cycle will result in a forfeiture in accrued interest and the account will be closed.
The line between money market accounts and savings accounts has become blurred, as financial institutions come up with new products with which to entice new customers. Other than the APYs and balance requirements, the main difference between these two UFB Direct accounts is that the Money Market Savings offers limited check writing/debit card usage, while the Premium Savings does not.
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, the Money Market Savings account must be opened online.
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 $8.6 billion, Bofl Federal Bank is also part of the public company, Bofl Holding, Inc.
As an internet division of BofI Federal Bank (previously known as Bank of Internet USA) UFB Direct operates under BofI’s FDIC Certificate (# 35546) and shares its financial history.
UFB Direct/BofI has an overall health grade of "A" at EpBooks.us, with a Texas Ratio of 3.52% (excellent) based on June 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $555.78 million, an excellent annual growth rate of 10.45%. Please refer to our financial overview of UFB Direct/BofI for more details.
How the Money Market Savings Compares
When compared to the nationally available Money Market accounts and Savings accounts tracked by EpBooks.us, UFB Direct’s Money Market Savings APY currently ranks second, regardless of minimum deposit.
|Interest Rate||Account Name||Credit Union/Bank|
|1.50% APY||Mega Money Market (no min/$35k max)||All America Bank|
|1.41% APY||Money Market Savings ($5k min)||UFB Direct|
|1.40% APY||Savings Account (no min/$5m max)||Live Oak Bank|
The above rates are accurate as of 9/12/2017.