Rewards on checking accounts, ATM fee reimbursements, and solid annual percentage yield — all of these in just one bank. This Axos Bank review will tell you more about the perks you will get from them once you open an account.
Over the years, especially recently, online banks have become a trend in the United States. In fact, according to a study conducted by Finder in 2020, they’ve found that “76.9 million Americans (30.3% of the US population) say they have or are planning to, open a digital-only — or neobank — account.”
Of this number, “54.4 million digitally savvy Americans (about 21.4% of the total US population) already bank with digital-only banks,” while “22.5 million Americans (8.8% of total US population) intend to open a digital-only bank account in the coming months.”
The online banking industry has increased especially in 2020 when the pandemic hit not just the United States but the whole world. People relied so much on online banking to send and receive money, especially to purchase their day-to-day needs.
Now, with an increasing demand year after year, it is not surprising that the number of online banks in the market has grown as well. While this means people will have more options to choose from, the reality is, it can get a little overwhelming for customers, too.
In an article by Forbes, they came up with a list of things to look for in an online bank. This includes Federal Deposit Insurance Corporation (FDIC) insurance, fee-free ATM transactions, high-yield accounts, multiple banking products, helpful financial management tools, as well as online investment management tools.
To be honest, finding an online bank that has all of these requirements could be tough. But, for sure, there one or two or even more that have almost all of the items mentioned.
Among the financial institutions that provide almost all of the things to look for in an online bank as stated by Forbes is Axos Bank, and today, we are going to share with you what these are, and why Axos could be the most ideal choice for a customer like you.
In the next few sections of this Axos Bank review, we are going to specifically provide you answers to the following questions:
- What is Axos Bank?
- Who is Axos Bank best for?
- What are the products offered by Axos Bank?
- How to do banking with Axos Bank?
- Is Axos Bank safe?
- What to like about Axos Bank?
- What not to like about Axos Bank?
WHAT IS AXOS BANK?
Choosing one from a variety of online bank choices can be tough. That is why it is important to look at every single aspect to see if the bank you are eyeing meets your personal banking needs and preferences.
To begin our Axos Bank review, here what Axos Bank is all about –
Axos Bank was launched in 2000, making it one of the oldest online-only banks existing in the country today.
Initially named as Bank of Internet USA, Axos Bank was renamed in 2018 and has become one of the most popular online-only banks in the United States.
Axos Bank is a full-service online bank that has grown over the years. It offers full-service banking for both individuals and businesses.
Meanwhile, before we proceed, if you are a newbie in online banking, here’s a video by Economic Lifestyle Investing that would help you understand better the pros and cons of it and the difference between traditional and online banking:
Apart from banking products, which include checking, savings, and certificate of deposit accounts, the online bank’s list of services also includes a variety of investment portfolios, lending options, as well as business and commercial banking solutions.
Apart from providing a wide array of product choices, the bank is also known for doing away with many fees, as well as offering clients products with competitive rates.
Since Axos is an online bank, customer support is only available remotely. The bank’s customer service options include 24/7 online chat, phone line, secure online messaging, as well as Twitter.
WHO IS AXOS BANK BEST FOR?
Axos Bank is an online-only bank, which makes it suitable for a specific group of people only. Unless you are okay with doing all banking transactions right at your fingertips, then Axos is not for you.
To be more specific, Axos bank should appeal the most to consumers who are looking for a full-service online bank. It may also fit people who:
- Want to earn competitive rates or rewards with a checking account
- Want a checking or savings account that has no monthly maintenance fees
- Want to earn high interest on savings account
- Prefer to do online banking compared to traditional or conventional banking
- Want to open an online checking account for a child
- Want to enjoy limitless reimbursement for ATM fees
Additionally, Axos Bank should appeal to customers who are looking for a credible and reliable online bank with years of experience to back them up. Needless to say, a member of the Federal Deposit Insurance Corporation (FDIC).
Overall, Axos Bank is best for people who want a “one-stop-shop” online bank.
WHAT ARE THE PRODUCTS OFFERED BY AXOS BANK?
In the previous two sections of this Axos Bank review, we shared with you what the bank is all about and who would it appeal to the most.
This time, we are going to talk about one of the most important things you need to know as a potential customer – the products and services that the bank offers.
