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Mobile Banking

Investors Bank eAccess Review: What Makes It One Of The Best Online Banks

There are so many amazing online banks out there. In fact, some of them you may not have heard yet. So, in this Investors Bank eAccess review, we are going to provide you key information on what makes this digital banking platform one of the (unnoticed) best choices in the industry.

Investors Bank eAccess Review: What Makes It One Of The Best Online Banks

The presence of technology has definitely changed the way banking is. Back in the day, people have to visit physical branches to make banking transactions like opening an account, depositing and withdrawing money, and more.

Today, thanks to digital technology, banking has never been so much easier and convenient. You can do whatever you want to do right at your fingertips.

While initially, digital banking attracted more of the younger generations (because obviously, they are the ones who are more tech-savvy), when the pandemic hit the world in 2020, people across all ages have relied so much on online banking.

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In fact, an article published by Forbes Advisor says that digital banking has become the new norm. Big banks and experts in the banking industry project the biggest acceleration of digital banking in history.

In the same article, Wells Fargo Securities analyst Mike Mayo told American Banker says that what took place during the peak of the pandemic in the United States may have taken place over two to 10 years if Covid-19 did not happen.

Meanwhile, in a PwC survey, it was found that because of the pandemic, about a quarter of consumers in the country prefer online banking to visit a physical location of their banks.

So, you see, the future of digital banking or online banking is absolutely bright. No doubt why banking institutions are working double-time to ensure they get to offer the best products and services possible to gain as many customers as possible.

Sure, there are already a lot of online banking platforms out there, but, as a customer, the route is to always choose the best option possible, which also has a lot.

One of the best options out there is the Investors Bank eAccess. It is the online division of one of the largest banks in New Jersey, Investor Bank.

As stated earlier, in this Investors Bank eAccess review, we are going to share with you some of the most important facts about this online banking platform – particularly, sharing with you why it is one of the best online banks out there.

In the next few sections, we are going to specifically tackle the following:

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

WHAT IS INVESTORS BANK eACCESS?

Investors eAccess was established in early 2019. It is the online division of Investors Bank, which is one of the largest banking companies in New Jersey with $25 billion in assets.

Needless to say, the bank appeared on the “Best Bank in America” list of Forbes Magazine in 2013. More so, Investors Bank was also awarded four stars by Bankrate on their “Safe & Sound” rating system.

Founded in 1920s, Investors Bank was originally known as the Washington Rock Building and Loan Association of Millburn.

Investors Bank is based in Short Hills, New Jersey, and has branches throughout the state as well as in New York.

If you want to know more about the Investors Bank, check the video below:

Going back to Investors eAccess, it offers a selection of online banking products and services including checking accounts, money market accounts, and certificate of deposit accounts.

Furthermore, the online banking platform also provides access to several features such as electronic statements, online banking, mobile banking, and a lot more.

Although the bank’s parent company is physically present in New Jersey and New York only, the Investors eAccess serves customers nationwide allowing account holders to bank online and through their mobile devices.

Investors Bank eAccess is a member of the Federal Deposit Insurance Corporation (FDIC), which is “an independent agency of the United States government that protects the funds depositors place in banks and savings associations.”

Since Investors eAccess is insured by the FDIC, this means that all deposits can receive up to $250,000 per depositor, per account category in the event of a bank failure.

WHO IS INVESTORS BANK eACCESS BEST FOR?

Before we move on with our Investors Bank eAccess review, in this section, we are going to talk about who will benefit the most from this online banking platform.

As a potential customer, it is important to see to it that the bank or online bank for that matter that you are eyeing meets your banking needs and preferences.

Generally speaking, Investors eAccess is ideal for people who prefer online banking to traditional banking.

What does this mean?

Obviously, you must be the type of depositor or account holder who likes the accessibility and convenience that online banking gives. As you know, online banking provides access to your account anytime and anywhere as long as you have an internet connection and a mobile device where you can open and manage your account.

Furthermore, Investors eAccess should appeal to customers who want to take advantage of a higher annual percentage yield as compared to the average APY in the market.

Since Investors eAccess requires low minimum deposit requirements, this should also be great for those who cannot afford higher minimum deposit requirements.

Investors eAccess offers a no-penalty certificate of deposit (CD) account, which is ideal for cautious savers who value liquidity over the usual CDs offered by other banks that normally requires you to park your money for a while so it gets to earn the best rate possible.

Ultimately, Investors eAccess is also a good choice for those who also want to enjoy ATM rebates of up to $15.

If you think you are this type of customer, then, Investors eAccess is perfect for you.

WHAT DOES INVESTORS BANK eACCESS OFFER?

This review on Investors Bank eAccess provides you the most important details you need to know about its product offerings for you to better gauge if this online bank is right for you.

Investors eAccess offers three different accounts. These are as follows:

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

Now, let’s take a look at what each of these has to offer —

Checking Account

The first product that Investors Bank eAccess offers is a checking account. Similar to most checking accounts out there, this does not earn a yield. However, it does offer a range of features that customers can enjoy. This includes credit monitoring, bill pay, as well as the ability to link it to Apple Pay, Google Pay, and Samsung Pay. Additionally, Investors eAccess checking account holders are eligible for ATM rebates for up to $15 every month.

To open an Investors eAccess checking account, a minimum of $50 initial deposit is required.

The checking account comes with a monthly service fee of $10. However, this can be avoided if you are able to maintain a $1,000 average monthly balance, as well as meet any of the following requirements:

  • A direct deposit of $500 to your checking account during the statement cycle
  • Make combined mobile check deposits of at least $500 during your monthly account cycle
  • Make 10 point-of-sale transactions within your statement cycle

Certificate of Deposit (CD) Account

Investors Bank eAccess currently offers two short-term certificates of deposit (CD) account options. First is the six-month, no-penalty CD account, and second is the traditional 10-month CD account.

The no-penalty CD account allows account holders to withdraw their savings without having to pay a penalty or forfeiting any interest in the process. It’s actually an ideal choice for cautious savers or those who are not risk-takers financially. It is a good option for those who want to earn a decent yield but want to keep their money liquid.

With the no-penalty account, customers can make penalty-free withdrawals six days after opening the CD account. Withdrawals made before six days of opening the account entitles the account holder to pay for the seven days’ simple interest.

What’s nice about the two-CD account options is that they both offer a yield that is above the national average but below what other online banks that offers top-tier rates.

To open an Investors eAccess CD account, the bank requires a minimum initial deposit of $500.

Unfortunately, both accounts do not offer debit or ATM card access, as well as check-writing abilities. To withdraw money, it can only be done through ACH (pull) transfer.

Meanwhile, both types of CD accounts can be fully accessed through the bank’s website and mobile app.

Money Market Account (MMA)

If you are looking for the best APY for a money market account, Investors Bank eAccess is definitely one of the best ways to go.

With the Investors eAccess money market account, you can earn up to 0.75% APY. The APY is variable, though, which means it can change at any time.

And the good things about this account do not end there. With the eAccess MMA, you can open an account as low as $0!

If it’s not the best deal, we do not know what it is.

Anyway, it is important to know, however, that the account’s best yields are usually capped, and only apply to accounts with balances of up to $2 million. Balances that go over that amount won’t earn any interest.

Withdrawing money from your money market account can only be done through ACH electronic debits.

Additionally, take note that MMA account holders can only withdraw up to $250,000 per 30-day rolling month. This can be quite a challenge for account holders who want to move large sums of money.

All transactions for your Investors eAccess money market account can only be done online (and not in Investors Bank branches), including opening an account.

HOW DOES INVESTORS BANK eACCESS WORK?

As mentioned earlier, eAccess is Investors Bank’s digital division, which means, customers can access the online bank’s products and services entirely online – either via the website or the mobile app.

