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Mobile Banking

PenFed Checking And Savings Review: A Credit Union With Competitive APY

This in-depth PenFed Checking and Savings review is ideal for consumers who prefer joining a credit union instead of a bank or those who want to add a credit union account for their checking and savings.

PenFed Checking And Savings Review: A Credit Union With Competitive APY

This review will provide you the essential information you need from the integrity of PenFed Credit Union, how competitive and beneficial their checking and savings accounts are, up to how to actually join and be part of it.

Before we even get deeper into this PenFed checking and savings review, let us define what a credit union is first.

According to an article published by Forbes Advisor, although a credit union has similar offerings as to banks, what makes it different is that it is owned by its members.

Credit unions are set up as cooperative. It usually “open membership to individuals who share a common bond, such as the industry they are employed in, the community they live in, their faith or their membership in another organization.“

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Additionally, the article states that “credit unions are also generally exempt from federal taxes, and some credit unions even receive subsidies from the organizations that they are affiliated with.” For this reason, “credit unions do not have to worry about making profits for shareholders.”

Perhaps you are wondering why choose a credit union over a bank?

Well, since credit union is a cooperative financial institution, it means they put their members first. In fact, credit unions are known for providing excellent customer service.

If you are particular about having great customer service, then, no doubt, a credit union would be the best option for you.

Now, according to an IBISWorld report, there are currently 6,293 credit unions in the United States, which is a 2.7% increase from 2020. With a lot of options, it could be a little challenging as well to choose one.

But just like when choosing a bank, it all boils down to what your needs and preferences are.

Among all the credit unions in the country today, PenFed Credit Union is one of them.

In the next few sections, we are going to talk about what this credit union is all about, its product offerings particularly checking and savings accounts, and a lot more.

For your reference, here’s a guide on the things that we are going to tackle in this PenFed checking and savings review:

  • What is PenFed Credit Union?
  • Who is PenFed Credit Union best for?
  • What are the products offered by PenFed Credit Union?
  • How to bank with PenFed Credit Union?
  • Is PenFed Credit Union safe?
  • What to like about PenFed Credit Union?
  • What not to like about PenFed Credit Union?

WHAT IS PENFED CREDIT UNION?

Pentagon Federal Credit Union, which is more popularly known as PenFed Credit Union is a full-service credit union that was established in 1935.

Headquartered in McLean, Virginia, PenFed currently has 1.8 members and $25 billion in assets. Thus, making it one of the largest credit unions in the United States to date.

Primarily, PenFed was exclusive to members who have a relationship with the military or federal government. However, over time, PenFed has eventually opened its doors to everyone who wanted to join the credit union regardless of affiliations.

PenFed Credit Union services all 50 states, including Guam, Puerto Rico, the District of Columbia, as well as Okinawa in Japan.

To ensure that all deposits are safe, PenFed is federally insured by the National Credit Union Administration (NCUA) and is an Equal Opportunity Lender.

PenFed offers a variety of financial products including credit cards, homes, cars, and student loans. In this blog, however, we are going to specifically focus on PenFed’s checking and savings account offerings.                   

If you are interested to know more about PenFed and the services it offers, below is an insightful review by CreditKim:

WHO IS PENFED CREDIT UNION BEST FOR?

Now that you already know what PenFed Credit Union is, in this section of our review, we are going to tackle who it is best for.

As mentioned earlier, a credit union, although offers similar products to banks, what makes it unique is that it is owned by its members, which means, to be able to open an account, you have to join its membership first.

So, unless you are okay with that, then, PenFed is not for you.

PenFed Credit Union specifically with its checking and savings account offerings would be ideal for people who want to enjoy earning competitive interests for both accounts. It would appeal to consumers who want to take advantage of good customer service, which is often one of the concerns customers have with banks, particularly online banks.

In addition, it would also be a great choice for those who want to have ATM access for free across more than 85,000 ATMs nationwide.

Similar to online banks, PenFed Credit Union offers online and mobile access, which makes it ideal for people who want easy access to their accounts.

If you think this all pertains to what you are looking for, then PenFed Credit Union and its account offerings are perfect for you.

WHAT ARE THE PRODUCTS OFFERED BY PENFED CREDIT UNION?

You already know what PenFed Credit Union is about and who would benefit from it the most. This time in our PenFed checking and savings review, we are going to talk about, obviously, the deposit accounts offered by the credit union.

Although PenFed Credit Union has several product options, which include credit card, home, car, and student loans, this review will particularly focus on its major offerings – the checking and savings accounts.

PenFed Credit Union offers one checking account and four savings accounts. PenFed Credit Union accounts can be accessed through a network of more than 85,000 ATMs nationwide.

More so, members can bank online or through PenFed’s mobile application. Unlike most mobile banks that do not have physical branch locations, PenFed Credit Union has almost 50 branches across 16 states as well as the District of Columbia, Guam, Puerto Rico, and Okinawa.

Now, let’s talk more about each product to know what’s in store for customers like you —

Access America Checking Account

As mentioned, PenFed Credit Union only offers a single checking account, which they call the Access America Checking account.

Eligible accounts could earn 0.20% annual percentage yield (APY) on daily balances up to $19,999.99, while those with daily balances between $20,000 and $50,000, could earn 0.40% APY. Dividends for this account type are compounded daily and paid monthly.

By the way, the account becomes eligible for dividends by setting up at least a $500 recurring direct deposit.

To be able to open an Access America Checking account, you must first and foremost be a member of PenFed Credit Union by opening a savings account with at least a $5 initial deposit. No savings account means no access to opening the credit union’s checking account.

The Access America checking accounts comes with a free Visa contactless debit card. It a card that is compatible with Apple Pay, Google Pay, as well as Samsung Pay. The debit card allows you to access over 85,000 ATM networks of Allpoint and CO-OP ATMs nationwide for free.

In addition, the account does not charge out-of-network ATM use, however, there may be a surcharge fee from the third-party ATM operator.

Access America Checking account comes with a monthly service fee of $10. However, this can be waived if a direct deposit of a minimum of $500 is made per month or by maintaining a balance of at least $500 on a daily basis.

The Access America Checking account also offers Bill Pay for free, as well as a no-fee overdraft line of credit starting at $500. The account’s line of credit comes with a fixed 17.99% APR, as well as flexible limits starting at $500.

Regular Savings Account

Unlike other PenFed’s deposit accounts, the Regular Savings Account pays only 0.05% APY on all balances.

While the rate is quite low, the good side of it is that you get to gain ATM access to over 85,000 ATMs nationwide.

The Regular Savings Account is also the key to establishing a PenFed membership. With at least a $5 initial deposit, you get to establish yourself as a PenFed member, allowing you to enjoy other products that the credit union offers.

The Regular Savings Account lets you access your money easily. As mentioned, it comes with a free ATM card that is accessible to thousands of Allpoint and CO-OP ATMs across the country.

Please note that All Regular Savings Accounts are federally insured for up to $250,000 and are also backed by the full faith and credit of the government.

Premium Online Savings Account

Unlike the Regular Savings Account, PenFed’s Premium Online Savings Account allows account holders to earn 0.50% APY on balances up to $250,000.

This account does not charge monthly fees, but, unfortunately, it does not have ATM access. If you want to withdraw your money, you will have to transfer it to your Regular Savings Account first.

To open a Premium Online Savings Account, you also only need at least a $5 initial deposit.

Please note, though, that unlike checking accounts, savings accounts have more restrictions. As the federal law states, account holders can only withdraw money from their account up to six times per month.

Additionally, customers are only allowed to make deposits of up to $10,000 per day and a total of $50,000 per month. Otherwise, fees will be charged.

Money Market Savings Account

Unlike the first two savings accounts, the Money Market Savings Account requires a minimum of $25 initial deposit. Similar to Premium Online Savings, this, too, does not have ATM access.

However, you also get to enjoy no monthly fees, as well as free checks upon request.

As with interests, the Money Market Savings Account has several tiers depending on balances. For those with balances of $10,000 and below, the APY is 0.05%. For account holders with balances between $10,000 and $99,999, it’s 0.10% AP, while those with balances of $100,000 and above, get to earn 0.15% APY.

To easily access your account, all you have to do is visit PenFed’s website or download the mobile app.

