Online Savings Accounts & Current Rates

[krayziebone33]

UFB down to 5.12%.

Crap One has dumped its rate again... down to 4.00%.

Thanks, Sweeps. Have you or anyone had any experience with UFB? I have been considering opening up an account with them for a few days now.

[poundwise]

Poundwise,

Have you ever thought about adding Paypal to the original list. They are offering 4.61% APY (I believe) . I'm not sure about the details or whether or not they're FDIC insured, but maybe you know more.

PayPal is not an online bank and does not offer a savings account. PayPal is an online payments facilitator with several banking features available as options, such as a cash-back debit card and a money market fund sweep. PayPal states, "The PayPal Money Market Fund is designed primarily as an automatic sweep investment for uninvested cash balances in PayPal customer accounts."

You are correct, at present the stated yield for the MMF is 4.61% APY. However, "Investments in the PayPal Money Market Fund are not insured by the FDIC. Past performance does not guarantee future results. Although the fund strives to maintain the value of your investment at $1.00 USD per share, it is possible to lose money by investing in the fund."

So, while one may wish to take advantage of PayPal and the available features, including the money market fund sweep, it does not qualify for this listing as an FDIC insured, online savings account offering.

[poundwise]

Thanks, Sweeps. Have you or anyone had any experience with UFB? I have been considering opening up an account with them for a few days now.

I have really only had two reports, that I can recall, from persons with accounts at UFB Direct. Both of them were positive.

I can tell you from my experience in maintaining this list that they keep their rate high. They have been among the top rate offerings since the Online Savings Accounts listing here at SavingAdvice was begun.

[krayziebone33]

PayPal is not an online bank and does not offer a savings account. PayPal is an online payments facilitator with several banking features available as options, such as a cash-back debit card and a money market fund sweep. PayPal states, "The PayPal Money Market Fund is designed primarily as an automatic sweep investment for uninvested cash balances in PayPal customer accounts."

You are correct, at present the stated yield for the MMF is 4.61% APY. However, "Investments in the PayPal Money Market Fund are not insured by the FDIC. Past performance does not guarantee future results. Although the fund strives to maintain the value of your investment at $1.00 USD per share, it is possible to lose money by investing in the fund."

So, while one may wish to take advantage of PayPal and the available features, including the money market fund sweep, it does not qualify for this listing as an FDIC insured, online savings account offering.

Thanks. I was just wondering. I had to make a payment via Paypal yesterday and it flashed on my screen. I never paid any attention to them so I had no idea what the details were.

[krayziebone33]

I have really only had two reports, that I can recall, from persons with accounts at UFB Direct. Both of them were positive.

I can tell you from my experience in maintaining this list that they keep their rate high. They have been among the top rate offerings since the Online Savings Accounts listing here at SavingAdvice was begun.

Thank you for taking the time to respond to the question. I did notice, based on the list that you provide us with, that their rates are usually very high. I am going to try to open a fund to cover my insurance deductible when needed, and they are one of the banks I'm considering right now.

[savingtaker]

Doesn't UFB have no ACH features?

[sweeps]

Rumors about Bank of America buying out Countrywide.

It's official.

I wonder if that means the end of Countrywide's high-interest online accounts.

Very likely.

[negreenfield]

Doesn't UFB have no ACH features?

That is true, you have to use a different account to link to the UFB account from the outside, you can't set anything up inside of UFB itself. You can also direct deposit.

So far I've had positive results with them though I've only had it open a very short time.

[Aleta]

Is it possible that now that BOA is buying Countrywide that they just may start giving better rates for their different instruments such as CD's to get some cash in. I've noticed that when bank's need to raise cash that they use short term CD's.

[Ima saver]

What does ACH stand for? All I can think if, is automatic clearing house.

[Aleta]

It means AUTOMATED CLEARING HOUSE

[Ima saver]

Thank you, I guess i was right!

[poundwise]

...automatic clearing house

...AUTOMATED CLEARING HOUSE

I guess i was right!

Not quite... but close.

[poundwise]

Is it possible that now that BOA is buying Countrywide that they just may start giving better rates for their different instruments such as CD's to get some cash in. I've noticed that when bank's need to raise cash that they use short term CD's.

Doubtful. Countrywide has been offering high rates on their savings account and CDs, no doubt in an effort to bring in more cash and stave off the inevitable. Now that BOA is involved, I expect those rates will probably drop, not rise.

[savingtaker]

I wouldn't be surprised if BoA just decides to close all the banking parts of Countrywide, like their online bank and online CDs.