Category: Mobile Banking

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Mobile Banking

RoosterMoney Review: An Allowance-Tracker App Made For Kids

In this RoosterMoney review, you will find out how this mobile application helps parents in encouraging their children to save, spend wisely, and give to certain charities.

RoosterMoney Review: An Allowance-Tracker App Made For Kids

The United States is the richest country in the world. But, economists estimate that approximately half of the American people won’t retire with enough money saved to be able to keep their current lifestyle.

This means there’s a lot of work to do in order to break the chain. The best way to do that is, of course, to ensure that the younger generations do not commit the same mistake.

Interventions should be made. Trends must be changed.

Where else this should start but within the family, right? The homes should be the primary place where kids learn about how to handle their finances properly.

However, according to the 2014 Stress in America survey conducted by the American Psychological Association, it was found that “money is consistently among the top sources of stress for Americans year over year.”

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More so, the same survey revealed that “parents of children under the age of 18 are more likely than adults with no children to having higher financial stress and are less likely to feel financially secure.”

Furthermore, the survey results indicated that “36 percent of Americans are uncomfortable talking about money, and 18 percent say money is a taboo subject in their families.“

For many American families, money talk is a sensitive topic to discuss.

If we want our children to be responsible for managing their money, though, we, parents need to step up. We need to start talking about money within our families and start teaching our kids to become financially literate.

We understand the task is not easy.

The good news is, parents nowadays have lots of options to choose from in order to teach younger ones about financial literacy.

There are lots of tools and platforms available that were specifically designed to help parents teach their kids to be financially responsible.

One of the many tools available in the market today is RoosterMoney.

RoosterMoney is a mobile application that serves as a virtual allowance tracker. It is specially designed to help parents teach their kids how to handle their money wisely.

If you want to know more about this app, then, continue reading on. In this in-depth review, you will find out what makes RoosterMoney stand out from other financial apps of similar make.

Specifically, we are going to tackle the following:

  • What is RoosterMoney?
  • Who is RoosterMoney best for?
  • What does RoosterMoney offer?
  • How does RoosterMoney work?
  • Are there fees involved?
  • How to open an account with RoosterMoney?
  • Is RoosterMoney safe?
  • What are the upsides of RoosterMoney?
  • What are the downsides of RoosterMoney?

WHAT IS ROOSTERMONEY?

RoosterMoney was created in 2012 by a group of parents with one goal in mind — to enable their kids to learn the value of money, and how to budget and save from such a young age.

RoosterMoney is a mobile application, at the same time, a basic bank accounts specially designed for children. It helps to encourage young people to save, spend, and even give to certain charities,

The app offers separate accounts for both parents and children.

With the parent account, it allows parents to set up automatic allowance payments as well as split payments into different categories, which include saving, spending, and giving.

Meanwhile, the children’s account allows kids to check their balances using the app. They also can decide how they want to use their money.

Unlike other financial management apps for kids, RoosterMoney offers a Rooster PLUS account, which allows users to unlock more features like paying interest, adding chores, and making regular deductions for expenses.

To know more about the RoosterMoney app, check the video below:

Since the app is an allowance tracker, parents cannot send money to their kids through the app. Instead, they need to do it on their own.

What the app does is that it helps parents stay on top of how much they’ll give depending on the currency of your choice.

RoosterMoney also includes educational content, which includes articles, worksheets, challenges, as well as activities to help your children improve their financial literacy.

Additionally, the RoosterMoney app offers a Rooster Card plan that comes with a Visa debit card for an additional fee. This allows children to spend in stores or online. Even so, this is still 100% controlled by the main parent account.

However, the said plan is only available in the United Kingdom. The plan is ideal for children aged six years old and above.

With RoosterMoney, once the account has been created by a parent, he or she can add a child or multiple children and set up each account according to their needs.

Although originally established in the United Kingdom, RoosterMoney is also available in the United States and Australia.

WHO IS ROOSTERMONEY BEST FOR?

RoosterMoney is an app that helps parents instill good money habits in their kids.

Thus, making it an ideal choice for those who want to teach their children how to value money.

The app also allows parents to set up chores in return for “pocket money” payments. This helps children learn how to earn money, and gives them a rough idea of how it is in the real world.

The app should appeal to families with one kid or more. RoosterMoney allows parents to set up multiple accounts with just one major account.

By using RoosterMoney, it will help encourage good saving habits, which kids can carry with them as they grow old.

RoosterMoney is ideal if you want your child to develop budgeting skills. 

Specifically for the Rooster Card plan, it is suitable for children aged between 6 and 18 years old.

Finally, RoosterMoney should appeal to parents who are willing to pay monthly fees to enjoy additional perks. The app’s virtual tracker is available for free, which is a great option for parents who are on a tight budget.

WHAT DOES ROOSTERMONEY OFFER?

RossterMoney is an app that was designed to help parents in raising kids who are financially literate.

RoosterMoney offers the following options:

  • Virtual Tracker (Free Version)
  • Rooster PLUS
  • Rooster Card

Virtual Tracker (Free Version)

With the app’s virtual money tracker feature, parents get to track allowances.

They can set an amount and how often their children should receive it. The payment frequency options include weekly, monthly, and fortnightly.

Rooster PLUS

If you want to unlock and enjoy more features, you have the option to upgrade to Rooster PLUS.

By upgrading, you can tie your kids’ allowance to Chores to encourage your kids to earn, set up an Interest Rate to incentivize your kid’s savings, set up Regulars for items like magazine subscriptions to help develop your kid’s budgeting skills, as well as use the Add Unlimited Guardians feature to get the whole family (including grandparents) involved.

The Rooster PLUS version is a paid plan, which costs $2.99 per month or $18.99 a year. The plan offers a 1-month free trial, though.

Rooster Card

The Rooster Card plan is currently available for RoosterMoney users in the United Kingdom only.

This plan allows parents to load the card with money and let kids fully manage their money through the app.

The Rooster Card plan comes with a Visa debit card.

Similar to the Rooster PLUS plan, there is a cost to be able to avail of this plan. Since it is only available in the UK, the cost is 24.99 British pounds per year or 2.08 British pounds per month.

It is important to know, though, that the cost only covers one child. Additional cards will cost 19.99 British pounds per year.

What’s nice about it is that this plan provides parental controls for kids aged 6 years old and above. Also, by availing of this plan, your get to enjoy the Rooster PLUS features for free.

HOW DOES ROOSTERMONEY WORK?

The RoosterMoney app is very straightforward to use. Once you head into your account, parents will be presented with a dashboard. There they get to control their kids’ accounts, which include setting up saving goals and weekly budgets, as well as approving transactions.

The app was designed to prepare kids for the future. Thus, this allows children to keep on top of their finances by offering itemized statements similar to what real bank accounts offer.

With the features that the app provides, after a few months, your kids will eventually learn how debits and credits work, which is something essential in life but is not taught in schools at an early age.

By the way, the RossterMoney app is available for both iOS and Android devices.

ARE THERE FEES INVOLVED?

By now, you probably have an idea already how much it costs to use the RoosterMoney app.

As mentioned, there are three choices available — although the third one is not available yet in the United States.

For users in the US, you have the option to avail of the free version or opt for the paid plan called Rooster PLUS.

The free version includes features like a virtual tracker, allowance scheduling, saving, giving, pots for spending, as well as goals and educational content.

The Rooster PLUS offers lots of helpful features. To avail, it will cost you $18.99 per year or $2.99 per month.

Meanwhile, the Rooster Card, which offers Rooster PLUS features for free costs 24.99 British pounds per year or 2.08 British pounds per month.

As mentioned, the amount only covers one child. Additional cards cost 19.99 British pounds per year.

HOW TO OPEN AN ACCOUNT WITH ROOSTERMONEY?

In this part of our RoosterMoney review, we are going to talk about how to actually open an account with RoosterMoney.

To get started, all you have to do is visit the RoosterMoney website and click the “Get Started” button.

Primarily, you will be asked to provide your complete name, email, and your preferred password.

You will also be asked about your country of origin as well as your preferred plan. Again, you can choose from Virtual Tracker, Rooster PLUS, or Rooster Card plan.

IS ROOSTERMONEY SAFE?

Technically speaking, RoosterMoney is not a bank, which means there is no Financial Services Compensation Scheme protection.

However, the app is licensed by the Financial Conduct Authority (FCA) to deal in electronic money and keeps all client money in a segregated account.

If you avail of the Rooster Card plan, your child can only spend the money that is available on his or her card. Thus, there is no chance of going overdraw or getting into debt.

More so, parents can see every transaction their kid makes directly on the app.

Should there be attempts to make transactions from merchants that sell products for over 18 years of age will be blocked. Additionally, parents may opt to disable the cash withdrawal option if they find it necessary.

In addition, the app generates a new CVV code every time your child uses the card to pay for purchases made online. This feature adds an extra layer of security to the account. Also, parents may freeze the card from the app in case it gets stolen or lost.

WHAT ARE THE UPSIDES OF ROOSTERMONEY?

This RoosterMoney review will not be complete without sharing with you a list of the app’s pros and cons.

Let’s begin with the advantages first.

By using RoosterMoney, you get to enjoy the following benefits:

  • Accounts for Parents and Kids – RoosterMoney allows both parents and children to have their respective accounts. But the thing is, parents can set up their kids’ account using their own device.
  • Parent Gets Full Control Over Allowances – With RoosterMoney, parents get to take full control of their children’s allowances. They get to see their kids’ balances as well as have the ability to move money between their save, spend, and give pots.
  • User-Friendly App – The RoosterMoney app has a slick, colorful, and entertaining design that kids will surely enjoy. Needless to say, it would be a lot easier for them to see what chores their parents want to do to be able to earn money.
  • Free Version Available – Unlike other kids’ financial apps out there, RoosterMoney offers a free version specifically its virtual tracker, which is very much ideal for parents who are on tight budgets.
  • Educational Content – Apart from the allowance-tracker, RoosterMoney users get to access educational content, which includes educational primers on different subjects like payment methods, compound interest, and earning money; money challenges; printable worksheets; as well as tips on using the app.
  • Supports Multiple Currencies – Although RoosterMoney was made by a UK-based company, parents from different parts of the world can use it. Parents can choose from any currency in the world for their children’s allowances.
  • Free 1-Month Trial for Rooster PLUS – Rooster PLUS offers additional helpful features. Although it comes with a monthly fee, once you subscribe, your first month is free of charge.
  • Interest Rates – Like typical banks, parents can set up interest rates. This is a great idea to encourage kids to save money and earn.
  • Allows Kids to Earn Extra Cash – RoosterMoney comes with a chores feature. This enables your kids to earn extra cash from doing certain chores.

WHAT ARE THE DOWNSIDES OF ROOSTERMONEY?

In the previous section, we talked about the upsides of RoosterMoney. This time, we are sharing with you some of the downsides of the app. This includes:

  • Free Plan is Limited – Although it’s nice knowing that RoosterMoney comes with a free version, the features of it are very limited, which means parents will most likely avail the paid plan to take full advantage of what the app has to offer.
  • Monthly or Annual Fees – While it may not be a concern for some parents, the monthly or annual fee may add up to families’ budgets. Thus, it may not be ideal for those with meager budgets.
  • Not Ideal for Multiple Kids – Unfortunately, the Rooster Card plan is limited to one child. If in case you have more than one child, you may still enroll them, but that will incur an additional cost, which can be too much to add to your families’ monthly budget.
  • Switch User Option – Ideally, each child must have his or her own smartphone to access the RoosterMoney app. However, if this is not possible, the app does have a switch user option so your child can use your device in accessing the app.
  • Rooster Card is Only Available in the UK – Unfortunately, the Rooster Card plan is not yet available in the US, which could be a great drawback given the fact that most of the app’s competitors offer that option already. But then again, who knows, maybe the company is already working on it as we speak.

FINAL THOUGHTS ON ROOSTERMONEY

RoosterMoney is a virtual allowance tracker. It is an app that allows parents to teach their kids how to be financially literate.

Unlike other apps of the same type, RoosterMoney offers three plan choices – one of which, however, is not available yet in the United States. The plans include a free version, the Rooster PLUS (additional features apply), and the Rooster Card, which gives access to a Visa debit card.

Given all the information provided, are you considering RoosterMoney over other financial apps of the same type?

Through this RoosterMoney review, we hope you are able to decipher whether or not this app is your perfect partner in teaching your kids about the value of money.

Categories
Mobile Banking

Greenlight Review: A Great Tool To Help Raise Financially Literate Kids

If you are looking for a platform that allows you to have an efficient system when it comes to giving allowances to your kids, at the same time, helps teach them the value of money, then you got to keep reading this Greenlight review.

Greenlight Review: A Great Tool To Help Raise Financially Literate Kids

Being consistent in giving allowances could sometimes get a little challenging especially for busy parents. More so, to include teaching them how to properly handle their finances.

But that is part of our responsibilities as parents. Financial management, after all, must be first taught at home.

The earlier we teach our kids how to manage their finances wisely, the better. It will surely help keep them away from financial troubles in the future. It’s preparing them to be responsible individuals d as early as now.

Unfortunately, though, a survey conducted by Harris Poll on behalf of the American Psychological Association (APA) revealed that the majority of Americans (64%) says that money is a somewhat or very significant source of stress especially for parents whose children are aged 18 years old and below.

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Furthermore, the Programme for International Student Assessment (PISA) test, which measures the financial knowledge and skills that are needed to make the jump from high school to college and on into the workforce revealed that one in five American teens fail to meet the level to be considered as financially literate.

To be honest, these numbers need improvement. Young American people need to be educated to handle their finances well. After all, this will help them in facing the realities of life as they grow older.

Parents have definitely a lot of work to do, but, as we’ve said, the results will be very helpful in the long run – not just for your kids, but for the community as well.

Teaching financial literacy these days is a lot easier – actually. There are so many platforms available out there that parents can use to help teach their children how to handle their money well.

Thanks to the advent of technology, there are platforms like Greenlight that parents can use to raise financially literate individuals.

Speaking of Greenlight, in the next few sections, we are going to do an in-depth review about this financial platform that was specifically created to help parents teach their children about the value of money. It is an app that helps parents automate allowance-paying with a prepaid debit card for kids.

In particular, this Greenlight review will focus on providing essential information about this financial app by answering the following commonly asked questions:

  • What is Greenlight?
  • Who is Greenlight best for?
  • What does Greenlight offer?
  • How does Greenlight work?
  • Are there fees involved?
  • How to open an account with Greenlight?
  • Is Greenlight safe?
  • What are the upsides of Greenlight?
  • What are the downsides of Greenlight?

WHAT IS GREENLIGHT?

Greenlight is an app founded in 2017 with a mission to “help parents raise financially smart kids.”

With the app, parents can automate seamlessly allowance-paying with a prepaid card for kids.

By using Greenlight, parents become the bank. You get to control funding the prepaid cards of your kids, which they can use anywhere and for any purchases.

Through the app and the prepaid debit cards, your kids get to feel what it’s like in the real world. They get to experience managing their money with your guidance.

Greenlight allows parents to automate, at the same time, oversee their kids’ spending with security features built-in.

The app allows parents to set up “accounts” for up to five kids. All of this can be controlled using the app.

Furthermore, parents can opt to divide their kids’ allowance into Saving, Spending, and Giving categories by percentages.

Similar to banks, parents can also set up interest in the savings category so your children earn rewards for saving their money.

For more information about the Greenlight and what to expect from it, check the video below by Neat Apple Tech:

If your kids do have phones, they can access their “account” by downloading the app. There they get to see how much money they have per category, their spending history, as well as their approved list of stores.

