UFB Direct Savings – Minimal Fees with Maximum Convenience

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Sep 02, 2024

UFB Direct Savings – Minimal Fees with Maximum Convenience

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Online and mobile banking is hardly a new concept and it takes a lot to stand out in a crowded marketplace. UFB Savings Direct has several noteworthy features, though, and enough so that it may catapult it to the top of your list for consideration. Keep reading our UFB Direct Savings review to decide if it may be the right choice for your savings goals.

In this article

What is UFB Direct Savings?

As a division of Axos Bank, UFB Direct is an online-only banking option. It offers a limited product portfolio of checking, savings, and home loan options (only available through Axos Bank). Under the savings umbrella, customers can choose from three options.

Since UFB Direct operates online banking services only, you must manage your account(s) through a mobile app, desktop, or SMS messaging. With the integration of mobile banking, you can monitor your account balance, make mobile deposits, and set up direct deposits for even more on-the-go money management.

Exceptional Interest Rates, Innovative Financial Solutions

Unlock Up to 4.31% APY**
Combine Freedom Checking with Portfolio Savings to boost your savings APY by up to 0.20%.**
Fewer fees, faster transactions. Plus, earn 2.00% APY* on your checking account.
Move money instantly between your Portfolio Savings and Freedom Checking accounts.
Skip the monthly maintenance fees and minimum deposit requirements.

Open an Account

What products does UFB Direct Savings offer?

UFB Direct Savings encompasses three savings options from UFB Direct:

UFB Portfolio Savings is its high-yield savings account (HYSA). It has no minimum balance requirement for monthly maintenance fees or opening deposits. It includes an ATM card, too.
UFB Checking and Savings Bundle, where you earn a higher interest rate when you enroll in both UFB savings and a qualifying UFB Freedom Checking account. You get the same benefits as the Portfolio savings but earn an additional 0.20% APY.
UFB Portfolio Money Market is the money market option. It offers check-writing privileges while still earning the same competitive APY.

UFB Direct Savings offers account holders a higher annual percentage yield (APY) than traditional savings accounts. UFB Direct Savings accounts currently offer a 4.31% APY (or 0.20% APY more if you bundle), compared to the national average of 0.46% APY.

The Portfolio Savings account doesn’t come with a debit card (only an ATM card) or checking account features, making it solely a vehicle for saving money and earning interest. As a division of Axos Bank, UFB Direct Savings offers FDIC deposit insurance and enhanced security protocols. It’s also worth mentioning that UFB Direct Savings does not currently offer a certificate of deposit option (CD).

Who is UFB Direct Savings best for?

If you fit one of the profiles mentioned below, UFB Direct may be ideal for you.

You want a highly competitive APY

The high APY offered by UFB Direct Savings makes it an attractive option if you’re trying to grow your savings versus what you earn with a traditional savings account. The interest rates offered by UFB Direct are some of the most competitive in the market, so you can maximize your return each month.

Tech-savvy users

Since UFB Direct operates primarily online, it’s best for those comfortable managing their finances through a mobile app or online banking platform. UFB Direct offers multiple features for enhanced convenience, including mobile deposits, seamless transferring between accounts, and banking through SMS messaging.

You like low service fees

UFB Direct Savings typically does not have monthly maintenance fees, making it a cost-effective option for those who want to avoid unnecessary service fees. However, the money market account requires a minimum balance of $5,000 each month to avoid a $10 service fee.

Who shouldn't use UFB Direct Savings?

The high interest rate and low service fees may be enticing, but you should also consider other factors.

You can't meet minimum balance requirements

To reduce monthly fees, UFB Direct Savings requires maintaining a minimum balance for its money market account. Otherwise, if your account balance exceeds $5,000, you could face a $10 monthly charge.

You prefer in-person banking

Since UFB Direct operates exclusively online, the lack of physical branches may not work for you. This could be a disadvantage if you prefer in-person banking services or are uncomfortable managing your finances solely through a mobile app or online banking platform.