Unlike its parent company, the Investors eAccess only provides three products, which include checking accounts, money market accounts, and certificate of deposit accounts.

Apart from its product offerings, account holders may also take advantage of other digital banking features such as access to electronic statements, online banking, mobile banking, as well as mobile check deposit (as stated on the website’s FAQs, ” to protect against fraud you must endorse the check with the wording, “For Mobile Deposits Only” under your signature and include your account number“).

In addition, by opening an eAccess account, all existing accounts with Investors Bank will be automatically linked to it so you get to manage your accounts more efficiently.

ARE THERE FEES INVOLVED?

As part of our Investors Bank eAccess review, we are also going to look into the fees involved in the different accounts offered by the bank.

For both the money market and CD products, the bank does not charge monthly maintenance fees. Additionally, Investors eAccess money market account has no hidden fees.

Meanwhile, the six-month certificate of deposit (CD) account does not have penalties. Account holders can withdraw money from the CD, including the principal amount without incurring an early withdrawal fee and any other fees.

However, for the 10-month CD account, a penalty will be charged if the money is withdrawn prior to maturity. Account holders who will withdraw their money before the maturity date will be penalized based on 90-days simple interest against the total amount withdrawn.

As for the Investors eAccess checking account, a $10 monthly service fee is charged unless the account holder meets certain requirements to avoid the said fee.

HOW TO BANK WITH INVESTORS BANK eACCESS?

Accessing Investors Bank eAccess is entirely online, including opening an account.

As mentioned, the online bank offers checking, money market, and certificate of deposit accounts.

Whatever account type you choose, the eligibility and requirements are the same — except for the minimum initial deposit requirement.

To be able to open an eAccess account, you must be a citizen or a permanent resident of the United States of America and must be at least 18 years old.

You may open your account using either your computer, smartphone, or tablet.

To complete the account application process, the bank will ask you to provide personal information including:

  • Name
  • Phone Number
  • A physical U.S. address (PO Boxes are not eligible)
  • A valid email address
  • Social Security Number
  • Government Issued ID (Driver’s License, US Passport, Permanent Resident ID, or State Issued
  • Non-Drivers ID)

As soon as your application is approved, your account is immediately created. Initially, the account will be opened in eAccess system with a zero balance until the user completes the funding process.

For eAccess Money Market and checking accounts, account holders are given 35 days to complete the funding process. Meanwhile, the bank gives 15 days for CD accounts.

Please take note that Investors eAccess allows you to open more than one account. It does not have any limitations with regards to the number of accounts a user wishes to have.

Deposits and Withdrawals

As mentioned, eAccess allows mobile check deposits. ACH transfers are also available, particularly for withdrawals of funds for both the money market and certificate of deposit accounts.

Meanwhile, checking account holders may access cash through a debit card. Checking account holders enjoy unlimited free non-investor ATM transactions. Furthermore, the bank reimburses up to $15 per month for ATM fees charged by other ATM networks.

Customer Service

In case you need assistance with your account, you may reach Investors Bank eAccess Client Care Center at 855-422-6548.

A customer service representative is available from 8:00 a.m. to 10:00 p.m. ET (Monday through Friday), and 8:00 a.m. to 8:00 p.m. ET (Saturday through Sunday).

Furthermore, you may also contact them through the Contact page on the Investors eAccess website.

IS INVESTORS BANK eACCESS SAFE?

According to Investors eAccess, customers’ privacy and security are extremely important to the bank.

So, to protect your login credentials, the online bank uses 256-bit level encryption.

Furthermore, customers may opt to use the Instant Account Verification procedure for added security.

Meanwhile, as earlier mentioned, the bank is a member of the FDIC, which means all deposits are insured up to $250,000 per depositor, per account category in case the bank fails.

So, with all that’s been said, indeed, Investors Bank eAccess is safe.

WHAT TO LIKE ABOUT INVESTORS BANK eACCESS?

There are some features that Investors eAccess provides that really stand, and this includes the following:

  • Competitive APY for MMAs – Investors eAccess offers competitive rates for its money market accounts. Customers could earn up to 0.75%.
  • Low Minimum Initial Deposit Requirements – Whether you open a checking, money market, or certificate of deposit account, the bank requires a fairly low minimum initial deposit requirement as compared to what other banks of the same type require.
  • Offers up to $15 ATM Rebates for Checking Accounts – Investors eAccess reimburses ATM fees of up to $15 per month.
  • No-Penalty CD Account Option – Investors eAccess offers a no-penalty CD account option. For this CD account type, the bank does not charge early withdrawal fees should the account holder opt to withdraw the money six days after opening the account

WHAT NOT TO LIKE ABOUT INVESTORS BANK eACCESS?

To complete this Investors Bank eAccess review, we are also giving some of the downsides of the bank, which include the following:

  • No Branch or In-Network ATM Access – The eAccess is only accessible online. So, if you want to open an account with physical branch access, this is not the bank for you.
  • CD Rates are Not as Competitive – Unlike its money market account, eAccess CDs rates are not as competitive compared to what other banks in the market offer.

FINAL THOUGHTS ON INVESTORS BANK eACCESS REVIEW

Investors Bank eAccess is the online division of one of the largest banks in New Jersey, Investors Bank. It offers checking, money market, and certificate of deposit accounts with corresponding features that attract a particular group of customers.

But among all its product offerings, the one that really stands out because of its high rates is the bank’s money market account, which is why we highly recommend the bank for those who want to earn as much as 0.75% for MMA from an online bank.

So, having all this information, do you think Investors eAccess is the one you are looking for?

With this Investors Bank eAccess review we hope to have provided you everything you need to know to see if it meets your needs and preferences in an online bank.

Categories
Mobile Banking

Bank5 Connect Review: Key Points You Should Know Before Opening An Account

This Bank5 Connect review will focus on providing customers important information they need to know — from this online bank’s history to its product offerings, as well as the things to like and not to like about it.

Bank5 Connect Review: Key Points You Should Know Before Opening An Account

Back in the early days of digital banking, there were only a few people who got into it. Most depositors prefer traditional or conventional banking primarily because it’s tried and tested over time.

Makes sense, right? People were hesitant to banking with online banks because it is something new. Needless to say, there are safety and security issues that may compromise the data they provide in the online portals, and their money, of course.

However, fast-forward to today, things have definitely changed. The industry that was once dominated by younger clients (because they are more fearless and more technology-inclined), is now being used by the majority of customers regardless of age.

According to a study conducted by Finder, they found that there is “an estimated 76.9 million Americans (30.3% of the US population) say they have or are planning to, open a digital-only — or neobank — account,” and that in fact, “54.4 million digitally savvy Americans (about 21.4% of the total US population) already bank with digital-only banks.”

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These numbers only show that, indeed, times have changed. Now, people prefer the more convenient, and easier way of banking.

Regardless of age, people have managed to see the advantages of banking through a mobile bank or an online bank. This was especially true when we hit the rock bottom in 2020. It was when the pandemic transpired that a lot of people relied so much on online banking especially when they had to purchase needs and wants for their day-to-day survival.

It is, perhaps, safe to say that now more than ever, online banks and online banking in a general matter.

Anyway, sure, online banking has become a necessity for a lot of people these days. With the increasing demand, it is not surprising that online banks are competing with one another, hoping to get as many clients as possible.

Among the many online banks, rather, online-only banks out there, Bank5 Connect is one of them.

If you haven’t heard about it, or if you are eyeing this bank to do banking with, then this Bank5 Connect review is for you.

As mentioned earlier, in this review on Bank5 Connect, we are going to provide you essential information that every potential customer must know.