Money Market Certificates

Last on the savings account options is the Money Market Certificates. This one’s similar to banks’ certificate of deposit (CD) account.

PenFed Credit Union offers a variety of Money Market Certificates to choose from. The certificate terms vary from six months up to 7 years. All of which require at least a $1,000 deposit to open.

The APY also differs depending on the terms, but customers could earn up to 0.75% APY for a seven-year term.

Similar to CD accounts, your money must stay in the certificate until it matures. Otherwise, you will be charged with an early withdrawal penalty if you get it before the maturity date.

Similar to checking accounts, dividends are compounded daily and paid out monthly.

PenFed’s Money Market Certificates are available in the branch, by phone, as well as online.

HOW TO BANK WITH PENFED CREDIT UNION?

As mentioned, to be able to enjoy the products offered by PenFed Credit Union, you have to become a member first.

Joining the credit union comes in three very easy steps.

First, you have to be eligible to join. You can join through association membership, employment, military affiliation, and a lot more. To know the full list, you may check with a PenFed branch near you or visit their website.

Second, you will need to provide your personal information such as your name, phone number, email address, as well as your home address.

Lastly, you will have to open a savings account with at least a $5 initial deposit.

Once you’re done with all these, you are now a PenFed member. By being one, you do not only get to access the different financial products that PenFed offers, but also other membership perks like member discounts, access to the advice center, financial hardship center, as well as deployment guide.

ATM Access

Although not all accounts have ATM access, you can easily withdraw by transferring funds to your Regular Savings Account, which is the basic account requirement to avail PenFed membership.

All PenFed issued debit card is accessible to over 85,000 Allpoint and CO-OP network ATMs nationwide.

Online and Mobile Access

All PenFed checking and savings accounts are accessible through its mobile app. It comes with all the features your’s expect from a full-service credit union.

It comes with features like instant check deposit, account management, bill pay, the ability to send money to almost anyone, as well as the ability to transfer funds between your PenFed accounts.

The mobile app is available for both iOS and Android devices.

Fees

Almost all of PenFed’s accounts do not come with fees except for its Access America Checking account that charges a $10 monthly fee. However, it can be waived by keeping a $500 balance or set up a $500 monthly direct deposit.

IS PENFED CREDIT UNION SAFE?

This Penfed checking and savings review will not be complete if we are not going to tackle the safety and security features of the credit union.

As mentioned, all accounts can be accessed online and through the mobile app. To ensure all data are safe from fraud or identity theft threats, PenFed follows bank-level security.

As with your money, all funds deposited with PenFed are federally insured by the NCUA. It’s insurance similar to FDIC for banks.

Just the same, with the NCUA insurance each member depositor can receive up to $250,000 per account in the event of credit union failure.

WHAT TO LIKE ABOUT PENFED CREDIT UNION?

At this point of our review, we are going to share with you a list of the things that we like about PenFed Credit Union as a whole, as well as its checking and deposit account offerings.

The list includes:

  • Competitive Rates – Except for the Regular Savings account, all the other accounts offer very competitive rates.
  • No Monthly Charges for Savings Accounts – All savings account holders are free from monthly charges. As with checking account holders, while there is a $10 monthly fee, it can be waived by either keeping a $500 balance or set up a $500 monthly direct deposit.
  • Online and Mobile Access – All deposit accounts are accessible both on PenFed’s website as well as through its mobile app, which is available for both iOS and Android devices.
  • Easy Membership Application Process – PenFed has three easy and simple membership applications. Needless to say, it was already made available for anyone in the United States.
  • Available Across 50 States – PenFed is available across all 50 states as well as in Guam, Puerto Rico, the District of Columbia, and Okinawa, Japan.

WHAT NOT TO LIKE ABOUT PENFED CREDIT UNION?

While there are a lot of things to like about PenFed Credit Union, it sure has its flaws as well.

Some of the things to not like or probably to improve on are as follows:

  • $500 Recurring Direct Deposit to Earn Dividends – PenFed requires all checking accounts to have a recurring $500 direct deposit to earn dividends, which can be quite a challenge for some.
  • Requires to Open and Maintain a Regular Savings Account – The credit union requires opening a savings account to be able to become a member. Needless to say, it has to be maintained to be able to withdraw money from other accounts.
  • Limited Local Branches – Although PenFed is available across 50 states, its local branches are only available in 16 states.

FINAL THOUGHTS ON PENFED CHECKING AND SAVINGS REVIEW

Although PenFed is a credit union, which functions like a cooperative, it has similar product offerings to banks, including checking and savings accounts.

It’s a good alternative especially for people who want to enjoy the same type of products that banks offer but in a more relaxed environment.

With PenFed checking and savings accounts, for instance, both offer competitive rates sans bank fees (except for checking account, which charges a $10 monthly fee if requirements are not met).

Given the information we provided, do you now consider joining a credit union to have a credit and savings account?

Overall, we hope that this in-depth PenFed checking and savings review has all you need to know to see if it suits your needs and preferences.

Categories
Mobile Banking

Level Bank Review: A Fintech With An Ideal High-Yield Bank Account

If you are focused on finding a mobile banking service provider that provides a high-yield bank account, then, you got to check this Level Bank review to see if this meets exactly what you are looking for.

Level Bank Review: A Fintech With An Ideal High-Yield Bank Account

Mobile banking is not new. In fact, it has been there for quite a while now.

However, back then, it was mostly the younger generations who get into online banking. Adults prefer traditional or convention banks. This is not surprising though because younger people are more explorative and they’re into anything digital, while the older ones are okay with what they are used to.

But things changed last year when the worldwide pandemic hit the country. A lot of people of all ages get into mobile banking since outside activities were limited.

Since then until now, and in the coming years, experts believe that online banking or the fintech industry will continue to grow.

According to Statista, as of February 2021, there is 10,605 financial technology (Fintech) startups in the United States. With such a number, it has made the region the most Fintech startups across the world.

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If the current trend will continue, and we mean people clamoring over online or mobile banking, there would be even greater opportunities for fintech companies.

Now, if you think about it, there are lots of options available. So, the question now would be, how to choose the best one for you.

Well, it will boil down to what your banking needs and preferences are. Knowing your needs and preferences will help trim down your options to make it easier to choose the one that’s for you.

As mentioned, there are a lot of mobile-centric service providers out there. But today, we are going to particularly focus on what Level Bank is and what it has to offer.

Level Bank is a fintech company that is known for providing a high-yield checking account.

In the next few sections, this Level Bank review will focus on providing answers to the following questions:

  • What is Level Bank?
  • Who is Level Bank best for?
  • What are the products offered by Level Bank?
  • How to bank with Level Bank?
  • Is Level Bank safe?
  • What to like about Level Bank?
  • What not to like about Level Bank?

WHAT IS LEVEL BANK?

When choosing a bank, in this case, a mobile banking solution, it is important to look into its history first.

This way, you get to see how credible and trustworthy the bank is, and of course, how stable it.

So, with that said, before we even talk about the technical stuff, here’s a quick backgrounder about Level Bank —

According to the founder of Zero Financial, the firm that owns Level Bank, Bryce Galen, “Level was built to challenge the status quo in banking and put an end to the era of big banks holding people’s money while giving them no interest, a clunky app experience, and frustrating customer service.”

Level Bank aims instead “to give customers dramatically better rewards and interest, a design-forward app, and superior customer support.” The company’s goal is to “revolutionize the way people engage with their finances on a daily basis.“

With Level Bank, all account holders are able to enjoy earning interest on their money, at the same time, are ensured that their deposits are safe because their money is insured by the Federal Deposit Insurance Corporation (FDIC) through its partnership with the Evolve Bank & Trust, which is a member of FDIC.

Furthermore, Level Bank offers “unlimited cash back on qualified purchases with your Plus or Premium membership, no overdraft fees or minimum balance requirements, and access to interest-free cash advances up to $500.“

In addition to that, customers can also “take advantage of ATM operator fee reimbursements worldwide (up to $4 per reimbursement), and the ability to get paid up to two days early.”

Level Bank is based in Walnut Creek, California.

If you are interested to know more about what Level Bank is all about, what to expect from it, and why it’s one of the bests, we recommend you watch the video below by Magnified Money:

WHO IS LEVEL BANK BEST FOR?