Sure, Greenlight seems to be a very good tool to teach kids how to manage their finances, but all these services come with a monthly fee of $4.99 a month.

All Greenlight accounts are insured by the Federal Deposit Insurance Corporation (FDIC), which means each depositor will receive up to $250,000 in case of a bank failure.

WHO IS GREENLIGHT BEST FOR?

Greenlight is ideal for parents who want to teach their kids how to be responsible in handling money.

It is a great app for kids as well who want to learn how to handle their finances at an early age.

Greenlight should appeal to parents who want to take advantage of automating the allowance-paying feature. This helps parents be consistent in proving their kids their weekly or monthly allowances.

For parents, Greenlight is good for you if you want to still have control over your kids’ accounts as the app allows you to see your children’s spending as well as their balances. Additionally, the app allows you to choose the stores where your kids can use the money.

Also, since Greenlight comes with a monthly fee, this should be a good option for families with extra money to pay for the fees.

Greenlight is an all-digital financial platform, which means it does not have a physical branch location like a typical bank. So, it should appeal the most to parents who are okay with the all-digital setup.

WHAT DOES GREENLIGHT OFFER?

As mentioned, Greenlight is an app that comes with prepaid debit cards. It helps kids become responsible for handling their finances.

Major Features

By using Greenlight, you get to enjoy the following major features:

  • Parental Controls
  • Incentivizing Chores
  • Earn Interest
  • Money Requests
  • Up to 5 Kids Per Account

Parental Controls

Greenlight app allows parents to split the money into two categories. First is using one pot for money your kid can spend anytime and anywhere. The other would be the one with multiple parental controls.

If you opt to put money under the parental control spot, you will be notified whenever your child makes a purchase, as well as when payment was declined, or when their account balance is running low.

Incentivizing Chores

The app allows parents to incentivize chores with payouts. Using the app, you can create chores and then pay for one-off and recurring chores.

Furthermore, parents can set recurring payments if they want to.

Earn Interest

Similar to how banks work, parents can also set an annual percentage yield (APY) to encourage their kids to save.

Your preferred interest is paid out to your kid’s account on a monthly basis.

Money Requests

With the Greenlight app, kids can also request money through the app when their balances are running low. This is very helpful especially when your kids are away from home and they get into a money emergency.

Once you agree to send money, the amount will appear in real-time to your kids’ wallet.

Up to 5 Kids per Account

Greenlight lets you open an account for up to five. Additionally, you can customize your children’s cards by adding their photographs to it. This, however, costs $9.99.

Additional Features

Apart from the above-mentioned, Greenlight also offers the following features:

  • Custom Spending Limits
  • Activity Notifications
  • Educational Saving Tool
  • Customized Alerts

Custom Spending Limits

What’s nice about Greenlight is that it allows parents to have full control over the stores that their kids can purchase items from.

Parents can whitelist or blacklist websites and stores in just a few clicks. By blacklisting a store, all attempted transactions will be automatically declined.

Activity Notifications

To keep parents informed about their kids’ spending activities, Greenlight allows you to turn on notifications so you are informed every time your kid spends his to her money.

Additionally, parents can also set up the accounts in a way that they have to approve every transaction that their kid makes.

Customized Alerts

Greenlight allows parents to create their own alerts. This way, they are notified every time their kid uses their Greenlight card in making transactions.

Parents may also op to custom alerts when a balance reaches a certain amount or when the card is declined. This feature helps teach your kids not to overspend.

HOW DOES GREENLIGHT WORK?

Now that you already know what the app is all about and what it has to offer, on this part of our Greenlight review we are going to look into how it actually works.

First of all, you need to download the app to your mobile phone to be able to start using Greenlight.

You will then have to link your existing bank account and set up your Parent Wallet.

Greenlight will ask you to provide personal information such as your name, address, and Social Security number, as well as your date of birth.

Setting Up Parent Wallet

The Parent Wallet is where you will find your current balance. It also allows you to set up AutoFunding.

Additionally, the Parent Wallet records your funding history so you know how much you’ve given to each of your kids every week (or month).

Using a debit card or a bank account, transfer a starter amount of money to your Greenlight Parent Wallet. The app will then pull the Parent Wallet to distribute weekly allowances to your kids’ accounts.

Transferring money from your bank to the Greenlight app is free. It is important to know, though, that it takes a day or two to process the transaction.

You may also opt to set up an AutoFunding option to have Greenlight fund a certain amount into your wallet.

Setting Up Weekly Allowance

Setting up a weekly allowance is easy. You can set up an automatic allowance amount per week, and you get to decide what percentages of allowance got to a particular category, which includes Save, Spend, and Give.

Kids Version of the App

If your children have mobile phones, they may as well download the Greenlight app. However, the interface is different from yours.

Your kids will see their weekly allowance and balances in the Saving, Spending, and Giving categories. Your kids will also see where they can spend their money. That way they know what specific stores to buy from.

ARE THERE FEES INVOLVED?

As already mentioned in earlier sections, using the Greenlight app comes with a fee.

Greenlight costs $4.99 per month, which is automatically taken out of your Parent Wallet.

The monthly fee covers up to five kids, which makes it worth it for bigger families. If you have five kids, for instance, that means you spend $1 a month per child.

Meanwhile, if you want your child’s photographs to be placed on the card that costs $9.99.

Apart from these, the app does not charge anything else. Transferring money from your bank to the app does not cost a fee.

HOW TO OPEN AN ACCOUNT WITH GREENLIGHT?

Opening a Greenlight account is quick and easy.

To start a Greenlight account, all you have to do is following the following steps:

First, download the app to your mobile phone.

Second, link your existing bank account, and set up your Parent Wallet. You will need to provide some personal information to finish this process.

Greenlight requires you to provide your name, address, and Social Security number, as well as your date of birth.

IS GREENLIGHT SAFE?

The safety of your account and personal information is important to Greenlight.

Greenlight uses state-of-the-art SSL encryption to ensure your data are safe. The app’s partners comply with Payment Card Industry Data Security Standard when processing and storing sensitive information.

Meanwhile, Greenlight debit cards have an EMV chip, and PINs can be controlled by parents. Additionally, cashback is unavailable to prevent unmonitored spending from happening. Rest assured that unsafe spending is prevented by Greenlight’s automated blocked categories.

As mentioned, all accounts are insured by the Federal Deposit Insurance Corporation (FDIC), which means each depositor will receive up to $250,000 in case of a bank failure.

WHAT ARE THE UPSIDES OF GREENLIGHT?

This Greenlight review will not be complete without providing you with a summary list of the pros and cons of using the app.

For this section, we are providing you with the upsides of Greenlight, which include the following:

  • Automated Allowance-Paying Process – This helps parents a lot to be consistent in giving allowances to their kids.
  • Customized Features – Greenlight offers customized features so parents can take control of their kids’ spending and saving habits, which will definitely help them learn to handle their finances responsibly.
  • Parental Control – Greenlights allows parents to take full control of their kids’ money by choosing how much goes to Save, Spend, and Give categories, as well the stores where they can purchase items from.
  • Multiple Accounts – Parents can set up accounts for as many as five children.
  • Debit Cards – The account comes with a debit card, one per kid. Unlike cash, this makes it easier for children to keep track of their spending, as well as their balances.
  • Customizable Debit Cards – For the amount of $9.99, parents may opt to put their kids’ photographs on their respective cards to make them more personalized.
  • Security Features – Greenlight has put essential security features in place to ensure all accounts are safe.
  • Reasonable Monthly Fee – For the price of $4.99 per month, families can enjoy all the perks that Greenlight has to offer. In fact, the monthly fee becomes super worth it if you have five children in the family that you want to enroll in. That means spending $1 per month per child only.
  • FDIC Insured – All accounts are insured by the Federal Deposit Insurance Corporation (FDIC), which means each depositor will receive up to $250,000 in case of a bank failure.

WHAT ARE THE DOWNSIDES OF GREENLIGHT?

In this section, we listed down some of the major downsides of the Greenlight app. This includes the following:

  • Card Replacement Fee – Although replacement of card is free for the first time, you will need to pay a cost once it happens again.
  • Monthly Fee – Although the amount is fair enough, the monthly fee may seem a lot for some parents whose budgets are tight.
  • Allowances Are Not Withheld Automatically – Unfortunately, the app does not automatically withhold allowances in case your kid fails to complete a chore. Parents need to do it manually by turning the allowance off.
  • Entirely Online – Greenlight is a mobile application and is entirely online. So, if you want in-person access to your account that is not available. You may have to look for something else.

FINAL THOUGHTS ON GREENLIGHT

Greenlight is a great tool to help parents teach kids the value of money. It provides a lot of great features that are helpful to both parents and kids.

There is a lot of things to love about this app. But of course, like anything else, it does have its share of downsides as well. One of them is the monthly fee of $4.99.

However, if you look at what it has to offer, and how it will help parents raise financially literate children, then, it should be worth it.

So, are you considering downloading Greenlight now?

This Greenlight review, brought us to conclude that overall, Greenlight is a great app to help parents raise children who know how to handle money well.

Categories
Mobile Banking

FamZoo Review: One Of The Best Financial Tools For Kids

If you are looking for a financial tool that will help teach your kids about financial responsibility, then this FamZoo review is for you.

FamZoo Review: One Of The Best Financial Tools For Kids

Money matters is not a very easy thing to discuss at home especially with kids. But, it is essential so younger generations learn how to properly handle their finances in the long run.

As parents, it is your responsibility to teach your kids how to handle money wisely. Teaching them young is the most ideal thing to do as it will absolutely affect how they handle their finances in the long run.

The earlier they learn about financial management, the better.

We understand how challenging the task can be. Thus, we are not quite surprised that in the 2017 T. Rowe Price Survey, it was found that kids are actually not learning about financial literacy at home.

In fact, 69% of parents are reluctant about discussing financial matters with their children. Out of all the respondents, only 23% of them, indicated that they often talk to their parents about money matters while 35% stated that their parents are not comfortable about discussing financial stuff at home.

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Meanwhile, according to research conducted by the National Bureau of Economic Research, 40.2% of young people with low levels of financial literacy rely on their parents, friends, as well as acquaintances when it comes to gaining financial knowledge, while 20.8% are financially literate.

So, you see, whether you like it or not, as a parent you have to work on teaching your kids financial literacy.

Here’s the thing, unlike before, today, thanks to the advent of technology, there are actually a lot of available tools online that you can use to teach your children financial management.

One of the many platforms to choose from is FamZoo, a prepaid card that specially designed to teach kids the fundamental principles of good money management.

In the next few sections, you will learn more about the FamZoo as we specifically answer some of the most important questions about this tool, which include:

  • What is FamZoo?
  • Who is FamZoo best for?
  • What does FamZoo offer?
  • How does FamZoo work?
  • Are there fees involved?
  • How to open an account with FamZoo?
  • Is FamZoo safe?
  • What are the upsides of FamZoo?
  • What are the downsides of FamZoo?

WHAT IS FAMZOO?

FamZoo is a prepaid card company that was founded in 2006 by Bill Dwight. It is an online virtual family bank that can be used, obviously, by parents and children.

It specifically focuses on helping teach kids the fundamental principles of good financial management.

By using FamZoo, your kids will learn how to earn, save, as well as spend money sensibly.

What’s nice about FamZoo is that it was specifically made with children in mind.

In fact, Dwight initially created it to help his own children understand the importance of handling money wisely.

With FamZoo, parents and children can track spending and save through its website or its mobile app. Meanwhile, families can use IOU accounts to track spending.

FamZoo comes with a prepaid debit card that does not charge overdraft fees. It also does not drain the children’s parents’ actual checking account by accident. If you have lots of children, each of them gets to have their own IOU as well as debit card accounts.

Know more about FamZoo and what makes it work for young people based on a user’s perspective in the video below by Marble Jar Channel:

WHO IS FAMZOO BEST FOR?

FamZoo should appeal to parents who want to teach their children how to manage their money wisely. In the same way, it is best for children who want to learn financial literacy as early as now.

FamZoo is open to any family. All you need is to open one account per family. One parent will be the primary account holder, and they will be the ones responsible for transferring money to their kids’ debit cards as well as IOU accounts.

Children, as well as teens who earn an allowance or have a side job, may benefit the most from FamZoo as they may already have a basic concept of saving and spending money.

Although FamZoo primarily appeals to younger people, some families even use IOU accounts as well as debit cards for their college-aged kids.

Again, if you are a parent who finds teaching your kids financial management very challenging, FamZoo may just make your life so much easier.

Also, it is important to know that FamZoo is available for children who are 13 years old and above. For children below 13 years, FamZoo allows parents to get “on behalf of” debit cards.

For children below 13 years old, FamZoo expects that a parent is present when the child is making a purchase.

WHAT DOES FAMZOO OFFER?

FamZoo offers two products — the Prepaid Card Accounts and the IOU Accounts.

Prepaid Card Accounts

As mentioned, FamZoo offers a prepaid card that is ideal for children from preschool up to college.

It is a financial product that is made to be supervised and managed by parents or guardians.

Unlike other prepaid cards in the market, what makes FamZoo unique is that it offers a way to set up and divert money to different accounts for categories such as saving, investing, spending, and giving.

FamZoo debit card offers a few more perks, including:

  • No overdraft fees
  • No hidden fees
  • Free card loading options
  • Support major digital wallets, which include Apple Pay, Google Pay, and Samsung Pay

With FamZoo, parents get to retain control of the card as well as the account all the time. More so, they can set up special accounts for monthly allowances or for certain payment chores.

Unlike a typical prepaid card or debit card, a FamZoo card can be ordered online without a credit check.

The Prepaid Card Accounts come with a monthly fee, which varies between $2.50 and $5.99 per month depending on your preferred subscription.

Here’s the price breakdown per subscription:

  • $5.99 per family when you pay each month
  • $4.33 per family when you pay $25.99 in advance for six months
  • $3.33 per family when you pay $39.99 in advance for 12 months
  • $2.50 per family when you pay $59.99 in advance for 24 months

IOU Accounts

With IOU Accounts, parents get to track funds they are holding elsewhere for their kids. While FamZoo still keeps track of them, parents handle the transaction of cash and inform FamZoo about it.

The fees are similar to the Prepaid Card Account. However, instead of one month, you get the first two months for free.

For your reference, here are the four different IOU budget plans to choose from:

  • Starter Plan– This allows young children to track occasional deposits and purchases.
  • Simple Allowance/Chore Plan– Parents may opt to pay for chores or a regular allowance, which makes it easier to track their child’s earning.
  • Spend-Save-Give Plan- This plan emphasizes splitting income between saving, spending, as well as giving accounts.
  • Teen Budget Plan– This plan allows division of income between different budget percentages for the present as well as for future expenses.

HOW DOES FAMZOO WORK?

To be honest, FamZoo is like a serious play.

You are probably wondering why. Well, it’s because using it turns parents into bankers for their kids.

You get to use FamZoo by buying a subscription. In the subscription, each family gets a primary card, which is controlled by the parents, as well as additional cards. The number of cards depends on how many your children are.

The primary card is like the bank. It is the one that is responsible for funding the children’s cards. Meanwhile, the primary card is funded by a different bank account owned by one of the parents.

Your children’s cards can also be funded by another bank account, which makes it ideal if your kids are planning to do a part-time or a summer job.

Like a typical debit card, each of FamZoo cards does have its own routing and account number, which means you can use it to set up direct deposits or bank transfers.