In particular, we are going to talk about the following:

  • What is Bank5 Connect?
  • Who is Bank5 Connect best for?
  • What are the products offered by Bank5 Connect?
  • How to do banking with Bank5 Connect?
  • Is Bank5 Connect safe?
  • What to like about Bank5 Connect?
  • What not to like about Bank5 Connect?

WHAT IS BANK5 CONNECT?

Before we talk about the more serious stuff about Bank5 Connect, it’s best to get to know this online-only bank first.

When choosing a bank, it is important to do a little background check. It will not only give you a better idea of how credible and reliable the bank is, but it also enables you to gauge if it has the qualities you are looking for in a bank, in this case, an online-only bank.

Having said that, here’s a backgrounder of what Bank5 Connect is all about.

Bank5 Connect, as already mentioned, is an online-only bank that offers a various selection of products, including checking accounts, savings accounts, as well as certificates of deposit.

Established in 2013, the online-only bank is actually an extension of BankFive, which is a Massachusetts-based community bank that’s been operating since 1855.

While BankFive is focused on providing banking needs on a local community level, Bank5 Connect is a national bank that is available for customers from all states except Massachusetts or Rhode Island as these territories are covered by BankFive.

Like most online banks, Bank5 Connect does not charge fees. But more importantly, it does offer competitive rates than many brick-and-mortar banking institutions.

Bank5 Connect provides customers a mobile-friendly platform that is available for both Android and iOS users. It also comes with free access to a huge ATM network across the United States.

Before moving on, if you are quite unsure about the difference between traditional banking and online banking, here’s an insightful video by Economic Lifestyle Investing we thought you should check out:

WHO IS BANK5 CONNECT BEST FOR?

Compatibility is important to have long-lasting relationships, right? The same goes for when choosing a bank.

You have to make sure that the bank you are choosing provides your banking needs. Otherwise, you will end up losing your account and finding another, which is a waste of time and effort.

Now, to help you identify if Bank5 Connect is for you, in this section, we are going to talk about who it is best for.

Based on what the bank has to offer, we, therefore, conclude that Bank5 Connect is most appealing to customers who:

  • Are looking for competitive rates on primary banking services such as savings and checking accounts
  • Have very simple banking needs
  • Prefer online banking as compared to traditional or conventional
  • Do not mind using another bank for other banking needs like mortgages, loans, etc.
  • Do not mind not having a physical branch
  • Prefer banks that do not charge monthly and overdraft fees
  • Want low minimum balance requirements

If you identify yourself in any or most or all of the above-mentioned, then Bank5 Connect is definitely right for you, and you should proceed with the next sections of this review (because you will certainly benefit from it).

WHAT ARE THE PRODUCTS OFFERED BY BANK5 CONNECT?

In the previous sections, we provided you with a short backgrounder on Bank5 Connect, at the same time, provided you with items of who this online-only bank fits the most.

Meanwhile, in this section of our Bank5 Connect review, we are going to talk about one, if not, the most important thing – the product and services offered by the bank.

As mentioned earlier, Bank5 Connect does offer the following:

  • Checking Account
  • Savings Account
  • Certificate of Deposit

Now, here’s thorough information about these products –

Checking Account

Bank5 Connect offers a high-interest checking account. It offers a 0.20% annual percentage yield (APY) on balances of $100 and above.

Like many online banks out there, Bank5 Connect does not charge monthly maintenance fees.

Furthermore, electronic statements are free. However, if you wish to have mailed statements, you may have to pay a $1 fee per statement per month.

Since it is a checking account, it is only right that basic checks are provided. While the first order of basic checks is free, the succeeding orders will cost a fee.

When it comes to transferring funds to and from your Bank5 Connect checking account to your account at other banks or financial institutions, there is also zero fees for that.

Additionally, overdraft protection is also available for free but only if you link your checking account to a Bank5 Connect savings account. Please take note, though, that there are daily purchase limits of $1,000 only.

Bank5 Connect checking account also comes with a free ATM card, which you can use in thousands of in-network ATMs across the country free of surcharges. ATM fees billed by other banks are reimbursed up to $15 per month. Cashback rewards are also available for using the debit card linked to your account.

To open a Bank5 Connect checking account, a $10 minimum initial deposit is required. Definitely, a very much lower requirement as compared to many online-banks out there.

Savings Account

Another product that Bank5 Connect offers is its high-yield savings account. The account offers 0.40% APY on balances of $100 and above, the same as the bank’s checking account.

Similar to Bank5 Connect checking account, the savings account option does not charge monthly maintenance fees.

The Bank5 Connect savings account can be connected to the bank’s checking account to avoid overdraft fees.

To open a Bank5 Connect savings account, at least a $10 initial deposit is required as well.

Certificate of Deposit

Lastly, but not least, Bank5 Connect also offers Certificate of Deposit accounts. The bank’s CD account terms range from six up to 26 months, and the annual percentage yield (APY) ranges from 0.35% to 0.55%, depending on the CD term.

While the bank does not charge monthly maintenance fees, it does implement penalties for early withdrawals, which is a very common thing among banks.

To give you an idea about the penalty, for a six-month term CD, early withdrawals will cost three months’ worth of interest, while longer-term CDs will be charged six months’ worth of interest. So, unless you are not going to use the money anytime soon, then CDs may not work for you.

Bank5 Connect also offers a 24-Month Investment CD, which is an add-on that allows customers to deposit additional funds anytime during the two-year term period. This comes with a 0.50% APY.

To open a CD account at Bank5 Connect, a minimum deposit of $500 is required. The same requirement minimum deposit requirement is applied for the 24-Month Investment CD.

HOW TO DO BANKING WITH BANK5 CONNECT?

Now that you already know the different products and services offered by Bank5 Connect, by now, you probably have decided already if this online-only bank is perfect for you or not.

If your answer is a yes, then, it’s time to talk about how to actually bank with Bank5 Connect.

Similar to most online banks, setting up a Bank5 Connect account (whether it be a checking, savings, or CD account) is very straightforward.

The application process pretty much resembles how you do it in any other banking institution. What makes the big difference is that you have to do everything online.

To begin with the account application process, you will be asked to provide personal information like your name, address, email, mobile number, as well as your Social Security number.

Make sure to also prepare a valid government-issued identification like your driver’s license or passport for identity verification purposes. Make sure also to prepare the account with funds wherein the money you will use to fund your new Bank5 Connect account will be coming from.

When it comes to customer service, Bank5 Connect has online chat support, which is available during weekdays only. In case you need to talk to customer support, though, you may opt to get in touch with a U.S.-based representative via phone during Eastern time business hours, some weekday evening hours, as well as on weekends.

The bank’s highly-rated mobile app allows you to do various banking transactions like depositing checks, paying bills, transferring funds, as well as finding an ATM near you. Similarly, the Bank5 Connect website is also very user-friendly and has essential information customers need such as accounts, rates, and fees.

IS BANK5 CONNECT SAFE?

We mentioned earlier that back in the days, one of the reasons why people are not so into online banks or online banking is because of safety and security threats.

So, with that said, it is just right that in this Bank5 Connect review, we tackle how safe it is to bank with them.

Similar to almost all online banks, Bank5 Connect made sure to put all necessary safety and security features to avoid online fraud and identity theft cases. With all measures in place, customers are assured that all the personal information they provide as well as their hard-earned money are safe and secured.

Additionally, Bank5 Connect is insured by the Federal Deposit Insurance Corporation (FDIC), which means all balances are covered for up to $250,000 per depositor, per ownership category. Also, Bank5 Connect insures amount more than that by offering Massachusetts Depositors Insurance Fund (DIF) protection on its accounts.

So, to answer the question if Bank5 Connect is safe, we got to say that yes, it is.

WHAT TO LIKE ABOUT BANK5 CONNECT?

