This Radius Bank review will provide you all you need to know about this online-only banking platform including the products and services it offers, the rates, and all the other amazing perks that come with it.
When we talk about online banks, there is usually a lot of overlap between “online banking” as well as “fintech,” which according to Investopedia is a term used “to describe new tech that seeks to improve and automate the delivery and use of financial services“. The good thing is, Radius Bank aims to integrate the best of conventional or traditional banking with the innovation that comes with a fintech start-up. It basically is like having the best of both worlds.
Anyway, in recent years digital banking has become “in” especially with the younger generation.
People prefer it over conventional or traditional banking because it is more convenient and accessible. Allowing users to save more time to do other more important things than banking transactions.
With the perks that come with digital banking, it is not surprising that in research conducted by Statista, they found that in 2018, about 61 percent of the American people preferred using digital banking. More so, the research found that the number is set to increase to 65.3 percent come 2022.
We would not be surprised though if the number rise more than what the research predicts especially with what happened in 2020 when a lot of American people were “forced to become part of the digital banking ecosystem” as stated in a Forbes article.
The article further states that while digital banking had been in the mainstream over recent years especially among young people, because of the pandemic, consumers regardless of age have hopped on board.
The same article reported that based on the result of Digital Banking Attitudes Study by Chase Bank among 1,500 consumers (both Chase and non-Chase customers), it has revealed that “Americans have largely adjusted to—and are ready for—a primarily digital banking environment.”
This study alone and all the other recent studies out there prove that people are now more into digital banking. More than the convenience, it brings, it also adds safety and security – health-wise. With digital banking, everything is done online sparing people from in-person transactions. It’s easier to do transactions like paying bills and transferring money from one account to another.
Now, there are a lot of digital banks out there – that’s for sure. Over the years, online banking and fintech companies have emerged, which is actually good because it gives consumers more options to choose from.
Among the online-only banks out there is Radius Bank, and today, we are going to debone what this digital bank has to offer, and see why it is considered as one of the leading digital banks out there.
In this Radius Bank review, we are going to particularly tackle the following:
- What is Radius Bank?
- Who is Radius Bank best for?
- What are the products offered by Radius Bank?
- How to do banking with Radius Bank?
- Is Radius Bank safe?
- What to like about Radius Bank?
- What not to like about Radius Bank?
WHAT IS RADIUS BANK?
Before we get into a more detailed review, let’s start with getting to know more about Radius Bank first.
As a consumer or as a customer, it is your responsibility to take time to research the banking institution you are eyeing for. This way, you get to see how established the bank is. As you know, for sure, established banks are less likely to fail, and even if they do, most likely your money is insured leaving you secured still.
Anyway, so, here’s what Radius Bank is all about —
As mentioned earlier, Radius Bank is an online-only bank and considered one of the leading digital banks out there.
The bank, which was founded in 1987 and is headquartered in Boston has over $1.4 billion in assets as of 2020, which makes it really solid.
Also, the online bank is being acquired by LendingClub, which is a fintech company that offers online personal loans. As far as history is a concerned, this is the first time that a fintech company acquired a regulated bank in the United States. The acquisition was formally announced in February 2020 and is expected to be done within 12 to 15 months. This move allows the bank to expand its products and service offerings, which definitely will even make them ahead of the competition.
Radius Bank offers a full complement of personal as well as commercial banking services such as checking, savings, lending, and a lot more.
With all that the bank has to offer, including interesting features and amazing perks, this is definitely worth checking out, and you do not have to go elsewhere because we are going to provide you what you need in this Radius Bank review.
Before we proceed, know more about Radius Bank and its amazing perks in this review by Magnified Money:
WHO IS RADIUS BANK BEST FOR?
Now that you already know what Radius Bank is, let’s move on to knowing exactly who it is best for.
Generally speaking, Radius Bank should appeal to most consumers who are comfortable with online banking. Those people who do not need access to a physical branch.
More so, the bank appeals to those who enjoy free access to ATMs wherever they may be in the world, cashback on purchases made using the debit card issued by the bank, and a low-fee online banking relationship.
Furthermore, the bank is ideal for those who want interest-bearing accounts particularly savers who have a lot of cash to keep as they could get the very best rates the bank has to offer.
WHAT ARE THE PRODUCTS OFFERED BY RADIUS BANK?