It is also important to know that your children are not limited to having just one debit card. In fact, your kid or each of your kids can have several cards. It’s like having several piggy banks for different spending goals.

To make it easier for the cardholder to identify which one is for a specific spending goal, the cardholder can use the custom label embossed beneath the cardholder’s name.

As mentioned in the previous section, FamZoo does not require a credit check, which means regardless of your credit standing, you can open one for your family.

With FamZoo, both parents and children get to view their account activity on a shared dashboard.

This platform can also be used by parents to set allowances as well as give rewards to their kids for doing certain duties.

Parents can also withhold money so their children can save cash for a rainy day or give it to a charity of their choice.

Furthermore, FamZoo also enables parents to add interest to savings as well as create penalties for certain behaviors. They may also offer loans like what banks do.

With IOU accounts, parents will have the ability to track funds they are holding on their children’s behalf. IOU accounts provide information on how much money is owed to your kids. Similarly, parents may also set up IOUs for cash owed by their kids. Expense sharing may also be set up with IOUs.

Another thing is that, with the cards, children can spend money at the same time, record where it was spent. This allows parents to see exactly what their kids are spending their money on.

FamZoo is compatible with both iOS and Android mobile apps. If case mobile apps are not your cup of tea, you may opt to access your account via the company website.

Additionally, you may also opt to text or email commands to FamZoo if you are unable or not in the mood to use the mobile app.

For text commands, all you need to do is send a text message to 41411 using this format: “famzoo [quick-command]”. You will then immediately receive a reply. You may opt to check the quick command reference guide on the FamZoo website to know every single command that is available. Text commands come in both short and long versions.

ARE THERE FEES INVOLVED?

Just like in a typical bank, it is important to look into the costs involved.

FamZoo does not charge overdraft fees as well and does not have hidden fees.

However, it does have a per-family subscription fee.

The subscription fee costs $5.99 per month. But this can be reduced to $4.33 per month if paid every six months, $3.33 per month for payments done annually, as well as $2.50 per month if you pay a one-time payment for 24 months. The latter choice is definitely the best deal available.

Also, FamZoo offers a free trial so you get to check first if the platform works for you or not before you start subscribing to it. Also, FamZoo allows you to switch plans at any time. All you need to do is contact FamZoo.

Additionally, FamZoo charges a one-time shipping fee after the fourth card, which costs an additional $2 for each card.

For your reference, here’s a list of fees you should be aware of:

  • Overdraft Fee – $0
  • Reload fees – $0 for direct deposit, digital wallets, and FamZoo card transfers. Up to $6 for bank account transfers and retail stores.
  • Inactivity Fees – $0
  • In-network MoneyPass ATM withdrawals – $0
  • Out-of-network ATM withdrawals – Varies (However, FamZoo doesn’t charge an extra fee.)
  • Foreign transaction fee – 3%

HOW TO OPEN AN ACCOUNT WITH FAMZOO?

In the previous sections of our FamZoo review, we talked about the most important details you need to know about this platform.

This time, let’s talk about how to actually open a FamZoo account.

To sign up, all you need to do is visit the FamZoo website and click the “Sign Up Now” button. You will then be asked to choose between Prepaid Card Accounts and IOU Accounts.

As mentioned, while both charges the same, Prepaid Accounts offer a one-month free trial only, while IOU accounts offer two months free trial.

To start your subscription, you will need to provide some personal information including your name, email, phone number, as well as your preferred password.

The whole process is quick and simple. You can finish it in just a few minutes.

IS FAMZOO SAFE?

Your personal data and account safety is important. Thus, in this part of our FamZoo review, we are going to see how secure this financial platform is.

For those with Prepaid Card Accounts, it is important to know that you can lock them at any point if they are either lost or stolen.

In addition, parents can also lock the cards if they worry about their kid’s spending habits.

As mentioned, children aged 12 and below cannot have their own cards. However, it is possible for them to use cards under their parents’ names.

All funds under Prepaid Card Accounts are stored in financial accounts that are insured by the Federal Deposit Insurance Corporation (FDIC). With prepaid card accounts, all information is stored with TransCard.

Meanwhile, for IOU accounts, there really is not money at risk when you opt for this.

So, is FamZoo safe? Definitely, it is.

WHAT ARE THE UPSIDES OF FAMZOO?

We are almost done with our FamZoo review. But first, here are some of the advantages of using FamZoo:

  • Teaches Kids The Value Of Money – FamZoo is specifically designed to teach kids how to efficiently handle finances. So, if you are a parent who finds it hard to instill financial literacy by simply talking to your kids, this is the best way to do it instead.
  • Intuitive User Experience – Both the online and mobile platforms are easy to use.
  • Service Can Be Customized – FamZoo can be tailored based on your specific needs and requirements to help your kids better appreciate financial values and expectations.
  • Parental Controls – Although your kids get to access the account, parents still have control. In fact, parents can lock their children’s cards if they find it necessary.
  • Digital Access – FamZoo is available both online and mobile.
  • Low Fees – Although there is a subscription fee, generally, it still is low as compared to other financial platforms available in the market.

WHAT ARE THE DOWNSIDES OF FAMZOO?

To complete our review on FamZoo, here are some of the downsides of this financial platform:

  • No Free Plan – Unfortunately, FamZoo does not offer a free plan. The cost of the monthly subscription may be an added cost for families with a meager income.
  • Manually Input Transactions for Non-FamZoo Debit Card Purchases – To manually input transactions for non-FamZoo debit card purchases can be quite a daunting task.
  • Prepaid Cards are Available in the US Only – The FamZoo financial platform is only available for those living in the US. Outsiders can only avail of IOU accounts.

FINAL THOUGHTS ON FAMZOO

FamZoo is a financial platform that is specifically designed to help teach kids how to handle their money efficiently. It’s a great tool parents can use to instill in their children the right knowledge on financial management.

Given all the information we provided, do you consider using FamZoo?

With this FamZoo review, we hope you are able to gauge between the pros and cons and decide if this platform is ideal for you and your family.

Categories
Mobile Banking

American Express Bank Review: Providing Top Of The Line Savings Account

In this American Express Bank review, you will find how this well-recognized financial institution provides a top-of-the-line savings account and see if it’s right for you.

American Express Bank Review: Providing Top Of The Line Savings Account

The best way to build long-term wealth is by earning money and then, investing it in the right channels or platforms.

There are actually a lot of banks and other financial institutions out there that offer high-yield savings account, which definitely is a come-on. It’s very appealing given the fact that your money grows while it sits in the bank or a financial institution.

But wait, what is the attitude of Americans towards saving money?

Before the pandemic hit the country (and the world in general) in 2020, data from different studies show that many Americans are that good at saving money. In fact, there were still a few who are unbanked.

However, things changed when the pandemic happened.

A new survey conducted by Bankrate says that 54% of Americans have more emergency savings now than credit card debt. This was 5% higher as compared to the previous year, which was pre-pandemic.

The whole COVID-19 thing has changed the way people save money especially building an emergency fund.

Now, speaking of saving money, a high-yield savings account is absolutely the most ideal product especially if you intend to build an emergency fund. You know, as you keep adding money to the account, the more it earns.

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As mentioned earlier, there are actually a lot of banks and other financial institutions that offer competitive rates on a savings account. With so many options to choose from, it is important to be smart in selecting your savings account.

One of the many options available is that of American Express Bank.

In the next few sections you are going to find out the most important details you need to know specifically about the American Express Personal Savings account.

Particularly, we are going to focus on providing answers to the following questions:

  • What is American Express Bank?
  • Who is American Express Bank best for?
  • What does American Express Bank offer?
  • How does American Express Bank’s online banking work?
  • Are there fees involved?
  • How to open an account with American Express Bank?
  • Is American Express Bank safe?
  • What are the upsides of American Express Bank?
  • What are the downsides of American Express Bank?

WHAT IS AMERICAN EXPRESS BANK?

Many people know American Express Bank as a popular credit card company. However, what people are not that aware of is that it also has an arm devoted to bank accounts.

American Express National Bank is a member of the Federal Deposit Insurance Corporation (FDIC). It is solely dedicated to personal banking solutions for consumers.

American Express offers online savings as well as a certificate of deposit accounts.

The bank’s personal savings account is actually one of the best online savings accounts you will find in the market today.

The American Express Bank is under the American Express Company, a multinational financial services corporation that is headquartered in New York City. The company was founded in 1850.

To know more about the American Express Bank and the products it offers, check out this informative video by Adam Venture:

WHO IS AMERICAN EXPRESS BANK BEST FOR?

Surely, American Express is one of the most popular credit card providers. But, there’s more to it than just credit cards.

American Express Bank is ideal for consumers who are looking for a bank that offers a high-yield savings account as it is definitely one of the top contenders for this area.

In addition, the bank should also appeal to consumers who prefer banking online instead of going to a physical branch location.

American Express Bank lets you open a certificate of deposit with no minimum deposit required. So, if you want to avail such a perk, then this is definitely a bank to consider.

Also, the bank should be a great choice for consumers who want to keep a savings account at a different bank from their main accounts, as well as open a savings account without monthly fees or minimum balance requirements.

WHAT DOES AMERICAN EXPRESS BANK OFFER?

American Express is one of the most popular credit card providers. But, not a lot of people know that the bank actually offers personal deposits as well, which includes a high-yield savings account and certificate of deposit accounts.

For the purpose of this American Express Bank review, we are going to focus only on both savings and CD accounts.

High-Yield Savings Account

If you are specifically looking for a savings account with high earnings potential, the American Express High-Yield Savings account is an ideal choice.

Currently, the account earns a 0.40% annual percentage yield (APY). Please take note that the interest is earned daily and is posted on a monthly basis.

Unlike other savings account offered by competing banks, American Express Bank does not charge monthly fees and does not require a minimum balance. However, the bank automatically closes an account with zero balance for 180 days.

Moving on, what’s nice about an American Express Bank savings account is that it can easily be connected to other bank accounts. Thus, allowing the account holder to transfer money back and forth anytime he or she wants to.

Meanwhile, to open an account or start making a deposit, all you need to do is either link your account to an external bank account or send a check via mail. The bank does not require a minimum deposit to open a savings account.

The American Express Bank savings account is accessible 24 hours a day, seven days a week online, or by calling the bank’s customer service.

Similar to other savings accounts out there, the American Express savings accounts are subject to federal Regulation D, which means account holders are not allowed to make more than the usual maximum of six withdrawals/debits per statement cycle.

It is important to know, though, that if you regularly exceed the six-withdrawal monthly limit, the bank may freeze or close your account, or change it so that it doesn’t earn any interest. Thus, you have to be very mindful about your monthly withdrawals to avoid this from happening.

Apart from all the perks we’ve already mentioned, American Express Bank also provides an option to convert your savings account to a CD account if in case you decide you want to keep your money for the long haul and get a chance to earn more.

Setting up the account is very easy. If you decide to convert your savings account to a CD account, it is important to know that you cannot contribute more money to a CD account. This should not be a concern, though, if you really want to take advantage of what a CD account has to offer.

Certificate of Deposit (CD) Account

Unlike its savings account, American Express Bank certificate of deposit (CD) accounts are not as competitive.

However, it does have a huge advantage because the bank’s CD account does not have a minimum deposit requirement, which is not a common cause because normally, banks require a minimum deposit of either $500 or $1,000. Some banks even require more.

With American Express Bank, you can open a CD account with whatever amount you have at the moment.

Similar to other banks, early withdrawals are penalized as well. The penalty varies depending on the CD term. The range would usually range from 90 to 540 days’ worth of interest.

American Express Bank CDs term ranges from 6 months to 60 months with rates that range between 0.10% and 0.55% as of this writing.

HOW DOES AMERICAN EXPRESS BANK’S ONLINE BANKING WORK?

American Express Bank account holders do not have the option to visit a physical branch like other financial institutions of a similar type. However, they do have the option to reach someone from the bank anytime and any day if there is any concern.

The digital banking experience varies depending on what product you have. For those with savings accounts, do not expect too many digital frills. By logging in to your online banking account, you get to take care of tasks like moving money from one account to another.

Meanwhile, customers with AMEX Serve prepaid debit cards, a product that is provided and issued by the American Express Travel Related Services Company, gets access to a mobile app that allows users to do tasks like deposit checks and pay bills.

Since American Express Bank does not intend its personal savings account to be used like any other typical savings account, it does not come with a debit card, checks, as well as ATM access.

ARE THERE FEES INVOLVED?

By now you already know a lot about the American Express Bank.

This time, in this part of our American Express Bank review, we are going to talk about fees.

As mentioned in the earlier sections, the bank does not charge monthly or annual fees, as well as strange fees. Furthermore, it does not require a minimum balance for its savings account.

Like any other bank, savings account holders are limited to making six transactions per month. However, American Express Bank does not charge extra if you go over the limit.

While it sounds great, it is important to know that the bank does reserve the right to freeze or close your account or change it so that it doesn’t earn any interest – whatever is applicable.

HOW TO OPEN AN ACCOUNT WITH AMERICAN EXPRESS BANK?

The American Express Bank is an online-only bank, which means opening an account is easy and very accessible. All you need to do to start opening an account is go online.

Apart from that, you may also opt to sign up over the phone by calling the bank at 1-800-446-6307.

American Express Bank does not have a mobile app, so, the only way to deposit money into your account apart from the electronic transfer is to send a check directly to the bank.

Meanwhile, to be able to transfer money between your savings account and your external bank account, all you need to do is follow the following procedure as stated on the American Express website:

  1. Open an Account. To verify your identification, American Express uses your personal details to check public records – without affecting your credit.
  2. Register your online savings account after you receive your confirmation email (within minutes of applying).
  3. Sign in and fund your new account by linking to your current bank or mailing a check. Linking your external account can take up to 2 days. Transfers typically take less than 24 hours once linked.

IS AMERICAN EXPRESS BANK SAFE?

One of the many concerns that customers have especially when it comes to all-digital banking is the safety and security of their personal data and their money.

American Express is a well-known financial institution, which means it does have integrity when it comes to safety and security matters.

Rest assured that American Express has put multiple security systems in place to ensure your accounts and your personal information are safe and secured.

In fact, the bank uses 128-bit Secure Sockets Layer (SSL) technology to encrypt all data. Additionally, the bank also uses other safeguards such as hone security questions, email confirmations of password changes, automatic account time-outs, and a lot more.

As mentioned, American Express Bank is a member of the FDIC, which means all accounts are insured for up to $250,000 per depositor, per account ownership category, in case of a bank failure.

WHAT ARE THE UPSIDES OF AMERICAN EXPRESS BANK?

To give you a better view of what to expect and what not to expect from the bank, in this part of our American Express Bank review, we are providing you with the upsides of the institution, which include:

  • High-Yield Savings Account – American Express Bank offers as high as 0.40% APY on its savings account, which definitely is one of the best offered in the market today.
  • No Minimum Deposit Required – The bank does not require a minimum deposit on its savings account, which means you can open an account with whatever amount you have at the moment — regardless if it’s spare cash or not. Similarly, the bank does not require a minimum deposit requirement for its certificate of deposit (CD) account as well.
  • No Monthly Fees – Unlike most online banks, American Express does not charge monthly service fees or overdraft fees. In fact, it does not charge any fees at all with any of its accounts, which is quite surprising because banks of similar types usually charge a lot of different fees.
  • Interest can be Withdrawn during the CD Term – Unlike other banks, American Express allows you to withdraw the interest you’ve earned in your CD account during the term.
  • 24/7 Online and Phone Access – American Express account holders may access their accounts via online channels or through phone anytime and on any day of the week.
  • FDIC Insured – All American Express accounts are insured by the FDIC, which means each depositor receives up to $250,000 per account ownership in case of a bank failure.