Now that you already know what Level Bank is all about, it’s time to look into who would benefit from it the most.

Generally speaking, Level Bank should be great for people who are open to adapting to new financial technology tools and services.

It would appeal to individuals who want debit card access, at the same time, earn cashback on purchases. Of course, it would also be appealing to those looking for a high-interest rate in a liquid account.

Additionally, Level Bank is ideal for people who want mobile banking, 24/5 customer support, as well as those who want to get away from banking fees.

WHAT ARE THE PRODUCTS OFFERED BY LEVEL BANK?

Now, we get into the most exciting part.

In the previous sections of our Level Bank review, we talked about what this fintech company is all about, and of course, who would benefit the most from it.

This time around, we are going to talk about one of the most important details you need to know – the products that the bank offers.

Level Bank is an online bank that provides customers with “cash management” services.

Although it may look the same as traditional checking accounts, its features are different.

With Level Bank, customers get to enjoy unlimited cash back on purchases, as well as a 0.50% annual percentage yield (APY) on deposits.

Unlike most credit cards that restrict cashback rewards to certain categories, Level Bank has no restrictions. Furthermore, the bank offers a no-fee service, which is definitely rewarding for customers.

For your information, Level Bank does not charge the following fees:

  • Minimum balance fees
  • Overdraft fees
  • Non-sufficient funds fees
  • Foreign transaction fees
  • Add-on ATM fees

Level Bank offers cashback rewards, and it is made available every after a transaction is completed. Thus, you get to enjoy your rewards as soon as you can.

Apart from that, Level Bank also lets you cash out your balance through Lyft and DoorDash.

The amazing thing is, all of these are doable by simply using the Level Bank mobile app.

Now, to be able to qualify for cashback rewards, it is important to note that purchases must be signature-based “credit,” which basically means they can’t be used for buying other debit cards, ATMs, or ACH transfers.

The Level Bank account comes in three different options. These are:

  • Level Standard
  • Level Plus
  • Level Premium

Now, let dig deeper into each of these to get to know them better —

Level Standard

The Level Standard account is basically the base level plan. It offers solid options at no cost at all.

With the Level Standard account, customers get to enjoy a 1.0% unlimited cash back on all qualified purchases using your Level Debit Card with qualifying direct deposits in the account every 31 days.

Also, customers who opt for this option get one ATM fee reimbursement, a $300 ATM withdrawal limit, as well as a 0.50% APY on deposits

Level Plus

If you want to enjoy better features, you may opt for the Level Plus option, which is the cheapest paid plan that Level Bank offers.

This account comes with benefits that slightly improve the Level Standard option.

All Level Plus account holders pay a monthly fee of $5, which when compared to other mobile banks out there is still lower.

Also, account holders get to enjoy 1.0% unlimited cash back, free cash advance of up to $150, three ATM fee reimbursements, as well as a $500 ATM withdrawal limit, limited merchant perks, message-based support, and of course, a 0.50% APY on deposits.

This plan is definitely a great option if you want to enjoy better features without having to spend so much on monthly fees.

Level Premium

The last but certainly not the least option of all is the Level Premium. Obviously, by the name itself, it means it provides customers the best features of all the three Level plans.

By opting for Level Premium, which entitles you to a $15 monthly fee, you get to enjoy several perks like a 1.5% unlimited cash back, a free cash advance of up to $150, five ATM fee reimbursements, $1,000 ATM withdrawal limit, as well as exclusive merchant perks, phone and message-based support, and of course, a 0.50% APY on deposits.

Customers get to enjoy discounts from exclusive merchants like Postmates, Lululemon, Spotify, Starbucks, and Sukoshi. Discounts are up to $25 for every merchant.

Meanwhile, for both Level Plus and Level Premium, ATM reimbursements are up to $4 per incident for the number of times listed.

By the way, all Level cards can be used at any ATM that accepts Visa cards.

HOW TO BANK WITH LEVEL BANK?

So, in the previous section of our Level Bank review, you already found out the products that this mobile banking service provider offers.

This time, we are going to talk about how to actually bank with Level Bank.

To open a Level Bank account, all you need to do is to visit the Level Bank website or download the mobile app, which is available for both Android and Apple device users.

Ultimately, though, you need to have a mobile device to use the services offered by Level Bank.

Anyway, when opening an account, similar to other banks, you will be asked to provide basic personal information including your name, address, mobile number, as well as your Social Security number. You should also have with you a government-issued identification like a driver’s license or passport for verification purposes.

Please note that the bank does not require any minimum deposit to be able to open an account, which means you can have an account with as little as $1.

It is also important to note that Level Bank customers can set up direct deposits for their paychecks into their Level Bank account. Generally, Level Bank posts the deposit on the same day the money is received, which means it could be up to two days earlier than the scheduled payment.

Fees

As mentioned in the previous section, for Level Standard, the bank does not charge any monthly fees. However, for Level Plus and Level Premium, the bank charges $5 and $15, respectively.

Meanwhile, for all three plans, customers are not charged overdraft fees, non-sufficient funds fees, low balance fees, as well as foreign transaction fees.

To be honest, this feature is great given the fact that a lot of mobile banks charge certain fees way more than what their competitors charge.

IS LEVEL BANK SAFE?

The safety and security of both your personal data and your money are important to Level Bank.

So, to ensure all your data is protected, Level Bank uses bank-grade encryption. More so, the bank is PCI-DSS v3.1 compliant, and also applies PCI standards when dealing with any sensitive information.

With regards to the Visa debit card, it comes with Visa protection, which means all protection that comes with using a Visa card — it’s called the Visa Zero Liability — applies to it. The card comes with built-in protection so you won’t be responsible should there be any unauthorized charges.

With Level Bank’s partnership with Evolve Bank and Trust, which is an FDIC member, all deposits are insured by the FDIC. This means FDIC insurance of up to $250,000 is provided per depositor, per account category in the event of a bank failure.

So, yeah, ultimately, Level Bank is very safe to use and to bank with.

WHAT TO LIKE ABOUT LEVEL BANK?

Now that we have already discussed all the important details about Level Bank – from what the bank is about to the products it offers and how to bank with them, it’s time to come up with a list of summary of the things that we like about Level Bank.

Some of the things that we particularly like about the bank are as follows:

  • Plan Options – We like the fact that customers are provided with three different plan options starting with a no monthly fee plan to the premium one. This helps reach out to more classes of people.
  • No Overdraft and Insufficient Funds Fees – Level Bank does not charge overdraft fees as well as insufficient funds fees, which makes it even more appealing for people who want to get away with these types of fees.
  • No Foreign Transaction Fees – Another plus for Level Bank is the fact that it does not charge customers for foreign transaction fees, making it a good choice for constant travelers.
  • Free Cash Advance of Up To $150 – This perk is another one that makes Level Bank stand. It’s nice knowing that the bank is able to provide a cash advance of up to this much.
  • Up To 1.5% Unlimited Cash Back on Debit Card Purchases – The percentage of cashback on debit card purchases is also something that makes Level Bank worth it. This perk, however, is only available for the Level Premium option.
  • Accessibility – Level Bank is a mobile bank, which means you can easily access your account anytime and anywhere you want for as long as there is an internet connection near you. Also, while it does have a website, you can only enjoy the services offered by the bank through its mobile application, which is available for both Apple and Android devices.
  • FDIC-Insured – Thanks to the bank’s partnership with Evolve Bank and Trust, which is a member of the FDIC, all deposits are insured up to $250,000 in case of a bank failure.
  • Bank-Level Security – Another thing that we like is that Level Bank uses bank-level security to ensure that all accounts are safe and secured from fraudulent acts as well as identity theft.

WHAT NOT TO LIKE ABOUT LEVEL BANK?

Of course, this Level Bank review will not be complete without sharing with you the downsides of this mobile banking platform.

Some of the things to not like (but hopefully can be improved on) about Level Bank are as follows:

  • No Physical Branches – As mentioned, Level Bank is a mobile bank, which means it does not have any physical branches. If you are the type who would want to avail the benefit of having mobile bank access as well as conventional or in-person bank access, then, this is not for you.
  • Does Not Allow Cash or Check Deposits – Unfortunately, Level Bank does not support cash or check deposits. But, who knows? Maybe the company is already working on it.
  • Limited Products – Apart from the Level Bank Account that comes with three different plans, Level Bank does not offer any other product or services. With very limited options, this trims down to a very specific customer base. But then again, we do not know anything. Maybe the bank will eventually offer a few more in the coming years?