This Bank5 Connect review will not be complete if we are not providing you a list summary of the things that struck us the most, as well as things for improvement.

So, to start, in this section, we are providing you with a list of things we like about this online bank:

  • Competitive Rates for Savings and CD Accounts – Bank5 Connect offers competitive rates among its savings and CD rates. While it’s not the best in the industry, it surely is above average.
  • No Monthly Maintenance Fees – Customers need not worry about monthly fees, because Bank5 Connect does not charge any allowing you to save a couple of bucks.
  • No Internal and External Transfer Fees – With your Bank5 Connect account, you can make free internal and external transfers free.
  • Free Overdraft Protection – The bank offers free overdraft protection provided your savings account is linked to a Bank5 Connect checking account.
  • Low Minimum Initial Deposit Requirement – For both checking and savings accounts, Bank5 Connect only requires at least a $10 minimum initial deposit. While there are online banks that do not require any initial deposit at all, what Bank5 Connect requires is definitely way lower as compared to other online banks out there. For CD accounts, the bank only requires at least a $500 deposit.
  • Low Minimum Balance Requirement – To earn high interest for both checking and savings accounts, customers need to at least have a $100 balance. Definitely, way lower as compared to what other banks of the same type required.
  • ATM Access – Bank5 Connect comes with free ATM access to thousands of in-network ATMs across the country.
  • Basic Check Access – Unlike other online banks that offer checking accounts, Bank5 Connect provides basic checks. Initially, it is given for free. Succeeding check requests will be charged for a minimal fee.
  • Reimbursement of Out-of-Network ATM Fees – The bank reimburses up to $15 per month for out-of-network ATM fees.

WHAT NOT TO LIKE ABOUT BANK5 CONNECT?

To complete our review, while we discussed the benefits of banking with Bank5 Connect in the previous section, this time, we are going to provide you with a list of things that we do not like and that the bank could possibly improve on in the future.

This includes the following items:

  • No Physical Branches – Bank5 Connect is an online-only bank, which is why it does not have physical branches available. However, its mother company, BankFive has brick-and-mortar locations in both Massachusetts and Rhode Island.
  • Limited Account Options – Unfortunately, the products and services offered by Bank5 Connect are only limited to checking, savings, and CD accounts. If you are looking for or you think you might need other financial products and services, then you might need to look for another bank instead.
  • Monthly Fee for Paper Statements – While electronic statements are free, should you wish to have a mailed paper statement, expect to be charged a $1 fee per statement.
  • Not Available for Massachusetts or Rhode Island Residents – As mentioned, Bank5 Connect is not available for Massachusetts or Rhode Island residents because it is where branches of BankFive, the local community bank are located.

FINAL THOUGHTS ON BANK5 CONNECT REVIEW

Bank5 Connect is an online-only bank that offers competitive rates for its checking, savings, and CD accounts, which also is the reason why it is appealing to a lot of customers.

What’s even nicer about it is that the bank requires a very minimal balance requirement to earn interest. Needless to say, for just $10, one can already open a checking or savings account, while it requires at least a $500 initial deposit for a CD account.

Overall, Bank5 Connect is great for people who want to take advantage of what an online-only bank has to offer in terms of functionality and convenience, at the same time, enjoy high annual rates.

With all the information we have shared, do you think Bank5 Connect hits your banking requirements?

We do hope do.

To wrap up, may all the information we shared in this Bank5 Connect review serve as your guide in choosing the perfect online bank for you.

Categories
Mobile Banking

MemoryBank Review: How Does It Provide Great Digital Banking Experience

If you are looking forward to having a great banking experience while in the comfort of your home or anywhere in the world (for as long as there is an internet connection, of course), then this MemoryBank review may just help you with that.

MemoryBank Review: How Does It Provide Great Digital Banking Experience

MemoryBank is an all-digital banking platform that aims just exactly that — making sure you can conveniently access your bank account and transact online — anytime, anywhere.

Just to give you a little backtrack –

As mentioned, MemoryBank is a digital bank. As defined in an article published by The Straits Times, “A digital bank offers banking services such as deposits, loans, debit and credit cards like a traditional bank, except that transactions are performed online and the bank does not have a physical branch.”

Over the years, especially since digital technology boomed, more digital banks have been established. Needless to say, a lot of people have found it more convenient and easier as compared to traditional banking.

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Marcus Review: How It Differs From Other Online Banks

In fact, when the COVID-19 pandemic hit the world, particularly the United States, digital banks have won over more U.S. customers, according to a report by Reuters. Digital banks were so handy that customers were able to process a lot of their day-to-day banking transactions.

In the same article, Reuters highlighted that digital banks in the U.S. helped customers by “processing stimulus payments quickly,” which helped set apart online-only banks from traditional banks and at the same time, generate valuable word-of-mouth referrals.

You see, digital banks like MemoreBank, which is what we are going to review today have been really of great help, needless to say, very valuable to people especially during one of the world’s most challenging times.

As we have said earlier, there are lots of all-digital banking platforms in the country (and in the world in general), but, today, we are going to specifically do a MemoryBank review to hopefully help you see if this one’s a good choice for your day-to-day banking needs.

In this MemoryBank review, we are going to particularly focus on tackling the following:

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

WHAT IS MEMORYBANK?

First of all, let get to know more about MemoryBank. As we always say, before jumping and dealing with a bank (or in any company for that matter), make sure to get to know about it first.

Know the history and what it offers so you can fully gauge if it’s perfect for you. So, with that said, here’s a quick briefer on what MemoryBank is all about.

MemoryBank, as compared to other well-established digital banks out there is relatively new. It has only been launched in the fall of 2016. However, although it’s considered a newbie in the digital banking market, MemoryBank is pretty sure about what they want for their customers — and that is, to provide them with a great banking experience wherever they may be.

By the way, if you want to know more about digital banking or what a digital bank is all about, check this video by Project Management:

Currently, MemoryBank offers two products to its customers: checking accounts and money market accounts. With its checking accounts, the bank features a headliner product called EarnMore Checking Account. Later on, we are going to share with you more about this product. Apart from checking accounts, the bank also offers Money Market accounts, which we are also giving you more details later on.

MemoreyBank, like most digital banks out there, operates solely online, which means a physical branch or location does not exist. It is, however, can be accessed using your mobile phone, tablet, laptop, or desktop computer.

MemoryBank is a division of Republic Bank & Trust. It is an FDIC-member and is headquartered in Louisville, Kentucky.

WHO IS MEMORYBANK BEST FOR?

Now that you already have a glimpse of what MemoryBank is, this time around, let’s talk about who is it best for. This way, you can easily assess if the bank is right for you.

As mentioned, MemoryBank is an online-only banking platform, which means you can access it through your mobile devices, laptop, or desktop computer. Thus, it is of common sense that the bank will appeal most to people who are always on the go or those who prefer reliable mobile banking to traditional banking. Unlike traditional banking, you do not need to visit a physical branch to do banking transactions — everything can be done online.

MemoryBank is also ideal for customers who want to avoid minimum balance requirements, earn competitive rates, and of course, open an account in a quick manner.

If you are particularly looking for checking accounts that earn interest, this might just be the bank you are looking for.

WHAT ARE THE PRODUCTS OFFERED BY MEMORYBANK?

In this part of our MemoryBank review, we are going to talk about the products offered by the bank.

As we have mentioned earlier, MemoryBank has two products — Checking Account and Money Market Account.

Now, let’s take a look at each of these products and see if it’s the one you are looking for.

Checking Account

Most digital banks offer checking accounts. But, one of the things that really make the MemoryBank EarnMore Checking account stand out from the rest is that it comes with an amazing interest rate.

