UFB Direct review August 2024: Limited account options but high-yield savings and money market accounts with APYs above 5%

UFB Direct is a good option if you’re looking for competitive savings rates. However, it doesn’t provide stand-alone checking accounts or certificates of deposit (CDs). If you’re in the market for a bank with more account options, check out the UFB Direct alternatives below.

UFB Direct rates and products

UFB Direct offers high-yield savings accounts and money market accounts with competitive rates. While it does offer a checking account, it must be linked to an existing UFB Direct account and cannot be the only account you open. Additionally, UFB Direct offers a range of mortgage products as well as a savings account for high-net-worth individuals.

UFB Portfolio Savings account

UFB Direct offers a free, high-yield savings account with no minimum deposit requirements or monthly maintenance fees. Earn up to 5.15% annual percentage yield (APY), which is on par with the best overall high-yield savings accounts. You’ll even get a complimentary ATM card that you can use to access over 91,000 ATMs nationally with daily withdrawal limits up to $510. The UFB savings account has a few additional limits:

• $250,000 maximum opening deposit
• $30,000 maximum daily transfer
• $60,000 maximum monthly transfer

UFB Direct’s savings rate compared to current top rates

While UFB Direct is a great option, there are some institutions that offer higher interest rates. Compare the rates above to this list of competitors:

UFB Direct InsureGuard+ Savings account

UFB Direct’s InsureGuard+ Savings account functions like its standard savings account but provides expanded FDIC insurance up to $200 million. Typically, the FDIC provides standard coverage of up to $250,000 per bank. With the InsureGuard+ Savings account, UFB sweeps deposits to multiple accounts at member institutions in amounts under the standard FDIC insurance maximum.

Receive just one statement and manage your money through a single relationship. Account minimums start at $1 million and include competitive interest rates without any fees.

UFB Freedom Checking account 

UFB Direct doesn’t have a stand-alone checking account but does offer a checking account that you can add to other UFB accounts. The account carries a $2 monthly maintenance fee that you can waive with a minimum daily balance of $100. If you’re looking for a truly free option, check out the best free checking accounts.

With the UFB checking account, you can access your funds  24/7 with its online banking tools and take advantage of its network of ATMs as well as up to $10 in ATM fee reimbursement. The checking account offers up to 0.20% APY but you must meet the following criteria to unlock the checking account bonuses:

• Unlock 0.05% APY with $5,000 in monthly direct deposits
• Earn an additional 0.10% APY with a minimum balance of $10,000
• Earn an extra 0.05% APY with 10 approved debit transactions per statement cycle

UFB Portfolio Money Market account 

UFB Direct offers one of the best money market accounts with the security and rates of a savings account and the ability to write checks. It also offers a free debit card. While the APY is comparable to its savings account at 5.35% APY, it has a $10 monthly maintenance fee that can be waived with a $5,000 balance.

Other services UFB Direct offers 

Though UFB Bank has limited deposits products, they offer a variety of mortgages through Axos Bank, including:

• Conforming mortgage loans: Conforming loans are mortgages that meet criteria set by Fannie Mae and Freddie Mac. Conforming loans are capped based on your county, but it’s $726,200 in most counties. Loan requirements include good to excellent credit and easy-to-document income.
• Non-conforming loans: These mortgages do not meet Fannie Mae and Freddie Mac. They are for borrowers with loans worth over $726,200 or less than stellar credit. You may be eligible for lender fees to be waived if you have a deposit account with UFB Direct.
• FHA loans: The FHA loans allow for down payments as low as 3.5%. They also have more flexible qualification guidelines with lower credit scores and down payment requirements.
• Portfolio loans: The Portfolio loan program provides loans from $150,000 to $30 million. These loans do not meet Fannie and Freddie guidelines, with the lender setting the terms instead.
• VA loans: VA loans are available to veterans, active duty members, and surviving spouses. The Department of Veterans Affairs guarantees these loans and may require no down payment.
• Jumbo/Super Jumbo loans: Jumbo and super jumbo loans exceed Fannie and Freddie loan limits of $726,200. At Axos, these mortgages cover large loans of $30 million or more.
• Home equity loans/home equity lines of credit: Home equity loans allow you to borrow against the value of your home. UFB Direct offers home equity loans, HELOCs ranging from $30,000 to $250,000, and cash-out refinancing ranging from $50,000 to more than $5 million. 

You can apply for a mortgage online or by phone. Lender fees are waived on mortgages of $250,000 or more for existing Axos or UFB Direct account holders.

UFB Direct platform and customer support 

UFB Direct is an online-only bank offering 24/7 online access through its desktop or mobile app. Check your account balances, view your transaction history, transfer funds, and more. You can even deposit your checks remotely using your mobile camera or computer scanner. For more information on digital banks, check out the best online banks and credit unions.

You can contact customer service directly through UFB’s platform. The bank offers a 24/7 phone number as well as the ability to submit a secure message or use its live chat service.

Is UFB Direct secure?

UFB Direct is a secure bank with standard FDIC insurance of up to $250,000 with no reported data breaches. For high-net-worth individuals, it also offers the ability to insure up to $200 million by sweeping your deposits to multiple accounts at member institutions in amounts below the $250,000 FDIC insurance maximum.

UFB Direct user reviews

UFB Direct’s customers rate the bank at an average of 3.5 out of five stars according to review sites, such as WalletHub and Trustpilot. Users report that it can be challenging to initiate same-day transfers in or out of UFB’s savings accounts and that existing users will sometimes be unable to take advantage of new APYs as interest rates increase.

In our experience, we have also seen the advertised APY fall without warning after opening an account. This is a caveat that UFB Direct makes clear in its fine print, but may be off-putting to some customers.

Compare UFB Direct alternatives

UFB Direct	SoFi	Quontic Bank
Checking account APY	Checking account APY	Checking account APY
0.20%	1.20%	1.10%
Monthly fee	Monthly fee	Monthly fee
$0	$0	$0
Savings account APY	Savings account APY	Savings account APY
5.15%	Up to 4.50%*	4.50%
Online only?	Online only?	Online only?
Yes	Yes	Yes
View offer at Money.com	Read our review of SoFi	Read our review of Quontic

*SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

Is UFB Direct right for you?

UFB Direct may be right for you if you’re seeking an online bank that offers a competitive, high-yield savings account without any fees or minimums. It may also be right for high-net-worth individuals who need FDIC insurance up to $200 million. However, it is an online-only bank that doesn’t offer a stand-alone checking account or its own ATMs and isn’t right for those who need access to branches or fee-free ATMs.

Frequently asked questions

Is UFB Direct a real bank?

Yes. UFB Direct is an online-only bank that is FDIC-insured through Axos Bank. They offer consumer banking products like high-yield savings, money market accounts, and a wide array of mortgage loans.

Is UFB Direct safe?

Yes, UFB Direct is a safe bank with standard FDIC deposit insurance up to $250,000. For high-net-worth individuals, it offers a savings account with up to $200 million in expanded FDIC insurance. While it is an online-only bank, it is as safe as a traditional brick-and-mortar option.

Who owns UFB Direct?

UFB Direct is owned by Axos Bank and serves as its online-only division. Axos Bank was established in 2000 and has roughly $20 billion in assets. Axos Bank offers mortgages in addition to the traditional banking products offered by UBS Direct.

Where is UFB Direct located?

While UFB Direct lists its headquarters in San Diego, California, it is an online-only bank that doesn’t offer branches or its own network of ATMs. While it is as safe as a brick-and-mortar alternative, those who need physical locations should consider another bank.