FINAL THOUGHTS ON LEVEL BANK REVIEW

Level Bank is a fintech company that offers high-yield bank account. Although the products are limited to just one compared to other financial institutions of similar type, Level Bank makes sure customers are given options – from a free plan to paid ones.

Overall, do you think this is the kind of bank that suits your needs and preferences?

With this Level Bank review, we hope we are able to provide the information you need to see if it is indeed the kind of bank that you are looking for.

Categories
Mobile Banking

NorthOne Bank Review: What Makes This Mobile-Only Bank Exceptional?

If you are looking for a digital bank that provides an easy-to-use mobile interface, then, you have to check this NorthOne Bank review out.

NorthOne Bank Review: What Makes This Mobile-Only Bank Exceptional?

In this review, we are going to focus on what NorthOne Bank is all about, the products that the bank offers, and all the other important information every potential customer needs to know before applying for an account.

We currently live in the digital era, which means people nowadays prefer to do almost everything digitally or online allowing them to do their day-to-day activities conveniently, easily, and fast.

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These days, almost all types of industries are doing their best to adapt to what technology has to offer, and of course, to the needs and preferences of their respective target market.

Financial institutions, for instance, “are beginning to recognize that solving banking needs means catering to different generations,” according to a report by PricewaterhouseCoopers (PWC), a multinational professional services network of firms.

Unlike in the old times, today, digital banking is a hit. Digital banking, according to Business Insider, refers to “the digitization of every level, from the front- to the back-end, of banking“.

People these days, especially the younger generations prefer digital banks over traditional banks because of their accessibility, convenience, and the fact that it allows them to save so much time from doing banking transactions.

The same goes for businesses. With the increasing number of consumers preferring to do online transactions, most businesses – whether small or big – had to adapt and ensure they are able to cater to this need. No wonder why more and more online banks are offering business accounts these days.

Now, speaking of online business banking, as mentioned, there are a lot of online-only banks that provide digital products and services particularly to small businesses, entrepreneurs, and freelancers, and one of them is NorthOne Bank.

NorthOne Bank is an online-only bank that offers a business bank account for small business owners, entrepreneurs, and freelancers.

Today, as stated in the title, we are going to do a NorthOne review to get to know more about this all-digital bank and what it has to offer. More so, how it can be beneficial to small business owners, entrepreneurs, and freelancers, and what makes it stand out from the rest.

In the next sections of our review, we are going to tackle the following:

  • What is NorthOne Bank?
  • Who is NorthOne Bank best for?
  • What are the products offered by NorthOne Bank?
  • How to do banking with NorthOne Bank?
  • Is NorthOne Bank safe?
  • What to like about NorthOne Bank?
  • What not to like about NorthOne Bank?

WHAT IS NORTHONE BANK?

When choosing an online business banking platform, it is important to do a little research first. Making time in getting to know the bank provides you the confidence you need especially since the bank is where you put your hard-earned money. In this case, it is where you put your business’s money.

So, having said that, here are some important things you need to know about NorthOne Bank:

NorthOne Bank is a New York-based online-only bank. It was launched in August 2019, which makes it relatively new as compared to other online business banks out there.

NorthOne was specifically designed as a mobile-only alternative to traditional online business banking. The bank provides easy-to-set-up business bank accounts that make payments, cash withdrawals, as well as cash and checks deposits fast and easy for small business — including those with 50 employees and below — as well as freelancers and startups.

Currently, this online business banking platform is trusted by over 190,000 businesses across the United States of America.

Similar to most digital banks, NorthOne has no physical branch as well, which makes it not an ideal choice if you want a bank that also provides traditional banking options.

All banking services (including invoices, pay bills, as well as manage your business money) are provided by the bank through the app or website for a $10 monthly fee.

Of all the features that NorthOne Bank provides, what sets them apart from others is its easy-to-use mobile interface. Everything you need is in one place, which spares you from worrying about tracking down information when you need it.

The bank offers a single account, and that is the Business Checking account. What makes it unique is that it’s very simple and easy to use, plus it helps business owners and freelancers to set money aside for specific purposes. More so, it allows you to add sub-accounts for allocating funds for major expenses like taxes, payroll, and rent.

Moreover, NorthOne Bank’s banking app is designed to work with all payment processing systems such as point-of-sale (POS) terminals, eCommerce tools, and payment services, which definitely is great for business owners. Additionally, you can also integrate the app with tools that you already use in your business, which include eCommerce, billing, and accounting.

Ever since NorthOne Bank’s goal is to make banking easier for business owners and freelancers so they can focus on more important things. That perhaps is really what makes this bank appealing.

NorthOne Bank is an FDIC-insured bank through its partnership with Radius Bank, which is based in Boston. 

By the way, before moving on to the next section, if you are wondering why the need for a business bank account, here’s a very insightful video by Keya J. This will help convince you that indeed, small business owners need a specific bank account for their business.

WHO IS NORTHONE BANK BEST FOR?

In the previous section of our NorthOne Bank review, we shared with you important details you need to know about the bank.

This time, we talk about who is it best for.

As already mentioned earlier, NorthOne Bank is specially designed to cater to the needs of small businesses, entrepreneurs, and freelancers.

Those who belong to these groups who prefer digital banking will surely benefit from and enjoy what NorthOne Bank has to offer.

Furthermore, NorthOne Bank is appealing to business owners who are looking for a Business Checking account that allows you to add sub-accounts to allocate funds for major expenses like taxes, payroll, and rent.

The bank also offers a live support feature, which is a big draw for business owners who need on-demand help. Through this online-only bank’s built-in chat feature, you can easily access knowledgeable support in real-time or by schedule.

Generally speaking, NorthOne Bank is ideal for business owners and freelancers who prefer mobile banking to traditional banking. Needless to say, online banking platforms provide all the necessities that a business needs.

WHAT ARE THE PRODUCTS OFFERED BY NORTHONE BANK?

One of the most important things that customers look into when choosing a bank is the products they offer.

With NorthOne Bank, as we have already mentioned earlier, it offers only one product, which is the NorthOne Business Checking Account.

The NorthOne Business Checking account offers both online and mobile banking. It comes with unlimited deposits, payments, and transfers, which are very much ideal for businesses.

The account comes with the NorthOne debit MasterCard, which gives account holders access to probably the largest fee-free ATM network among many other banks out there with over 300,000 locations. Additionally, the debit card can be used to make cash deposits at any in-network ATM location, again, for free.

To open a NorthOne Business Checking account, all you need to do is go online. NorthOne Bank is committed to proving its customers with easy and hassle-free account applications that in fact, only takes as little as three minutes to open one.

Similar to any other digital banks, you will need to provide personal as well as business information when opening an account, plus meet the initial minimum deposit of only $50.

Apart from what we already mentioned, other features that we like about the NorthOne Business Checking Account include:

  • Multiple Sub-Accounts – NorthOne Bank allows you to create several sub-accounts for your savings, which makes it easier to automatically transfer funds from your main account into your sub-account for expenses like payroll, taxes, etc.
  • Loans – NorthOne Bank account holders can apply to join the waitlist for the Paycheck Protection Program. This is designed to help small businesses stay on top of payroll as well as other necessary expenses during difficult times. To apply, all you need to do is fill out a form about your business and submit and join the waitlist. To date, NorthOne has already facilitated $130 million in PPP loans to their customers.
  • Live Customer Support – Unlike other online-only banks, NorthOne Bank offers a live customer support feature, which makes it easier to ask for help when needed. To access this feature, you just have to start a chap in the app.
  • Useful Integrations – NorthOne Bank mobile app integrates well with a wide variety of business and accounting tools such as QuickBooks, Xero, Amazon, FreshBooks, Wave, as well as Stripe, PayPal, and Shopify.
  • Easy-to-Use Interface – Definitely one of the best when it comes to ease of use. NothOne provides a very convenient digital experience for all its customers by letting them access their finances in just a few taps, as well as move funds around quickly and without any hassle.

