UFB Direct Review: Pros, Cons, And Alternatives

UFB Direct is a digital bank that's currently offering some of the best yields you'll find on both their savings and money market accounts.

With the Federal Reserve still keeping rates relatively low, many high-yield bank account have been slow to raise rates. But with UFB Direct, savers can still earn over 20 times more than the national average.

But to earn those high rates, you'll need to deposit a large chunk of cash into one of UFB Direct's accounts. We break down all the features and requirements below in our review. See how UFB Direct compares to other top high-yield bank accounts.

Who Is UFB Direct?

UFB Direct is a division of Axos Bank and is an online-only bank that offers high-yield savings accounts, money market accounts, and mortgages. UFB Direct was established in 2000 and is headquartered in San Diego, CA. See other top online-only banks.

What Do They Offer?

UFB Direct offers two FDIC-insured high-yield deposit account products. Currently, it's paying up to 4.83% APY on its savings and money market accounts. To qualify for the highest APY, you'll need to meet minimum balance requirements as detailed below.

Secure Savings Account

UFB recently raised their rate on their savings account to 4.83%, but they added tier back in. UFB Direct lists several balance tiers, all of which currently offer the same APY, but that could change.

If you do not deposit funds into the account within 30 days of opening it, the account may be closed.

Savings accounts come with an ATM card, which is more common for checking accounts. However, UFB Direct is not part of an ATM network. This means you should expect to pay fees from the ATM owner when using any ATM.

Moving money into and out of your account is available through the following methods:

• ACH
• Wire
• Mailed check
• Mobile-deposited check
• ATM withdrawal

There is a limit of six withdrawals per cycle (i.e., month). This is a federal limit imposed on all banks. Restricted transactions include ACH and phone transfers.

How does their savings account compare? Check out this list of best savings accounts, or this quick comparison:

Secure Money Market Account

If you want to earn the 4.83% rate but also need the ability to use your savings like a checking account, the UFB Direct Secure Money Market Account (MMA) is the way to go. Again, this is only for those who have five figures ready to set aside.

The UFB Direct MMA earns 4.83% APY on the full balance, but if your account balance falls below $5,000, you’ll be charged a $10 monthly maintenance fee.

UFB's MMAs do require a higher balance than their savings accounts to earn the best rate. But, for that higher balance, you get limited check-writing privileges.

You'll also get complimentary postage-paid envelopes and a Visa® debit card. Compare the UFB Direct MMA with other top money market accounts.

Mobile App

The UFB Direct mobile app allows you to deposit checks into your account. When you don’t have access to wifi, you can use SMS for account management. The mobile app has a 4.7/5 rating from 3 people on the Apple App Store and a 3.3/5 rating from 13 reviews on Google Play.

Customer Service Complaints

UFB Direct has a 3.3 star rating on Trustpilot, and a 1 out of 5 star rating on BBB. They also get a 2 star rating on DepositAccounts. While these are low, they have been improving over the last year.

Many of the complaints are around customer service and slow transfers. This includes outsourced call centers, lack of customer service follow up, and slow money transfers (both into new accounts, and withdrawals from existing accounts).

Are There Any Fees?

There are no fees whatsoever with its high-yield savings account. But you'll be charged a $10 monthly maintenance fee on the UFB Premium Money Market if your balance falls below $5,000.

How Do I Open An Account?

UFB Direct is a completely online bank so there are no branches that you can visit. Go to https://www.ufbdirect.com to open an account.

Yes — UFB Direct is FDIC-insured, so account balances up to $250,000 will be completely protected by the federal government. Learn how to insure deposits above the FDIC limit.

It also takes security and fraud seriously. Its website comes with 128-bit encryption and accounts are constantly monitored for fraudulent activity. Its online banking portal will also automatically log you out after a period of inactivity.

Why Should You Trust Us?

I have been writing and researching banking and personal finance products since 2009. At The College Investor, we've been comparing and reviewing banks since 2018, and track the best banks for savings and money market accounts daily from a list of over 50 major banks and credit unions.

Furthermore, our compliance team reviews our rates every weekday to ensure that we are accurately showing the correct rates and terms so you can make an informed decision about where to open a savings account.

Who Is This For And Is It Worth It?

UFB Direct offers some of the highest-earning, FDIC-insured deposit accounts you'll find. And its MMA provides services similar to those you’ll find in a checking account while still paying a high APY. So if you have the funds to meet the minimum balance requirements, it could certainly be worth it to open an account.

However, these accounts aren't for everyone. If you don't have at least $10,000 to save, you'll earn 0% on UFB's savings accounts. And if you don't keep at least $5,000 in its money market accounts, you'll be charged a $10 maintenance fee.

If you're looking for high-yield accounts with low minimum balance requirements and fees, check out the best savings accounts and best money market accounts available today.

UFB Direct Features