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I have this account, started a few months ago. Only drawback I've found is that if/when they increase the interest rate on their accounts, you have to manually request an increase each time. I started at 5.03%, now requested an increase to 5.25%. I messaged them in the app at 4:53pm, they responded and updated my rate at 5:03pm (exactly 10 min). I'm ok doing a couple minutes worth of work a couple/few times a year to maintain the highest percentage. Works exactly as promised otherwise, great rates.
As per their website FAQ...
The dollar limits at funding are:
Maximum to transfer in: $250,000.00
The dollar limits after your account is funded are:
Maximum per day in or out $30,000.00
Maximum per month $60,000.00
You may not make funds transfers in excess of limits described on the External Bank Transfer service.
We reserve the right to change from time to time the dollar amount of funds transfers you are permitted to make using our service.
I had the same experience today. Happened to check my account and found that my 5.09% rate had been downgraded to 4.5%. I spoke to CS on the phone and they raised my rate to 5.25%. I asked what the deal was with lowering my interest rate when rates are rising -- including the rates they offer new customers. He said that I just have to check my account every week or so to see if they do it again!
So basically, this is a great account for folks willing to call them on their BS. Apparently enough customers don't do that to make it worthwhile for them to play games like this.
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Yeah that's bad but honestly I'm just looking to FDIC protect money beyond the 250K at CIT bank. I've always had several money markets accounts. Just make you have one with good transfer limits and one that can transfer money quickly.
I have this account and this NOT my experience. I have sent wires far in access of 30K.
Here is the text from the "about wire" link on the send money page:
Quote
:
What if I need to make a transfer above these dollar limits?
If you need to make an external transfer that is over these dollar limits, please submit a Wire Transfer. There is no limit to the amount of money you can wire to an external account in your name as long as the funds are available in your account. Note: A wire transfer fee will be assessed by UFB Direct and there may also be a wire transfer fee assessed by the other financial institution.
I have never had my rate go down, but have had to send them a message when the rate goes up and they will make the change. The update happens in a day or two. The 1099 form has an address of Axos Bank in San Diego, CA which you can access the form from the app. Enjoy!
I did have my rate go down around june/july 2023. But i messaged and got it re-uped right away in August 2023
It is one of the more difficult banks to do business with. Time delays in deposits and withdrawals. Hard to reach customer service. Just not customer friendly. If you have some money that you just don't need for a while, this might be a decent solution BUT make sure you check in on the account every couple of months to make sure the rate hasn't been lowered, etc.
I prefer CITbank even though you are not making as much in interest. (Right now only a 0.0020 difference). Also, sometimes CITbank will match competitors... although they wouldn't match this rate in December.
Great rate but interesr gets hammered at your top state and federal tax rate plus 3.8% ACA tax that adds up to over 50% for me, with the market ripping and SGOV paying close to 5% dividend (which you can reinvest tax free) there may be better options with nearly equal liquidity
Great rate but interesr gets hammered at your top state and federal tax rate plus 3.8% ACA tax that adds up to over 50% for me, with the market ripping and SGOV paying close to 5% dividend (which you can reinvest tax free) there may be better options with nearly equal liquidity
Man, your net tax rate is over 50%? Not many can relate to you on SD.
I've been with them for many years.
But they do scummy, nickel & dime crap sometimes.
I just tried to close my acct with them and the hassle is annoying AF.
Man, your net tax rate is over 50%? Not many can relate to you on SD.
You're effective tax rate on interest is probably much higher than you think - federal income tax is 24% on income between $100 - 192k, most states have income tax between 5-7% on income above $20k
You're effective tax rate on interest is probably much higher than you think - federal income tax is 24% on income between $100 - 192k, most states have income tax between 5-7% on income above $20k
At what income amount do you hit 50%?
Effective tax rate on interest income is my effective tax rate.. no more no less than what I think 😂
I was just surprised that someone at 50% tax rate would associate with us SD peasants.
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The dollar limits at funding are:
Maximum to transfer in: $250,000.00
The dollar limits after your account is funded are:
Maximum per day in or out $30,000.00
Maximum per month $60,000.00
You may not make funds transfers in excess of limits described on the External Bank Transfer service.
We reserve the right to change from time to time the dollar amount of funds transfers you are permitted to make using our service.
https://www.ufbdirect.c
So basically, this is a great account for folks willing to call them on their BS. Apparently enough customers don't do that to make it worthwhile for them to play games like this.
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Yes but then you are stuck with the ACH transfer limits, which I believe is usually around 10k a month for most banks.
For me it's not worth the hassle and I'm not comfortable with plaid but people with less security concerns than me might be a good fit
Yeah that's bad but honestly I'm just looking to FDIC protect money beyond the 250K at CIT bank. I've always had several money markets accounts. Just make you have one with good transfer limits and one that can transfer money quickly.
Here is the text from the "about wire" link on the send money page:
If you need to make an external transfer that is over these dollar limits, please submit a Wire Transfer. There is no limit to the amount of money you can wire to an external account in your name as long as the funds are available in your account. Note: A wire transfer fee will be assessed by UFB Direct and there may also be a wire transfer fee assessed by the other financial institution.
It is one of the more difficult banks to do business with. Time delays in deposits and withdrawals. Hard to reach customer service. Just not customer friendly. If you have some money that you just don't need for a while, this might be a decent solution BUT make sure you check in on the account every couple of months to make sure the rate hasn't been lowered, etc.
I prefer CITbank even though you are not making as much in interest. (Right now only a 0.0020 difference). Also, sometimes CITbank will match competitors... although they wouldn't match this rate in December.
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The initiating bank sets the max transfer limits. I use capital one to ach pull/push transfers from ufb so I can take out more than ufb's max 60k
This is great to know.
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Also wondering that
But they do scummy, nickel & dime crap sometimes.
I just tried to close my acct with them and the hassle is annoying AF.
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Effective tax rate on interest income is my effective tax rate.. no more no less than what I think 😂
I was just surprised that someone at 50% tax rate would associate with us SD peasants.