Like many, I’ve been prone to sticking with a savings account for too long over the years because I didn’t want to go through the process of signing up for a new account and closing an old account. But with higher interest rates than we’ve seen in over a decade, I decided at the end of last year that it was time to take the plunge and reassess my savings accounts.
UFB Direct High Yield Savings
Monthly maintenance fee
$0
Minimum deposit requirement
$0
On UFB’s Website
After looking at every important factor I could think of, I settled on UFB Direct’s high-yield savings account, largely because of its annual percentage yield (APY). Here’s why I chose it and how it’s been using the UFB Direct Secure Savings account for the past several months.
What I like about it
The APY is too good to pass up
If you’re considering a high-yield savings account, chances are you’re probably looking to take advantage of high interest rates to maximize your earnings. I’ve analyzed hundreds of savings accounts over the past several years, so I have a good idea of which factors are most important to me when picking a high-yield savings account, and a high annual percentage yield (APY) is at the top of the list. With an APY up to 5.25%, UFB Direct’s Secure Savings account fits the bill.
An APY this high borders on the highest available rate even for certificates of deposit (CDs). And while you can’t lock in this rate over an extended period like you can with a CD, the flexibility of being able to withdraw funds immediately with no penalty makes the UFB Direct high-yield savings account an ideal option for emergency funds.
The earning structure is also very simple with no minimum deposit and no difference in APY among balance tiers. Some banks may require you to set up direct deposits, sign up for additional products or meet other requirements to obtain the top APY, but that’s not the case with the UFB Direct HYSA.
But what does this high 5.25% APY look like in action? Here’s an example of potential earnings on the UFB Direct account at the end of one year if the APY remains the same:
It’s a no-frills user experience once you’re a member
For an online-only bank, having a streamlined user experience is an important factor to consider. And, it’s one thing I think UFB Direct does well. Once you log in to UFB Direct’s website, you’re met with a simple, no-frills dashboard that gives you basic information like transaction history and a chart showing how your account balance has grown.
You won’t find any personalized savings tools like savings buckets or specific balances for definable goals. While some may find the lack of features to be an issue, others like myself appreciate how straightforward the site is. It’s a much simpler experience than SoFi, for example, which features many more options and insights but comes with more prominent ads for additional SoFi products.
It’s not just the desktop experience where UFB Direct impresses, but also on its mobile app. The UFB Direct app scores high on both the Apple App Store (4.8-star average) and Google Play (4.7-star average). I found the app similar to the online experience: straightforward with no extra bells and whistles. Similarly, thanks to the straightforward interface, I’ve found the experience of moving money in and out of my account to be seamless.
What I don’t like about it
The high APY can change with a moment’s notice
Like almost all high-yield savings accounts, the APY on this account is variable and can change as often as daily at UFB Direct’s discretion. This is my biggest concern with the account, as potential rate changes from the Fed have been circulating for months. If the Federal Reserve Board lowers the federal funds rate, the APY on this account will surely go down. I account for this by splitting my savings between this high-yield savings account and CDs, which lock in the high interest rate but don’t offer liquidity.
Signing up for the UFB Direct high-yield savings account can be better
Becoming a customer is an area where UFB Direct can easily improve. I got stuck while signing up for the account when a window appeared asking me to accept the terms. The window loaded improperly, leaving no text showing and no way of scrolling down to click the button to accept. This left me in a disconcerting spot of not knowing exactly where I stood in the sign-up process or how to move forward after already submitting my personal information.
I got through this sticking point by trying a mix of different browsers and switching between mobile and desktop. It worked eventually, but it was frustrating.
For comparison, I signed up for a CD with Quontic Bank the same week, and that online process was much smoother. If UFB Direct invests in its application and sign-up process, it’ll iron out one of the biggest pain points on the account that I’ve experienced thus far.
What I’m not sure about
Customer service is better than average for online banks, but there are still some issues
The best high-yield savings account interest rates generally come from online banks, so you’ll have to be prepared for this tradeoff if you’re looking for the best rates. Like all fully online banks, UFB Direct doesn’t have branch access. When I had issues signing up for the account, I couldn’t simply go to a branch to sort it out. Instead, I tried to resolve the problem with UFB Direct’s virtual financial assistant, which didn’t resolve the issue.
UFB Direct does have live customer support available 24/7, but in some cases, it’s just not as good as getting help in person. I have called the 24/7 customer support line once since opening the account and was quickly connected with a live operator after speaking with UFB Direct’s virtual assistant.
I researched complaints about UFB Direct with the Consumer Financial Protection Bureau before signing up for the account. One complaint mentioned interest rates not being as high as they should be, so I watched this closely once I signed up. Overall, there are three complaints about UFB Direct on record with the Consumer Financial Protection Bureau in the past three years. (This is on par or less than the number of complaints about other institutions on our best high-yield savings accounts list, but this number highly depends on how many customers a bank has.)
I have had the account for about six months and have received the advertised 5.25% APY since I signed up. If you’re unsure what interest rate you’re earning, you can find it under the “Account Details” tab in the “Accounts” section. If you’re not earning the advertised rate, reach out to customer service to find out the reason and ask for your rate to be increased to the advertised rate.
Bottom line
Some high-yield savings accounts are better than the UFB Secure Savings account in specific areas like savings tools or website features. Still, the overall package of high APY, no monthly fees and no minimum deposit requirement is hard to beat.
For someone like me, who doesn’t mind banking online and is looking for a high-yield savings account with the highest APY from a bank with solid customer service, the UFB high-yield savings account was an easy pick.
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