Compared to its competitors, the MemoryBank EarnMore Checking Account pays a way better rate. In fact, it beats most savings accounts offered by national banks.

The MemoryBank EarnMore Checking Account pays an annual percentage rate of 0.05% on balances up to $250,000. What is nice about it is that the bank has no minimum balance requirements, monthly fees, as well as activity requirements.

To earn the best interest rate on your balance, though, you will need to meet a few requirements, which include:

  • Receive at least one direct deposit per statement
  • Make at least five debit card transactions per statement
  • Opt-in to online statements

Don’t worry, if you do not meet the above requirements, you will still earn a rate but it would be less than a tenth of the best available interest rate.

Meanwhile, other amazing features that come with this account include:

  • MemoryBank MasterCard debit card
  • Access to 92,00 surcharge-free ATMs
  • Allows you to write checks
  • 24/7 online banking
  • MemoryAlert balance and activity notifications
  • Live customer support

Furthermore, MemoryBank offers an overdraft protection program called Standard Overdraft Honor (SOH). This basically pays you a $100 overdraft protection limit for the first 30 calendar days after you have opened an account with the bank.

After the first 30 days, your SOH limit will be reviewed every business day and the pay will vary between $0 and $2,000 daily based on your account history. Should you go over your limit, you will be charged a $36 overdraft fee.

Money Market Account

Another product that MemoryBank offers is a Money Market account. This gives customers access to even higher interest rates while enjoying the same benefits.

As of this writing, MemoryBank offers a 0.50% annual percentage rate on balances up to $1 million. Meanwhile, balances that go beyond $1 million will receive an APY between 0.01% and 0.05%.

To open a Money Market Account with MemoryBank, you will need to deposit at least $50, which is a small amount as compared to the requirements of other banks of the same type.

While the amount required to open an account is low, it is important to note that you must maintain a daily balance of at least $1,000 to avoid being charged a Below Balance Fee, which amounts to $15. The fee applies to balances that drop below $1,000 at any point during the whole billing cycle.

The MemoryBank Money Market Account is not a typical money market account. The only exception would be the number of withdrawals you are allowed to make. According to FDIC rules, customers can only make six withdrawals per cycle. If you go beyond that, you may have to pay an “excessive withdrawal fee,” which amounts to $10 for every transaction.

Similar to the bank’s checking account, its Money Market Account does not charge a monthly service fee as well.

HOW TO DO BANKING WITH MEMORYBANK?

By this time, you have probably figured out already if MemoryBank is the right bank for you. Maybe, by now, you are already wondering how to actually open an account with them.

Well, in this part of our review on MemoryBank, we are going to tackle how to bank with MemoryBank.

Similar to other digital banks out there, MemoryBank’s application process is completed entirely online. You will need either a mobile device or a computer to do so. The application is easy that it can take as little as 10 minutes only.

To begin the application process, though, make sure to read the following requirements:

  • Social Security Number
  • Passport or State-Issued Identification Card
  • Home Address
  • Email Address

Head on to their website or download the app to proceed with the application process.

As to adding money to your account, you have the following options to do that:

  • Set up a direct deposit
  • Deposit checks using MemoryBank’s mobile deposit feature
  • Set up transfers from other banks or financial institutions

The same with most all-digital banking platforms out there, MemoryBank does not accept cash deposits. So, if you want an online bank that offers that feature, MemoryBank may not be right for you.

IS MEMORYBANK SAFE?

One of the hesitations that customers have when it comes to online-only banks is the security of their accounts.

Just like other digital banks, though, the security and safety of customer accounts is MemoryBank’s top priority. Thus, the bank ensures that it has put everything in place to avoid fraud and identity theft.

More than the standard web protection and encryption like SSL security, the bank allows you to set up biometric security to ensure that only you can log in to your account.

If you own a modern smartphone, you may also opt to set up a fingerprint login for your account. Also, you can eye-pattern identification to log in to your account for an extra layer of security.

Furthermore, MemoryBank is a Federal Deposit Insurance Corporation (FDIC) insured, which means customers need not worry about their money in the event of bank failure. FDIC will reimburse you up to the limit of $250,000.

WHAT TO LIKE ABOUT MEMORYBANK?

In the previous sections, we have already tackled most if not all of the important information every customer needs to know.

At this point of our MemoryBank review, we are going to provide you with a summary of the things that we particularly like about MemoryBank, and this includes the following:

  • Above-Average Interest Rates – MemoryBank offers an interest rate that is way better than its competitors. In fact, it beats most savings accounts offered by national banks.
  • No Monthly Fees – Unlike other digital banks, MemoryBank does not charge monthly maintenance or service fees.
  • No Minimum Account Balances (for Checking Accounts) – The bank does not require a minimum account balance. If you want to earn the best interest rate, though, all you need is to meet certain requirements set by the bank.
  • Open an Account Easily – The process of opening an account is so easy you can finish it in at least 10 minutes only!
  • MemoryBank MasterCard Debit Card – Opening a checking account comes with a MasterCard debit card that allows you to withdraw cash and purchase items using it.
  • Access to Over 92,000 Network ATMs – Withdraw cash anytime, anywhere as MemoryBank provides you access to over 92,000 network ATMs.
  • FDIC Insured – In case of bank failure, you need not worry because MemoryBank is FDIC insured, which means FDIC will reimburse you up to the limit of $250,000.
  • 24/7 Access to Your Account – Since MemoryBank is an all-digital banking platform, you get to access your account and do bank transactions anytime, anywhere.
  • Earn Purchase Rewards – Whether you are using the mobile app or the website, you can enable some offers that are available to your account to get yourself some cashback.
  • Alert Notifications – MemoryBank allows you to set up various alerts for your accounts such as deposits, transactions of a certain amount, and alerts for a low balance threshold.
  • Free Online Statement – MemoryBank provides free online statements for up to 18 months.
  • Mobile Check Deposit – The bank allows you to deposit your checks on the mobile app wherever you may be.
  • Powerful Security Features – As mentioned earlier, MemoryBank provides not just standard web protection and encryption, but that also allows users to set up biometric security. Those with modern smartphones may also set up fingerprint login, as well as eye-pattern identification to log in to your account.

WHAT NOT TO LIKE ABOUT MEMORYBANK?

In the last section, we provided you with a list of advantages of MemoryBank. But as the saying goes, nothing is perfect. So, while we have listed a lot of things to like about MemoryBank, we also have found some disadvantages.

Some of the downsides/downfalls of MemoryBank include:

  • Limited Products and Services – Unlike other digital banks out there, MemoryBank only offers Checking and Money Market accounts only, which means if you are looking for other products like a Certificate of Deposit or Savings Account, you may opt for another bank instead.
  • No Physical Branches Available – Since MemoryBank is an all-digital banking platform, it obviously does not come with a physical branch or location. So, if you prefer in-person banking, MemoryBank is definitely not for you.
  • No Business Account Option – As mentioned earlier, MemoryBank has very limited products and services offered – and a business account is definitely one of them. Try other banks instead if you want to open a business account.
  • No Cash Deposits – Another downside of MemoryBank is that it does not offer cash deposits. Again, if you want a bank that allows cash deposits, this bank is ultimately not the one for you.
  • Withdrawal Limits and Restrictions (for Money Market Account) – MemoryBank’s Money Market Account does have withdrawal limits for up to six only per cycle. If you go beyond that, you may have to pay an “excessive withdrawal fee,” amounting to $10 for every transaction. Also, as stated earlier, you must maintain a daily balance of at least $1,000. Otherwise, you will be charged a Below Balance Fee, which amounts to $15. The fee applies to balances that drop below $1,000 at any point during the whole billing cycle.