WHAT ARE THE DOWNSIDES OF AMERICAN EXPRESS BANK?

To complete our American Express Bank review, below are some of the downsides of American Express Bank:

  • No Mobile App – Unfortunately, American Express does not have a mobile application where customers can easily access their accounts. For personal savings and CD account holders, they may access their accounts via online banking or by calling the bank’s customer support hotline.
  • No Physical Branch Location – American Express Bank is an entirely online bank, which means customers do not have access to a physical branch location. For any immediate concern you may have with your account, you may ask help by calling the bank’s customer support.
  • Limited Product Offerings – Unlike other popular banks, American Express is limited to personal savings and CD accounts only. Sad to say, the bank does not offer checking or money market accounts yet.
  • No Mobile Check Deposit Option – To deposit money to your account, you have two options — either to do an electronic transfer or to send a check via mail.
  • No Debit Cards or ATM Access – Unfortunately, the American Express savings account does not come with a debit card or ATM access. To withdraw money, you need to transfer it to your linked checking account first.
  • No Checks – Similarly, American Express Bank does not provide check options as well.

FINAL THOUGHTS ON AMERICAN EXPRESS BANK

American Express Bank is a well-known credit card provider. However, what people do not know much is that it also offers bank accounts. Particularly, the bank offers a personal high-yield savings account and a certificate of deposit account.

While its CD accounts’ rates are not as competitive, the bank’s personal savings account has definitely one of the best rates in the industry to date.

Although the rates may entice a lot of customers, unfortunately, the bank does have its share of downsides, including not having mobile app access. Savings and CD account holders may access their accounts either through online banking or via phone call to the bank’s customer support.

Given all the information we provided, do you think American Express Bank provides everything you need in a bank?

We hope that through this American Express Bank review, you are able to gauge whether it’s the right one for you or not.

Categories
Mobile Banking

Yotta Savings Review: Saving and Winning Money In One Mobile App

In this Yotta Savings review, you will see how this fintech company makes saving more interesting by adding a weekly chance to win a lottery jackpot.

Yotta Savings Review: Saving and Winning Money In One Mobile App

For many people, saving money whether it be in the bank or other financial institutions is a drag. They find it not worth it especially since the interests on savings accounts are usually low.

Ironically, some people would rather spend money joining or betting on lotteries instead of saving their money in the bank.

In fact, a report published by the United States Bureau of Labor Statistics says that from the third quarter of 2017 to the second quarter of 2018, Americans spent an average of $132.43 on lottery tickets.

Meanwhile, data from Statista says that in 2020, the largest lottery sales were in New York, generating approximately 9.74 billion U.S. dollars. This was followed by Florida as well as Texas, with lottery sales that amount to 7.5 billion and 6.7 billion U.S. dollars, respectively.

If you think about it, that’s a lot of money spent on lotteries. More so, that’s too much money spent on something that you are unsure of. After all, only a few wins the prize, right? The probability of taking home the prize is way too far, to be honest.

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Still, a lot of people are into it instead of saving that money on banks or other financial institutions instead.

But, what if you get the best of both worlds? You know, hitting two birds with one stone?

Sounds impossible? Does it seem like a crazy idea?

Well, apparently, you are wrong, because that is exactly what Yotta Savings is trying to address.

The company offers both savings, at the same time, provides its customers an opportunity to win the weekly lottery!

So, does the company do it? Well, you are going to find out as you go along this Yotta Savings review.

Specifically, this in-depth review will focus on providing answers to some of the most commonly asked questions about this online financial platform, which include:

  • What is Yotta Savings?
  • Who is Yotta Savings best for?
  • What does Yotta Savings offer?
  • How does Yotta Savings work?
  • Are there fees involved?
  • How to open an account with Yotta Savings?
  • Is Yotta Savings safe?
  • What are the upsides of Yotta Savings?
  • What are the downsides of Yotta Savings?

WHAT IS YOTTA SAVINGS?

Yotta Savings is a financial technology or fintech company that offers an alternative interest rate structure on savings.

Founded in October 2019 by Adam Moelis and Ben Doyle, this New York-based company provides a savings application with lottery elements, which makes it very unique to what other fintech companies offer.

Inspired by the United Kingdom’s Premium Bonds program, Yotta integrated gamification elements with traditional savings.

By using Yotta Savings, account holders get to save money, at the same time, have the chance to win a $10 million jackpot, along with a multitude of other prizes and rewards.

But the good things do not end with the lottery prize alone.

Yotta functions as a basic savings app that provides a relatively high annual percentage yield of up to 4%.

Yotta does not only provide customers with a fun take on savings app but that also provides customers a chance to hold their money in a high-yield savings account.

The good things about Yotta Saving continue —

Apart from the chance to win a lottery prize, as well as earn a high interest rate on a savings account, Yotta ensures that all deposits are safe in case of an unfortunate event.

Yotta Savings is insured by the Federal Deposit Insurance Corporation (FDIC), which means in the event of a bank failure, all deposits are insured for up to $250,000 per depositor, per account category.

Before moving on, if you want to know more about Yotta Savings, check this video by Brendan Fitness and Money:

WHO IS YOTTA SAVINGS BEST FOR?

Generally speaking, Yotta should appeal to individuals who want to take advantage of having basic savings account with a high annual percentage yield, at the same time, a chance to win a weekly lottery prize for free.

Additionally, Yotta Savings is also a good choice for people who do not want to worry about paying monthly fees or meeting account minimum requirements.

Yotta Savings is a fintech company, which means transactions are done entirely online. Thus, this app is great for people who prefer online banking and does not mind not having a physical branch to go to.

Because of the lottery aspect, this is a great opportunity for people who won’t win as much as $10 million every week without having to pay for anything! Basically, you earn 1 ticket for every $25 you deposit in your account.

WHAT DOES YOTTA SAVINGS OFFER?

Technically speaking, Yotta Savings is not a bank, but a fintech or neobank. However, thanks to its partner, Evolve Bank, Yotta Savings can provide banking services that are FDIC-insured.

With Yotta Savings, customers earn a small amount of interest plus cash-based prizes instead of earning cash interests.

Since Yotta Savings is a fintech company, everything is done entirely online. The app is accessible to both iOS and Android users.

Now, for a more thorough review, here’s what Yotta Savings has to offer:

Lottery Tickets

Yotta Savings is not your typical savings account. With every $25 that you save, you get a ticket into weekly number draws. So, if you deposit $100 for instance, you get 4 tickets every week for as long as you keep that amount in your account without making any new deposits.

A prize is chosen every Monday of the week at 9 PM EST.

What’s nice about Yotta is that, unlike the traditional lottery, customers do not lose any money at all. They just gain some if they win.

Meanwhile, picking numbers as well as handing out prizes is done by a third-party insurance company.

Savings Rewards

Yotta’s base savings reward is 0.20%. While multiple outlets have tried calculating how much the “average” could earn with Yotta in rewards, there has been no concrete result.

Nevertheless, effective rate calculations factor in the base rewards plus the winning prize from lottery tickets.

Currently, Yotta’s weekly lottery prize ranges between $0.01 and $10 million, including partial ticket matches that pay out small amounts of money.

Debit Card

Yotta Savings is launching its debit MasterCard soon.

What’s nice about it is that you get to earn tickets by simply using it. For every $10 spent, you will earn one ticket to the following week’s draw.

Additionally, there is a chance to win the item you have just purchased for free.

Cardholders will also be upgraded automatically to a premium metal card once they have made 10 referrals.

Referral Program

Each customer gets to have a unique referral code, which allows them to earn extra 100 tickets for the lottery.

Similarly, the person they are referring to will also earn the same number of tickets for the lottery.

HOW DOES YOTTA SAVINGS WORK?

Now that you already know what to expect from the Yotta app, this part of the Yotta Savings review will focus on providing you information on how the app actually works.

Using the Yotta Savings app is very simple and easy.

First, you make a deposit. You may deposit by simply choosing your bank to deposit from.

As mentioned, for every $25 that you save, you automatically earn one ticket into the weekly number draws.

If you deposit $50, then, you get 2 tickets every week for as long as you keep that $50 in your account without making any new deposits.

Second, for every Money, you need to pick 7 numbers for each of your tickets.

If you forget to pick your numbers before the draw, that’s fine. Your ticket will be automatically picked if you are not able to complete it in time.

Third, the draw is done every week with one number drawn every night at 9 PM EST. The final number is drawn on Sundays, and the winnings for the week are made.

Lastly, Yotta lets you earn up to $10 million every week!

If you want to earn more, you just got to match as many numbers as possible. However, if you match all seven numbers, you take home the $10 million jackpot with you.

It is important to know that Yotta Savings is primarily a savings account, which allows you to earn a 0.20% interest rate.

However, if you include the value of the current prizes, account holders could get up to 4% all-in on your savings, which is definitely the highest rate out there.

Ultimately, what makes Yotta unique is the fact that it allows its account holders to save in a separate account, at the same time, play the lottery without any risks involved.

Withdrawal Limits

Similar to other banks, Yotta Saving account holders are limited to six withdrawals only per statement period.

In addition, these dollar limits apply: $10,000 per day, $40,000 per month, and $100,000 per year.

ARE THERE FEES INVOLVED?

With all these opportunities and perks that Yotta Savings provide, you’d probably think it will cost you a lot to benefit from it all.

Well, guess what?

Yotta Savings does not charge any monthly service fee, as well as it does not require any minimum deposit or minimum balance requirements.

Furthermore, the app does not charge overdraft fees as well.

The only possible fee that you will be charged is ATM fees if you decide to make cash withdrawals.

However, the company says it is currently working on creating its very own in-network ATM system. So, sooner or later, customers will also get to enjoy free ATM transactions.

HOW TO OPEN AN ACCOUNT WITH YOTTA SAVINGS?

Now that you already know the most important details about the Yotta Savings app, this time, let’s talk about how to actually open a Yotta Savings account.

To start with, you have to download the Yotta Savings app, which is available for both iOS and Android devices.

Now, to sign up for a Yotta Savings account, similar to other banks, you will be asked to provide some basic personal and financial information such as your name, address, phone number, birth date, as well as your Social Security number.

Do not worry about seeing a hit to your score because Yotta will not pull your credit.

Once you are done creating your account, you will then be prompted to input your bank account details.

Please take note that Yotta requires account holders to have a US-based bank account. Otherwise, you will have to make one first before you can start using Yotta.

Yotta has no restrictions on which bank accounts to connect. However, it has to be a regular checking account from a bank based in the United States.

Yotta Savings has partnered with Plaid, which ensures you can connect any bank account to the app without any hassle.

IS YOTTA SAVINGS SAFE?

The safety of your money and your personal information is important to Yotta. That is why it has put all necessary safety and security measures in place.

First, Yotta Savings uses military-grade 256-bit AES encryption on all customers’ personal data and transfers information using secure SSL channels. With these security measures in place, hackers should have a hard time trying to get into your account.

Second, your money is not actually held with Yotta. This means that if the company goes under, creditors cannot come after your funds.

Lastly, as mentioned earlier, all deposits on Yotta Savings are FDIC-insured. Thanks to its partnership with Evolve Bank.

All accounts are insured for up to $250,000 per depositor, per account category in the event of a bank failure.

So, overall, the Yotta Savings app is very safe to use. Both your personal information and your money are well taken care of.

WHAT ARE THE UPSIDES OF YOTTA SAVINGS?

This Yotta Savings review will not be complete without sharing with you a list of the pros and cons of using Yotta Savings.

In this section, we are going to focus on the upsides of Yotta Savings first. This includes:

  • Excellent Savings Account – Yotta Savings’ base interest rate is 0.20%, which means no matter what, your money will grow. However, if you add the weekly cash bonuses, most account holders could end up earning as much as 4% (even more) APY on their accounts.
  • Unique Gamification Elements – Apart from providing you a basic savings platform, Yotta also takes advantage of the oddities of human psychology to incentivize people to save more money.
  • No Monthly or Overdraft Fees – Apart from the fact that Yotta provides a very unique way to make people save money by providing them a chance to win a prize at the same time, Yotta also makes saving stress-free by not charging monthly service fees or overdraft fees.
  • Free Weekly Lottery – Unlike typical lotteries, with Yotta, account holders need not worry about paying for lottery tickets, because they’re free! All you need to do is deposit money into your account. For every $25, you automatically earn 1 ticket for yourself.
  • Chance to Win Millions – Yotta Savings app provides each account holder the chance to win for up to $10 million every week. What’s nice about it is that you have chances to win without having to lose any at all. As mentioned, you earn a lottery ticket for every $25 deposit made.
  • Referral Bonus – Just when you thought the good things are over, well, not yet. If you refer a friend to Yotta, you instantly get 100 lottery tickets for free when they sign up and make an account. Furthermore, the same number of tickets will also be given to your friend/s.

WHAT ARE THE DOWNSIDES OF YOTTA SAVINGS?

In the above section, we’ve shared some of the highlights of Yotta Savings.

To complete our Yotta Savings review, here are some of the downsides of the app:

  • Entirely Mobile – Unfortunately, Yotta Savings is only accessible through its mobile app. Unlike other fintech companies, this does not allow you to access your account on a desktop computer. Good thing though as the app is very easy to use, and does not have major concerns.
  • Average Base Rate – If we are just going to look at the base rate, there are surely other banks and financial institutions that offer higher than that.
  • No Fee-Free ATM Network – As of this writing, Yotta Savings does not have a free ATM network. So, while it does not charge monthly service fees or overdraft fees, customers will have to deal with ATM fee charges instead.
  • Lack of Features – Yotta was created solely for savings. It does not offer any other traditional banking services like checking accounts, certificate of deposit accounts, or retirement accounts.

FINAL THOUGHTS ON YOTTA SAVINGS

Yotta Savings is a fintech company that offers savings account as well as an opportunity to win a weekly lottery prize of up to $10 million.

It’s a great option especially for people who love joining lotteries. What’s nice about Yotta is that you don’t lose anything. You earn a ticket for the lottery draw for every $25 deposited to your account.

Given all that Yotta Savings offers, do you think this is the right account for you?

Through this Yotta Savings review, we conclude that Yotta is definitely worth considering, especially for people who want to enjoy the benefit of having a savings account and a chance to win up to a $10 million lottery prize for free.

Categories
Mobile Banking

HSBC Online Banking Review: Everything You Need To Know

If you are looking for an established full-service bank that offering digital banking services, then, this HSBC online banking review is for you.

HSBC Online Banking Review: Everything You Need To Know

While traditional banking is still far from being off the market, digital banking has definitely changed the way people bank.

In fact, according to an article published by Business Insider, it says that convenience and quickness are two of the primary reasons that make digital banking attractive to consumers.

It is not surprising though because digital banking has absolutely made things so much easier. In just a few clicks, you get to send money to a loved one, pay for a purchase, deposit a check, as well as manage your finances. Needless to say, you get to access your account whenever and wherever you want.

Digital banking provides so many things that traditional banking does not. Agree?

Now, with the advent of technology as well as digital banks, traditional banks like HSBC had to cope up. They had to ensure they get to provide their customers the same convenience and ease that digital banks provide. Thus, the birth of online banking.

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According to Investopedia, online banking, also known as Internet or web banking, allows users to conduct financial transactions via the Internet.

Basically, consumers get to do whatever they want with their money without having to go to a bank branch location.

