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This High-Yield Savings Account’s APY Rivals the Best One-Year CDs

Maximize your savings while maintaining flexible access to funds.

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There’s no better feeling than earning a high return on your investment. When it comes to savings, banks often reserve their highest rates for certificates of deposit (CDs) as compensation for leaving funds in an account untouched for a set period of time. 

However, UFB High Rate Savings from UFB Direct currently earns an astounding 3.91% APY. An interest rate this high not only places it among the best savings accounts around but also rivals what you can earn with many one-year CDs. 

Offer Details

Secure application on issuer’s website.

APY: Up to 3.91%
Monthly Fees: None
Minimum Opening Balance: None
Features:
No maintenance fees or minimum monthly balances
Bank from everywhere with mobile app and SMS banking
Free ATM card
FDIC insured

UFB High Rate Savings Details

UFB Direct is an online-only division of Axos Bank. UFB High Rate Savings is the bank’s high-yield savings account and currently earns up to 3.91% APY.

How much interest can you earn with UFB High Rate Savings? If you deposited $10,000 into the high-yield savings account and added nothing more, at the end of one year, you would earn $398.08. High Rate Savings carries no minimum opening or ongoing deposit requirements and no monthly service fees. Savings accounts also come with a free ATM card and access to over 91,000 fee-free ATMs across the country. 

As an online bank, UFB Direct customers can access their accounts online or through its highly-rated mobile app. Customers can check balances, transfer funds, deposit checks, and more through the app. 

Something to keep in mind, especially if you’re already an Axos Bank customer, is that UFB Direct accounts are FDIC insured up to $250,000 per depositor total, combined with deposits at Axos Bank or other divisions of the bank. 

One-Year CDs

A certificate of deposit is a timed deposit account that requires you to agree to keep funds in the account for a specified time in exchange for guaranteed fixed interest rates. CD terms generally range from three months to five years, although there are shorter and longer CDs available through select financial institutions. Typically, the longer the CD term, the higher the interest rate offered, but it also extends the time funds are tied up in an account. One-year CDs are CD accounts with a one-year time commitment. Many one-year CDs offer competitive interest rates that can maximize your savings. 

UFB High Rate High-Yield Savings vs. One-Year CDs

money with arrows
iStock

It’s rare to find a high-yield savings account that offers such a great interest rate, especially without having to meet monthly requirements, like a minimum balance or a set number of deposits. There are several one-year CDs that offer comparable rates, but you’ll usually need to keep your money locked away for the full term length to avoid a costly fee.

Which Account Is Better: A High-Yield Savings Account or a CD? 

High-yield savings accounts and CDs offer some of the best rates available at banks, credit unions or other financial institutions. Both account types can help you grow your savings short and long-term. The best option often comes down to your specific financial goals and situation. 

A high-yield savings account may be a good savings vehicle if you: 

  • Need access to funds over the next year
  • Are building an emergency fund or another savings fund
  • Don’t want to pay penalties for withdrawing funds
  • Want to add additional funds to your balance

A one-year CD might be a good option if you: 

  • Want to earn guaranteed returns 
  • Have funds you don’t need access to for the next year
  • Want access to higher interest rates

Compare the two banking options and shop around to find the best account to meet your current needs. 

Featured photo: Unsplash/UFB Direct

While we work hard on our research, we do not always provide a complete listing of all available offers from credit-card companies and banks. And because offers can change, we cannot guarantee that our information will always be up to date, so we encourage you to verify all the terms and conditions of any financial product before you apply.

Kevin Payne
Kevin Payne
Kevin Payne is a personal finance, credit card, and travel writer. He is the family travel and budget expert behind FamilyMoneyAdventure.com. Kevin lives in Cleveland, Ohio, with his wife and four kids. His work has appeared on several websites, including FinanceBuzz, Credit Karma, Millennial Money, Club Thrifty, Student Loan Planner and Slickdeals.

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