As mentioned, Axos Bank is a full-service online bank. The bank primarily offers the following products and services:
- Savings Account
- Checking Account
- Money Market Account
- Certificate of Deposit Account
Now, here’s a more detailed explanation about each product for your reference –
Axos Bank offers a High-Yield Savings Account. While this account offers higher rates than most of the ones you will find at brick-and-mortar banks, it still not as much as some of the best high-yield savings accounts out there.
Currently, this savings account earns a 0.61% annual percentage yield (APY) on all balances.
Axos Bank High-Yield Savings Account does not require monthly maintenance fees unlike other banks of the same type. More so, it comes with a free ATM card upon client’s request, which in the online-only bank industry.
Moving on, the savings account allows six total transactions per monthly billing statement. This excludes withdrawals as well as transfers made through ATM or by mail.
To open an Axos Bank High-Yield Savings Account, the bank requires at least a $250 initial deposit. While it may be a bit high as compared to what other online banks require, the good thing is, it does not have a minimum balance requirement beyond the initial amount.
Unlike other online banks, Axos Bank offers five different checking account options, which includes the following:
This is Axos Bank’s standard checking account. Essential Checking account does not earn interest, as well as offer rewards. But the good thing about it is that it does not charge monthly maintenance fees as well overdraft fees, it comes with unlimited domestic ATM reimbursements, and that it has no minimum deposit requirements.
Furthermore, this checking account offers Direct Deposit Express, which allows account holders to get paid up to two days early.
Axos Bank’s Rewards Checking offers three tiers of interest, allowing depositors to earn a total of up to 1.25% APY. To earn the highest APY, account holders must meet these requirements:
- Monthly direct deposits of $1,000 or more
- Use of the debit card for at least 10 transactions of at least $3 per month
- Use of the debit card for five or more additional times per month
This account does not charge fees, and also, has no minimum balance requirements.
To open a Rewards Checking account, the bank requires at least a $50 initial deposit. Similar to the previous one, this also allows customers to enjoy unlimited domestic ATM reimbursements.
Normally, cashback rewards are reserved for credit cards. However, Axos Bank is an exception as it offers CashBack Checking account, which allows depositors to earn up to 1% cashback on all signature-based purchases.
Similar to the other checking accounts, the CashBack Checking account also features no monthly fees and unlimited domestic ATM reimbursements. Additionally, this checking account also offers unlimited check-writing privileges.
If you are 55 years old and older, then the Golden Checking account is perfect for you as it is specifically designed for people within that age range.
Axos Bank’s Golden Checking account is an interest-bearing account that earns 0.20% APY on all balances.
Similarly, it also comes with a number of perks including no monthly maintenance fees and free personal checks. Unlike the other checking accounts, it does have a limit of up to $8 only when it comes to monthly domestic ATM fee reimbursements.
Earlier we mentioned Axos Bank is suitable for customers who want to open a checking account for a kid. That is because Axos Bank offers a First Checking account, which is an account specifically designed for kids between 13 and 17 years old.
This account is ideal for parents and guardians who want to introduce young kids to banking early.
Similar to other checking accounts offered by Axos Bank, this one also earns interest. The First Checking account earns 0.25% APY on all balances.
While this account does not have monthly fees, it does have a daily transaction limit of $100 for cash, and $500 for debit. Additionally, it featured up to $12 in domestic ATM reimbursements per month.
Money Market Account
What makes Axos Bank’s money market account interesting is that it combines both high-interest rates with the conveniences that come with a checking account.
The Axos Bank High-Yield Money Market account comes with check-writing privileges as well as a free debit card. When it comes to rates, currently, the account earns 0,30% APY regardless of balances.
To open a money market account, the bank requires a minimum of $1,000 balance. While it seems high compared to other money market accounts out there, what is nice about it is that similar to the other account types, this does not charge monthly maintenance fees as well.
Similarly, this account is accessible through the Axos mobile app that includes mobile check deposits.
Certificate of Deposit Account
Lastly, Axos Bank also offers Certificate of Deposit accounts that has terms that range from three months to five years.
Unfortunately, Axos Bank’s CD accounts do not match up well against other top online banks. Its paying rate is just 0.20% APY.
To open an Axos Bank CD account, you will need at least $1,000 for the initial deposit requirement. Like most CDs in the market, this does not charge monthly fees as well.
Once the CD term matures, Axos Bank automatically renews it. Customers are given a 10-day grace period to take other actions without having to be charged with penalties. These actions include closing your CD account, withdrawing the money, adding more funds to it, or changing your CD term.