NorthOne Bank offers unlimited transactions for a fee of $10 per month. While there are other online business bank accounts that offer the same for free, many of them do not provide the same perks that NorthOne does.

Apart from the $10 monthly fee that covers unlimited transactions, NorthOne Bank also charges $10 for domestic wire transfers (incoming and outgoing), $25 for international wire transfers (incoming and outgoing), $25 for nonsufficient funds, and $5 per day for a daily overdraft fee.

NorthOne does not charge fees for carrying out regular transactions. However, account holders may incur fees when withdrawing cash from a third-party ATM.

HOW TO DO BANKING WITH NORTHONE BANK?

In the previous sections of our NorthOne review, we talked about what the bank is about, who is it best for, and the product it currently offers.

This time, we are going to share with you information on how to actually bank with NorthOne.

NorthOne is available through a mobile app. Although it comes with a website as well, you will need the app to actually open a bank account. In fact, the “Open an Account” button on the main page of their website automatically directs you to sign up on your mobile device.

NorthOne mobile app is available for both Android and iOS phone users.

To start setting up an account, you will be asked initially to provide your mobile phone number and email address. You will then receive a request to confirm your email address.

To continue signing up, you will be asked to create a password, as well as accept the terms of service.

The next step is the identity verification portion, which means you will need to gather and provide your business and personal details like your Social Security number, and your business’s Employer Identification Number.

You may opt into push notifications so you get alerted every time there is an activity on your account.

Once done, you will then proceed to provide the information necessary for the bank to run a credit check on you and your business. Do not worry though as this will not affect your credit score.

As mentioned earlier, the whole process is easy and simple that it can only take you a few minutes to finish.

Once done, you may now make an initial deposit of as low as $50. Deposits can be made through cash or check.

IS NORTHONE BANK SAFE?

Security and safety are some of the major concerns that people have when it comes to digital banking. This is totally understandable, though, given the fact that there have been a lot of fraud and identity theft cases online before.

With that, in this section, we are going to look into the security and safety measured that NorthOne Bank has put in place to avoid such things from happening.

Apart from the fact that all NorthOne Bank accounts, through its partnership with Boston-based, Radius Bank are FDIC insured, the bank also provides the following measures to protect your money, your transactions, and your identity:

  • Biometric authentication (Touch ID or Face ID to log in, as well as send payments, and view information)
  • Fraud monitoring
  • Ensures all communication takes place through secure channels only
  • NorthOne Bank does not store sensitive information
  • Continuous transaction monitoring for suspicious activities as well as instant notification if any are detected

So, to answer if NorthOne Bank is indeed safe, with all these in place, we have to say, it is.

WHAT TO LIKE ABOUT NORTHONE BANK?

This review on NorthOne Bank will not be complete if we are not going to provide a list summary of the things that we like. This, hopefully, will give you a full glimpse of what makes this bank an ideal choice for small business owners and freelancers.

For your reference, below are what we particularly like about this online-only business bank:

  • Unlimited Transactions – We like the fact that NorthOne Bank does not limit the number or dollar amount of payments account holders can make, income payments, as well as the number of transactions.
  • Low Fees – The bank charges a monthly $10 fee that forgoes extra fees for access transactions. While it does charge wire transfers, nonsufficient funds, and overdraft fees, they are either below or within banking industry standards.
  • Low Minimum Initial Deposit Requirement – For as low as $50 only, business owners and freelancers can already open a NorthOne Bank Business Checking Account. It’s definitely one of the lowest among its competitors.
  • Sub-Accounts – The bank allows you to add sub-accounts to your checking account, which gives you the ability to budget for major expenses like payroll, taxes, and rent.
  • Business Tools Integration – NorthOne Bank’s mobile app allows you to add multiple payment services as well as accounting software, which makes things easier for any business owner or freelancer.
  • Invoice Maker – The Invoice Maker feature enables account holders to send and track invoices to customers and clients. More so, it allows you to send reminders for past due accounts.
  • Debit Card – The NorthOne Business Checking Account comes with a free debit MasterCard, which allows you to withdraw your money anytime, anywhere.
  • Extensive ATM Network – With your NorthOne Debit MasterCard, you get to access cash at over 300,000 ATMs across the country, free of charge.
  • Cash Deposits – Not a lot of mobile banks offer cash deposits. It’s nice knowing that NorthOne Bank offers such a feature. The bank allows you to make cash deposits at hundreds of thousands of ATMs across the country for free.
  • Mobile Check Deposits – Apart from cash, NorthOne Bank also allows mobile check deposits through the app’s mobile deposit feature or through any of the ATMs across the country.
  • Easy Mobile Experience – Of course, to top it all, we like most the fact that all your banking is consolidated to one mobile app, which definitely saves a lot of time and effort. Needless to say, you can do anything you need whether you are at home or on the go.

WHAT NOT TO LIKE ABOUT NORTHONE BANK?

Of course, it’s not a review if we are not providing you with a list of downsides.

While there are a lot of things to like about NorthOne Bank, we also found a few things that we do not particularly like, which could definitely be improved.

These are:

  • Mobile Only – Unfortunately, the account is only accessible using your mobile device, which means you cannot check your account balance or make transactions using your computer.
  • Monthly Fee – The bank charges a $10 monthly fee. Although it is relatively low, other digital banks offer the same unlimited transaction feature for free.
  • No Third-Party ATM Rebates – Unlike other online banks, NorthOne Bank account holders are limited to the over 300,000 ATMs in its network. Doing transactions outside the said network may incur fees and no rebates shall be made.
  • Limited Account Options – NorthOne Bank only offers business checking accounts at the moment.
  • No Paper Checks – Although paper checks are no longer as popular as before, there are still people who prefer using them. Unfortunately, if you are one of those, NorthOne Bank does not provide it.
  • No Physical Branches – Similar to most digital banks, NorthOne Bank does not have physical branches.
  • Extended Deposit – Unfortunately, NorthOne holds all deposits to your account for five business days for the first 30 days since you opened the account.
  • No Debit Cards for Employees – The NorthOne Debit MasterCard is only available for business owners.

FINAL THOUGHTS ON NORTHONE BANK

Overall, NorthOne Bank is a mobile-only bank that is ideal for small business owners, entrepreneurs, or freelancers who need an online business checking account that provides all the necessary features a business needs.

Given all the information we have provided, do you agree that NorthOne Bank offers one of the best services when it comes to online business checking accounts out there?

Well, we do hope that through this NorthOne Bank review you were able to find the information that will convince you that this NorthOne is the right bank for your business’s needs.

Categories
Mobile Banking

BlueVine Review: What Makes It The Best Online Business Checking Platform

If you are a small business owner or a freelancer who is looking for a free, online, interest-earning checking account, then you have to keep reading this BlueVine review.

Bluevine Review: What Makes It The Best Online Business Checking Platform

When the pandemic hit the United States (and the world) in 2020, a lot of businesses were really challenged. In fact, many businesses had to shut their doors leaving a lot of people jobless.

In fact, according to a survey done by the July MetLife and U.S. Chamber of Commerce Small Business Coronavirus Impact Poll, they have found that about 70% of small businesses in the United States were concerned about financial hardships, and 58% worry about having to permanently close because of prolonged closures at that time.

While some businesses were threatened, others learned to thrive despite the challenges. Many of them had to re-strategize their day-to-day operations in order to survive. One of the strategies was to go online, and offer cashless transactions for in-store sales.

That is where digital banking becomes a vital part of small businesses’ day-to-day activities.

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You see, this situation made a lot of people appreciate online activities more – whether it be online shopping or online banking transactions.

Now, what we are trying to say is, digital banks play a crucial role especially in unforeseen situations like the pandemic. It kept a lot of industries going. Thanks to digital money transfer platforms, which include online banks.

If you are a small business owner or a soon-to-be one, opening a digital business checking account is essential. Thanks to technology, indeed, there are lots of choices out there to choose from.

Today, however, we are going to particularly focus on one – it’s BlueVine Capital.

This BlueVine review will particularly focus on providing you essential information that you need to know before you even decide to open an account with this online business banking platform.

