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GOBankingRates Score
4.4
SCORE
GOBankingRates Best Banks 2023 scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks.
Quick Take: UFB Direct is good at what it does -- providing a simple lineup of high-yielding savings accounts. However, those looking for all-in-one, full-service banking may want to look elsewhere.
- APY
5.5
- Range of products:
2.0
- Mobile banking:
5.0
- Customer service:
5.0
How did we calculate this?
Pros
- High APYs on savings and money market accounts
- Fees for most accounts are $0 or waivable
- 24/7 phone-based customer service
- 4.8-star 91,000 fee-free ATMs reviews on mobile app
- 91,000 fee-free ATMs
Cons
- $10 monthly fee on money market account for accounts under $5,000
- $25 NSF fee
- Limited number of account types
Types of Accounts Offered
UFB Direct offers a limited number of deposit accounts, as follows:
Savings Accounts
UFB Direct offers one straight savings account, UFB Portfolio Savings. The account pays a APY and has no maintenance fees or minimum balance requirements.
Money Market Accounts
UFB Direct offers a single money market account, the UFB Portfolio Money Market. It requires a $5,000 minimum balance to avoid the $10 monthly fee and currently pays a APY.
Certificates of Deposit (CDs)
At the present time, UFB Direct does not offer CDs.
Mortgages
Through its parent institution, Axos Bank, UFB Direct offers a variety of home mortgages that feature:
- A $0 lender fee
- Up to 3% annualized cash back
- The ability to earn 20% of your agent’s commission through the HomeAdvantage Cash Rewards Program
The broad range of available mortgages includes the following:
- Non-conforming loans
- FHA loans
- Portfolio loans
- VA loans
- Jumbo and Super Jumbo loans
- DSCR loan program
- Interest-only mortgages
- Home equity lines of credit
UFB Direct also offers an insured cash sweep program known as the InsureGuard+Savings account. This allows you to bump your FDIC coverage from the standard $250,000 to as much as $225 million. This program works via an arrangement UFB Direct has with partner banks. Customer deposits are farmed out to these institutions in amounts under $250,000 to net the maximum amount of insurance available. This puts the deposit limit for the InsureGuard+ Savings account at $1 million. If you have more to deposit, you’ll have to call the bank at (855) 818-4113 to work out a separate arrangement.
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Fee Structure
The UFB Direct checking and savings accounts do not have monthly maintenance fees. The Portfolio Money Market account charges a $10 monthly fee, but it is waived with account balances of at least $5,000.
Here’s a look at some of the most common service fees charged at UFB Direct:
| Fee | Amount Charged |
|---|---|
| NSF/Uncollected funds | $25 per item / max $75 per day |
| Incoming wire transfers | Free |
| Outgoing domestic wire transfers | $35 |
| Outgoing international wire transfers | $45 |
| Debit card/ATM transactions | Free |
| Paper account statement | $5 |
| IRA transfer fee | $35 |
| IRA closing fee | $35 |
| Excess transaction or withdrawal | $10 |
| Visa® Debit Card Foreign Currency Conversion Rate | 1% |
Interest Rates Comparison
| Account | Minimum | Monthly Fee | APY |
|---|---|---|---|
| UFB Portfolio Savings | $0 | $0 | 5.15%; up to 5.35% when bundled with Freedom Checking Account, a balance of at least $10,000 and 10 or more debit card transactions per month |
| UFB Portfolio Money Market | $5,000 to avoid monthly fee | $10, waived with balances of at least $5,000 | 5.15% |
Online and Mobile Banking Features
As an online-only institution, UFB Direct relies on its website and mobile app to deliver its customer experience. Its website is categorized into four simple groups:
- Checking
- Savings
- Mortgages
- Support
The mobile app is popular on both Google Play and the App Store. However, it hasn’t received an extensive amount of reviews on either site. On Google Play, for example, there are just 2,847 reviews, but the average score is 4.8. On the App Store, 11,479 reviews give the UFB Direct app the same 4.8 stars.