Online banking services vary from one bank to another. Generally, though, online banking allows customers to do almost every service done traditionally like deposits, transfers, bill payments, as well as paying for online purchases.

Online banking may be accessible through a desktop computer or a smartphone or both.

Now, as mentioned, the majority (if not all) of traditional banks now offer online banking services – including HSBC.

Having said that, this in-depth review on HSBC online banking will provide you the essential information you need to know to see how it fares from other online banking services out there.

In particular, we are going to tackle the following items:

  • What is HSBC?
  • Who is HSBC best for?
  • What does HSBC offer?
  • How does HSBC online banking work?
  • Are there fees involved?
  • How to open an account with HSBC?
  • Is HSBC online banking safe?
  • What are the upsides of HSBC?
  • What are the downsides of HSBC?

WHAT IS HSBC?

Formerly known as Hongkong and Shanghai Banking Corporation, HSBC is one of the largest international banking and financial services organizations out there. It has been in the banking industry since 1865.

The bank is present across 66 countries and territories. In the United States alone, HSBC has more than 160 branches in eight states namely: California, Florida, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington, plus Washington, D.C.

Generally, HSBC is a full-service bank like any other brick-and-mortar bank. It offers a variety of products and services that will surely benefit the public.

Get to know HSBC more in this video below by Alux.com:

Although the bank does only have limited physical branch locations in the country, people living outside the above-mentioned states can still avail and open an account with the bank through HSBC Direct.

HSBC online banking is available for HSBC brick-and-mortar clients as well.

Customers can take advantage of the bank’s checking and savings accounts, loans, as well as credit cards, and a lot more.

WHO IS HSBC BEST FOR?

HSBC is a full-service international bank that offers online banking services through HSBC Direct.

Generally, the bank should appeal to those who want to bank with a well-known banking institution, at the same time, interested in lending and investment options through the same bank.

The bank is also an ideal choice for those who want to bank with an established institution and wants to take advantage of its online banking services.

Generally, HSBC is a good option if you want to carry high balances and earn a modest annual percentage yield (APY) on your money.

With HSBC Direct, however, you get to earn competitive rates on the Direct Savings option.

Additionally, HSBC online banking has low opening deposit requirements, which makes it ideal for those who want to start saving up with a limited budget to start off.

HSBC Direct does not charge ATM fees, which makes it a good choice for those who want to get away with that.

WHAT DOES HSBC OFFER?

As mentioned, HSBC is a full-service bank that offers both personal and business financial products and services.

The bank offers checking, savings, certificates of deposit (CDs), credit cards, loans, mortgages, as well as insurance and retirement products.

For the purpose of this review, however, we are going to focus on personal deposits, which include:

  • Checking Accounts
  • Savings Account
  • Certificate of Deposit

Checking Accounts

HSBC online banking offers four different types of checking accounts. You can choose from the following:

HSBC Premier Checking

This checking account is available to open online.

This pays an annual percentage yield (APY) of 0.01%, which is not that much, however, it’s on par with comparative accounts at the biggest banks out there.

For the HSBC Premier checking account, account holders must maintain a balance of at least $75,000 or at least $5,000 direct deposits every month to avoid the very steep $50 monthly fee.

In addition, the fee can also be avoided by having an HSBC residential mortgage loan of $500,000 or more.

At the moment, the HSBC Premier Checking account is offering a bonus. All eligible new customers get a $450 Welcome Deposit for opening a new account through its online platform, at the same time, for completing qualifying activities.

HSBC Premier Checking offers unlimited out-of-network ATM reimbursements in the country.

HSBC Advance Checking

For this checking account, account holders must maintain $5,000 in combined U.S. Dollar personal deposit accounts and investment balances or a monthly recurring direct deposit from a third party to an HSBC Advance checking account or an HSBC U.S. residential mortgage loan to avoid the $25 monthly fee.

The HSBC Advance checking account comes with unique features including free checks, an option to apply for credit as well as up to four rebates per month on non-HSBC ATM charges (except for New York).

HSBC Choice Checking

For this particular checking account type, the $15 monthly fee can be waived if you meet any of the following requirements:

Recurring qualifying direct deposits to your Choice Checking account at least once per calendar month

$1,500 minimum balance in combined balances in U.S. Dollar personal deposit accounts and investment

Account-holders get access to HSBC ATMs worldwide, mostly with no withdrawal fees. It also offers optional overdraft protection.

This account comes with a debit MasterCard card with no annual or monthly service fees.

HSBC Basic Banking

The Basic Banking checking account has no minimum balance requirement.

It is important to know, however, that the account will incur $3 per month regardless of your account balance.

Additionally, while the first eight checks are free, the ones after that will cost $0.35 per check.

Similarly, it does have optional overdraft protection.

An HSBC debit MasterCard card also comes with it with no transaction fees on domestic purchases as well as monthly or annual service fees.

Meanwhile, HSBC Direct offers below checking account:

HSBC Direct Checking

HSBC Direct Checking account pays 0.01% APY. While it may be small, it still is appealing knowing that many checking accounts out there do not earn interest at all.

Unlike, other HSBC checking accounts, this one does not have monthly fees. Also, it only requires at least a $1 opening deposit.

Unfortunately, the account does not offer paper checks. All transactions are made via debit card.

Savings Accounts

HSBC offers four different types of savings account. These are:

HSBC Direct Savings

Direct savings is part of HSBC Direct. It is a high-yield savings account that currently pays an APY of 0.50%.

For this account type, HSBC does not charge a monthly maintenance fee. In addition, the bank only requires at least $1 to open an account.

This account is ideal if you are building your emergency fund or saving up for other financial goals.

HSBC Everyday Savings

True to its name, the Everyday Savings account is a basic savings account that earns minimal interest, currently at 0.01% APY.

Account-holders are free from fees. Additionally, this account allows customers to set up automatic transfers to help maximize savings over time.

HSBC Advance Savings

The Advance Savings account is ideal for customers who are looking for more interest-earning potential.

Advance Savings accounts earn 0.05% annually for balances of at least $15,000, while 0.01% APY for balances below that amount.

To open an Advance Savings account, you must open or have an Advance Checking account. At the same time, must meet the qualifying requirements for that account.

The Advance Savings account has no monthly maintenance fees, and it also allows automatic transfers between savings and checking accounts.

HSBC Premier Savings

If you want to earn tiered interest of up to 0.15% APY, then the Premier Savings account is perfect for you.

This account specifically comes with access to personal internet banking with complimentary bill pay services.

To open a Premier Savings account, you must have a new or existing Premier Checking account as well. In addition, customers must also meet the eligibility requirements associated with their Premier checking account.

Certificate of Deposit

Both HSBC Direct and HSBC Bank offers CD account option. Both are actually nearly identical.

Both CDs come with three-term options — 6 months, 12 months, or 24 months. The APY varies depending on the term selected. For 6 months, the APY is 0.60% while for both 12 and 24 months, it’s 0.70%.

Furthermore, depending on the terms, the interest for both Direct CDs and Online CDs may be credited and paid monthly, quarterly, semi-annually, annually, or at maturity.

To open an HSBC CD account, a minimum $1,000 deposit is required.

Meanwhile, similar to any other CD accounts, early withdrawals come with penalties. The penalties are as follows:

  • Terms of 369 days or less – 30 days’ simple interest
  • Terms between 370 and 733 days – 90 days’ simple interest
  • Terms of 734 days or greater – 180 days’ simple interest

Take note that HSBC Direct products mentioned in this review are accessible online only.

HOW DOES HSBC ONLINE BANKING WORK?

HSBC as well as HSBC Direct customers have different ways to access their bank accounts.

With the bank’s Personal Internet Banking, HSBC customers can view their accounts and balances.

Additionally, it comes with features such as viewing account information, transferring funds, as well as paying bills.

HSBC also offers mobile banking, which is available for both iOS and Android devices.

HSBC mobile app comes with the same features offered by its Personal Internet Banking plus mobile check deposits, as well as the ability to send secure messages to customer service.

Specifically for Android users, they may access the app with a Fingerprint ID. As for Apple users, they can utilize Touch ID as well as Face ID for added security.

ARE THERE FEES INVOLVED?

As mentioned in the earlier section, HSBC charges monthly fees in the majority of its account types. However, these fees can be waived if you meet certain requirements. Meanwhile, HSBC Direct products are free of monthly charges.

Additionally, the bank overs overdraft protection to avoid overdraft fees.

Access to the bank’s online personal banking platform and mobile application are both free of charge.

HOW TO OPEN AN ACCOUNT WITH HSBC?

At this point of our HSBC online banking review, we are going to talk about how to actually start banking with HSBC.

First of all, you must adhere to the following requirements:

  • You must be 18 years of age and have a Social Security Number
  • Current U.S. residential address and a U.S. residential address for the past two years
  • Valid U.S. ID (driver’s license, non-driver identification card, learner permit), passport, or Permanent Residential Card/Green Card
  • Account information for funding your new account

To open a regular HSBC checking, savings, or CD account, you may visit the bank’s website and simply choose the product your want to open.

Meanwhile, for HSBC Direct Checking or Savings account, you may go to HSBC Direct website.

Like any other banks out there, be ready to provide your personal information to complete the whole account application process.

IS HSBC ONLINE BANKING SAFE?

HSBC is one of the well-known international banks for no reason. It has been in the banking industry for years. Thus, when it comes to the security and safety of your personal data and your money, you are assured that everything is well taken care of.

Whether it be the HSBC website, HSBC Direct website, or the bank’s mobile app, security and safety of customer data is a top priority.

In fact, specifically for the HSBC mobile app, as mentioned earlier, Android users may access it with a Fingerprint ID. Apple users may likewise utilize Touch ID as well as Face ID for added security.

As for your money, HSBC is a member of the Federal Deposit Insurance Corporation (FDIC), which means all deposits are insured up to $250,000 per depositor, per account category, in case of a bank failure.

WHAT ARE THE UPSIDES OF HSBC?

In this part of our HSBC online banking review, we give you some of the benefits of banking with HSBC. This includes:

  • Competitive Yield for Online Savings Accounts – HSBC offers fairly competitive rates for its savings accounts. This allows customers to save, at the same time, grow their money.
  • International Presence – HSBC is an established bank. The fact that it has an international presence, customers get to enjoy some exclusive perks.
  • Mobile Check Deposit – Mobile check deposit is supported by HSBC mobile app.
  • Monthly Maintenance Fees Can Be Waived – HSBC may be charging monthly fees, but they’re waivable for as long as customers meet certain requirements.
  • No Monthly Fees for HSBC Direct Accounts – If you choose to open an account to the online division of the bank, HSBC Direct, you get to enjoy a no monthly fee benefit.

WHAT ARE THE DOWNSIDES OF HSBC?

While it has its share of pros, banking with HSBC also has some downside, and it includes the following:

  • No Check-Writing Privileges for HSBC Direct Checking Accounts – HSBC Direct is entirely online, thus, it does not have check-writing privileges as a typical checking account provides.
  • Limited Local Bank Branches – Unfortunately, HSBC has limited bank branches in the U.S. Its 160 branches are only present in eight states, which include California, Florida, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington, plus Washington, D.C
  • Monthly Fees for HSBC Accounts – Except for accounts under HSBC Direct, everything else charges monthly fees. However, these can be waived if you meet the requirements.

FINAL THOUGHTS ABOUT HSBC ONLINE BANKING

HSBC is a well-known and well-established international bank that offers online and mobile banking.

It does offer a wide selection of products and services including personal deposit accounts such as checking, savings, and certificate of deposit accounts.

If you are looking for a dependable and trustworthy bank, HSBC is definitely a good choice. However, when it comes to rates, while some products offer competitive rates, others are kind of low compared to other similar products offered by other banks.

With that said, do you think HSBC is the right one for you?

We hope that through this HSBC online banking review, you get to see how the bank fare compared to other banks with similar product offerings out there.

Categories
Mobile Banking

Digit Review: Automatic Savings Tool That Helps People Save Consistently

Creating a savings habit can be difficult. But, in this Digit review, you’ll see how this platform helps people consistently save money.

Digit Review: Automatic Savings Tool That Helps People Save Consistently

Not all people are good at saving money. Some are geniuses and consistent, but most of us, we sometimes find it hard — or maybe we are just being stubborn.

The majority of Americans are terrible savers, says a report online by CNN Money. In fact, the report, which was published in 2017, says that a quarter of people in the United States still have no savings at all.

Of course, there are various reasons for that — there’s not having enough money to save, no trust in banks, etc. But then again, if you think about it, having no savings is a scary place to be in because you never know what life will be throwing at you. You have to be prepared.

Meanwhile, an article published by The Wall Street Journal says that in 2018, saving was up by 17% from the previous year based on a report by the Commerce Department. This number beats consumer spending’s at 5.2% and business investment’s, which was at 7.8%.

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It’s probably safe to say that year after year, American saving habit changes — for the good.

With the pandemic that has happened in 2020, we wouldn’t be surprised if the numbers grow even more by the end of this year. You know, people learn from their mistakes.

But apart from what’s happening around, one of the many factors that must have helped change the way people save is the advent of digital banking.

Digital banking helps make things so much easier for savers and consumers in general. With just a click of a finger, you get to manage your finances. No hassles at all.

While there are lots of online banking platforms out there to choose from, today, we are obviously going to focus only on one — that’s Digit.

Digit is a company that might have revolutionized the way consumers save money by launching an app that helps you automate and separate your savings by connecting to your checking account and uses an algorithm to make automatic withdrawals every few days, and then deposits the money into a separate, but non-interest bearing savings account.

Sounds interesting?

Well, in the next few sections you are going to know more about Digit and how it makes saving ease.

In particular, we are going to tackle the following:

  • What is Digit?
  • Who is Digit best for?
  • What does Digit have to offer?
  • How does Digit work?
  • How to get started with Digit?
  • Are there fees involved?
  • Is Digit safe?
  • What are the upsides of Digit?
  • What are the downsides of Digit?

WHAT IS DIGIT?

Digit is a micro-savings app that was established in 2015 by Ethan Bloch, who at that time was only 29 years old.

The Digit app makes saving money so much easier and uncomplicated by using a sophisticated algorithm to analyze the user’s money habits and save money for the user when he or she can afford it.

The app was created with people who need help saving money in mind. At the same time, those who want to save but want a simple tool to help them with.

Basically, Digit helps users automate and separate their savings by connecting to their respective checking account. As mentioned, the app uses an algorithm to make automatic withdrawals every few days and then deposits the money into a separate, but non-interest-bearing savings account.

Apart from savings, Digit also offers to invest as well as saving for retirement services.

Obviously, unlike typical online savings accounts, though, Digit does not make you rich by using the app. Also, since it is all digital, you won’t find a branch location like what traditional banks have.

Before moving on, get to know more about the Digit App in this very insightful and informative review by Money at 30:

WHO DIGIT IS BEST FOR?

Digit is an app that’s ideal for people who want to save money for specific financial goals. It’s actually a great app if you are saving for a short-term goal like a vacation, the furniture you want to buy, a birthday party, etc.

However, it also does offer to invest as well as saving for retirement services.

As mentioned in the previous section, it does not make you rich since it does not pay interest. So, unless you’re okay with that, then this app is for you.

Digit was created with people who are having hard time saving money in mind. If you want to save but find saving a difficult task to do, Digit should work for you. Digit automates and separates your savings by simply connecting it to your checking account, and then withdraws money from it and deposit it to your Digit account.

Basically, it does the job for you. Making your like so much easier and hassle-free. Needless to say, it does help you not miss saving a portion of your money for future use.

