UFB Direct 1.15% Money Market

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UFB Direct 1.15% Money Market

James Park
Real Estate Broker · Johns Creek, GA · Member since 2009 · 870 posts · 664 votes

I currenty have my cash reserves with American Express at .85%. I am looking to move my money with UFB Direct at 1.15% APY.

Is this a safe bank in your opinion? Anyone here have your money market account with UFB Direct?

http://www.ufbdirect.com/ufbdirect/personal-banking/savings/moneymarket.aspx?utm_source=Google%2BAdvisor&utm_medium=Google%2BAdvisor&utm_campaign=Google%2BUFB%2BMoney%2BMarket

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  • Loc R.
    Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
    14y

    I'm not sure I'd go from an entity as large and well-known as Amex to UFB for 30 basis points...

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  • James Park
    OP
    Real Estate Broker · Johns Creek, GA · Member since 2009 · 870 posts · 664 votes
    14y

    Aren't you 100% safe if you are fully FDIC insured.

    You can be covered up to $750,000.

    yourself - $250,000
    you and your wife = $500,000

    On $750,000 cash the difference is $4,875 a year.

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  • Loc R.
    Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
    14y

    I've never had to determine how safe my money was after a bank went under...knock on wood.

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  • James Park
    OP
    Real Estate Broker · Johns Creek, GA · Member since 2009 · 870 posts · 664 votes
    14y

    In today's crazy unknown market where no one knows whether inflation or deflation will dominate (Bernanke will print but he may fail this time round).....

    One needs to diversify his portfolio with gold, real estate, and cash.

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  • Loc R.
    Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
    14y

    I like owning paper...if inflation occurs I have a big enough spread where rates would have to hit 15%+ for me to lose out.

    If deflation occurs, my notes have become more valuable.

    I don't disagree with the gold comment, though I'd rather have gold and silver.

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  • Aaron Pfeffer
    Real Estate Broker · Los Angeles, CA · Member since 2008 · 73 posts · 11 votes
    14y

    just wanted to say that i'm enjoying this friendly debate...

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  • Dave K.
    Real Estate Investor · Las Vegas, NV · Member since 2011 · 45 posts · 12 votes
    14y
    Originally posted by James Park:
    Aren't you 100% safe if you are fully FDIC insured.

    You can be covered up to $750,000.

    yourself - $250,000
    you and your wife = $500,000

    On $750,000 cash the difference is $4,875 a year.

    Hi James,
    You are correct you are safe as long as you understand FDIC's limits. You can increase your coverage with beneficiaries (kids) if you have them.
    I used to be a rate chaser myself but have found that to be too much work. I saw a lot of friends chasing rates only to find that every 6 months they were opening new accounts when their initial special rate period ended. I for one now prefer consistency and not having to learn new user/passwords to banking sites. :)
    UFB direct is a good place but I also see a bit higher rate at TIAA direct for 1.25%. Sounds like you want the best rate possible with FDIC coverage. EverBank is also offering the same 1.25% but that's only good for 6 months I believe.
    I have found that although higher the better, sometimes a good bank/cu that consistently places in the top 10% of rates while providing great service and user interface is just as important.
    I loved my ING account but am going to migrate towards CU such as Alliant CU (0.80% savings) or PenFed CU. Their Customer Service is very highly ranked.

    TIAA http://www.tiaa-cref.org/banking/bank/mmd/index.html
    Alliant Credit Union.org

    Lastly, another alternative to the Savings/MMA was a CD with low early termination rates. Ally has some decent rates on CDs and if you compare them to the Savings rate, you can do better even if you consider the early termination fees.
    Ally 5 yr CD is 1.72% with 2 month ETF. If closed after 1 year that would be equal to 1.43%, 2yr 1.58% and 3 yrs 1.62%.
    You might consider opening 3 x $250K CD's there and in case you need access to some money, you can break just 1 of the 3 CD's or perhaps 7 x 100K CD's and a 50K CD?

    The current rates are horrible so I had to participate in creative CD laddering and such.

    Dave

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  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    14y

    I usually go to bankrate.com to see what the best rates are.

    I see that Everbank only has the 1.25% rate for 6 months after that it drops to .76%

    Cit Bank and Barclay's have the best consistent MMA rates at 1.04 and 1.00 currently. I've seen Ally bank fairly consistently in the top 10.

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