FINAL THOUGHTS ON MEMORYBANK REVIEW

There are a lot of digital banks out there and MemoryBank is one of them. Although relatively new in the market, having launched only in 2016, the bank promise to give customers a great online banking experience.

Obviously, the bank offers a lot of amazing features, one of them and the most notable of all is providing a great interest rate for both its checking and money market accounts. In fact, the rates are very competitive as compared to what national banks offer.

Although it comes with lots of benefits, it does sure have its share of downsides – one of them is not having lots of product options.

Nevertheless, overall, we have to say that MemoryBank is a great choice for people who wanted all the featured it has to offer while earning a great rate.

To end, we hope that this MemoryBank review has provided you not just essential information you need to know as a potential customer, as well as how the bank offers a great banking experience, but that it also gives you the clarity you need to determine if it’s the suitable digital bank for you or not.

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Investment Apps and Websites

5 Major Types Of Bank Accounts To Choose From

There are different types of bank accounts out there to choose from. Each offers features that match the needs and preferences of certain customers.

different types of bank accounts to choose from

If you haven’t known yet, as a potential bank customer or a bank customer (if you are at the moment), it is important that you are fully aware of the various types of bank accounts. This way, you get to choose the one that fits best based on your needs.

Knowing the different bank account types will also help you maximize the product to its full potential.

For instance, knowing your options will help you find out which bank account has the highest interest rate.

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In an article published by GO Banking Rates, it says that unfortunately, “one-third of Americans do not know what type of bank account usually has the highest interest rate,” which we find is the very reason why you need to know not just what these bank accounts are all about, but also what you can get out of each of them.

So, having said that, we are going to particularly talk about the following types of bank accounts, and the important things you need to know about each type:

  • Savings accounts
  • Checking accounts
  • Money market accounts
  • Certificates of deposit (CDs)
  • Retirement accounts or Individual retirement arrangement (IRA)

AT GLANCE

Before we look into each of the accounts mentioned above, here’s a quick glance about each of them for your reference:

Type of Account Why Choose It
Savings accounts You do not need to access the money frequently. You can leave it securely, at the same time, you get to earn nominal interest from it.
Checking accounts It’s ideal for people who want unlimited access to their money. It’s also good for those who do not mind not earning interest.
Money market accounts This one’s ideal for people who want a blend between savings and checking accounts. This allows limited access to your funds in a month.
Certificates of deposit (CDs) This type of bank account is best for those who want a secure way to invest their money for a particular period of time.
Retirement accounts This one’s a tax-deductible or tax-deferred way to invest money for your retirement in the future.

If you want to know the different types of bank accounts to choose from, here’s an informative video resource from Joyful Investor. Click the play button to watch the whole thing:

So, now that you already have an idea about each of the five major types of bank accounts available in banks today, let’s proceed to get to know more about each bank account type.

SAVINGS ACCOUNTS

Savings accounts are popular with those who want to earn a certain amount of interest from their money in the bank. More so, most consumers use this particular type of bank account to save money up for future use.

What we like about savings accounts is the fact that your money is secured, (as mentioned earlier) you do not need to access it regularly, and of course, it earns. Your money grows over time.

Normally, savings accounts are the first official bank account that people get for themselves — which is not surprising because ultimately, apart from keeping our money safe in the bank, we wanted to grow our money as well (no matter how small or big the APY is).

Opening a savings account is not only ideal for adults but for children as well. Usually, the bank allows kids to open a savings account with a parent. Doing so helps the child establish a pattern of saving — and also it’s a good way to teach children the value of money.

Just the same teens can also open accounts to stash cash from their first job or household chores, and eventually, manage money while in school or in college.

Opening a savings account also marks the start of your relationship with a bank just like when joining a credit union wherein your “share” establishes your membership in the organization.

As mentioned earlier, having a savings account is an excellent way to park cash for financial goals or for emergency purposes. It’s one way to keep money separated from the funds you use on your day-to-day expenses.

HOW TO OPEN A SAVINGS ACCOUNT

Generally, opening a savings account should take less than an hour. Once the accounts are opened, it will serve you for many years to come.

While you can go visit a branch of the bank of your choice, you can also open an account online using either your mobile device or your laptop.

To formally open an account, the bank will require you to fill up certain bank forms, and you will need to provide personal information like your name, address, contact number, as well as your Social Security number and identification cards will also be requested to confirm your identity.

Furthermore, the account holder must be 18 years old and above, otherwise, a parent or guardian needs to open an account with you.

TIPS WHEN OPENING A SAVINGS ACCOUNT

When opening a savings account, make sure to do the following first:

  • Compare banks based on fees, interest rates, minimum balance requirements, minimum opening deposit requirements, and more.
  • Check the requirements set by the bank when opening a savings account.
  • Choose the bank that meets your personal needs as a consumer. Opt for an account that is easy to use, and that you will get to put money into easily.
  • Gather all the information and documents you need to open a savings account.
  • Go to the bank open an account, or you may opt to open an account online if the bank you are eyeing for permits it.
  • Fund the account with an initial deposit if the bank requires it (though even if now, we highly recommend you put money in there as soon as you open one).

WHAT TO LIKE: Savings account is ideal for kids, teens, and/or adults who are looking for a place to keep their money, at the same time, earn interest over time. It’s ideal for those who want to stay away from getting tempted to using their money.

WHAT NOT TO LIKE: Generally speaking, savings accounts yield a lower interest rate as compared to CDs and money markets. Also, unlike checking accounts, they do not normally come with a debit card that can be used to make purchases. Furthermore, banks have limited consumers to no more than six withdrawals a month for this particular bank account type.

CHECKING ACCOUNTS

Among all the types of bank accounts in our list, checking accounts is the only type of account that does not provide your money a place to grow.

What do we mean by that? Here —

Checking accounts are designed to use for everyday spending. It comes with a linked debit card that you can use for making purchases, for ATM withdrawals, as well as for check-writing abilities.

Moreover, checking accounts let you deposit cash and/or checks, and it also allows you to pay bills. In recent years, more and more banks offer online bill-pay services. Thanks to technological advancement and the internet.

Unlike savings accounts, checking accounts normally do not earn interest. Although there are banks that offer interest-bearing checking accounts wherein you can get extra interest on top of what you get from your savings account.

Having a checking account is ideal for keeping cash for short-term use. It is also ideal to help manage your monthly cash flow.

HOW TO OPEN A CHECKING ACCOUNT

Just like when opening a savings account, you can either go to the branch of the bank you are eyeing for, or you can opt to open an account online.

You will also need to provide identifying information such as:

  • A government-issued ID with your picture
  • The second form of ID like a birth certificate
  • An identification number, which normally is your Social Security number or passport number

An initial deposit is also usually required. The amount usually goes between $25 and $100. Unlike savings accounts, most banks do not open checking accounts for minors, which means you need to be 18 years old and above to be able to open a checking account.

Opening a checking account does not take long, too. It usually lasts for just a couple of minutes when opening online, or less than an hour when opening in person.

TIPS WHEN OPENING A CHECKING ACCOUNT

When opening a checking account, make sure to do the following first:

  • Compare banks based on fees, interest rates (if available), minimum balance requirements, minimum opening deposit requirements, and others.
  • Check the requirements set by the bank for checking accounts.
  • Choose the bank that meets your personal needs and preferences.
  • Gather all the information and documents you need to open a checking account.
  • Go to the bank open an account in person, or you may opt to open an account online if available.
  • Fund the account with an initial deposit as required.

Furthermore, also keep in mind the following:

  • Make sure to balance your checking account regularly — ideally every month or every banking statement. This helps you manage your cash inflows and outflows, and avoid fees and errors, and allows you to spot fraudulent acts (if there’s any).
  • Set up a direct deposit of your wages into your checking account.