Digit is all-digital, which makes it appeal to the tech-savvy ones – especially the younger generations. It does not have a physical branch location like what traditional banks have.

WHAT DOES DIGIT HAVE TO OFFER?

Digit offers three different types of services namely: digit savings, investing, and saving for retirement.

Now, let’s get to know more about each service offered —

Digit Savings

Unlike a typical savings account, you don’t transfer or deposit money to your Digit account. All you have to do is link your bank account, and then Digit will take a look at your past expenses and income to be able to determine what your future expenses and income would be.

The app will then pull small amounts of money from your bank account and into your savings.

To be honest, how the app works are such a genius that it can be a little scary.

Anyway, in most cases, Digit pulls $5-$50 every two to three days. To avoid overdraft fees, Digit has products and tools in place to help you with that.

Although technically speaking, Digit is not an interest-bearing account, it does reward a 0.1% annualized Savings Bonus for accounts that have saved with the app for three consecutive months.  The Savings Bonus is automatically deposited into the user’s Digit account.

All of the money that the app withdraws from the user’s bank is put into an FDIC-insured Digit bank account to ensure your money’s safety and security.

Digit Investing

Digit investing will help you invest strategically for the long term. So, if you are looking at saving for future use, this is definitely the option for you.

Basically, the app will look for safe amounts to invest every day to a fund that can grow over time.

Save for Retirement

We all need to save money for retirement, right?

With Digit, what it does is match you with the right tax-advantaged retirement account based on your income. The app will then save intelligently throughout the month along with your other financial goals.

Once every month, the app will invest your retirement savings into a diversified portfolio.

What’s nice about it is that it does not require account minimums or fixed deposits, which makes it appealing to anyone who wants to save for their retirement as early as now.

HOW DOES DIGIT WORK?

At this point of our Digit review, let’s talk about how it specifically actually works.

After creating an account with Digit, you start by linking a bank account. Currently, Digit supports over 7,000 banks. Make sure to check first if your bank is included in the list.

Moving on, once you are done linking your bank account to your Digit account, the app’s algorithm comes in to analyze your spending and income to be able to determine how much you can save.

The app’s algorithm analyzes four things, which include your:

  • Checking account balance
  • Upcoming bills
  • Upcoming income (Including paycheck and/or predicted irregular income)
  • Recent spending

The above-mentioned items are analyzed on a day-to-day basis, and if the app finds that it can safely pull money from your linked bank account, the app does without you even noticing it.

As mentioned in the previous section, the amount of money pulled from your bank account varies but usually amounts somewhere between $5 and $50. Digit pulls out money every two to three days.

The money from your checking account goes into your Digit account or your Rainy Day Fund.

Unlike a typical savings account, Digit does not have a minimum balance requirement. Also, it allows you to withdraw from your account anytime you want.

HOW TO GET STARTED WITH DIGIT?

To get started, head on to Digit.co and then, sign up.

To be able to create a Digit account, you will need to provide your phone number and then, enter a special code.

Please take note that Digit was designed to work primarily through text messages. Thus, the need to provide your phone number first.

After that, you will be asked to link your bank accounts to the app. You will then need to select your bank from the menu or via the Search bar. As mentioned, Digit supports over 7,000 banks.

You will then need to provide your bank login information, and then verify that it’s you by using a security code that will be sent to your phone number.

Once you’re signed up with Digit, you can now set and customize goals, as well as track your saving progress, withdraw funds, and a lot more.

ARE THERE FEES INVOLVED?

In this section of our review on Digit, we are going to talk about the fees.

By now, you are probably impressed already with how Digit works. Of course, it’s very legit to think about how much it will cost you if you get to enjoy the services provided by the app.

When you sign up for Digit, you are eligible for a 30-day free trial. Once the trial period is done, you will be charged $5 a month as a service fee.

While you may be wary about paying off a monthly fee and adding that up to your monthly budget, it may be worth the money still considering how much the tool could help you in saving money. Needless to say, it does all the work for you. All you need is to link an account and it does everything else.

Now, for those wondering about overdraft fees, Digit has an overdraft prevention feature, which allows the user to set a minimum balance you want to keep in your bank account. You can choose any amount you want, and the app won’t withdraw funds if that means your balance falls below the set amount.

Users may turn Overdraft Protection on or off in the Digit app.

In case the overdraft protection does not work and Digit saved too much, and then, you are being charged for an overdraft fee, Digit also offers Overdraft Reimbursement. This means Digit will return the fee charged to your account.

In addition, if your account falls below the minimum balance you want in your checking account, Digit will automatically deposit money from your Rainy Day Fund back into your checking account. All these happen without you having to do things manually.

IS DIGIT SAFE?

With everything that Digit does for you to help you save money, it is important to look into how safe your personal data and your money are with them.

Your account’s safety and security are one of Digit’s topmost priorities.

The app uses the latest security measures to ensure that all accounts are protected. Furthermore, all personal information provided is anonymized and encrypted.

With all these in place, users can relax knowing that Digit is doing its best to protect their accounts.

Similarly, your money is also safe with Digit. All deposits are secured because Digit is insured by the Federal Deposit Insurance Corporation (FDIC). All funds are insured for up to $250,000 in case of a failure.

In addition, Digit understands that linking your bank account to the app can be scary, but it ensures that all personal data and its users’ money are all protected.

WHAT ARE THE UPSIDES OF DIGIT?

To complete this Digit review, we are providing you with a list of pros and cons to help you gauge if this app is applicable to you.

Let’s begin with the pros. Some of the upsides of using Digit include:

  • Automatic Savings – With a Digit account, you don’t have to worry about setting aside money for savings anymore. The app does it for you! All you have to do is link it to your bank account, and the app does all the work on your behalf.
  • Saving Money without Thinking – Once your Digit account is set up, you can just relax as the app does everything else for you. The next thing you know, you already have saved money for your dream vacation or an item you’ve been wanting to buy for a long time now.
  • Savings Bonus – Although Digit does not pay interest, it does provide a savings bonus of 0.1% annually. The Savings Bonus is automatically deposited into the user’s Digit account.
  • $5 Referral per Signup – Digit gives away $5 for every friend you refer to the app.
  • All-Digital – Digit is an all-digital micro-savings platform, which makes it easier to track and manage your account.
  • Safe and Secured App – Security is one of Digit’s top priorities, thus, the app ensures all security and safety measures are in place to keep your personal information protected.
  • FDIC-Insured – All deposits on Digit are FDIC-insured, which means in case of an unfortunate event, all accounts will receive up to $250,000 per depositor.

WHAT ARE THE DOWNSIDES OF DIGIT?

Moving on, in this section, we are going to share with you some of the downsides of Digit, and this includes the following:

  • $5 Monthly Fee – Unfortunately, there is a price to pay for all the work that Digit does for you, and it amounts to $5 monthly. Although it may be an addition to your budget, it may be worth it in the end given all the work that the app does for you.
  • Cannot Perform Transactions via the Website – Digit’s website does not support making transactions like deposits or withdrawals. You need the app to do these things instead.
  • Low to No Interest – Compared to a typical savings account, Digit does have low to no interest at all, which makes it not ideal if you want to save and earn from your money at the same time.
  • Unexplained Savings Algorithm – It can be quite scary how exactly the app gets to determine how much money is transferred from your bank account to your Digit account. To be honest, it’s kind of bothering and scary at the same time. Nonetheless, it does the job well.
  • One Checking Account at a Time – Digit only works with one checking account at a time. So, if you have multiple accounts, this may not be work for you.

FINAL THOUGHTS ON DIGIT

Digit is a trendsetter. It probably is one of the best solutions to make saving money so much easier.

It basically does all the job. All you need is to link an account, and then, you can sit back and relax.

However, to be brutally honest, if we were to weigh things up, we thought while Digit may one of the best automatic savings apps out there, there may still be better choices to choose from. Do you agree?

At the end of the day, even with this Digit review, it all boils down to how Digit helps you achieve your savings goals.

Categories
Mobile Banking

Mercury Bank Review: An Online Banking Platform For Small Businesses

In this Mercury Bank review, you will find out how this online financial platform makes business banking cheap and easy.

Mercury Bank Review: An Online Banking Platform For Small Businesses

On one hand, opening a business credit card is fairly easy for as long as you have a solid credit score and a legit side hustle. On the other hand, finding a business bank account can be quite a challenge.

Unfortunately, most brick-and-mortar banks out there make it a little more challenging. Needless to say, one cannot open a business bank account without having to step into a physical bank location.

According to the United States Small Business Administration, currently, there are 28.8 million small businesses in the country with 57.8 million employees working under these businesses.

The small business industry comprises 99.7% of all businesses in the country, while the number of employees they employ covers 48% of the whole U.S. employee population.

If you think about it, they may be considered “small,” but these businesses actually play a huge part in the economy may it be on the local or the national scene.

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Now, whether you are a current small business owner or a soon-to-be one, one of the most important things you need to ensure is to have a systematic cash flow.

In a study conducted by the U.S. Bank, it was found that 82% of business failures were caused by poor cash management.

Cash flow refers to the virtual movement of money. According to Investopedia, it is “the net amount of cash and cash-equivalents being transferred into and out of a business. Cash received is inflows, and money spent are outflows.“

Having a system in place to help you manage your business’s cash flow will definitely help a lot in keeping the business operations smooth and easy.

Mercury bank is not your typical bank. It actually is designed to help small businesses manage their cash flow better. The bank makes it easy for any business or startup company with formation documents as well as an Employer Identification Number (EIN) to be able to open a business bank account.

This online banking platform offers a business account and a business savings account that are fee-free, which, honestly, is a breath of fresh air for people in the business industry.

Are you getting more curious about what this online bank has to offer?

Well, in the next couple of sections, we are going to go deeper to know key facts about Mercury Bank.

Specifically, in this Mercury Bank review, we are going to tackle the following:

  • What is Mercury Bank?
  • Who is Mercury Bank best for?
  • What does Mercury Bank offer?
  • How does Mercury Bank work?
  • Are there fees involved?
  • Is Mercury Bank safe?
  • What to like about Mercury Bank?
  • What not to like about Mercury Bank?

WHAT IS MERCURY BANK?

Mercury Bank was founded in April 2019 by Immad Akhund, Max Tagher, and Jason Zhang. It is based in San Francisco, California.

Mercury Bank was established to provide an online banking platform that specifically caters to small businesses. The bank offers both a business checking account and business savings account with no monthly fees.

Furthermore, Mercury Bank offers scalable digital tools. Needless to say, each account provides read-write application programming interface access for a customized banking experience.

Know more about Mercury Bank in this video below by Global From Asia:

In addition, Mercury Bank offers an upgraded version of its banking platform — the Mercury Tea Room. This product was designed for businesses that hold a balance of $250,000 or more in their accounts.

The account comes with added perks including free domestic and international wires, as well as exclusive partner discounts on business products and services. Also, customers under the Mercury Tea Room account get eligibility for the Mercury Treasury cash management account.

Customers with this account can make payments through wire transfers, debit cards, ACH transfers, as well as payroll processing platforms. Account-holders can also collect money from payment processors like PayPal and Stripe. More so, the accounts may be linked to online accounting software for easier processing.

As mentioned earlier, Mercury Bank aims to help small businesses or startup companies to manage their cash flow better by making it easier to open a business bank account for any company with documents and an Employer Identification Number (EIN).

Unfortunately, it is important to know what Mercury Bank is not available for sole proprietors. Also, it does not accept cash deposits like some of its competitors.

WHO IS MERCURY BANK BEST FOR?

Mercury Bank was designed to cater to small businesses.

However, to be more specific, the bank is ideal for small-business owners who want to take advantage of a free business banking platform with no transaction fees.

It is also best for those who prefer managing entirely their business finances online since Mercury does not have physical branch locations like what traditional banks have.

Since the bank does not have a cash deposit option, this makes it a good choice for business owners who do not need ATM or branch location to deposit money into their accounts.

It’s a great online banking platform for those who want to customize their banking by using the online tools and integration that Mercury Bank offers.

Meanwhile, technically speaking, Mercury Bank is ideal for small businesses within the U.S. The owners must be U.S. residents, and the business must service U.S. clients.

Additionally, money service businesses of companies that are involved with adult entertainment, marijuana, or internet gambling are not eligible to open an account.

Also, keep in mind that Mercury is not for businesses that are a sole proprietorship.

WHAT DOES MERCURY BANK OFFER?

Mercury Bank offers “full-stack bank accounts”.

To be clear, full-stack does not mean full-service. Mercury Bank, as mentioned earlier, does not have physical branch locations, and does not accept bank deposits.

Mercury Bank account holders can make fee-free cash withdrawals from any of Allpoint network ATM. However, it should be noted that as stated on the bank’s FAQ page, it is clearly stated that its products are designed to benefit startup companies, which means they do not fit all types of businesses that frequently need cash.

There are a couple of things that makes Mercury Bank stand out from other available business banking options out there.

Some of the most notable though is the following:

  • Streamlined Application Process
  • User Permissions
  • Mercury Tea Room
  • Minimal Fees

Now, let’s take a closer look at what each of these items is all about –

Efficient Application Process

Mercury Bank works entirely online. Unlike typical banks, it does not have any physical branch location.

While traditional banks may require you to fill out lots of forms and ask you to present different types of documents, Mercury Bank offers a very simple and easy process in applying for an account.

For small business owners who have their articles of incorporation as well as their EIN number from the IRS will be able to complete the whole application process online in just a few minutes.

Mercury Bank offers a simple process to help small companies get started. All it takes is to have a few government documents ready and you get to open an online business account immediately.

Digital Tools

Mercury Bank provides its customers access to built-in digital tools that allow them to send and receive online payments, track transactions, as well as cash flow analytics and monitoring spending.

In addition, the bank offers the ability to create virtual credit cards, at the same time, manage your debit card through the app, which is available for iOS users. By the way, users can freeze the card, edit spending limits as well as add the account to a mobile wallet.

Mercury Bank also allows its users to integrate their accounts with third-party business tools like Xero, QuickBooks, PayPal, Shopify, and Stripe.

User Permissions

By having a Mercury Bank business account, founders get to share financial responsibility among their team members easily without turning over the keys to the business’s bank account.

Mercury Bank offers virtual cards and variable permissions for employees. More so, founders can also interact using their account via API. This ability makes it easier for finance teams to develop reporting or for developers to integrate apps and others.

By the way, Mercury Bank allows you to add as many team members as you want to your account.

Also, account holders have two options when it comes to user access.

The first is by adding users as admins and allowing them to receive a debit card, change permissions, as well as move money.

The second is adding users as bookkeepers, which means they can only access transaction history and statements, and are not allowed to do any transactions or changes.

Mercury Tea Room

Mercury Tea Room is available for businesses that can hold a balance of $250,000 or more.

The account comes with lots of perks including free domestic and international wires, access to exclusive partner perks such as two months free of OpenPhone or one year free of Rippling payroll, as well as free tea, which is inspired by the bank’s company culture of serving tea to one another.

Furthermore, Mercury Tea Room account holders are eligible for Mercury Treasury, which is an automated cash management account that allows account holders to put extra funds into the U.S. government securities and money market funds to earn interest.

Account-holders can create a customized portfolios with a mixture of bonds and services by simply using the information provided in a suitability questionnaire.

As of this writing, Mercury Tea Room accounts can earn up to 0.07% annually for idle funds. No worries about fees as this does not require any.

HOW DOES MERCURY BANK WORK?

