Axos Bank has increased the maximum APY for its UFB Direct Preferred savings and money market accounts CD accounts to 5.02% APY.
UFB Direct Preferred Savings provides a maximum APY of 5.02%, which is an increase of 47 percentage points from the previous maximum APY (4.55%).
A 5.02% APY is very high compared to the average rate on savings accounts (0.33% APY as of January 17, 2023). However, note that in order to earn 5.02% APY on the UFB Direct Preferred Savings account, you need a minimum balance of $10,000. If you can’t meet the minimum balance requirements, there are plenty of other savings accounts that don’t require such a high balance.
Pro Tip
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UFB Preferred Money Market account
Axos Bank also raised the interest rate of its UFB Direct Preferred Money Market account from 4.55% APY to 5.02% APY.
UFB Direct’s rate of 5.02% APY is currently the highest of the money market accounts we track. You can usually get higher rates if you invest in CD accounts, but UFB Direct’s money market rate is very competitive right now. The trade-off with CDs is you will lose liquidity since you will need to agree to keep the money for the duration of the CD’s term.
Key takeaways
- The February federal funds rate increase has nudged multiple financial institutions, such as Axos, to provide savers with a higher return on their money.
- Axos Bank increased its rates on UFB Preferred savings and money market accounts to 5.02% APY.
- You can get higher rates on deposit accounts, but you will probably need to get a certificate deposit.
