bank rates

New Savings Rate Leader Pays 1.30%

UFB Direct pays this savings rate with a $100 minimum deposit.With plenty of other banks cutting savings rates, a new division operated by Bank of Internet USA has swooped in to offer the best nationally available deal — 1.30% APY.

UFB Direct (www.ufbdirect.com) recently launched its Airline Rewards Savings Account, which features the top national rates, plus sweetens the deal by offering airline miles.

Ninety days after you open your account, you’ll earn 500 airline miles. You’ll earn 500 miles more if you keep your account open for a year.

Points currently are redeemable on American Airlines only, but the bank hopes to bring other airlines on board.

A minimum $100 deposit is required to open an account at UFB Direct, which previously had been operated by Waterfield Bank. The FDIC shuttered that Germantown, Md. institution in March 2010.

The 1.30% APY savings rate is two-tenths of a percentage point better than the next best nationally available account.

Paying 1.10% APY are:

Discover Bank (www.discoverbank.com), which has a $500 minimum deposit. It’s the bank owned by the credit card company and based in Greenwood, Del.

Clear Sky Accounts (www.clearskyaccounts.com), which also has no minimum deposit requirement. This is the online division of Chesapeake Bank of Williamsburg, Va., with 11 branches in Virginia.

Sallie Mae Bank (www.salliemae.com), which has no minimum deposit requirements. The bank is owned by the student loan company and based in Salt Lake City.

Both Colorado Federal (www.coloradofederalbank.com) and MainStreet Bank (www.airbanking.com) had offered 1.10% APY, but recently cut their rates.

The UFB Direct offer is slightly better than the top nationally available money market account rates paid by three different banks.

It’s also significantly better than Bank of Internet’s top savings rate of 0.80% APY.

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

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  1. Mike Cetera said:
    on August 26th at 02:07 pm

    Clear Sky Accounts has cut its savings rate to 1.04% APY.