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An online bank with no minimum to open a savings account
ByJackie Lam
Updated July 26, 2024
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Maddy Simpson
Fact checked byMaddy Simpson
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UFB Direct is an online-only bank offering deposit accounts and mortgages. It's a division of Axos Bank, which is a digital bank founded in 2000. UFB’s parent bank launched as Bank of Internet USA and rebranded as Axos in 2018. This comprehensive review will help you determine whether UFB Direct’s accounts are a good fit for your needs. Pros & Cons Pros Good interest rates on deposit accounts No minimum deposit to open a savings account No bank fees on any ATM in the U.S. Cons Sizeable balance required to get high APY High deposit required to open a money market account Limited account options Company Overview Table of Contents UFB Direct Bank Review Pros Explained Cons Explained Best For Bank Offerings Customer Service Other Products How to Bank Final Verdict Methodology 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: UFB offers a limited selection of accounts with a full range of online services: 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: 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’s money market account boasts a very competitive APY, with rates as follows: 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. 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. 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. 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. 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. UFB Direct. “Savings Accounts.” UFB Direct. "UFB Portfolio Savings." UFB Direct. “UFB Portfolio Money Market.” UFB Direct. "Disclosures." Page 17. J.D. Power. "Established Direct Banking Brands Flex Their Digital Banking Muscle, According to J.D. Power." Pros Explained
Cons Explained
Who Is UFB Best For?
What Does UFB Offer?
UFB Portfolio Savings Account
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% UFB Portfolio Money Market Account
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
Other Financial Products Offered by UFB Direct
How To Bank With UFB
Final Verdict
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