If you need frequent withdrawals

UFB Direct Savings limits withdrawals to six per billing cycle. If you need regular access to your funds beyond the six allowed, a checking account or a money market account might be more appropriate, or you could face fees.

UFB Direct Savings vs. other competitors

Savers should be aware of the differences between UFB Direct Savings versus other options.

	UFB Direct Savings	AmericanExpress	SoFi	CapitalOne
Maximum APY available	4.31% (or 4.51% APY with a checking and savings bundle)	4.25%	4.5% (requires direct deposit for the highest rate)	4.25% APY
Physical branches available	No	No	No	Yes
Minimum opening deposit	$0	$0	$0	$0
Monthly maintenance fee	$0	$0	$0	$0
Number of withdrawals allowed per billing cycle	6	Unlimited	Unlimited	6
ATM access	Yes	No	Yes	No

American Express

American Express has many traits as UFB Direct, but some differences are worth highlighting. Unlike UFB Direct, you don’t have any ATM access. However, banking with American Express offers a fairly competitive interest rate and access to various banking and lending products, including retirement accounts and CDs. This could be helpful for someone who prefers having multiple accounts under one convenient umbrella.

SoFi

SoFi offers an even more exhaustive list of banking products, including insurance, loans, etc. However, to access the highest 4.50% APY, you must set up a direct deposit of $5,000 every 30 days. SoFi does not offer a savings account as a standalone either – you must open it with a checking account. By having a checking account, you’ll have more access to debit and ATM transactions and savings.

While saving with SoFi may require a checking account, it could be worth it because it allows unlimited transfers and withdrawals each month. If you have unpredictable income or bills, this could be a game changer.

Read a full review on SoFi Savings.

Capital One

Capital One offers a strong mix of online banking features and has over 280 physical branches. It also offers various other banking services and products, including credit cards, loans, and business banking. Many offer an incentive when you combine opening a savings account with it.

While these accounts offer many convenient features, none have a savings rate as high as UFB Direct.

Read a full review on Capital One 360.

Pros and cons of UFB Direct Savings

Pros

A high APY, so you can earn more interest on your deposit amounts than you would with traditional savings accounts
No monthly maintenance fees, so you can save money and avoid the frustration of seeing your savings eroded by fees
Easy online and mobile banking thanks to the online banking platform and mobile app that are user-friendly and convenient
UFB Direct Savings does not require a large minimum opening deposit, making it accessible to a wide range of savers. This is especially beneficial for those just starting to build their savings.

Cons

Limited number of banking products since UFB Direct focuses primarily on savings and checking, with fewer options for those looking for a full range of banking services such as credit cards or loans.
No physical branches if you prefer in-person banking
Imposes withdrawal limits and transfer to six per statement cycle and if you exceed this limit you could face fees or account restrictions
It doesn’t include a debit card, which limits the use of savings for certain transactions.

FAQs

Can I access my UFB Direct Savings account through a mobile app?

Yes, UFB Direct offers a mobile app to manage your savings account. The app provides convenient features such as mobile deposit, account balance monitoring, and transaction history.

Is my money safe in a UFB Direct Savings account?

UFB Direct Savings accounts are FDIC-insured and a division of Axos Bank. FDIC insurance protects deposits up to the maximum limit allowed by law, which is $250,000 per depositor.

Are there any withdrawal limits on UFB Direct Savings accounts?

UFB Direct Savings limits certain types of withdrawals and transfers to six per statement cycle. If you exceed this number, you’ll face an excess withdrawal fee.

The bottom line

If you’re looking for one of the highest APY savings account options, UFB Direct Savings could be your answer. However, if you choose it, you’ll have to be comfortable completing all your banking transactions online or through the app since you won’t have an in-person choice. You can earn even more if you combine it with a qualifying checking account, which could add greater flexibility and convenience for your banking.

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Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.

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