In this part of our Mercury Bank review, we are going to talk about how to actually open an account.

As mentioned earlier, Mercury Bank does have eligibility requirements, which include:

  • The business must be located in the United States with a federal employer identification number
  • Must cater to US-based clients
  • Not for sole proprietors or trusts
  • Not for businesses in the money services, adult entertainment, marijuana, or internet gambling industries
  • Business owners must be residents of the United States

As mentioned earlier, the account opening process is made simple and easy, provided you have the required documentation, which includes:

  • A government-issued ID for you and any co-founders
  • Owners with 25% or more ownership or officers who have control over your finances
  • Business formation document (which varies based on your entity type)
  • Employer Identification Number (EIN) verification from the IRS

Meanwhile, for verification purposes, you will need the following information and documents:

  • EIN verification letter
  • Company formation documents
  • Company contract and contact details
  • Social Security Number (Not needed for foreigners)
  • Government ID
  • Company profile (The form is available on the Mercury Bank website.)

To apply, all you have to do is visit the Mercury Bank website. You must, first and foremost, create an online account and then complete and submit your application.

Again, everything has to be done online.

Once your account application is approved, you can now fund your account, as well as send payments, and manage transactions and spending.

You may download the Mercury Bank mobile app to your iOS device, and then start adding users to your account. Also, you can now start integrating third-party business tools.

In addition, you will also receive a business debit card within eight to 10 days from the day your account was approved. The bank also allows you to generate virtual cards from your online account, in case you need to use them before the actual physical card arrives.

Deposit and Withdrawals

To do mobile check deposits in your account, you will need to show a history of funding as well as transactions within your account.

Mercury Bank enables this feature on a case-to-case basis. However, once enabled, users can use the mobile app to deposit checks via the Add Funds flow.

Meanwhile, to withdraw funds, account holders may do so through any of the over 55,000 Allpoint network ATMs for free.

ARE THERE FEES INVOLVED?

Unlike typical banks, Mercury does not charge monthly maintenance fees as well as overdraft fees.

The only fees charged by the bank are wire transfer fees — $5 for domestic, while $20 for international transfers. The charges can, however, be waived if you are a “Tea Room” client.

IS MERCURY BANK SAFE?

The security of your personal and business information and your account is very important. Thus, Mercury uses bank-level security features to avoid fraud, identity theft, or any other similar unfortunate circumstances.

Although technically not a bank, Mercury offers banking services through Evolve Bank & Trust, its partner bank.

Because of the partnership, all accounts are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) in the event of a bank failure.

WHAT TO LIKE ABOUT MERCURY BANK?

This Mercury Bank review will not be complete without giving you the pros and cons.

So, in this section, we are going to tackle the things to like about Mercury Bank first, which include the following:

  • No Minimum Deposit – Unlike traditional banks, Mercury Bank does not require any minimum opening deposit.
  • No Monthly Maintenance and Overdraft Fees – Another perk of opening a Mercury business bank account is that you get away from paying off monthly maintenance fees as well as overdraft fees, which are very common in traditional banking institutions.
  • Checking and Savings Account in One – Mercury Bank provides checking and savings account in one platform, which definitely makes everything so much easier for small business entities.
  • Large ATM Access – Mercury Bank account holders get access to over 55,000 fee-free Allpoint network ATMs across the country.
  • API Access – With the API access, account holders get to automate and customize their banking experience.
  • Mercury Tea Room – For business accounts with balances of $250,000 or more, they get to access additional amazing perks.
  • Employee Permission Levels – Mercury Banks provides two employee permission levels, which we believe is very unique to it.
  • Multiple Third-Party Platform Integrations – Mercury allows users to integrate different types of platforms like QuickBooks, Stripe, PayPal, etc.

WHAT NOT TO LIKE ABOUT MERCURY BANK?

To complete the whole review, here are some of the things that Mercury lacks or may need to improve on:

Not Available to Sole Proprietors – Unfortunately, small businesses owned by a sole proprietor are not eligible to open a Mercury Bank account. Only businesses with multiple founders can avail of the bank’s products and services.

No Cash Deposit Option – At the moment, Mercury does not have a cash deposit option. You may fund your account via mobile check deposit instead.

Low-Interest Rate – Compared to other banking institutions, Mercury Bank offers a low interest rate of only 0.07% annually (as of the moment).

Mobile App is Available for iOS Users Only – Unfortunately, Mercury Bank mobile application is only available for iOS devices. We thought the bank may already working things to make it available for Android users soon as well.

FINAL THOUGHTS ON MERCURY BANK

Mercury Bank is an online banking platform specifically designed for small businesses or startup companies. It helps make business banking easier by providing tools, services, and amazing perks.

Overall, Mercury Bank’s business bank accounts are low-cost (because the bank does not charge monthly maintenance and overdraft fees), easy to open (everything is done entirely online in just a few minutes), and integrates very well with other business tools like Quickbooks, PayPayl, etc.

With all these, we wouldn’t be surprised if Mercury Bank becomes one of the most sought-after business banks out there. Do you agree?

To conclude, this Mercury Bank review made us see that there’s so much potential with the online banking platform and that it surely benefits small businesses or startup companies.

Categories
Mobile Banking

Aspiration Review: Helping You Make Ethical Choices With Your Money

In this Aspiration review, you will see how this online-only financial firm is geared towards providing consumers compelling financial products, as well as helping customers in making ethical choices with their finances.

Aspiration Review: Helping You Make Ethical Choices With Your Money

Digital banking has definitely changed the way people bank. It made managing finances and making transactions so much easier.

Digital banking has been around for some time already. However, it initially attracted the younger generations more, which is not surprising because they’re the ones who are more tech-savvy.

However, things rapidly changed when the pandemic hit in 2020. In fact, in research conducted by RFi Group, the financial services insights provider, it was found that 71% of consumers around the world are now using digital banking channels on a weekly basis because of what happened.

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Meanwhile, in a TIME report, it says that based on an analysis by Fidelity National Information Services, an international financial services firm, there was a 200% jump in new mobile banking registrations in April 2020.

In a snap, digital banking has become essential to every consumer’s day-to-day life.

Experts believe that the rise in numbers and changes in digital banking will continue post-pandemic, especially since people now already know the essence of having mobile banking access.

Now, even before this whole pandemic thing happened, there are already a lot of online financial firms competing with one another – providing the best services and rates possible to attract as many clients as possible.

Among all the choices available, Aspiration is one of them.

Aspiration is an online-only financial firm that focuses on providing compelling financial products as well as helping consumers make ethical choices with regard to their money.

Unlike banks, the firm does not offer traditional savings or checking accounts. But, it does offer products that are equally beneficial like typical bank offerings.

If you find Aspiration interesting, then, continue reading on.

For your reference, in the next few sections of this Aspiration review, we are going to answer some of the most commonly asked questions about the firm, which include:

  • What is Aspiration?
  • Who is Aspiration best for?
  • What does Aspiration offer?
  • How does Aspiration work?
  • Are there fees involved?
  • Is Aspiration safe?
  • What to like about Aspiration?
  • What not to like about Aspiration?

WHAT IS ASPIRATION?

Aspiration is an online-only financial firm that was established in 2015.

The banks pitched themselves to customers who are already fed up with the traditional banking industry. The bank focused more on targeting Millennials who want to patronize a do-good business.

Earlier we mentioned the firm is geared toward helping customers in making ethical choices with their finances.

True to that vision, Aspiration set an example by donating 10% of its income to good causes and offering an in-app feature that guides the firm’s customers to the environment and people-friendly businesses. In fact, Aspiration users can even get sustainability scores on their respective spending habits.

How the company does promote making ethical choices while you shop? Check this video by Magnified Money wherein he explains how Aspiration actually does it:

As mentioned earlier, Aspiration is not a chartered, federally insured bank rather a brokerage that offers a cash management account.

Before you freak out about the fact that it is not insured federally because it’s not a bank, the firm’s relationship with banks helps ensure that the money you put into your Aspiration account is protected by the Federal Deposit Insurance Corp or FDIC.

So, yes, technically speaking, whatever amount you keep through Aspiration is automatically insured by the FDIC through its partnership with an FDIC-member bank.

WHO IS ASPIRATION BEST FOR?

As mentioned in the previous section, Aspiration is an online-only financial firm, which obviously means, it should appeal to customers who want the convenience of online banking and not minding the absence of a physical branch location.

Furthermore, Aspiration is a great option for those who do not want to pay monthly maintenance fees, as well as ATM fees.

Also, it should be ideal for consumers who want to earn cash back on debit card purchases.

But of all, Aspiration is a financial firm that appeals to those who want to bank with a company that does not only focus on earning, but also on sustainability.

WHAT DOES ASPIRATION OFFER?

Unlike typical brick-and-mortar banks and other mobile banking platforms, Aspiration does not offer many account-type choices.

However, the financial firm offers products that come with several incentives that customers who are considering online banking may appreciate.

Aspiration has two major product offerings. These are:

  • Aspiration Spend & Save Account, and
  • Aspiration Investment Accounts.

Aspiration Spend & Save Account

The Aspiration Spend & Save is basically a credit monitoring arrangement (CMA) for customers. It allows account holders to spend and save, at the same time, providing them with many benefits of a checking account.

This product comes with two different plans to choose from. The first one is a free plan, while the second one is a paid plan.

Customers may opt to go free with some restrictions while still earning 3-5% cashback on Conscience Coalition purchases or option the paid plan, which costs $15 a month (or $12.50 per month if paid annually) to enjoy all its features.

By the way, Conscience Coalition purchases are from companies like Warby Parker, Blue Apron, and TOMS. You may visit the Aspiration website to see the full list.

Moving on, let’s dig deeper into each of these product options —

Aspiration (The Free Plan)

The Aspiration Free Plant, allows customers to decide what they want to pay. The firm calls it “pay what is fair” regardless if you do not pay for anything at all.

The Aspiration Free Plan comes with the following features:

  • Deposits won’t fund fossil fuel exploration or production
  • 55,000 free in-network ATMs
  • 3-5% cashback on Conscience Coalition purchases
  • Personal impact score to help you shop to match your values
  • Option to plant a tree with every roundup

Aspiration Plus (The Paid Plan)

Aspiration Plus is the paid plan, which costs $15 a month, or $12.50 per month if you pay annually. Unlike the Free Plan, Aspiration Plus comes with fewer restrictions and more benefits, which is fair enough since you are paying for it, right?

All Aspiration Plus account holders will get to enjoy the following features:

  • Deposits won’t fund fossil fuel exploration or production
  • 55,000 free in-network ATMs
  • 10% cashback on Conscience Coalition purchases
  • Personal impact score to help you shop to match your values
  • Option to plant a tree with every roundup
  • Up to 1.00% APY on your savings
  • One out-of-network ATM reimbursement monthly
  • Carbon offsets for all your gas purchases with Planet Protection

Now, you are probably wondering if the monthly payment is indeed worth it.

Well, it is worth it if you spend a lot on companies within the Conscience Coalition, because it entitles you to a 10% cashback.

Additionally, the Aspiration Plus plan comes with carbon offset purchases, which means that the firm buys carbon offset to counter the climate impact of their customers’ purchases.

If you care about the environmental impact of your actions, then, the paid plan should be worth it.

As mentioned, the plan allows customers to earn 1.0% APY. However, it does have some restrictions. In order to 1.00%, APY interest on Aspiration Save Account balances up to and including $10,000 in any month, you must be enrolled in Aspiration Plus and spend $1,000 or more monthly using the Aspiration debit card.

Meanwhile, balances of more than $10,000 will earn 0.10% APY. If in case customers do not meet the requirements every month, the APY will be 0.25% on Save Account balances up to and including $10,000, while balances over $10,000 earn 0.10% APY.

Both Aspiration and Aspiration Plus comes with a digital debit card, which allows users to use it instantly while waiting for the physical card. Of course, it also comes with a physical debit card, which can be used to withdraw money, and in making purchases.

Aspiration Investment Accounts

Aspiration has four investment products. Two of them are allocated for sustainable investing, also known as environmental, social, and governance (ESG) investing, while the other two are the Flagship Fund and Flagship IRA, both have a low-volatility theme.

The Redwood Fund and the Redwood IRA invest in companies that are participating actively in different concerns like gender diversity, ethnic diversity, addressing climate change, and better ethics.

These accounts are managed by UBS Asset Management.

Meanwhile, the Flagship Fund and Flagship IRA target investors who are risk-averse. These funds are basically made up of other funds with approaches that lessen the ups and downs of the overall market and produce risk-adjusted returns.

To avail of these products, Aspiration requires a minimum initial deposit of $10.

It is important to know that all securities are insured by the Securities Investor Protection Corporation (SIPC) up to $500,000.

The financial firm’s Flagship products are under Emerald Asset Management.

HOW DOES ASPIRATION WORK?

First of all, you have to be at least 18 years old and a citizen of the United States or a permanent resident of the country to be eligible.

Opening an Aspiration account is very easy. All you have to do is process your application online.

Once you have opened your account, download the Aspiration app, which is available for both Android and iOS users, and start making transactions.

To open a Spend and Save account, the firm requires $10 as the minimum opening deposit. No minimum balance is required.

Meanwhile, you may use your debit card to withdraw money from your account in any of the Allpoint ATMs for free.

Bonus Offer

As of this writing, all newly opened Aspiration Spend and Save accounts get a $100 bonus for a deposit of at least $10 or more, as well as using the Aspiration debit card to make minimum cumulative transactions of $1,000 within the first 60 days from account opening.

Customer Service

Aspiration has a thorough FAQ section on its website, which is very helpful both for new and old customers.

However, if you wish to talk to a customer service representative instead, the financial firm’s customer support phone line is available from 6 a.m. to 6 p.m. PST Monday through Friday and from 8 a.m. to 4 p.m. PST on Saturday and Sunday at 800-683-8529.

Unfortunately, Aspiration does not offer live chat support. So, you only have two choices — either to call via phone or to send a written request.

ARE THERE FEES INVOLVED?

One of the major factors that attract customers to banks or any financial institution for that matter is either the less or no fee features.

So, in this part of our Aspiration review, we are going to look into how the firm fares when it comes to fees.

Generally, Aspiration Spend and Save account holders do not have to worry about monthly fees (unless you are enrolled in the Aspiration Plus Plan, which costs $15 per month or $12.50 per month if settled annually) as well as overdraft fees.

In fact, Aspiration does not charge any international or domestic ATM fees as well. If you have the Aspiration Plus Plan, you even get to reimburse once per month if the other bank charges you a fee for an ATM withdrawal made.

However, there are some fees that every Aspiration customer must be aware of. This includes:

  • Returned item fee (check or debit) – $4.50
  • Stop payment – $1.19
  • Domestic wire in – $2.06
  • Domestic wire out – $4.50

IS ASPIRATION SAFE?

Customer data and account security and safety are very important, which is why as part of our Aspiration review, we also looked into how Aspiration handle this common customer concern.

The Aspiration team ensures that all its digital channels – website and mobile app – are safe and secured by using bank-level encryptions and other added security features.

The app is highly rated on both Apple and Google, which means users have not encountered any major concerns using the online platform.

Meanwhile, although Aspiration is not a bank, the firm has partnered with an FDIC-member bank to ensure that all money kept through the firm is insured for up to $250,000 in case the firm fails.

WHAT TO LIKE ABOUT ASPIRATION?

