Is UFB Direct a reputable bank?

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.

What is the UFB direct controversy?

UFB implemented the alleged scheme in early 2022, when it began substituting its highest yielding money market account with a similarly named account that provided a higher interest rate exclusively to new customers, leaving its newly designated “legacy” account holders without the promised benefits.

What are the cons of UFB?

Cons There's a $10 monthly fee on the money market account unless you keep at least $5,000 in the account. UFB Direct frequently relaunches its savings and money market accounts, which can be confusing for existing customers.

UFB Direct FAQs It's an online division of Axos Bank, which is an FDIC-insured bank. This means your insured deposits are safe should either UFB Direct or Axos shut down .

Who is UFB bank owned by?

UFB Direct is a division of Axos Bank , which is an online bank that reports holding over $20.3 billion in assets. UFB Direct offers high-yield deposit accounts as well as home lending products.

Is UFB better than SoFi?

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.

How to withdraw money from UFB Direct?

How to withdraw money from a UFB savings account. You get an ATM card with your UFB Direct Portfolio savings account. You can use the card to make withdrawals at more than 91,000 ATM locations.

Does UFB Direct compound daily?

UFB sweetens the deal with an optional ATM card giving you easy access to your money. Plus, your balance compounds daily , helping your savings grow faster.

Does UFB direct charge for wire transfers?

UFB Direct doesn't charge for incoming wire transfers , but the bank you're transferring money from may charge for outgoing wire transfers.

Accounts at UFB Direct are FDIC insured to the maximum allowable limits ($250,000) per depositor (deposits at UFB Direct will be combined with any deposits you have at Axos Bank or other divisions of Axos Bank for determining FDIC insurance coverage).

Is Axos Bank and ufb direct the same?

MEMBER FDIC Axos Bank runs multiple brands over the internet. Currently, the banking brands operated by Axos Bank include UFB Direct .

What is the most stable bank in the United States?

JPMorgan Chase , the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list. This designation means it has the highest loss absorbency requirements of any bank, providing more protection against financial crisis.

Is Axos Bank a legitimate bank?

Yes, Axos Bank is a legitimate financial institution . It is FDIC-insured.

Is UFB Secure savings legit?

UFB Portfolio Savings are insured by the Federal Deposit Insurance Corporation (FDIC) through Axos Bank for up to $250,000 making them as safe as brick-and-mortar banks .

Are direct banks safe?

In fact, as long as they're FDIC-insured, online banks are just as safe as traditional brick-and-mortar banks .

UFB Direct Bank Review (2024)

We independently evaluate all of our recommendations. If you click on links we provide, we may receive compensation.

Banking
Bank Reviews

An online bank with no minimum to open a savings account

ByJackie Lam

Updated July 26, 2024

Fact checked by

Maddy Simpson

Fact checked byMaddy Simpson

Full Bio

Maddy Simpson is an experienced data journalist and fact-checker with a background in financial analytics.

Learn about our editorial policies

Open Account

Pros Explained

Decent interest rates on deposit accounts: You can often get an excellent annual percentage yield (APY) on savings and premium money market accounts (but check current rates compared to the best high-yield savings and money market accounts). If you meet the minimum daily balance requirements, you can earn a competitive interest rate on your accounts.
No minimum deposit to open a savings account: UFB's high-yield savings account has no minimum deposit, making it perfect if you're looking to open a savings account when you're just starting out.
No ATM fees: UFB doesn’t have its own network of ATMs, but you can access any ATM in the U.S. While UFB won’t ding you with an out-of-network ATM fee, there might be a surcharge from the bank or company that operates the ATM.

Cons Explained

Limited account options: UFB Direct offers only three main types of products: savings, premium money market accounts, and mortgages. If you want your bank to serve as a one-stop shop, you might want to look elsewhere.

Who Is UFB Best For?

UFB Direct should appeal to most folks who want an online bank account to park their money for long periods of time. It may be a particularly good fit for customers who:

Have a fair amount of money to tuck away into savings—or might soon
Want to a competitive interest rate on savings vehicles
Don’t have a lot of cash for a minimum required deposit
Want to open a savings account and anticipate a windfall of cash in the near future
Prefer a savings or premium money market account with a debit card and no monthly account fees
Want an online bank whose parent bank is well established

What Does UFB Offer?

UFB offers a limited selection of accounts with a full range of online services:

Savings account
Money market
Around-the-clock personal banking

UFB Portfolio Savings Account

UFB’s Portfolio Savings account comes with a debit card and does not charge monthly maintenance fees. What is particularly appealing about this account is that you don’t have to deposit a single cent to open one. The APY rates are as follows:

UFB Portfolio Savings Rates
Balance	APY
$0 - $9,999.99	5.15%
$10,000 - $24,999.99	5.15%
$25,000 - $49,999.99	5.15%
$50,000 - $99,999.99	5.15%
$100,000 or greater	5.15%

If you anticipate a small windfall of cash in the near future—perhaps by way of an inheritance, sale of an asset, or a bonus at work—you might consider opening an account now. That way you’ll have a place to tuck away that money when it comes.

You can use any ATM in the U.S. without paying out-of-network fees. However, there might be other surcharge fees that can’t be reimbursed.

Axos Bank lumps together all deposit accounts from its different brands—BofI Advisor, Bank X, NetBank, Apartment Bank, Annuitants Federal Bank, Virtus Bank, and UFB Direct—so if you have different accounts within Axos, each won’t be separately insured by the FDIC, which covers $250,000 per account, per depositor. This means that if you have $300,000 combined in different accounts, only $250,000 comes with FDIC protection.

UFB Portfolio Money Market Account

UFB’s money market account boasts a very competitive APY, with rates as follows:

UFB Portfolio Money Market Rates
Balance	APY
$0-9,999.99	5.15%
$10,000 - $24,99.99	5.15%
$25,000 - $49,99.99	5.15%
$50,000 - $99,999.99	5.15%
$100,000 or greater	5.15%

UFB’s money market account has a $10 monthly account fee, which is waived if you maintain a daily minimum of $5,000.

UFB Customer Service

Banking customers can contact the customer service line seven days a week, 24-hours a day. There is also the standard option to reach out through the website and via a mobile app. Customers also can send a message through the dashboard.

While UFB offers different customer service options, its parent Axos ranks below average in customer satisfaction. Per the J.D. Power 2021 Direct Banking Satisfaction survey, Axos scored 627 out of 1,000 points. That’s a tad below the industry average of 701.

Other Financial Products Offered by UFB Direct

Mortgages

How To Bank With UFB

You can open an account online. You’ll want to have a valid ID on hand, and basic information such as your Social Security number. Prospective account holders need to be at least 18 years old to apply.

Have questions and want to receive more information before making a decision? You can fill out a request form on its website.

Final Verdict

UFB Direct could be a good choice if you have a large sum of money you want in an online-only account. You’ll also need to mind the rules to avoid the monthly maintenance fee, and you may need to deposit more money to earn the highest APYs available, depending on the current rates.

Those who don’t have as much to put into a deposit account would probably fare better with a bank with lower minimum balance requirements.

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of banks. We collected over 20 data points across more than 80 banks including products available, interest rates, fees, and accessibility to ensure that our content helps users make the right decision for their savings and banking needs.

Open Account

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.