WHAT TO LIKE: It’s ideal for anyone who needs a place to deposit cash or paycheck, as well as make payments. It’s also a good option for those who keep a relatively small balance, and those who enjoy using a debit card for purchases.

WHAT NOT TO LIKE: It does not offer interest rate, and are usually subject to a lot of fees and restrictions like maintenance fees as well as minimum balance requirements, which can get quite pricey.

MONEY MARKET ACCOUNTS

As stated earlier, money market accounts are a combination of features provided by both savings and checking accounts. It’s like enjoying the best of both worlds.

Anyway, unlike checking accounts, money market accounts offer limited check-writing privileges. It collects interest at higher rates as compared to savings and interest-bearing checking accounts.

With these features, it makes money market accounts useful for both short-term and long-term needs.

To put it simply, money market accounts are ideal for those who tend to carry big balances in their checking accounts, at the same time, enjoy the ability to earn more interest and write checks.

HOW TO OPEN A MONEY MARKET ACCOUNT

The process varies depending on where you open your money market account, but here are some of the common processes:

  • You will need to submit an application wherein you will need to provide personal information like your name, date of birth, taxpayer identification number/Social Security number, mother’s maiden name, address, employment status, and income.
  • You will be asked to decide whether you want to add a joint owner or not, add a beneficiary or not, receive checks to use with your account, and how much you want to deposit or transfer into your money market account.
  • You will be asked to complete any verification requirements like submitting or uploading copies of your identification or income-related documents. This is to confirm the validity of the information you provided during the application.
  • You will have to fund your money market account based on the minimum funding requirement of the bank.

TIPS WHEN OPENING A MONEY MARKET ACCOUNT

Before you even sign an application for a money market account, you may also consider the checking the following first:

  • The account’s annual percentage yield of APY, which refers to the interest you will earn on your savings.
  • The minimum balance requirement, and the fees that come with it in the event of failure to meet the required balance.
  • Your withdrawal options — if the funds can be accessed through ATM, debit card, or check.
  • Account fees, which include not meeting the minimum balance requirement, withdrawing money at affiliated ATMs, check writing, and excessive withdrawals. It may also include fees for bank checks, stop payments and wire transfers.

WHAT TO LIKE: Money market accounts are ideal for those who want to hold high balances in their account, at the same time want to enjoy higher interest rates.

WHAT NOT TO LIKE: Generally, money market accounts tend to have higher minimum balance requirements as compared to other types of bank accounts. Also, interest rates tend to be low sometimes. Needless to say, you need to watch out for fees. Withdrawals are also permitted six times a month only for savings accounts.

CERTIFICATES OF DEPOSIT (CDs)

Certificates of Deposit (CDs) are comparable to savings accounts except that CDs hold your money for a fixed term, which usually lasts from three months up to five or more years depending on the financial institution.

Unlike the other types of bank accounts, CDs let you earn more interest-wise. However, you will need to commit to keeping your money for the full term or you will get penalized for early withdrawal of funds.

CDs are ideal for people who want to save for financial goals with a particular end date. For instance, if you are aiming to buy a property in a year, then a CD would be ideal so you get to keep your money and let it grow until the time you already need it.

Definitely, CDs are not ideal for emergency funding.

HOW TO START USING CDs

To start using CDs, all you need to do is to get in touch with your bank or credit union. Generally, banks explain your options and even allow you to make CD investments online.

If talking to a banker in person is not feasible, you may also consider calling the bank’s customer service.

When talking to a bank representative, make sure to explain how much you’d like to invest, and also, ask about penalties and other alternative CD products they offer. Who knows, they might have a better CD option for you. The bank may also offer higher rates, more flexibility, and/or other beneficial features.

When staring a CD, make sure to only stick with those insured through the Federal Deposit Insurance Corporation or the National Credit Union Administration for safety purposes.

TIPS WHEN USING CDs

When considering opening CDs, keep in mind the following tips:

  • Consider setting up a CD ladder especially if you are concerned about locking up all your money. A CD ladder makes a portion of your savings available periodically.
  • Look for banks that offer flexible CD terms. Ideally, a bank that gives you the option to withdraw money early sans charging a fee.

WHAT TO LIKE: Lets the money that you do not need to spend right away grow. It gives you the option to either keep the money on CD accounts for a short-term or long-term period.

WHAT NOT TO LIKE: Withdrawing your money early comes with a penalty, which may cost a lot.

RETIREMENT ACCOUNTS

Last but not the least type of bank account are the retirement accounts or popularly known as the Individual Retirement Arrangements (IRAs).

Obviously, this particular account is intended for people saving up for their retirement.

One day we are all going to retire, and we’ll need money to spend on our needs (wants) by then. So, the best time to prepare for retirement is not later than now.

Just to be clear, although IRAs are the most common ones, there are also other retirement accounts out there, which include 401(k) accounts and other retirement accounts for small businesses.

Most of these accounts offer tax advantages. For instance, both IRAs and 401(k) plans keep you from paying income tax on the growth of your contributions each year. However, you will have to pay taxes at certain points depending on the type of account you have.

While traditional IRA and 401(k) contributions reduce your taxes now, once you withdraw, later on, you will have to pay taxes. Meanwhile, contributions to a Roth IRA do not reduce your taxes at the moment, but you will not have to worry about paying taxes on withdrawals later on.

You see, it’s just about picking the right choice for you.

The different retirement accounts we mentioned are the best types for saving for retirement as they allow you to invest your money in the stock market creating the potential to earn greater returns.

HOW TO OPEN A RETIREMENT ACCOUNT

Opening a retirement account vary depending on the financial institution where you will open one, and of course, the type of account.

Generally speaking, however, opening an account is pretty easy. All you need to do is head on to the financial institution’s website, choose the type of retirement account you want to open, and then fill in some personal details, which include your Social Security number, name, date of birth, contact information, as well as your employment information.

In addition, make sure to keep your money handy because you will need to fund the account once you open one.

TIPS WHEN OPENING A RETIREMENT ACCOUNT

When opening a retirement account, make sure to:

  • Speak to a financial advisor and get help with regards to planning how much to save for your retirement account, and also the type of account and investments that are ideal for you.
  • Check if your company is offering 401(k). If yes, consider contributing enough to get the match before you start putting money into your retirement account.

WHAT TO LIKE: This particular account is ideal for those who want to save money for their future. More so, retirement accounts might result in larger account balances over time.

WHAT NOT TO LIKE: For whatever tax benefit you get comes to a string attached. That is why it’s best to consult with experts first before opening one.

FINAL THOUGHTS ON TYPES OF BANK ACCOUNTS

You see, there are a lot of bank account choices – and choosing one will definitely depend on your financial goals.

To be able to determine the right bank account type for you, the best way to do it is to consult with a bank representative or if you have a financial advisor, then you may check with him or her as well.

So, have you found the best type of bank account for you yet?

Remember that while there are many types of bank accounts out there to choose from, it all boils down to your needs and preferences as a consumer. That’s definitely a big deciding factor.

Categories
Investment Apps and Websites

Bank Of America Review: What You Need To Know Before Opening An Account

Finding a perfect bank partner is not easy. That is why we are giving you this Bank of America review not just to know more about this popular financial institution, but for you to find out if it’s indeed the right one for you or not.

Bank of America Review

It’s already given — Bank of America is one of the country’s most sought after financial institutions. Not surprising at all as the size of the bank in itself is hard to underestimate.

Guess what? According to the Federal Deposit Insurance Corporation (FDIC), Bank of America holds about $1 out of every $10 deposit in the United States.

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Do you see that? If you are looking for a credible and strong banking institution, definitely, Bank of America is one of the best choices.

But there’s more to know about this famous financial institution, and that is what we are going to talk about today.

