Banks and financial institutions are basically essential nowadays. They are very important if you want to live in the 21st century as a modern person, handling his or her finances in a very intelligent manner. Since our economy, national policies, and even governmental systems rely on and use banks as a standard for handling finances; it only makes sense that you get to know some of them. If you are a person residing in the United States of America, then your bank options are many and varied. Because of that, you may get to roadblocks such as understanding different financial concepts, unclear financial goals, and an overall cloudy experience on which bank to use and what type of banking account to open. This article’s aim, therefore, is to lessen that problem.
Axos Bank is one of the largest banking corporations in America. With multinational ties and branches, its coverage even stretches further than the U.S.A. alone. It also has a lot of divisions that you have to get into, such as UFB Direct and their features in UFB Direct High-Yield Savings. Let’s dive into it and see if Axos bank and UFB Direct are the pair for you.
What is UFB Direct?
UFB Direct, as was discussed, is a division of Axos Bank. It offers a lot of banking products and services, some of which you could try to use and take advantage of. Perhaps UFB Direct’s most well-known product is its high-yield savings account, but it doesn’t stop there. UFB Direct also has services for money market accounts, certificates of deposits, and more. UFB’s bread and butter, of course, is their high-yield savings account, which has one of the highest interest rates and APY within the industry of banking and finances.
What is APY?
APY is known as the annual percentage yield. It’s basically a measurement of the total interest that you have accumulated on an investment or a savings account within a year. They are usually expressed as a percentage of the total account balance. You might confuse APY and interest rate, as they look like they have the same purpose. Their main difference is that APY is the total yield, which involves both the interest rates and the compounding effects. Interest rates are also measured other than annually, which APY is not. All of these are important because UFB Direct has one of the highest APYs, reaching up to 4.11%. To put that in perspective, the national average APY is 0.30%. A good APY is considered to be 2%, and your maximum chances with UFB Direct are more than double that APY.
What can UFB Direct do for you?
As was previously demonstrated, UFB Direct shines best with its high-yield savings accounts. They have industry-leading interest rates and APY, and their savings accounts require no minimum balance and no monthly fees to open them. That’s a feature that most banks do not offer, so UFB Direct is basically the best bank you could choose if you’re looking for a high-yield savings account. If your goals are to save long-term and have those savings thrive through the economy, then a bank with the highest APY would be your best bet. UFB Direct does exactly that, so it’s a no-brainer to choose their high-yield savings account option.
UFB Direct doesn’t stop there, however. They also have investment options through certificates of deposit (CDs). Their CDs are like savings accounts but have a set term. After the term has passed, you get a guaranteed return on your money with a decent interest rate. Their terms range from 3 months to 5 years. One thing to note is that this system does not let you withdraw any money until the CD matures, so it is best to put your disposable income here.