For your reference, we are going to specifically provide answers to the following questions:

  • What is BlueVine Capital?
  • Who is BlueVine Capital best for?
  • What are the products offered by BlueVine Capital?
  • How to do banking with BlueVine Capital?
  • Is BlueVine Capital safe?
  • What to like about BlueVine Capital?
  • What not to like about BlueVine Capital?

WHAT IS BLUEVINE CAPITAL?

As we always say, when choosing a bank, it is always best to do a little research. Know more about the bank you are eyeing for you to be able to gauge if it is indeed the right one for you or not.

It is important, especially in an online business banking platform to choose a bank that you are confident about, and that has provided customer satisfaction over the years.

With that said, let’s take a look at what BlueVine Capital or simply BlueVine is about —

BlueVine Capital Incorporated was launched in 2013 and is based in Redwood City, California.

It is primarily an online small business checking account provider. However, it has eventually distinguished itself from its competitors by becoming a source of various types of business financing as well.

Over the years, and with constant innovation, BlueVine has become one of the most advanced online business platforms in the whole industry.

Although BlueVine also offers loans and lines of credit, it particularly became well-known for paying high interest on account balances, which makes it a checking account and high-yield savings account in one.

Currently, the company has over 200,000 customers and has already provided business financing of over $9 billion to small businesses.

BlueVine is available across all 50 states for small businesses that are engaged in almost all types of industries. Unfortunately, the online business checking platform does not deal with businesses under gambling, adult entertainment, weapons and firearms, and illegal substances categories.

In terms of reliability and dependability, BlueVine has surely earned that having an A+ rating from the Better Business Bureau.

Technically speaking, BlueVine is not a bank. However, its banking services are provided by The Bancorp Bank, and all accounts are insured by the Federal Deposit Insurance Corp. up to $250,000.

If you want to know more about BlueVine and learn more insights, here’s a review made by Credit Suite, which we thought is informative and helpful especially for those who barely know this online business checking account provider.

WHO IS BLUEVINE CAPITAL BEST FOR?

In the previous section of our BlueVine review, we provided you important details about the bank. This time, to help you assess if this is indeed the right bank for you, we are going to talk about who is BlueVine best for.

Generally, this online business banking platform is a great choice for most people who own or operate a small business, particularly online businesses. It is also ideal for business owners who do not rely so much on cash.

If you own a large business, BlueVine is also ideal for you especially since the bank offers great invoice factoring or a line of credit.

Furthermore, as mentioned, BlueVine offers an interest-bearing checking account, which makes it the best choice for those who want to enjoy the benefits of a checking account, at the same time, earn interest from it.

With everything that the platform has to offer, it definitely is one of the best online business checking platforms out there.

WHAT ARE THE PRODUCTS OFFERED BY BLUEVINE CAPITAL?

One of the most important things that you need to know as a customer is the products offered by the bank you are eyeing for. In this case, what products are available at BlueVine.

Similar to most online business banking platforms, BlueVine offers a single account only, and that is the BlueVine Business Checking Account. So, if you are looking for a savings account, money market, or certificate of deposit, you may have to look somewhere else.

Moving on, although it only offers a business checking account, what makes BlueVine stand out from its competitors is the fact that it offers small business financing, which includes Invoice Factoring and Line of Credit.

Now, let’s discuss more these products:

BlueVine Business Checking Account

BlueVine is known for its Business Checking Account. Although it is a relatively standard business checking account, what makes it appealing to small business owners are some of its stand-out features.

Some of the amazing features of BlueVine Business Checking Account include:

  • No Minimum Balance Requirements. Contrary to most online business checking accounts out there, BlueVine’s does not require account holders to keep a minimum balance in their checking account, which means, even if you withdraw all your money, you won’t get charged at all.
  • No Monthly Fees. Another feature that we like about BlueVine Business Checking Account is that it does not require you to pay any monthly maintenance or service fee, which allows you to save a good amount of money really.
  • No Overdraft Fee. Just as you thought you had all the amazing things a business checking account has to offer, BlueVine also does not charge a fee for overdrafts or insufficient funds. These two are actually very common fees among its competitors, but with BlueVine, you do not have to worry about these at all.
  • Pays Interest. Probably the best feature that the BlueVine Business Checking Account has to offer is that it pays interest. Customers earn a 1% annual percentage yield on balances up to $100,000. So, even if you have money in your account, your money is still working for you. That’s great, right?
  • Unlimited Transactions. While other online business checking platforms may have limited transactions, with BlueVine, there is none, which means you can transact as much as you want in a month, and you do not have to worry about anything.
  • Cash Deposits. Another thing to love about BlueVine’s business checking account is that through its partnership with third-party service Green Dot, account holders can use their business debit card to deposit up to $7,500 in cash per month at over 90,000 locations across the United States. By the way, BlueVine charges $4.95 for cash deposits.
  • Online Banking Tools. Last, but definitely not least on our list is that the business checking account includes all of the tools you need to streamline your finances. This includes mobile check deposits one-time and recurring payments. More so, you can sync transactions to accounting software such as Wave, FreshBooks, and QuickBooks as well. Another thing, you can also connect to third-party tools like PayPal, Expensify, and Stripe.

To apply for and open a BlueVine business checking account, all you need to do is to go online and visit their website.

Make sure that you are at least 18 years old, and a citizen or a resident cardholder of the United States with a valid address. It is also important to note that as soon as you deposit at least $1 in your business checking account, you’ll start earning 1% interest on your account balance.

To sign up for BlueVine online business banking, you will have to create an online account, and then, you will be asked to provide basic information as well as documentation about you and your business.

Generally, applications are reviewed within 24 hours. But, the process may take between three to five business days. Once approved, you will be asked to accept the account agreement. After which, you will be able to access and fund your account.

The BlueVine Business Checking Account comes with a business debit card, which would be available within five to seven business days.

To manage your BlueVine business checking account, you may head on to their website, or use the BlueVine mobile app, which is available for both Android and iOS users.

BlueVine Invoice Factoring

Probably one of the most challenging for any business whether it be small or large-scale is managing cash flow.

Normally, what happens is that when businesses send an invoice to a customer, most likely it will take weeks before they get paid, leaving businesses without money to pay their own bills or to use for their day-to-day operations.

It is during this scene that invoice factoring becomes a big help. Basically, invoice factoring is a term that refers to turning unpaid invoices into cash to help keep businesses running.

BlueVine offers invoice factoring, and it can provide up to 90% of the invoice balance outstanding. The remaining balance (minus the 0.25% service fee per week) is paid once the invoice amount is paid.

What’s nice about this product is that BlueVine makes application and approval so easy and convenient.

In fact, you can apply for BlueVine Invoice Factoring online for as little as 10 minutes only. Meanwhile, approval takes as little as 24 hours.

To qualify for the BlueVine Invoice Factoring, you will need to meet the following requirements:

  • Have been in business for at least 3 months
  • Have a minimum FICO score of 530
  • Have at least $10,000 monthly revenue
  • Operates as a Business-to-Business (B2B) provider

Line of Credit

Another product that BlueVine offers is a line of credit. A line of credit may be used by small businesses to cover operating expenses or in other cases, for business expansion.

The BlueVine Line of Credit allows small business owners to borrow up to $250,000 and can be paid back with fixed monthly or weekly payments for as long as 12 months.

Just like the home equity line of credit, the funds can be accessed from your BlueVine Line of Credit as needed. Just the same, as you repay the outstanding balance, the available credit increases as well.

The BlueVine Line of Credit comes with an interest rate of as low as 4.8% per month.

What is nice about having a line of credit is that you do not necessarily have to use the money all at the same time. If you don’t need funds, you can just leave it alone. Needless to say, BlueVine does not charge setup fees or ongoing maintenance fees to keep it open.

BlueVine gives approval for a line of credit applications for as little as five minutes! Definitely fast and easy, right?

To qualify for a BlueVine Business Line of Credit, you must meet the following requirements:

  • Have been in business for at least three years
  • Have a minimum FICO score of 650
  • Have a minimum of $40,000 in monthly revenue

HOW TO DO BANKING WITH BLUEVINE CAPITAL?

As mentioned earlier, whether you are applying for a business checking account, invoice factoring, or a line of credit, all you got to do is go online, visit the BlueVine website, and provide all the information asked, and in just a few minutes you are done.

In the case of a business checking account application, it takes just about 10 minutes to finish and the approval usually takes 24 hours. The same goes for invoice factoring.

