UFB Direct is an online bank that offers mortgage loans, checking accounts, high-yield savings accounts, and money market accounts. A growing division of Axos Bank, UFB’s competitive interest rates set it apart from its competition.
We’ve evaluated UFB Direct and provided some key details about its products, fees, and customer experience below.
UFB Direct Bank Accounts
In terms of bank accounts, UFB offers high-yield savings, MMA, and checking accounts. We’ll take a closer look at each below.
UFB Secure Savings Account
UFB’s high-yield savings account offers a remarkable interest rate. Currently, account holders can earn up to 4.21% APY on deposits. There are no maintenance or service fees, minimum opening deposit requirement, or minimum balance requirement.
UFB Secure Savings includes a complimentary debit card and free transfers between direct deposit accounts. You’ll also find plenty of tools for seamless remote banking.
UFB Secure Money Market Account
A UFB Secure Money Market account combines the earning power of a savings account with the convenience of a checking account.
Customers can earn 4.01% APY and have easy access to funds 24/7. This is one of the best rates we’ve seen for any money market account. You will also get the peace of mind that comes from knowing your account is FDIC-insured.
There is a $10 monthly maintenance fee; however, you can eliminate it by maintaining an average daily balance of $5,000 or more.
UFB Freedom Checking Account
UFB’s checking account gives you access to a network of over 90,000 fee-free ATMs and allows you to make instant transfers to your other UFB accounts.
There are no monthly fees, minimum deposits, or ongoing minimum balance requirements.
When you bundle your application with a UFB savings account, you’ll get a boosted APY on your savings.
Pricing and Fees
As an online national bank, UFB Direct keeps its pricing and fees relatively low compared to its larger brick-and-mortar competitors. But there are some fees to consider.
Monthly Maintenance Fees
The UFB Secure Savings account has no monthly maintenance or service fee. Neither does the Freedom Checking Account.
The UFB High Yield Money Market account charges a $10 monthly fee, but it is waivable.
ATM Fees
UFB Direct doesn’t own any ATMs but offers free ATM withdrawals at more than 9,000 locations across the United States. There might be additional charges from the ATM operator, so pay attention to the fees.
Overdraft Fees
Like almost all other banks, overdrafts can be costly with UFB Direct. Fortunately, you can set up overdraft protection by linking another count to cover excess charges, which I always recommend.
Other Fees
Here’s a breakdown of other fees that may come up if you decide to bank with UFB Direct:
- Paper statement fee: $5
- Outgoing domestic wire transfer fee: $35
- Outgoing international wire transfer fee: $45
- Non-sufficient funds fee: $25
While these fees are not exceptionally high, they could add up — especially if you process several monthly wire transfers.
Remember that banks are often willing to waive fees to keep customers happy. Don’t be afraid to ask for a fee waiver. As the saying goes, you can’t get what you don’t ask for.
Signing Up & Getting Started
Signing up for UFB Direct is simple and you can do it completely online.
Visit UFB Direct and select the type of account you wish to open. To open your account up as quickly as possible, you’ll need to enter the following information:
- Your name
- Valid driver’s license or state-issued I.D. number
- Social Security number
- Address
- Citizenship status
You must be at least 18 and a U.S. citizen or resident alien to open a bank account with UFB Direct.
After entering your personal information, you’ll need to add your financial details, including the size of your deposit and the external bank account that will send it. This step requires your bank’s routing and individual account number.
After completing the application, UFB will review it to verify that your information is accurate. They may also do trial deposits into your external bank account before you can transfer money to that external account.
Security Features
It’s worth noting that UFB Direct is a division of the much larger Axos Bank. As such, UFB Direct uses numerous cyber-security measures to protect your funds and account information, such as voice, fingerprint, and digital image verification for app access.
Most importantly, deposits are FDIC-insured up to the maximum allowable limit of $250,000 per individual account, and $500,000 per joint account.
Customer Service
When you need help with your account, UFB Direct’s customer service team is available seven days a week, 24 hours a day. You can also send a support request through the mobile app or website. Phone support is available round-the-clock, excluding some holidays.
UFB Direct also gives customers access to helpful tools, videos, and FAQ explainers about the most common types of issues, such as transferring money, submitting check deposits, and modifying your account details.
As for the quality of the customer service, it’s a mixed bag, with a range of reviews on sites like Trustpilot. However, UFB does have an A+ from the Better Business Bureau for its customer service.
Pros and Cons
Before we continue, let’s take a moment to summarize where UFB Direct is ahead of the crowd and where it falls a bit short:
Pros:
- Highly competitive interest rate
- No monthly fees for checking and savings accounts
- 24/7 phone support
- Well-rated mobile app
- Widespread ATM access
Cons:
- No CDs
- Monthly fee for MMAs
- Less established than other top HYSAs (e.g., Ally Bank)
Alternatives to UFB Direct
Are you looking for alternatives to UFB Direct that offer similar benefits and a competitive APY? Here are some of my top choices:
- CIT Bank: According to CIT Bank, customers can earn 15 times the national average, with a high yield of 1.55% APY and no monthly fees.
- LendingClub: LendingClub offers high-yield savings accounts with a up to 4.40% APY. There is no minimum balance requirement, but customers must make an initial $100 deposit.
- Sallie Mae: Consumers can get a high-yield money market account with 3.90% APY and benefit from no monthly maintenance fees or minimum balance requirements.
- Ally Bank: Ally Bank offers 3.60% APY on all balance tiers, savings buckets, round-ups, and surprise savings, all for no monthly maintenance fees or minimum required deposits.
Frequently Asked Questions
Before we wrap things up, let’s look at some of our readers’ most common questions about UFB Direct.
Who owns UFB Direct?
UFB Direct is a division of Axos, an online-only chartered bank headquartered in San Diego. In addition to its UFB bank accounts, Axos offers a range of loans, investment accounts, and financial planning resources.
Is UFB Direct safe?
Yes, UFB Direct is safe, secure, and FDIC-insured, meaning your funds are protected if the bank goes under. It’s also an arm of Axos Bank, which has decades of experience and a track record of offering secure banking services.
Where is UFB Bank located?
UFB Direct operates out of San Diego because that’s where its parent bank, Axos, is located. However, it doesn’t use local branches. Instead, you can access your account via UFB’s website and mobile app.
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