An internet bank shocked savers by significantly raising the yield on its money market account.
UFB Direct’s Money Market Savings Account pays 1.41 percent APY. That’s a whopping 121 basis points higher than its previous rate. One basis point is equal to one-hundredth of a percentage point.
The new yield is the highest nationally available savings rate. It’s 10 basis points higher than the top money market account rate offered by EverBank. It’s one basis point higher than the top savings account rate offered by DollarSavingsDirect.
|Salem Five Direct||1.35%||$100|
If you want to earn a higher yield, check out today’s top CD rates.
The fine print
To earn UFB Direct’s competitive rate, you’ll need to pony up at least $5,000. That makes the bank’s money market account a good fit for savers with plenty to sock away.
Like many money market accounts, UFB Direct’s offer comes with limited check-writing abilities. You can deposit checks for free using your computer or mobile phone.
Just make sure your average daily balance is at least $5,000. You’ll still earn the top yield if your account balance falls below that threshold, but you’ll be hit with a $10 monthly maintenance fee.
Also, only six transactions — including debit card purchases, online transfers and written checks — are allowed every monthly statement cycle.
Interest compounds daily, giving you the chance to earn as much on your savings as possible.
How to open a UFB Direct money market account
You can apply for UFB Direct’s money market account online or over the phone. Account holders must:
- Be at least 18 years old
- Be a resident alien or U.S. citizen
- Have a Social Security number
- Have a valid state ID or U.S. driver’s license
- Have a valid U.S. address
Opening an account can be done within minutes. But if you’ve recently placed a security freeze on your credit report, you’ll need to temporarily remove it and wait 30 minutes before submitting your application. It’s unusual for a bank to pull your credit before you open an account although not unheard of.
You can fund your money market account using an electronic transfer or a debit card. You can also make your initial deposit by mailing in a check.
About UFB Direct
UFB Direct is an online division of BofI Federal Bank, an FDIC-insured institution based in San Diego. In addition to its money market savings account, UFB Direct offers savings accounts and an airline rewards checking account.
BofI Federal Bank earned five out of five stars on Bankrate’s latest Safe & Sound Ratings, which measures the financial health of banks and credit unions throughout the United States.