Meanwhile, to apply for a line of credit, it as well takes just a few minutes, and approval comes in just about 5 minutes!

You see, BlueVine definitely provides customers an easy, fast, and very convenient account application and approval process.

IS BLUEVINE CAPITAL SAFE?

This BlueVine review will not be complete without us tackling the security and safety feature on this online business checking account provider.

We totally understand that most, if not all, customers worry about the safety of their money and the security of their personal and business information.

So, to answer if BlueVine is safe, here’s what we found —

To ensure the safety and security of your money and your personal information, BlueVine uses the latest internet security practices. BlueVine ensures everything is put in place to avoid possible fraud or identity theft.

More so, BlueVine also partnered with the Bancorp Bank, a member of FDIC, so you can get full FDIC insurance for your account in case of failure. With FDIC insurance, you can get up to $250,000 in coverage for your business’s accounts.

WHAT TO LIKE ABOUT BLUEVINE CAPITAL?

This BlueVine review, similar to other reviews we did will not be complete without a summary of the things we like about this online business checking account provider.

Some of the things that we particularly like about BlueVine are as follows:

  • Interest-Bearing Checking Account – It is uncommon among online business checking accounts providers to offer an interest-bearing account, which is why we particularly love the fact that BlueVine provides that. With its online business checking account, you can earn up to 1% APY on your checking balance up to a maximum of $100,000.
  • No Minimum Balance Requirement – With BlueVine, you can open an account without having to worry about having enough money because even if you don’t have any, you can definitely have one. Needless to say, regardless if you withdraw your money all at once, you don’t have to worry about charges or penalties.
  • No Monthly Fees – Another thing we like about BlueVine is that it does not charge monthly fees, which allows account holders to save a few bucks.
  • Paper Checks – Unlike other online business checking account providers, BlueVine provides paper checks.
  • Unlimited Transactions – It is common to most online business checking account providers to have limited transactions, and that you are charged once you go over the limit. But, that is not the case with BlueVine as they offer unlimited transactions.
  • Small Business Financing Options – Apart from the business checking account option, BlueVine also offers invoice factoring as well as a line of credit to help improve your cash flow or grow your business.
  • Cash Deposits – Although the bank charges a $4.95 fee for cash deposits, it does not matter because not all business checking accounts providers or digital banks offer such features.
  • Extensive ATM Network – The BlueVine Business Checking Account comes with a debit MasterCard, which allows you to withdraw cash anytime for free at tens of thousands of ATMs across the country.
  • Online Payments – With your BlueVine business checking account, you can easily send payments using your debit card, credit card, or directly from your BlueVine account using the mobile app.

WHAT NOT TO LIKE ABOUT BLUEVINE CAPITAL?

While there are a lot of things to like about BlueVine, it sure does have its share of downsides as well.

Some of the things we do not particularly like about BlueVine Capital include:

  • No Physical Branches – Although it’s not totally unique to BlueVine, unfortunately, like most digital banks and platforms of the same kind, the company does not have physical branches as well. Everything is done online.
  • Short Repayment Terms – BlueVine does not offer much flexibility when it comes to payment terms, which means you will have to deal with higher monthly payments when you borrow money from them.
  • No Savings Account Option – Similar to most online business checking accounts providers, BlueVine does not have savings, money market, as well as CD options.
  • Fee for Cash Deposits – As mentioned, there is a $4.95 fee per cash deposit through the Green Dot network. It can be costly on cash deposits amounting to a few hundred dollars or less.
  • Limited Customer Service – BlueVine’s customer service is only available on weekdays, which can be a disadvantage if your business is running seven days a week.

FINAL THOUGHTS ON BLUEVINE REVIEW

While there are so many online business checking account options out there, what makes BlueVine stand out is the fact that it offers an interest-bearing account, does not charge monthly fees, and does not have a minimum balance requirement.

So, with all the amazing features that BlueVine Capital has to offer, do you consider it as the best choice yet?

We do hope that through this BlueVine review, you are able to know more about this online business checking account provider, and be able to better gauge whether it fits your business’s requirements or not.

Categories
Investment Apps and Websites

All About Checking Accounts: A Customer’s Guide

Knowing and understanding all about checking accounts is key to be able to use them in their full potentials.

all about checking accounts

For those who are not quite familiar with this type of account, a checking account is a bank account that is normally used for day-to-day cash deposits, as well as withdrawals. It’s ideal for people who always need funds right away.

Funds are made accessible through the use of a debit card, by writing checks, or through online money transfers.

Although checking accounts and all the other bank accounts seem to be very helpful in a person’s day-to-day life, apparently, not all Americans are taking advantage of what banks can offer.

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In fact, in an article published by The Associated Press (AP), it says that in 2017, an estimated 6.5 percent of U.S. households did not have a primary bank account (whether it be in the form of a checking or savings account). This number is down from 7 percent the year before, and from a high of 8.2 percent back in 2011. If translated into actual numbers, AP says that it is roughly 14.1 million American adults without a bank account.

Having checking accounts and/or savings accounts is essential. Unless of course, you want to keep your money easily accessible by just putting it somewhere at your house or that you do not mind earning interest from what you have.

Checking accounts, in particular, are important in ensuring your money is safe, at the same time, easily accessible, which means you can withdraw or use your funds anytime you need it. But, what is a checking account really? If you are a first-timer in safekeeping your money in a bank, what makes a checking account a good choice?

Well, we’re going to answer these questions and more as we talk all about checking accounts.

For your reference, however, here are what we are going to specifically talk about:

  • Definition of a Checking Account
  • Understanding Checking Accounts
  • Differences Between Checking and Savings Accounts
  • What You Need To Know Before Opening a Checking Account
  • How to Open a Checking Account
  • Taking Full Advantage of Your Checking Account
  • What Is Overdraft Protection
  • Checking Account Service Charges
  • Checking Account Interest
  • Pros and Cons of Checking Accounts

DEFINITION OF A CHECKING ACCOUNT

Checking accounts are deposit accounts that allow deposits and withdrawals. Also known as demand accounts or transactional accounts, checking accounts are liquid accounts, which means they are easily accessible through electronic debits, automates teller machines, and checks.

Checking accounts, unlike other bank account types allows multiple withdrawals, as well as unlimited deposits.

Checking accounts, as mentioned, are also called transactional accounts, because people normally use it to pay bills, at the same time, make the most of their financial transactions.

Normally, a checking account comes with the following account features:

  • A free order of personal checks
  • A debit card for ATM withdrawals as well as merchant purchases
  • Allows sending funds through ACH transfers and wires
  • Allows direct deposits from your employer or benefit plan

Furthermore, a checking account may also help simplify your day-to-day finances by simply automating payments and deposits.

For instance, employers can arrange a direct deposit of your paycheck into your account. That way, you receive the funds as soon as possible.

Moreover, there are banks that offer small cash incentives or perks like gift cards to those who open checking accounts, and at the same time, set up direct deposit.

If you are going to look at it, checking accounts lets you do a lot of financial-related stuff. Needless to say, it makes day-to-day transactions so much easier.

UNDERSTANDING CHECKING ACCOUNTS

Now, you know already the definition of checking account. But there is so much more you need to know and understand about this bank account type.

For one, you need to know that checking accounts can include either a commercial or a business account, a student account, and/or a joint account. It may also include many other types of accounts that offer the same features.

To give you more idea —

A commercial checking account, for instance, is used by businesses. It is also considered as a property of the business. Normally, business officers as well as managers are given signing authority on the account, which means they are authorized by the business’ governing documents.

Student checking accounts are also offered by some banks for free and will remain as it is until the account holder graduates from school.

Meanwhile, a joint checking account refers to an account wherein there two or more people owning the account. Usually, this type of account is used by married people. Both are given authority to write checks on the account.

Now, in terms of interest rates, since checking accounts are considered as liquid accounts, banks do not offer high-interest rates, or in most cases, they do not offer an interest rate at all.

On one hand, if held at a chartered banking institution, funds are guaranteed by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per individual depositor, per insured bank.

On the other hand, for those checking accounts with large balances, banks would normally provide a service to “sweep” the checking account. This action basically means withdrawing most of the excess cash in the account and then investing it in overnight interest-bearing funds. The funds are returned or deposited back into the checking account at the start of the next business day.

