bank rates

UFB Surrenders Savings Account Lead

UFB Direct has trimmed its rates for the second time in two weeks and completely dropped out of rankings of the best nationally available savings accounts.

That leaves Salem Five Direct alone at the top of our Savings Account Leaderboard, paying 1.10% APY and guaranteeing it for the rest of the year.

UFB swooped into the lead of our savings account charts back in October by offering 1.25% APY – easily beating the yield at any of its competitors.

But early this month, it cut that to 1.10% APY, and a few days later Salem Five Direct bumped up its rate from 1.05% APY to 1.10% APY, giving us a tie on the Leaderboard.

Now San Diego-based UFB Direct has reduced its return to 0.95% APY at a time when 10 other banks are paying at least 1.00% APY on their savings accounts.

The big downside to UFB Direct has always been its minimum balance requirement. Unless you have $25,000 to set aside, you won’t earn the top rate. The bank pays just 0.20% APY for lower balances.

Salem Five Direct is far more saver-friendly, paying 1.10% APY on the entire balance in your eOneSavings account up to $500,000. And with its rate increase last month, it guaranteed the rate till Jan. 1.

You need a deposit of just $100 to open your account at Salem Five Direct, and you pay no monthly service fee. The account must be opened online.

The account isn’t available if you already have an existing savings account at Salem Five Direct or a checking or savings account with its parent, Salem Five Cent Saving Bank, which has 30 branches in the Boston area.

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