Here’s the thing, not a lot of online-only banks offer a wide array of products and services. With Radius Bank, it definitely is not the case because they do have a wide selection.
In this section of our Radius Bank review, we are going to particularly tackle the standard options for deposit accounts that are being offered by the bank.
These accounts include:
- Checking Accounts
- Savings Account
- Certificates of Deposit
- Credit Cards
Now, let’s take a look at each of these products:
Radius Bank offers a selection of checking accounts, which are as follows:
- Rewards Checking
- Superhero Checking
- Essential Checking
Rewards Checking is the bank’s primary checking account. It comes with lots of amazing perks like no monthly maintenance fees, no ATM fees, unlimited ATM fee rebates, interest on balances of $2,500 and above, and cashback on valid purchases.
Customers can earn a standard 1.00% cashback on debit purchases provided they receive $2,500 in direct deposits during a statement cycle or have maintained a minimum balance of $2,500. The rewards, however, can move up to 1.50% on certain categories like health, food, social good, and entertainment.
For ATM rebates, the banks pay it off at the end of each statement cycle. Account-holders earn a 0.15% annual percentage yield for balances between $2,500 and $99,999.99 and 0.15% for balances of $100,000 or greater. The APY changes, though, so you have to constantly check with the bank.
To open a Rewards Checking account, the bank requires a minimum opening deposit of $100.
The bank’s Superhero Checking account is almost the same as the Rewards Checking except that this account pays interest at a different rate. Also, it donates a matching amount to the March of Dimes.
For this account, customers with account balances of $2,500 or more earn around 0.05% interest. Again, the APY changes, so better check with the bank regularly.
The Essential Checking account is ideal for customers who have less-than-perfect credit histories who may not qualify for Rewards Checking or Superhero Checking accounts.
This account charges a $9 monthly service charge and comes with a few other limitations including a daily debit card limit of $250 for the first 30 days, a daily debit card limit of $500 after 30 days, and mobile check deposits in a single day are only limited to $1,000 or $2,000 worth every 10 days.
But, the good thing about it is that account holder who is able to maintain a positive banking history for 12 months may be eligible to upgrade to either a Rewards or Superhero Checking accounts.
By the way, to help customers improve their savings habits, the bank offers a free Goalkeeper app, which allows the user to set up specific savings goals as well as automate savings to those goals. The bank requires a Radius Bank checking account to be able to use this app.
Radius Bank offers a high-yield Savings Account. Currently, customers earn 0.15% annual percentage yield on balances between $2,500 and $24,999.99, and 0.25% APY on balances of $25,000 or more.
Compared to the leading online high-yield savings accounts, the rates are considerably low.
However, what makes it appealing still is that the bank’s savings account does not charge monthly services fees, does not require a minimum balance, and that offers free ATM card access to the account without ATM fees.
To open a high-yield savings account, the bank only requires a minimum of $100.
Certificates of Deposit
Apart from checking and savings accounts, Radius Bank also offers Certificates of Deposit (CDs).
The bank offers competitive APYs, depending on how long you want to invest your money. Radius Bank’s rates start at 0.25% APY for three months CD term and could go up to 0,5% APY for a five-year CD term.
To open a CD account, the bank requires a minimum of $500 or $1,000.
It is important to note, though, that Radius Bank charges an early withdrawal fee, which could go up to 365 days’ simple interest.
Unlike other online-only banks, Radius Bank offers a wide selection of Visa Cards through Elan Financial Services.
The cards come with features best suited for rewards, business, low introductory rates, as well as repairing credit.
Some of the cards offered by the bank include:
Cash Back Credit Card
- Visa Real Rewards Card
Secured Credit Card
- Visa Secured Card
Business Credit Cards
- Visa Business Cash Card
- Visa Business Real Rewards Card
- Visa Business Rewards PLUS Card
Balance Transfer Credit Card
- Visa Platinum Card
Other Products and Services
Apart from the financial products we already discussed, Radius Bank also offers the following:
- Personal loans
- Student loans
- Business loans
- Car loans
HOW TO DO BANKING WITH RADIUS BANK?
In the last section of our Radius Bank review, we talked about the different product offerings of the bank.
So, by now, you are most likely convinced already why Radius is one of the leading online-only banks out there.
With that said, it’s time to talk about how to actually bank with them.
