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UFB Direct Bank

Rachel Morey Rachel Morey Last update:

Overview

UFB Direct is an online bank and a division of Axos Bank. They currently offer high yield savings and money market accounts, which are FDIC insured.

What sets UFB Direct apart from traditional banks is the comparatively high interest rates customers can earn on their savings account, which are higher than the national average.

While there’s no minimum deposit, customers would need to have an account balance of at least $10,000 to qualify for the 0.20% APY. The account comes with a free ATM debit card and access to digital tools for easy remote banking. There are no maintenance or service fees.

In this UFB Direct Bank review, we’ll highlight their key features, pros and cons, how to apply, and compare how UFB Direct stacks up against the competition so you can make the most informed decision.

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While UFB Direct is an online-only bank, locals can visit their one branch in San Diego, California, which is their headquarters. They also have 91,000 ATMs across the nation that customers can use.

SMS banking is available to customers—giving them access to their account features even when there’s no wi-fi.

They also have a mobile app where you can quickly and easily access your account and deposit checks.

UFB Direct Account Types

Account Type Key Features
Savings account ●        0.20% APY

●        No fees

●        Free ATM debit card

Money Market ●        0.20% APY

●        No monthly maintenance fees

●        Check-writing privileges

 

Savings Account

Their Premium Money Market account also offers 0.20% APY, but customers will need to have a balance of at least $25,000. Currently, any amount less will earn 0.10%, which is something their regular savings account does not offer.

This account offers the same digital tools, complimentary debit card, and free transfer benefits as their savings account, with some additional perks.

With their money market account, customers are given check-writing privileges and free paid-postage envelopes. While there is a minimum balance requirement of $5,000, there are no monthly fees if this balance is maintained. If the amount falls below $5,000, there is a $10 fee.

It’s also worth noting that for both savings and money market accounts, the APY is variable and set at the discretion of UFB Direct. Additionally, they are tiered variable rate accounts, meaning they pay different rates of interest depending on the account balance.

All deposit accounts are FDIC insured and offer fraud protection through the use of regular monitoring, anti-virus protection, firewalls, and SSL 128-bit encryption. To add an extra layer of protection, customers are automatically logged out of their secure session after a short period of inactivity.

UFB Direct APY

Account Type Key Features
Savings account ●        0.20% APY

What is a UFB Direct account best for?

Since UFB Direct Bank offers interest rates that are three times the national average on their savings accounts, this is something anyone with a high account balance can benefit from. Unlike their money market account, a savings account offers much more liquidity when it comes to transfers and transactions.

Anyone can open an account, as long as they’re a US citizen. Adults can open an account for minors so they can build their savings with the extra interest.

Customers can also open a joint bank account with UFB Direct Bank.

Overdraft Fees

A benefit to banking with UFB Direct is that there are no overdraft fees for their savings accounts. If a customer attempts to withdraw more than what is available, the transaction will be rejected.

If a customer attempts to submit an outgoing transfer for an amount that’s not available, it would be considered a Non-Sufficient Transfer (NSF) and be sent back, which would incur a $25 fee. For example, this would include a check that bounces. But when trying to withdraw unavailable money from an ATM, for instance, there would be no overdraft fee.

Opening an account at UFB Direct

Opening a savings account with UFB Direct Bank can be done quickly and easily online. You can visit their website and click on the “Open An Account” button under their Savings Account section.

You’ll have to submit some information, including:

  • Your name and contact information
  • Create an account with a username and password
  • Enter what type of account you’re opening (e.g. individual, joint, trust account)
  • Occupation status
  • Home address
  • Date of birth
  • Social Security Number

When submitting your application, you’ll also need to upload a photocopy of valid identification, like a driver’s license or a state ID. Applicants must be 18 years or older and a U.S. Citizen or Resident Alien.

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Pros and Cons

Pros Cons
UFB Direct has high-interest rates, compared to the national average. Customers with a minimum of $10,000 in their savings account can earn 0.20% APY. Customers can transfer funds between their UFB Direct accounts or from another bank account at any time. There are no maintenance or service fees.

●        Earn up to 0.20% APY

●        You don’t have to pay any maintenance or service fees

●        Enjoy flexible transfer options

A downside of UFB Direct is that you must have a minimum account balance of $10,000 in order to earn their high 0.20% APY. Anything below that won’t earn any interest. Another downside is the lack of diversity in their product offerings. For example, UFB Direct currently does not offer CDs. Balances under $5,000 will be subject to $10 monthly maintenance fees.

●        You’ll need a minimum of $10,000 to earn 0.20% APY

●        There are no CDs

●        You’ll have to pay $10 maintenance fees for accounts under $5,000

Comparison to similar bank accounts

Bank Key Features
Varo ●        Up to 0.20% APY (tiered rate)

●        No monthly fee

●        No minimum balance

●        Get paid up to 2 days early with direct deposit

●        55,000 ATMs with no fees

●        Offers two automatic savings programs

FNBO Direct ●        0.35% APY

●        Offers checking and savings accounts

●        Both accounts can earn interest

●        No monthly maintenance fees

●        Minimum to open an account is $1

●        55,000 ATMs with no fees

●        Offers savings account, checking account, and Visa Credit Card

 

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Disclaimer: UFB Direct proudly offers exceptional interest rates on our High Yield Savings and Premium Money Market accounts. Furthermore, we are continually looking for new ways to help our customers grow their wealth and reach their goals through bold, creative financial solutions. And that’s just part of what sets UFB Direct apart from the rest of the pack.

Disclosure
This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.
Rachel Morey Rachel Morey
Rachel Morey is a journalist specializing in finance content. She has written for some of the major lenders in the online personal and business finance industry. She has been writing professionally for nearly a decade and has projects in print and broadcasting. A native Iowan, Rachel has a special fondness for the open roads of rural America.
This review is based on the writer's personal opinion.