Customer Service Quality
UFB Direct has excellent customer service, especially for an online-only bank. The bank’s live customer service number, at (877) 472-9200. You can call 24 hours a day, 7 days a week. This is something uncommon in the banking world. International callers can use (858) 350-6200. The bank also has an online secure message system.
On TrustPilot, UFB Direct has 105 reviews, with an average rating of 3.1. Reviewers seem split, with 42% giving a 5-star rating and 32% giving a 1-star rating.
How To Open an Account
You can easily open a UFB Direct account online on the bank’s website. There are separate links for new customers, existing customers or returning applicants.
To open an account at UFB Direct, you’ll need the following information:
- Government-issued driver’s license or state ID
- Social Security number
- A valid U.S. address (no P.O. boxes)
- U.S. mobile phone number
- A valid email address
You’ll also need to be a U.S. citizen or resident alien if you want to apply for an account online, and you must also be at least 18 years old. Teen accounts must be opened by a parent or guardian 18 years or older. Children aged 13 to 17 qualify for teen accounts. Non-resident aliens may still be eligible for an account, but they must contact UFB Direct’s Premier sales team at (855) 818-4113 to determine eligibility and inquire how to open an account.
Competitor Comparison
UFB Direct has a number of online bank competitors. Here are some of the most notable.
UFB Direct vs. Ally Bank
Ally Bank is a popular online-only institution that offers a wide range of accounts, in contrast with UFB Direct’s limited lineup. Ally Bank, for example, offers everything from:
- Checking
- Savings accounts
- Home mortgages
- Auto loans
- Credit cards
- Automated investing
- Self-directed investing
- CDs
- IRA accounts
However, its no-fee savings and money market accounts pay an APY of just , well below the or more available at UFB Direct.
UFB Direct vs. CIT Bank
CIT Bank offers:
- eChecking
- CDs
- Money market
- Three types of savings accounts
Platinum Savings, its high-yield savings account, pays a APY. All of its deposit accounts have:
- No monthly maintenance fees
- Low minimums
- Relatively high APYs
Even CIT’s checking account offering an APY of up to . CIT Bank also has no overdraft fees.
UFB Direct vs. Discover Bank
Discover Bank has no monthly maintenance fees on any account and no insufficient funds or overdraft fees.
Discover provides more options than UFB. It offers a:
- Checking account
- Savings account
- Money market account
- CD account
- IRA CD account
- IRA savings account
The checking account pays 1% cash back on up to $3,000 in debit card purchases each month. The high-yield savings account offers an APY of , below what’s available at UFB Direct. The bank’s 12-month CD pays a APY.
Unique Selling Points of UFB Direct
Although UFB Direct has a limited number of accounts, it has a lot of unique selling points to offer customers. Here are the highlights:
- High interest rates on savings and money market account
- No monthly fees on savings account, waivable fee on money market
- Excellent mobile app
- Customer service always open
- FDIC insurance of up to $225 million is available
FAQ
- What types of accounts does UFB Direct offer?
- UFB Direct offers a high-yield savings account, a money market account, a checking account and home mortgages. It also offers InsureGuard+, which greatly expands FDIC insurance on customer deposits.
- What are the interest rates for UFB Direct savings accounts?
- The UFB Direct Portfolio Savings account pays a 5.15% APY.
- Are there any fees associated with UFB Direct accounts?
- Most UFB Direct accounts have no monthly maintenance fees. However, there is a $10 monthly fee on the Portfolio Money Market account for balances below $5,000. There are also a minimal amount of service fees, such as a $25 overdraft fee and a $10 excessive transactions fee.
- Is UFB Direct FDIC insured?
- Yes, UFB Direct carries standard $250,000 FDIC insurance. However, with the InsureGuard+ product, that insurance extends up to $225 million.
Information is accurate as of August 8, 2024, and is subject to change.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
