rewrite this title UFB Direct Review – Online Banking With High Yields

UFB Direct is a subsidiary of Axos Bank, a diversified financial services firm that administers deposit accounts and credit products for everyday consumers, small businesses, and commercial enterprises. Anyone with a U.S. address can make deposits and apply for loans.

UFB Direct has a focused but competitive lineup of deposit accounts, including savings, checking, and money market options. Like many other U.S.-based online banks, UFB Direct provides FDIC insurance up to $250,000 on all deposit accounts. For high-net-worth individuals, UFB also offers expanded FDIC insurance up to $265 million through its InsureGuard+ Savings program. The bank offers some nice value-added perks, including enrollment in Quicken’s FinanceWorks, a free budgeting tool, and mobile deposit capabilities through its highly-rated app.

UFB Direct also offers mortgage loans for single-family home purchases through Axos Bank, with waived lender fees on eligible mortgages of $250,000 or more for existing customers.

Key Features

UFB Portfolio Savings Account

This account requires no minimum opening deposit or monthly maintenance fee. The base yield is 3.76% APY on all balances. Customers who bundle this account with UFB Freedom Checking can earn up to 3.96% APY by meeting qualifying activities: $5,000+ in monthly direct deposits (+0.05% APY), maintaining $10,000+ minimum daily balance in checking (+0.10% APY), and completing 10+ debit card transactions per statement cycle (+0.05% APY). The account includes a free optional ATM card.

UFB Freedom Checking Account

This interest-earning checking account requires no minimum opening deposit and has no monthly maintenance fee. The account earns 2.00% APY on checking balances when bundled with UFB Portfolio Savings – roughly 25 times the national average for checking accounts. The account comes with a complimentary debit card and access to over 91,000 fee-free ATMs nationwide, plus up to $10 in out-of-network ATM fee reimbursements monthly.

UFB Portfolio Money Market Account

This account requires a $5,000 minimum balance to avoid the $10 monthly maintenance fee. The yield is 3.76% APY on all balances. The account comes with a free optional debit card and includes check-writing privileges for added flexibility.

Additional Features

UFB Direct offers free person-to-person (P2P) transfers through Popmoney and integrates with mobile wallet apps like Apple Pay, Samsung Pay, and Google Pay. Customer support is available 24/7 by phone (except on federal holidays) and via online chat on weekdays from 8am to 5pm Pacific Time.

The bank’s mobile app earns strong reviews in both app stores (4.8 and 4.7 stars from over 17,000 users) and includes mobile check deposit, account transfers, bill pay, and customer service contact. UFB Direct also provides FinanceWorks, a Quicken-powered personal accounting program, to every depositor at no charge.

Advantages

Competitive Rates on Savings and CheckingUFB Direct’s 3.76% APY base savings rate is competitive, with the ability to boost it to 3.96% through bundling. The Freedom Checking account’s 2.00% APY is exceptional – a $10,000 checking balance earns $200 annually versus $0 at most traditional banks.

No Monthly Fees or Minimum DepositsBoth savings and checking accounts have $0 minimum deposit requirements and no monthly maintenance fees, making it easy to get started regardless of your financial situation.

24/7 Customer SupportUnlike many online banks with limited support hours, UFB Direct offers round-the-clock customer service by phone, providing assistance whenever you need it.

Massive ATM NetworkAccess to 91,000+ fee-free ATMs nationwide, plus up to $10 monthly in out-of-network ATM fee reimbursements, ensures convenient cash access. This network exceeds major banks like Chase, Bank of America, and Wells Fargo.

Strong Digital ToolsMobile check deposit is seamless through the highly-rated app, and FinanceWorks provides powerful budgeting tools at no additional charge. Free P2P transfers through Popmoney handle informal cost-sharing situations without fees.

Disadvantages

Rate Boost Requires Multiple Qualifying ActivitiesWhile the 3.96% APY top rate is attractive, achieving it requires bundling accounts and completing three separate qualifying activities. Customers who can’t meet all requirements earn the base 3.76% APY, which is competitive but not exceptional.

No Physical BranchesOnline-only banking means no in-person service, notary services, safe deposit boxes, or face-to-face support for complex transactions.

No CDs or Retirement OptionsUFB Direct doesn’t offer CDs or tax-advantaged retirement accounts such as IRAs. This is a significant gap for savers seeking fixed-rate products or long-term retirement savings.

High Minimum Balance for Money MarketThe money market account requires a $5,000 minimum balance to avoid the $10 monthly fee, which can burden customers without substantial liquid reserves. Competitor banks like Ally don’t require minimum balances on their money market accounts.

Limited Credit OfferingsAside from mortgage loans, UFB Direct doesn’t offer personal loans, auto loans, student loans, or credit cards. Other online banks like Discover Bank have more comprehensive credit product lineups.

Frequent Product ChangesUFB Direct occasionally introduces new account types with different rates, and existing customers aren’t automatically upgraded. The bank doesn’t proactively notify customers of these changes.

Final Word

UFB Direct offers a strong combination of competitive rates and fee-free banking for digitally-savvy customers. The addition of the Freedom Checking account significantly enhances the bank’s appeal, providing one of the few checking accounts that earns meaningful interest while charging no fees.

The account lineup works best for customers with regular direct deposits who maintain healthy checking balances and can meet the bundle requirements. The 24/7 customer support and highly-rated mobile app make the online-only experience manageable.

However, the lack of CDs and retirement accounts limits UFB Direct’s appeal as a comprehensive banking solution. Customers seeking fixed-rate products, tax-advantaged savings, or in-person banking should carefully consider whether the competitive rates justify these limitations.