bank rates

Top Savings Leader Cuts Rate To 1.10%

UFB Direct still offers the best nationally available savings rate.In this rate environment, it was inevitable.

After flying high above the competition for months, UFB Direct has cut the rate on its Airline Rewards Savings Account by two-tenths of a percentage point to 1.10% APY.

Even with that cut, UFB offers the top nationally available savings deal.

Yep, things are that bad.

UFB Direct (www.ufbdirect.com) had defied the downward pressure other national savings deals had fallen prey to, holding its rate steady since the Airline Rewards Savings Account was launched in August.

Now it’s followed the same trajectory as other former savings leaders, like SFGI Direct (www.sfgidirect.com), Discover Bank (www.discoverbank.com) and CNB Bank Direct (www.cnbbankdirect.com), which have all sliced their rates in recent months.

With the move, nationally available money market accounts now pay more than savings accounts, which has not been the case since UFB Direct flew onto the scene.

The best rates on MMAs are the 1.15% APY offered by AmTrust Direct (www.amtrustdirect.com) and My Banking Direct (www.mybankingdirect.com), which are both divisions of New York Community Bank.

Both MMAs require a $5,000 minimum deposit to open an account. Balances of $5,000 and higher earn the top rate. Balances below that earn 0.25% APY.

On the savings front, UFB is continuing to offer 500 airline miles when your account has been open for 90 days and another 500 miles when it’s been open for a year.

UFB requires a $100 minimum deposit to open an account. The online bank is a division of BofI Federal Bank, based in San Diego.

UFB Direct and SFGI Direct remain the only banks paying above 1.00% APY on their nationally available savings accounts.

SFGI, which is the online division of Summit Community Bank in Moorefield, W.Va., pays 1.01% APY. A $500 minimum deposit is required to open an account, but you don’t need to maintain a minimum balance to earn interest.

Some local banks and credit unions continue to offer better deals than what’s available nationally. Here are some local savings deals we’ve found.

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

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