bank rates

New National Leader In Savings Accounts Pays 1.25% On Big Whoppin’ Deposits

The online bank owned by the big student lender hasn't been cutting interest rates like other banks.If you have a stack of cash to stash in the bank, then UFB Direct, our new national leader in savings accounts, is definitely for you.

The San Diego-based online bank is paying 1.25% APY on balances of at least $25,000. That’s two-tenths of a percentage point more than the best savings accounts had been offering and is comparable to what you can earn from the top nationally available 12-month CDs.

These accounts are open to savers in all 50 states, and there are no monthly fees. The only catch is that the interest rate is cut to 0.20% if the balance in your account ever falls below $25,000.

So while UFB Direct only requires $100 to open one of these accounts, it’s not worth your while because you’ll only earn 0.20% APY on such a low balance.

This online operation of BofI Federal Bank last led our savings rankings way back in early 2012, before dramatically cutting its interest rates.

If you don’t have enough to take advantage of that offer, then consider the two banks that had been offering the top nationally available returns on savings accounts.

CSB Direct is paying 1.06% APY on balances of $10,000 or more.

You only need to deposit $100 to open a savings account there, but balances between $100 and $2,499 earn 0.50% APY and balances between $2,500 and $9,999 earn 0.75% APY. If your balance drops below $100, you’ll pay a $2 monthly service fee.

CSB Direct is the online division of Citizens State Bank, which is based in Perry, Florida, and has four locations in the northern part of the state.

MySavingsDirect ranks right behind CSB Direct, paying 1.05% APY.

There are no maintenance fees and no minimum deposit for opening an account or earning the single, maximum interest rate.

MySavingsDirect is the online division of Emigrant Bank, which has two branches in New York City.

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