DIFFERENCES BETWEEN CHECKING AND SAVINGS ACCOUNTS

Since we are talking all about checking accounts, it is only right that we also discuss with you the differences between a checking and a savings account.

A lot of people are usually confused between the two. So, to give you a little clarity on this, here are some of the things that make one different from the other:

CHECKING ACCOUNT SAVINGS ACCOUNT
Allows multiple withdrawals and deposits Does not allow direct payments from the account
Ideal for making direct payments Requires large balances
Provides multiple payment options, including checks, ACH, debit cards, etc. A limited number of withdrawals in a month
Pays little or no interest at all Typically pays a small interest rate

As you can see, both accounts do have a lot of differences.

One thing that makes checking accounts really stand out is the fact that most checking accounts allow a number of transactions that can be completed in a month. Savings accounts normally have limits when it comes to withdrawals. Needless to say, transferring funds are also limited with savings accounts, which is not the case on checking accounts.

Because of a federal law called Regulation D, a savings account does not offer a direct payment feature. The same law is also responsible for the limits of withdrawals you can make with your savings account.

So, to put it simply, if you are someone who needs to withdrawal a couple of times a month, who needs a channel to make direct payments, or simply wants your money to be liquid, a checking account is ideal for you.

If you are interested to know more about the difference between checking and savings accounts, check the video below by MoneyCoach:

WHAT YOU NEED TO KNOW BEFORE OPENING A CHECKING ACCOUNT

The reason why we put up this blog on all about checking accounts is for you to fully understand and decipher if you need to open a checking account instead of any other bank accounts out there.

So, to help you even more in making a decision, here are some of the things that you should know before opening a checking account:

  • Minimum Balance Requirements – Banks do normally require a minimum balance in your account. Make sure to know how much so you get to gauge if you can manage to maintain the required minimum. Falling below a minimum balance would end up to you owing the bank money every month.
  • Check Limitations – There are accounts that limit the number of checks or debit transactions on a daily basis. So, make sure to look into that as well.
  • Bill Pay Transactions – Another thing that often limited is the bill payments you make daily. Look into this as well and see if they would work for your spending habits.
  • Monthly Service Fee and Overdraft Fees – Some banks charge certain fees like monthly service and overdraft fees. Check this out as well, and see for yourself if the cost is worth it. Keep in kind also that there are banks that waive the fees as long as you meet certain requirements.
  • Additional Features – Look into what other features do banks offer as well. Check if they offer mobile deposits and more that would make banking even more convenient for you.

As we would often say, before you sign up for anything, make sure to make time to do your own research. Compare banks and bank features and only settle for the best option possible. At the end of the day, you do not want to regret choosing a bank just because it’s the first one to accept your bank account application, right?

Make sure to choose a bank that offers the best deals possible.

HOW TO OPEN A CHECKING ACCOUNT

You already know all about checking accounts, or so you thought. We’re not even done yet!

This time around, we’re going to share with you the process of opening a checking account.

So, the money you found a bank that offers a checking account that meets your needs and preferences, the next step would be to open the account!

You do so by going to a branch, or if they provide a signing up online option, then, better.

Whether you go to the bank branch or you opt to open an account online through the bank’s website, make sure to keep your Social Security number, as well as a valid form of identification handy. Banks normally ask these documents or IDs to prove your identity.

Most banks, if not all, do not allow minors to open a checking account — unless you have a co-signer on the account, which normally is your parents or guardians.

Also, expect that the bank will run a quick background credit check when you open a checking account. So, if you have been reported to ChexSystems or other similar companies, you will, most likely be not granted an account. You will need to settle things up first. Banks will not risk losing money on you.

That’s all you have to do — generally speaking. But, it is always best to go ask your preferred bank on their process of checking account application as they usually vary from one another.

TAKING FULL ADVANTAGE OF YOUR CHECKING ACCOUNT

If you think we’re over and done, well, not yet!

There are a few more things you need to know about checking accounts.

Now, when you first open a checking account, you will be required to maintain a running balance to be able to track the amount of money you have in your account. At the same time, to avoid overdrawing.

It is important to keep in mind that the balance you get at the ATM or the one you see online may not always be recent as not all charges may have cleared your account yet, also, the bank may hold deposits for particular periods as well.

In addition, it is also important to balance your account monthly. This will help you catch any errors that either you or the bank have made.

You may also take advantage of all online as well as mobile banking features for convenience. Avoid fees by maintaining the minimum balances required on a monthly basis.

Lastly, set up a direct deposit and other automatic transactions to avoid going to the branch often. This makes banking more convenient as well.

WHAT IS OVERDRAFT PROTECTION

Overdraft protection refers to a line of credit offered by the bank so you can write a check or make a purchase beyond what you have in your checking without encountering any problem. Basically, the bank covers the difference.

While this may sound good, what many banks out there do not tell customers is that they actually will charge you for every transaction that causes your account to use the overdraft feature. That is why it is important that you ask everything about this feature with the bank first.

Furthermore, according to the account agreement, a lot of banks out there have provisions stating that in case of an overdraft, transactions will be grouped in the order of their size, not minding the order in which they occurred, which basically means transactions are grouped and the bank charges a fee for each of transaction made on the day you overdrew your account.

More so, if your account stays overdrawn, your bank may also charge daily interest on the loan.

You see, while overdraft protection is of help, it may also bring problems if you do not handle it well. More so, if you are not aware of it.

So, as we have said, make sure to ask, inquire from the bank regarding their overdraft feature.

CHECKING ACCOUNT SERVICE CHARGES

Technically, banks generate income from interest they charge customers who borrow money. However, banks also charge customers for the service they render.

Service charges exist to generate income from accounts that are not generating enough interest revenue to cover the expenses of the bank.

Generally, banks charge fees when customers fail to maintain the required minimum balance, write too many checks, or have overdraw an account.

However, if you are a loyal customer or a customer of a large bank, you can avoid these fees by simply asking politely. Customer service representatives’ at large banks are usually authorized to overturn charges if you explain the situation and ask them to cancel the charge.

Just take note though that these “courtesy cancellations” are given on a one-time deal only.

Apart from service charges, as earlier discussed, banks also charge overdraft fees. The amount varies from one bank to another so you better check on that.

But as said, these charges can be avoided if you follow the bank’s requirements and if you ask it to be waived as a way of courtesy.

CHECKING ACCOUNT INTEREST

Generally, banks do either offer a low-interest rate or no interest at all for checking accounts.

However, if you opt for an interest-bearing checking account, you better be ready to pay a lot of fees especially if you are not able to maintain a minimum balance.

The minimum amount is usually the combined total of all your accounts at the bank, which may include checking, savings, as well as certificates of deposit accounts.

Failure to maintain the required minimum balance means you are going to be automatically be charged a service fee, which usually comes out to around $15 on average.

For accounts like this, at this point in time, the average yield is only around 0.06% — this one’s based on a Bankrate study.

Furthermore, please take note that there are only a handful of banks that serve up free-interest bearing checking accounts without strings attached. But the thing is if you and the bank have a longstanding relationship, then, you may consider asking the, to waive the fee on your interest-bearing checking account.

PROS AND CONS OF CHECKING ACCOUNTS

Since we promised to share with you all about checking accounts, we are now going to give you the pros and cons of this account type.

Here we go —

PROS

  • Does not have limits on how often you can withdraw money in a month
  • Usually comes with personal checks and a debit or ATM card
  • Tends to have lower interest rates as compared to savings accounts
  • Funds are easily accessible through checks, ATM, etc.
  • Allows fund transfers through ACH and wires
  • Allows direct deposits from employers or from a benefit plan

CONS

  • Some banks charge monthly maintenance fees
  • Charges overdraft fees
  • May have low or no interest rates at all

FINAL THOUGHTS ON ALL ABOUT CHECKING ACCOUNTS

As we have said earlier, before you apply for a checking account, it is important to first and foremost know and understand fully first the bank account type you are eyeing for – in this case, about checking accounts.

This will definitely help you see if the account type is indeed ideal based on your needs and preferences.

Hopefully, we get to give you information — all about checking accounts — and maybe even more, and that this helps you decide whether indeed a checking account is your best choice.