If you’re looking for a solid money market account and are comfortable conducting all of your banking online, you may want to take a peak at UFB Direct’s current money market offer. As of this month, UFB Direct is providing an online money market account featuring an annual percentage yield of 1.25% requiring a minimum balance of $5,000.
If you decide to go forward with this account, be sure to keep a close eye on your daily balance. If your balance dips below the $5k mark not only will you earn ZERO interest but you’ll also be dinged with a $10 monthly fee. So if you have any trepidation regarding this requirement, you may want to chose a money market account with a $0 minimum balance requirement.
UFB Direct came on the scene back in 2000 when the concept of online banking was still very new and worrisome to many consumers. Over the course of the last 12 years though UFB Direct has seen their online banking business grow dramatically. Today they control roughly $1.6 billion in consumer deposits and service almost $1.7 billion in loans – all while offering no physical branches to their customers.
UFB Direct Money Market Account Features:
(as seen on ufbdirect.com)
- Free unlimited check writing.
- Mobile deposit capability. Visit our coverage of this capability here.
- Free budget and financial software allowing you to keep track of multiple accounts (even those held with other banks).
- Set up text messaging alerts for bill payments, etc.
- FDIC insured (FDIC number 35546)
There is no question that this is an awesome interest rate in today’s savings environment. It beats all of the yields from our database of online savings accounts by a significant margin. Since they’ve never offered brick and mortar branches, their online features have been at the forefront of innovation when compared with other online only banks. The primary negative aspect of the account is the strict minimum balance requirement. While this may be no problem to those with a larger chunk of change to invest, its certainly not beneficial for the newbie saver. Here at BankVibe we went on a slight tirade over bank fees when some of the country’s largest banks started imposing them on “low value clients” (ie those with little assets) last Fall. UFB Direct seems to have a similar mind set, where they really dont want your business unless you’re bringing a lot to the table.
Interest Rates 2012:
Expect rates in general to stay at record lows until at least 2014 (according to most recent FED outline for raising key rates). UFB Direct’s rates will likely sit substantially above the national average, however, their money market account features a variable rate that can change at anytime without notice.