Similar to most CD accounts, customers who withdraw their money before maturity is penalized for up to 24 months’ worth of interest, depending on the CD term.
Other Bank Offerings
Apart from traditional personal banking solutions, Axos bank also offers a wide selection of other bank offerings, which include the following:
- Personal Loans
- Auto Loans
- Purchase Mortgages
- Refinance Mortgages
- Federal Housing Authority (FHA) Loans
- Home Equity Loans and Lines of Credit
- U.S. Department of Veterans Affairs (VA) Loans
- Automated Investing Options
- Business and Commercial Banking and Lending Solutions
HOW TO DO BANKING WITH AXOS BANK?
In this part of our Axos Bank review, we are going to talk about how to actually bank at Axos Bank.
To open an Axos Bank account, all you have to do is go to the bank’s website. Make sure to prepare all the requirements to have a smooth and fast account application process.
Similar to other online banks, you will be asked to provide your personal information such as your name, mobile number, a valid mailing address in the United States, as well as your Social Security number, and valid government-issued identification such as passport, driver’s license, or state ID.
It is important to note also that Axos Bank is only limited to American citizens as well as resident aliens who are at least 18 years old.
Meanwhile, for the First Checking Account, the bank requires to have a parent or guardian who is at least 18 years old to be a joint owner on the account.
Once done with the application process, you may now proceed to fund your account depending on the requirement.
Banking with Axos Bank was made easy. Thanks to its highly-rated mobile app that allows users to enjoy the following features:
- Funds transfers
- Account balances
- Mobile check deposits
- Mobile bill pay
- Transaction history
The Axos Bank mobile application is available for both Android and iOS users.
By the way, most of Axos Bank’s accounts come with a free ATM card. To access it, customers may head on to any of the over 90,000 fee-free ATMs across the country.
Additionally, Axos customers have access to Evo, which is the bank’s virtual banking assistant accessible through the mobile app or the website. Evo provides questions to common banking inquiries and it can help you in managing your account as well.
IS AXOS BANK SAFE?
Safety and security concerns are valid when it comes to online banks. It’s actually something that online banks constantly work on to ensure that unfortunate events are avoided.
With Axos Bank, standard safety and security measures are put in place to ensure that fraud and identity theft threats are avoided.
Additionally, as mentioned earlier, Axos Bank is insured by the Federal Deposit Insurance Corporation (FDIC). This means that the federal government protects all its customers’ money for up to $250,000 per depositor, for every account ownership category, should there be a bank failure.
WHAT TO LIKE ABOUT AXOS BANK?
This review on Axos Bank will not be complete without sharing with you a list of the advantages and disadvantages of this financial institution.
With that said, here’s a list of the things we like about Axos Bank.
- Competitive Rates – In particular, Axos Bank offers high-yield savings and money market accounts.
- No Monthly Fees – Most of the account offered by the bank has this no monthly maintenance fee feature.
- Full-Service Online Banking – Contrary to most online banks, Axos Bank is a full-service online bank that offers a wide range of products and services for both individuals and businesses.
- Multiple Checking Account Options – Unlike most online checking accounts, Axos Bank does have lots of checking account options depending on customer needs preferences.
- Unlimited ATM Fee Reimbursements – Although not all, most of its products offer unlimited ATM fee reimbursements.
- Free ATM Card – Axos Bank provides customers the option to have an ATM card access or not on most of its accounts.
WHAT NOT TO LIKE ABOUT AXOS BANK?
To complete the review, below is a list of some of the things that we particularly not like (something that the bank can definitely change or improve on in the future) about Axos Bank:
- No Physical Branches – Axos Bank is an online-only bank, which means it operates entirely online. So, if you are looking for in-person help from a bank teller or other bank employee, then, this is the wrong choice for you.
- Average CD Rates – Compared to other CD rates in the market, Axos Bank’s CD rates fall under the average level. While its rates are above the national average for shorter terms, it falls below the average for longer terms.
FINAL THOUGHTS ON AXOS BANK REVIEW
Overall, Axos Bank lives up to its reputation as being one of the country’s top online banks. With a wide array of account options, the bank certainly has something for every customer’s need.
Of course, while it does have its share of upsides, it does have some downsides as well, including not having a physical branch where customers can receive in-person customer support.
Everything is done entirely online, which makes it ideal for people who are always on the go and would want an online bank that offers almost everything they need in a financial institution.
With all that said, do you consider opening an account with Axos now?