bank rates

And Then There Were 4: Banks That Pay More Than 1% On Savings Accounts

UFB Direct pays the top rate of 1.30%If it wasn’t for UFB Direct and its Airline Rewards Savings Account, the nationally available savings account scene would look even bleaker than it already does.

UFB continues to soar above the pack, paying 1.30% APY on all, plus you earn 500 airline miles after you’ve had your account open for 90 days, and you get another 500 miles if you keep your account open for a year.

UFB (, which is a division of Bank of Internet USA, based in San Diego, requires a $100 minimum deposit to open an account.

Its rate has remained unchanged since the bank debuted in August on our list of the best nationally available savings accounts.

After UFB’s offer, rates plummet, with only three banks paying more than 1.00% APY.

They are:

CNBBankDirect (, an online division of Citizens National Bank in Bluffton, Ohio, which pays 1.05% APY with a $1 minimum deposit. Citizens National Bank has eight branches in northwest and central Ohio.

First Trade Union Bank (, a Boston bank with a single location, which pays 1.05% APY with a $2,500 minimum deposit to earn that rate. Balances below that amount earn 0.25% APY.

Clear Sky Accounts (, an online division of Chesapeake Bank of Williamsburg, which pays 1.04% APY with no minimum deposit requirement. Chesapeake Bank has 11 branches in Virginia.

You can see how these deals stack up against the best money market and savings account rates from scores of banks in our database.

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Comments (5)
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5 Existing Comments
  1. Mike Cetera said:
    on October 20th at 12:13 pm

    Looks like First Trade Union Bank has dropped its savings account rate to 0.90% APY. Bummer.

  2. SeniorSaver said:
    on October 23rd at 01:33 pm

    I hope the lines that will inevitably form outside credit union offices will be orderly!

  3. 5 Failed Banks said:
    on November 4th at 10:00 pm

    So what exactly does this mean on their website——Bank products and services are offered by UFB Direct a division of BofI Federal Bank, are FDIC insured. Deposit accounts held at UFB Direct and other BofI Federal Bank divisions are not separately insured by the FDIC; I could be a poster child for the FDIC, I have had 5 bank failures!!!!!!!!!!! Does this mean their products and services are insured but their deposits are not????

  4. Mojave Jack said:
    on November 5th at 02:02 pm

    My son called them about this. He was told that UFBdirect is not FDIC insured directly as they are not a member of the FDIC. But accounts are FDIC insured via their parent company BofI.

    Take it for what it’s worth.

  5. Mike Cetera said:
    on November 7th at 11:32 am

    Regarding the FDIC issue, this is only a big deal if you have a combined account value at Bank of Internet and UFB Direct of more than $250,000. If each division was insured seperately, you’d be protected up to 250K at both Bank of Internet and UFB Direct — or $500,000 in total insurance. Since they aren’t insured separately, all of your money in each division is lumped together for insurance purposes. Meaning you’re covered for 250K.