bank rates

UFB Direct Stands Alone On Savings Rates

It pays 1.30% APY on its savings account.As 2011’s days dwindle, so has the number of banks paying more than 1.05% APY on their savings accounts.

Just six months ago, we counted nine banks paying that rate for accounts available nationwide.

Today there’s one.

Only UFB Direct’s ( Airline Rewards Savings Account has withstood the downward pressure on interest rates. It flew into our rankings in first place in August, paying 1.30% APY, and has stayed there ever since.

It has remained a standout, week in, week out, while all of its competitors have cut rates.

Not only does UFB Direct pay higher rates than other nationally available accounts, you get 500 airline miles after you’ve had your account open for 90 days and another 500 miles once your account has been open for a year.

It takes a $100 minimum deposit to open an account at UFB Direct, which is a division of BofI Federal Bank. BofI Federal Bank is based in San Diego and is the parent of Bank of Internet USA and UFB Direct.

After UFB Direct, your best options are:

Clear Sky Accounts (, which pays 1.04% APY on balances up to $249,999. Any portion of your balance greater than that amount earns 0.25% APY.

There is no minimum deposit requirement to open an account. The bank is the online division of Chesapeake Bank of Williamsburg, Va., which has 11 branches in Virginia.

SFGI Direct (, which pays 1.01% APY. You need a $500 minimum deposit to open an account, but there is no minimum balance requirement to earn interest.

SFGI Direct is the online division of Summit Community Bank in Moorefield, W.Va. There are 15 brick-and-mortar branches in West Virginia and Virginia.

Sallie Mae Bank (, which pays 1.00% APY. The bank, which is owned by the student loan company, has no minimum deposit or minimum balance requirements. Salle Mae Bank is based in Salt Lake City.

Discover Bank (, which pays 1.00% APY. It has a $500 minimum deposit requirement to open an account, but no minimum amount is needed to earn interest.

The bank is owned by the credit card company and based in Greenwood, Del.

If you’re looking for better yields, many local banks pay higher savings rates.

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

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Comments (4)
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4 Existing Comments
  1. SeniorSaver said:
    on December 28th at 08:49 am

    I established a UFB Direct savings account as a way of funneling money from maturing BOI CDs to new CD accounts at other banks. It worked pretty well. Because UFB is part of BOI, the funds from the BOI CDs were credited to the UFB account the same day, and I could initiate an ACH transfer that day at the new bank. And the UFB rate is so favorable I’ve kept some “rainy day” funds there in the savings account. If I had my druthers, however, BOI would go back to offering top-tier CD rates like it used to do.

  2. denny said:
    on December 30th at 07:48 am

    If I had my druthers, all banks would up the ante on savings account rates as well as CD rates. Guess those days are gone forever.

  3. Kathy at Bankaholic said:
    on January 9th at 08:49 am

    All of these rates are still available except for Clear Sky Accounts, which is now paying 1.00% APY.

  4. Kathy at Bankaholic said:
    on January 15th at 10:58 am

    Discover has dropped its savings rate to 0.90% APY.