UFB Direct Review 2024

UFB Direct is an online-only bank that is a division of Axos Bank. It offers two primary savings products—the UFB Secure Savings and the UFB Secure Money Market Account—as well as an add-on checking account.

UFB Freedom Checking Account

UFB Direct doesn’t offer a standalone checking account, but it does offer an interest-bearing checking account that can be added to other UFB accounts. This account comes with a free debit card and up to $10 in domestic ATM fee reimbursements per month.

The Freedom Checking account allows you to earn an additional up to 0.20% APY on your savings. The money deposited into a Freedom Checking account doesn’t actually earn interest. Instead, it’s added as a “boost” to an existing savings or money market account. To earn the full boost, you’ll have to meet the following requirements:

• Unlock 0.05% APY after setting up $5,000 in monthly direct deposits
• Unlock an additional 0.10% APY when you keep a minimum balance of $10,000
• Earn an extra 0.05% APY when you complete ten debit transactions per statement cycle

UFB Secure Savings

The UFB Secure Savings account offers up to 5.25% APY on all balance tiers, which is comparable to the best high-yield savings accounts. The account has no minimum deposit requirements, no minimum balance requirements and no monthly fees.

The account comes with an ATM card that can be used to withdraw cash at more than 91,000 ATMs across the country. Account holders can transfer cash between a linked external bank account or withdraw up to $510 per day using the ATM card.

It’s free to transfer money, and you can make unlimited transfers, but there are a few limits to be mindful of:

• Maximum initial deposit: $250,000
• Maximum daily incoming or outgoing transfer: $30,000
• Maximum monthly transfer: $60,000

InsureGuard+ Savings Account

The InsureGuard+ Savings Account account is a special account for high-net-worth individuals. It provides expanded FDIC insurance coverage up to $175 million.

Typically, the FDIC only insures accounts up to $250,000. For this reason, high-net-worth individuals have to manage multiple bank accounts. UFB Direct’s InsureGuard+ Savings account allows you to save all of your money in one place.

UFB Secure Money Market

The UFB Secure Money Market also boasts up to 5.25% APY on all balance tiers, similar to other top money market accounts. The primary difference between this account and the regular savings account is a waivable monthly fee. To avoid the $10 monthly fee, account holders must maintain an average daily balance of at least $5,000.

This account also gives you access to a debit card and allows you to write checks. You can even deposit checks into the money market account right from your phone. Debit card holders are limited to a daily spending maximum of $2,500 per day.

Through Axos Bank, UFB Direct also offers mortgages. Lender fees for Axos or UFB Direct account holders are waived for mortgages of $250,000 or more. Mortgage options include:

• Conforming mortgage loans
• Non-conforming mortgage loans
• FHA loans
• Portfolio loans
• VA loans
• Jumbo and Super Jumbo loans
• DSCR loan program
• Interest-only mortgages
• Home equity lines of credit

Savings ATM card. This is a nice feature that gives you access to free cash withdrawals at more than 91,000 ATMs.

Mobile banking. UFB Direct has a highly rated mobile banking app that also links to digital wallets like Apple Pay or Google Pay. Users also benefit from SMS banking, which allows you to access some account features via text message when you don’t have access to Wi-Fi.

Expanded FDIC insurance. While the High Yield Savings account provides standard coverage up to $250,000, the InsureGuard+ Savings account provides expanded coverage up to $175 million.

UFB Direct is an online-only bank, which means customers can access their accounts from the bank’s website or through the bank’s mobile app.

Account holders have 24/7 access to customer support through the app or via phone. Live chat is available during the week between 9 a.m. and 5 p.m. PT.

The UFB Secure Savings account does not charge a fee; however, there is a $10 monthly fee for the bank’s money market account. That fee is waived if you maintain an account balance of at least $5,000.

Other fees include:

• Insufficient funds fee: $25
• Excess transaction or withdrawal fee: $10
• Paper statements: $5
• Debit card foreign currency conversion fee: 1%

UFB Direct provides overdraft protection but charges an excess transaction or withdrawal fee. Money can be withdrawn for free at out-of-network ATMs; however, individual ATMs may charge a service fee.

UFB Direct is a reputable online bank with a competitive rate for its savings and money market accounts. While limited in the account options it offers, UFB Direct is a good option for someone looking for a high-yield savings vehicle.

UFB Direct vs. Bask Bank

The Bask Interest Savings Account offers a slightly lower interest rate of 5.10%. Like UFB Direct, there isn’t a minimum fee with Bask, and your account earns interest regardless of how much money you have saved.

If you’re a frequent flyer, Bask Bank is one you’ll want to have on your radar. The Bask Mileage Savings Account allows you to earn 2.5 American AAdvantage miles per dollar you save each year.

Despite that perk, there are some limitations. You won’t get an ATM card or access to an ATM network with a Bask Bank account.

UFB Direct vs. Ally

Ally Bank is another popular online bank that offers competitive yields on savings accounts. Compared to UFB Direct, Ally offers a wider range of account options, including checking accounts and credit cards.

One unique feature of Ally Bank is its savings buckets. These are dedicated sinking funds where you can set aside money for specific goals like taking a vacation or saving up for a down payment on a home.

While the Ally Bank Savings Account offers a high rate of 4.20%, it can’t compete with UFB Direct’s APY. If you’re only looking for a savings option and don’t need other account services, UFB Direct might be the better option.