Similar to any other online-only banks out there, opening an account with Radius Bank is done entirely online. The bank made sure to make the process fast and simple. In fact, you can finish the entire account application process in as little as three minutes.
To open an account, all you have to do is to visit the website of Radius Bank, download the app, or call or call 1-800-242-0272.
As with any other financial institution, you will be asked to provide your personal information like your Social Security number, a government-issued identification (like your driver’s license or passport), and your physical and mailing address.
Once done with the online application process, you may now proceed with making the initial deposit, which amounts depending on the type of account you opened.
By the way, using the mobile app, you can make a wide range of banking activities and transactions like making check deposits, checking balances, viewing, browsing, and searching transactions, as well as managing your finances, transferring funds, and paying bills.
The Radius Bank mobile app is available on both the App Store and Google Play.
IS RADIUS BANK SAFE?
One thing that concerns people when it comes to digital banking platforms is safety and security.
With Radius Bank, given its years of banking experience, it has already put all safety and security measures in place to avoid possible fraud or identity theft.
The bank values its customers so much that all money saved on the bank is insured up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC). That way, customers won’t be left hanging in case of bank failure.
Given all the safety and security measures, to answer the question if Radius Bank is safe, yes it is. You definitely have nothing to worry about it.
WHAT TO LIKE ABOUT RADIUS BANK?
This Radius Bank review will not be complete without a list of summary of the things we particularly like about this online-only bank.
Some of the features/benefits that we like about Radius are as follows:
- Cash Back on Debit Card Purchases – The bank offers cashback on debit purchases particularly for Rewards Checking Account holders. The cashback standard range is 1.0% for at least $2,500 in direct deposits on a statement cycle or has maintained a minimum balance of $2,500. Customers can get up to 1.50% cashback on categories like health, food, social good, and entertainment.
- High-Yield Checking Account – Unlike other online checking accounts, Radius Bank checking account holders can earn a 0.15% annual percentage yield for balances between $2,500 and $99,999.99 and 0.15% for balances of $100,000 or greater.
- Unlimited ATM Fee Reimbursements – Radius Bank offers unlimited ATM fee reimbursements, which is absolutely great.
- No Monthly Maintenance Fees – Another great feature of Radius Bank is that it does not charge a monthly maintenance fee, allowing customers to save a few bucks as compared to other digital banks.
- No Minimum Balance Requirement – The bank has no minimum balance requirements, which makes its accounts even more flexible.
- Low Minimum Deposit Requirement for CD Account – Depending on the term, customers who want to open a CD account may deposit either $500 or $1,000.
- Low Minimum Deposit Requirement for Checking and Savings Accounts – For both accounts, the bank only requires at least a $100 initial deposit.
- Goalkeeper App – This app allows the user to set up specific savings goals as well as automate savings to those goals. This, however, is only available if you have a checking account.
- Early Direct Deposit – Customers who set up a direct deposit at Radius Bank are eligible to receive their paycheck up to two days faster than other banks.
- FDIC-Insured – Radius Bank is a leading online-only bank, thus, it is only right that it ensures all money is safe with them. The bank is an FDIC member, and each account is insured for up to $250,000 by the Federal Deposit Insurance Corporation (FDIC).
WHAT NOT TO LIKE ABOUT RADIUS BANK?
Although there is a lot of things to like about Radius Bank, it does have its share of downsides as well, and this includes the following:
- No Physical Branches – Similar to most digital banks, Radius Bank does not have a physical branch.
- Requires $100,000 Balance to Earn the Best Interest Rates – If you want to earn the best rates available, you have to at least keep a minimum balance of $100,000, which is kind of high compared to other banks of the same kind.
- Savings Account APY is Not the Best Available – To be honest, compared to the leading online savings account out there, what Radius Bank offers is fairly low, and not as competitive.
- $25 Overdraft Fee on Checking Accounts – Radius Bank checking account’s overdraft fee is at $25, which is lower than many digital banks.
FINAL THOUGHTS ON RADIUS BANK REVIEW
To be honest, we like the fact that Radius Bank is innovative being able to combine what online banking and fintech companies have to offer. No wonder why a company like LendingClub has shown interest in acquiring the bank.
While we have seen a few downsides, they’re overpowered by the many amazing perks that the bank provides.
Overall, we got to say that indeed, Radius Bank is work being on the lead in the digital banking industry.
Having read all that, do you think Radius Bank is the one you are looking for?