bank rates

UFBDirect 2.90% 12-month CD

It looks like this Indianapolis-based online bank is now offering the best deal on 12-month certificates of deposit.

UFBDirect Bank is paying 2.90% APY with an $8,000 minimum deposit.

That’s twice the national average of 1.37% for one-year CDs. It’s also a little more than GMAC Bank (2.85% APY) and Nexity Bank (2.86% APY) were paying on Friday.

The CDs sold at UFBDirect actually come from Waterfield Bank, which has a couple of full-service offices in Carmel, Ind., and Germantown, Md., and was known as American Partners Bank before it was bought last year.

You won’t find an FDIC symbol on the UFBDirect Web site, but Waterfield Bank is insured and earns two out of five stars on Bankrate’s “Safe & Sound” rating system.

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Comments (4)
1 Star2 Stars3 Stars4 Stars5 Stars (11 votes, average: 3.00 out of 5)
4 Existing Comments
  1. Larry Hopkins said:
    on March 15th at 09:13 pm

    Looks to me that the best place to park your money is in a “Rewards Checking” at 5% plus for 25K an account.

  2. BloggingBanks said:
    on March 16th at 02:37 am


    What happens when your rewards checking account lowers the APY to 4%? A CD is a good alternative for your cash..
    I do agree however that rewards checking is the best yield alternative right now..

  3. Mike M said:
    on March 18th at 06:25 am

    2.9% for a 12 month CD? Not worth it.

    You can buy an I bond from the federal government that is paying 5.64% for the next six months. Because of deflation, you can expect the six months after that to pay 0%. They say you have to hold for a minimum of 1 year before selling.

    But you don’t!

    If you buy on March 31, you can sell on March 1 of next year. You’ll earn about $27.81 in interest for that period on a $1000 bond – all of it in the first six months. When you sell, you’ll lose the most recent 3 months interest – or $0, $0, and $0. So for holding the bond for 335 days, you get the full $27.81….

    That is equivalent to an 11 month, 1 day CD paying 3.03% APY. And unlike a CD, that interest is not taxable by your state government.

  4. Pete said:
    on March 19th at 06:14 am

    Mike M: Thanks for the tip. You should get your own blog! I don’t know too much about bonds, though. How do you know that it will be at 0 percent after 6 months? Thanks in advance.