UFB Direct Review: Savings
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Overall bank rating
- Money market
- Savings
- Banking experience
4.5
UFB Direct, a division of online institution Axos Bank, offers a savings account with a high rate, no opening minimums and no monthly fee. The bank also has a high-yield money market account that has a strong rate, but it requires a minimum of $5,000 to avoid a monthly fee.
Editor’s note, Feb. 24, 2023: NerdWallet has consistently received reader complaints since November 2022 relating to delays in customer support access, long transfer times and customers not being notified of how to benefit from ongoing rate increases. Scroll down to the banking experience section for more details.
Best for: Digital banking customers who want a savings account or money market account with strong APYs and don’t need a checking account at the same bank.
» Compare more options: See the best high yield savings accounts
Pros
- High rate and no monthly maintenance fee for its savings account.
- 24/7 live phone support.
- Online chat.
- Highly rated mobile apps.
Cons
- Doesn’t offer checking accounts or certificates of deposit.
- The money market account charges a monthly fee if the average daily balance drops below $5,000.
- Unusually long ACH transfers when initiated from a UFB account (up to seven days).
Full review
Money market
Member FDIC
3.0
/5 NerdWallet ratingHigh rate. The UFB Preferred Money Market account is one of UFB Direct's two savings accounts, though we did not consider this one as part of the bank’s overall ranking. The account's annual percentage yield is 5.02% APY for any balance.
Monthly fee unless you meet a steep minimum daily balance. Unlike the UFB Preferred Savings account, this account has a $10 monthly fee, though you can waive it if your average daily balance is at least $5,000. If you plan to keep at least that much in your savings account and want the ability to write up to six checks a month, this account might be a good choice for you.
» Learn more about money market savings accounts
Savings
Member FDIC
4.5
/5 NerdWallet ratingat UFB Direct
High rate and no monthly fee. The UFB Preferred Savings account has a strong rate of 5.02% APY for any balance. This online account also has no minimum deposit requirement and no monthly fees. This account is the one we considered in the bank’s overall rating. We feel it’s the best offering for those who want to earn a strong rate and avoid fees.
» COMPARE: See the best savings rates
Banking experience
4.5
NerdWallet ratingHighly rated apps and 24/7 support. UFB Direct has above-average mobile app ratings on Android and iOS devices as well as 24/7 customer support by phone. There is also chat support, which is with a chatbot for most cases, though live agents are available for more complex issues. The website is relatively easy to navigate to find rates, fees and support information.
Reader complaints on three issues. Since November 2022, NerdWallet readers have described delays in getting issues resolved through customer support, unusually long transfer times for funding accounts as well as the lack of information about how to benefit from ongoing interest rate increases. (These complaints and issues don’t factor into UFB Direct’s star ratings; see our methodology.)
Regarding customer support delays: “With the significant spike in new customer acquisition combined with historically low unemployment rates, we experienced some challenges with longer wait times than average,” Elise Yung, senior vice president of consumer deposits at UFB Direct’s parent institution, Axos Bank, said in an email. As a result, the servicing team has been tripled and the bank continues to find additional ways to optimize, she said. Yung recommends that customers chat with a UFB Direct chatbot or contact support outside regular business hours.
Regarding long transfer waits: “With the significant spike in identity theft, we need time to confirm the validity of any money movement before releasing it. We are indeed working on a plan for faster release,” Yung said in an email.
Regarding rate increases: UFB Direct relaunched its savings and money market accounts four times from August 2022 to February 2023, and customers of existing accounts must request to upgrade to the latest account to benefit from further interest rate increases. The bank said it has processed all requests to upgrade.
Money market
Member FDIC
3.0
/5 NerdWallet ratingHigh rate. The UFB Preferred Money Market account is one of UFB Direct's two savings accounts, though we did not consider this one as part of the bank’s overall ranking. The account's annual percentage yield is 5.02% APY for any balance.
Monthly fee unless you meet a steep minimum daily balance. Unlike the UFB Preferred Savings account, this account has a $10 monthly fee, though you can waive it if your average daily balance is at least $5,000. If you plan to keep at least that much in your savings account and want the ability to write up to six checks a month, this account might be a good choice for you.
» Learn more about money market savings accounts
Savings
Member FDIC
4.5
/5 NerdWallet ratingat UFB Direct
High rate and no monthly fee. The UFB Preferred Savings account has a strong rate of 5.02% APY for any balance. This online account also has no minimum deposit requirement and no monthly fees. This account is the one we considered in the bank’s overall rating. We feel it’s the best offering for those who want to earn a strong rate and avoid fees.
» COMPARE: See the best savings rates
4.5
NerdWallet ratingHighly rated apps and 24/7 support. UFB Direct has above-average mobile app ratings on Android and iOS devices as well as 24/7 customer support by phone. There is also chat support, which is with a chatbot for most cases, though live agents are available for more complex issues. The website is relatively easy to navigate to find rates, fees and support information.
Reader complaints on three issues. Since November 2022, NerdWallet readers have described delays in getting issues resolved through customer support, unusually long transfer times for funding accounts as well as the lack of information about how to benefit from ongoing interest rate increases. (These complaints and issues don’t factor into UFB Direct’s star ratings; see our methodology.)
Regarding customer support delays: “With the significant spike in new customer acquisition combined with historically low unemployment rates, we experienced some challenges with longer wait times than average,” Elise Yung, senior vice president of consumer deposits at UFB Direct’s parent institution, Axos Bank, said in an email. As a result, the servicing team has been tripled and the bank continues to find additional ways to optimize, she said. Yung recommends that customers chat with a UFB Direct chatbot or contact support outside regular business hours.
Regarding long transfer waits: “With the significant spike in identity theft, we need time to confirm the validity of any money movement before releasing it. We are indeed working on a plan for faster release,” Yung said in an email.
Regarding rate increases: UFB Direct relaunched its savings and money market accounts four times from August 2022 to February 2023, and customers of existing accounts must request to upgrade to the latest account to benefit from further interest rate increases. The bank said it has processed all requests to upgrade.
Methodology
NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, banking experience and overdraft fees. Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