In this part of our Aspiration review, we are sharing with you a list of the things that really stand out about the firm, and this includes the following:

  • Impressive APY for Aspiration Plus – Aspiration Plus account holders get to enjoy a 1.0% annual percentage yield on balances up to $10,000, while 0.10% for balances higher than $10,000, which is still higher compared to what traditional banks offer.
  • Planet Protection Benefit – This perk is available for Aspiration Plus account holders. With this feature, Aspiration automatically buys carbon offsets based on the number of gasoline purchases an account holder makes with the debit card. Aspiration Free Plan may also avail of this perk by signing up for the service for a fee of $5.99 per month or $59 per year.
  • “Pay What Is Fair” Policy – This is applicable on the Aspiration Free Plan wherein customers get to choose their monthly fee amount, between $0 and $20.
  • Little to No Fees – Although there are monthly fees involved particularly on the Aspiration Plus Plan, generally, customers do not need to worry about other common bank fees like overdraft and ATM fees.
  • Large ATM Network – Aspiration account holders have access to 55,000 fee-free Allpoint ATMs.
  • FDIC-Insured – Aspiration partnered with an FDIC-member bank. Thus, all deposits are insured up to $250,000 per depositor, per account category in the event that the firm fails.
  • Highly-Rated Mobile Application – Aspiration mobile app is downloadable for free on both iOS and Android devices.

WHAT NOT TO LIKE ABOUT?

To complete this Aspiration review, below are some of the not-so-good things we found about the firm.  It includes the following:

  • Several Eligibility Requirements to Earn Highest APY – While the 1.0% APY is impressive, it is only available with the Aspiration Plus account that comes with a fee. More so, to be eligible, the account holder must spend a minimum of $1,000 using the Aspiration debit card. Balances that do not meet the requirements will only earn 0.10%, which is still higher though compared to traditional banks.
  • No Cash Deposit Option – Aspiration does not offer cash deposits, unlike other digital-only banks.
  • Highest Cashback for Aspiration Plus Customers Only – To earn a higher cashback from making purchases at companies within the Conscience Coalition, you must be enrolled under Aspiration Plus Plan.
  • No Physical Branches – Similar to other online-only digital banks, Aspiration does not have a physical branch location where customers can visit and do in-person transactions.
  • $15 Monthly Fee for Aspiration Plus Account – To enjoy more perks you will have to avail of the Aspiration Plus plan, which comes with a fee of $15 per month or $12.50 a month if paid annually.

FINAL THOUGHTS ON ASPIRATION REVIEW

Aspiration, although not a bank provides customers an alternative by offering compelling financial products as well as an opportunity for customers to making ethical choices with their finances.

Needless to say, to ensure all deposits are safe, the firm partnered with an FDIC-member bank. Thus, in the event that the firm fails, account holders’ money will not be put to waste.

If you are up for something new and exciting, then this one’s for you. Are you?

Generally, with this Aspiration review, we found a company that does not only care about earning but also making sure they get to create an impact in the society – particularly, the environment.

Categories
Mobile Banking

NBKC Bank Review: High APY Checking Account Without Fees

This NBKC Bank review is ideal for customers who are looking for an online banking platform that provides competitive rates on deposit accounts particularly checking, and opportunities to avoid common bank fees.

High APY Checking Account Without Fees

Digital banking is booming.

In fact, the digital banking industry has never been in this state until 2020 when the pandemic hit the United States and the rest of the world.

People across all ages have relied so much on digital banking.

In fact, according to Forbes Advisor report, that although digital banking had been into the mainstream especially with the younger generations, last year, consumers of all ages have already hopped on board.

Furthermore, a financial analyst said that what happened last year, which continues on to date “is the greatest acceleration of digital banking in history.”

Meanwhile, an article by Reuters says that digital banks have won over American customers during the pandemic “by processing stimulus payments quickly, setting them apart from traditional banks and generating valuable word-of-mouth referrals.”

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Of course, in traditional banking, you can never make transactions easily. Sometimes, it takes a day or two to complete one transaction alone. But, with digital banking, everything happens in real-time.

But apart from reliability, and the convenience that digital banking platforms provide, consumers also need to look at other helpful rather amazing features to make the best out of their online bank accounts.

Apart from convenience and superb online banking capabilities, customers also need to look into fees and rates.

To be honest, finding a bank that offers convenience, competitive rates, and low to no fees at all can be quite a challenge. Normally, you only get one or two but you could hardly find a bank that provides all of these.

NBKC Bank is actually one of the very few that offers consumers the convenience of online banking, high-yield checking account, as well as ways to avoid common bank charges.

It’s a bank that is focused on providing consumers a great digital banking experience, and we are going to tell you more about how they do it in the next few sections.

Specifically, this NBKC Bank review will provide answers to these most commonly asked (yet very important) questions:

  • What is NBKC Bank?
  • Who is NBKC Bank best for?
  • What does NBKC Bank offer?
  • How to bank with NBKC Bank?
  • Are there fees involved?
  • Is NBKC Bank safe?
  • What to like about NBKC Bank?
  • What not to like about NBKC Bank?

WHAT IS NBKC BANK?

NBKC Bank was founded in 1999 as Horizon National Bank, and then was known for a while as the National Bank of Kansas City before converting to its current name in December 2015, hoping to appeal to a larger market.

Although the bank has a handful of branch locations in Kansas and Missouri where it is based, NBKC is primarily geared toward consumers who prefer to bank digitally over traditional ones.

NBKC Bank provides customers access to online banking and mobile apps for both Android and iOS devices. Additionally, the bank also provides access to more than 34,000 ATMs through the MoneyPass network.

Moving on, NBKC Bank is known for its mortgage lending services as well as for offering competitive rates on deposit accounts. But apart from that, NBKC Bank is also a great choice especially if you are also looking for convenience and ways to avoid common bank fees.

While the bank is not the biggest player among digital banking platforms, it boasts having $456 million in deposits to date.

With all these on its plate, NBKC Bank is sure to grow in the coming years. Definitely, something to look forward to.

WHO IS NBKC BANK BEST FOR?

NBKC Bank’s primary aim is to reach a bigger audience by providing a banking platform that is easily accessible digitally. Thus, it should appeal the most to people who prefer digital banking over traditional banking.

NBKC Bank is known for providing competitive rates on deposit accounts, so, if you want to save and earn more from your money, this bank is a good option for that.

Additionally, NBKC Bank also provides ways to avoid common bank fees, which makes it ideal for consumers who want to get away from paying off monthly fees and the like.

Know more about the NBKC Bank in the video below:

Furthermore, the bank requires a low minimum deposit particularly on its certificate of deposit account. So, if you are looking for that particular feature, then, NBKC Bank is for you.

Finally, NBKC Bank should also appeal to those who do not want to worry about maintaining account minimums as well as to consumers who are looking for a low-cost bank that provides strong customer service.

WHAT DOES NBKC BANK OFFER?

NBKC Bank offers a wide selection of products including mortgages, Home equity lines of credit (HELOCs), loans, as well as health savings accounts (HSAs).

However, for the purpose of this NBKC Bank review, we are going to focus only on the following:

  • Checking Accounts
  • Certificate of Deposit (CD) Account
  • Money Market Account (MMA)

Checking Accounts

For this review, we are going to tackle both the personal and business checking accounts, namely:

  • Everything Account
  • Free Business Account

Everything Account

The NBKC Bank Everything Account combines everything that consumers need and expects from a savings and checking account into one simplified option.

The Everything Account is an interest-bearing account that offers a high annual percentage yield (APY) of 0.25%. The rate varies so it can sometimes be greater or lower, but still competitive enough compared to what other banks offer.

Unlike other checking/savings accounts, the Everything Account does not have a minimum balance requirement. Needless to say, the same APY applies across all balances, which means the more money you save, the higher your earnings will be.

With this account, consumers can save, spend, as well as pay bills in just one place.

Furthermore, Everything Account holders will get to enjoy the following amazing perks:

  • No monthly maintenance fees
  • No overdraft fees
  • No minimum balance requirements and fees
  • No foreign transaction fees

Apart from these, since the account is essentially a combination of checking and savings accounts, consumers can expect to manage their money more efficiently. Other features that Everything Account provides include:

  • One Bill Payment
  • Savings Goal Trackers
  • Option to link external accounts to your Everything account

The latter allows you to have a complete view of your finances, which is great and very helpful, right?

To open an Everything Account, all you have to do is go online. According to NBKC, customers can complete the whole opening process in as little as five minutes.

Similar to other banks, to apply, you must be a citizen of a resident alien of the United States, and must be at least 18 years of age.

Additionally, you will be asked to provide your personal information including your name, valid address, phone number, email address, as well as your Social Security Number. You will also need to present a valid government-issued identification like a passport or driver’s license to complete your bank account application.

For this particular type of account, the bank does not have a minimum deposit requirement. However, the account holder must make a deposit within the first 30 days of account opening. Also, it is important to know that any deposits made within that period will be held for five business days. In some cases, deposits may even be held for up to nine business days before the money becomes available.

Meanwhile, new account holders may have to wait for up to 90 days before they can send or receive international wire transfers. Wire transfers come with a fee. Sending a domestic wire transfer costs $5 while receiving is free of charge. As for international wire transfers, the cost is $45 to send and receive.

Everything Account comes with a debit card, which can be accessed for free in over 32,000 ATMs nationwide.

Free Business Account

NBKC Bank also offers Free Business Checking, which is another area that sets them apart from everyone else.

Similar to the bank’s Everything Account, this does not charge monthly maintenance fees and is very easy to use.

While it does not offer any interest on the account, the bank’s Free Business Checking has no minimum deposit requirement, no monthly fees, no overdraft fees, as well as no incoming wire transfer fees.

Additionally, account holders have access to mobile check deposits via the NBKC Bank app, which makes collecting money so much easier.

Certificate of Deposit (CD) Account

If you want to earn a little more, the NBKC certificate of deposit account is perfect for you.

Generally speaking, CD accounts have higher interest rates. Needless to say, the longer you keep your money in the bank, the more interest you’ll earn.

NBKC Bank offers Personal CD as well as IRA CD accounts with terms that range from three months up to five years.

Meanwhile, the rates range from 0.10% for a 3-month CD term to 0.30% for a 5-year CD term.

The minimum balance requirement to open a CD account varies depending on the term. For terms up to one year, the minimum balance requirement to open a CD account is $1,000. For CDs with terms of two to five years, the requirement is only $250.

In addition, the bank also offers a special one-year Add On CD, which you can open for as low as $0. This particular CD account earns an APY of 0.30%. An Add-On CD account allows you to make additional deposits during the CD term.

It is important to know that total deposits cannot be greater than $240,000. If you wish to withdraw money from your CD account ahead of its maturity reason, similar to other banks, an early withdrawal penalty applies.

Upon opening a CD account, there is a minimum of 75-day hold required before an account holder can withdraw funds.

To open an NBKC Bank CD account, you must also be at least 18 years old, and a U.S. citizen or resident alien with a valid ID and Social Security number.

Money Market Account (MMA)

Technically speaking, NBKC does not offer a savings account. So, in lieu of that, customers may opt to open a money market account instead.

Money market account holders may earn the current rate of 0.25%. Apart from that, they may benefit from certain account features similar to that of the bank’s checking account — including no fees for the most part.

The MMA comes with a debit card, check-writing capabilities, as well as a free book of starter checks.

To open a money market account, the bank requires a minimum deposit of $5 only.

HOW TO BANK WITH NBKC BANK?

There are two ways to open an account with NBKC Bank. The first is to visit a branch location, and the second is online.

For the former, only residents living in Kansas and Missouri can avail of that option as the bank physical locations are only limited to that area.

Meanwhile, the latter is ideal especially for those living outside Kansas and Missouri, and those who prefer online banking.

As mentioned earlier, NBKC claims that opening an account online only takes as little as five minutes to finish.

The standard requirements for opening a bank account application. You must be at least 18 years old, and a citizen or resident alien of the United States.

Additionally, you must also hold a Social Security number and must be able to present valid government-issued identification such as a passport or driver’s license.

Deposits and Withdrawals

NBKC Bank allows customers to deposit in different ways. It could be via electronic transfers from other banks (be mindful of a daily limit though), direct deposit, or mobile check deposit using your smartphone.

Meanwhile, customers with checking and money market accounts may withdraw cash using their debit card at any MoneyPass ATM for free. In case you use an out-of-network ATM, you get an automatic refund for fees (up to $12 per month) charged by other banks.

Customer Service

To report a lost or stolen card, you may reach NBKC customer service anytime, any day.

Meanwhile, for any other concerns related to your account, you may reach the bank’s customer service support via phone or online chat on weekdays from 8 a.m. to 5 p.m. CST.

You may also opt to send an email if you have further questions.

As for those living in Kansas and Missouri, you have the option to visit a branch near for in-person customer support.

ARE THERE FEES INVOLVED?

NBKC Bank does not charge common bank fees like monthly maintenance fees, non-sufficient funds, as well as overdraft fees.

Furthermore, the bank does not require a minimum balance to avoid fees.

The only fees that the bank charges are the $5 domestic wire transfer fee (for outgoing transaction only), as well as the $45 international wire transfer fee (for both incoming and outgoing transactions).

IS NBKC BANK SAFE?

Account safety and security are very important. So, in this NBKC Bank review, we are also going to look into that.

NBKC Bank provides a safe and secure online platform for its customers. It uses bank-level security features to ensure that all personal data gathered are safe.

Meanwhile, NBKC Bank is a member of the Federal Deposit Insurance Corporation (FDIC), which protects all deposits for up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.

Overall, NBKC Bank is a safe and secured online banking platform.

WHAT TO LIKE ABOUT NBKC BANK?

In this section of our review on NBKC Bank, we are going to share with you a list of the things that makes this bank stand out. This includes the following:

  • Competitive Rates on Deposit Accounts – The bank’s checking account offers a competitive interest rate. Although it changes from time to time, the rates are still relatively high. The same goes for NBKC’s money market accounts.
  • ATM Reimburses Up To $12 Per Month – NBKC Bank does not charge ATM fees if you transact within the MoneyPass network. However, in the event of an out-of-network transaction, the bank reimburses up to $12 a month for fees incurred.
  • Almost Fee-Free Deposit Accounts – The bank does not charge some of the most common bank fees including monthly maintenance, overdraft, and insufficient fund fees. Additionally, it also does not charge returned items and stop payment order fees, as well as no minimum balance is required.
  • Superb Customer Support – Customers may reach the bank in different channels including phone, live chat, as well as through email.
  • User-Friendly Online and Mobile Banking – NBKC ensures customers have the best digital banking experience by providing user-friendly online and mobile banking platforms.

WHAT NOT TO LIKE ABOUT NBKC BANK?

While it seems like NBKC Bank is perfect, it’s not. In fact, it does have some flaws as well, which include the following:

  • Limited Physical Branch Locations – Unfortunately, NBKC physical branches are only located in Kansas City, Missouri area.
  • High Early Withdrawal Penalty for CD Accounts – Although early withdrawal penalties for CD accounts are normal, NBKC charges a bit higher than the average.

FINAL THOUGHTS ON NBKC BANK

NBKC Bank is a generally online bank that offers competitive APYs for checking and money market accounts.

But apart from that, it also stands out because it does not charge monthly maintenance, overdraft, insufficient fund, and other common bank fees except for wire transfer fees.

Also, it offers a user-friendly online and mobile interface, which makes digital banking easy for its customers.

Don’t you just think this bank has everything or at least most of the things that consumers are looking for in a bank?

Well, we do hope that this NBKC Bank review was enough to convince you that this bank has almost everything consumers hope for in an online bank especially if you are eyeing to open a checking account.