In particular, we are going to tackle the following:

  • Who is Bank of America?
  • Who is Bank of America best for?
  • What does Bank of America offer?
  • What are the fees that Bank of America charges?
  • How to do banking with Bank of America?
  • How is Bank of America’s customer service?
  • What are the highs and lows of Bank of America?

WHO IS BANK OF AMERICA?

According to Statista, the history of Bank of America can be traced back to 1904. Yes, that’s how long Bank of America has been around. Formerly known as Bank of Italy, what made it stand out then from other American banks was that it “offered financial services to immigrants arriving in the United States and not only wealthiest American citizens.”

The bank was only named Bank of America in 1998 after it was acquisitioned by Nations bank, which is the largest bank acquisition in history during that time.

After the acquisition, through the subsequent aggressive campaign, it has transformed Bank of America from being a regional player to a national giant — which is what it is today.

From its inception until today, Bank of America continues to grow. Currently, it boasts over 4,200 branches all over the United States, which makes it convenient for customers.

Furthermore, the bank is considered one of the “most valuable banking brands globally and one of the leading banks in terms of assets or market capitalization” according to Statista report.

In 2018, Bank of America is ranked fourth among the largest employers in the banking sector. The bank employs more than 136 thousand people.

Speaking of assets, Bank of America’s total asset as of 2018 was estimated at 2.35 trillion U.S. dollars. During the same year, the bank reported a net income of $28.15 billion, which was more than 80% of the bank revenue in the country at that time.

Although the bank is all over the place, it’s headquarter is situated in Charlotte, North Carolina.

Before moving on, sharing with you this informative review on Bank of America by Toply. This would definitely help as you decipher whether the bank is right for you or not.

WHO IS BANK OF AMERICA BEST FOR?

The very reason why we are making this Bank of America review is to help individuals discern if the bank is the right one for them.

If you are someone who is looking for a bank that is conveniently located wherever you are within the country, then Bank of America is perfect for you. With so many branches across the country, you will surely find one anywhere.

Furthermore, Bank of America is also suitable for those who:

  • Want to do banking with a well-known, large financial institution
  • Do not mind navigating a multifaceted system of rules
  • Want a bank that has a wide variety of financial products to choose from
  • Are not that concerned about earning a competitive rate on your savings account
  • Are aware of the many fees and how to get out of them

If you see yourself in any of the above-mentioned, then Bank of America may be your perfect match.

WHAT DOES BANK OF AMERICA OFFER?

Just like in our other bank reviews, in this Bank of America review, we are going to share with you the different products and services that Bank of America offers. This way you get to have an idea not just about what they have, but also, to gauge any of these products and services fits your needs and preferences when it comes to banks.

Since Bank of America is a large bank, it is already given that they offer a wide range of products and services. With Bank of America, you can basically find anything you need to manage your money.

Here are the major products that Bank of America offer:

  • Checking accounts
  • Savings accounts
  • Certificates of deposit
  • Money market and CD IRAs
  • Credit cards

When it comes to services, Bank of America offers online, mobile, and in-person banking, as well as customer service.

Now, let’s proceed to look through each of the major products of the bank.

CHECKING ACCOUNTS

Bank of America offers three different checking accounts to choose from. These are:

  • Advantage SafeBalance Checking Account
  • Advantage Plus Checking Account
  • Advantage Relationship Checking Account

Advantage SafeBalance Checking Account

At first sight, this looks like a good checking account. It charges neither overdraft fees nor non-sufficient funds (NSF) fees. In addition to that, if you meet certain requirements, monthly fees are waived.

Sounds really good, right?

But as the saying goes, nothing is perfect. The problem comes in when you start looking into what under this checking account.

Now, to be able to qualify for the monthly fee waiver, you need to enroll in the Preferred Rewards program of the bank, which requires a three-month combined average balance of at least — guess how much? At least $20,000 across all your Bank of America and/or Merrill investment accounts.

Failure to meet such requirements means you will have to pay the $4.95 monthly maintenance fee for this particular account.

This checking account, just like most checking accounts out there pays zero interest. It does not come with checks as well. You can move money in and out still but only by using direct deposit, in-person deposit, and withdrawal, as well as through ATM, your debit card, and bank-to-bank transfers.

We know what you’re thinking. It’s kind of odd not having checks for a “checking” account.

Advantage Plus Checking Account

Unlike the SafeBalance, Bank of America’s Advantage Plus Checking Account is most likely what a lot of people will be interested in.

With this account, a minimum of $100 is required to open one. The Advantage Plus Checking Account also comes with the option to purchase paper checks.

Another thing to like about this account is that it is easier to meet the monthly requirements in order to have the $12 monthly fee waived. All you need to do is to:

  • Keep an average of at least $1,500 daily balance
  • Have an eligible direct deposit of at least $250
  • Enroll in the Preferred Rewards program (with a minimum of $20,000 barrier to entry)

Just like any other checking accounts, it does not pay any interest as well. In addition, you can potentially be charged for an overdraft as well as NSF fees with this account if you overdraw it.

An overdraft fee costs $35 for every overdraft that is more than $1. However, the bank provides you an option to get into overdraft protection from your Bank of America savings account, but you will still be charged $12 for every transfer to cover the overdraft.

Advantage Relationship Checking Account

The Advantage Relationship Checking Account is ideal for people who tend to keep large amounts of money in their accounts. If you keep at least $10,000 into your linked Bank of America accounts every statement cycle, the $25 monthly fee will be automatically waived.

Furthermore, a waiver is also available if you sign up for the bank’s Preferred Rewards program.

Unlike the other two checking account options, the Advantage Relationship Checking Account pays you a bit of interest. A bit because it’s only 0.01%.

In addition, with Advantage Relationship Checking Account, you can also get to enjoy a few perks, which include free wire transfers, free checks, free overdraft protection transfers, as well as waived monthly fees on certain other bank accounts if you link them to this.

SAVINGS ACCOUNTS

Just like its checking accounts, Bank of America also offers three different savings accounts, namely:

  • Advantage Savings Account
  • Minor Savings Account
  • Custodial UTMA Savings Account

Let’s discuss each of them —

Advantage Savings Account

Unlike in other banks, Bank of America offers just one saving account for adults. Unfortunately, there’s not much to like about this particular account.

For one, the Advantage Savings Account only offers about 0.03% annual percentage yield (APY), and the rate varies by location. If you come to think of it, it’s too low that it’s negligible.

Two, sadly, the account comes with an $8 monthly fee. To be honest, we find it too much given the fact that to offset the monthly fee, you will need to keep several hundred thousand dollars in your account to earn interest.

Although the monthly fee can be waived provided you have an average of at least $500 daily balance in your account.

Minor Savings Account

As the account name suggests, Bank of America’s Minor Savings Account is intended for customers who are 18 years old and below.

The account requires a minimum deposit of $25 to open one and does not charge any monthly fees.

While it charges $1 if your child does go over six withdrawals in a statement cycle, the said fee can be waived as long as the account maintains a minimum balance of $300 at all times.

When it comes to the interest rate, it’s basically the same as the Advantage Savings, which means it does not earn so much as well.

Automatically, once the account holder turns 18 years old, the account will be switched over to the full Advantage Savings account — including all the fees that the account charges.

Custodial UTMA Savings Account

The Custodial UTMA Savings Account is similar to Minor Savings. What makes the difference is that instead of opening it jointly with your kid, you (parent or guardian) remain in full control over the account until your child reaches 18 years of age.

Only then will the account be completely theirs, and they will be allowed to do anything and everything they want with the money they saved.

Unlike Minor Savings though, the Custodial UTMA Savings Account requires a higher deposit to open. It requires $100 to open an account, and it also comes with an $8 monthly fee if you do not keep at least $500 in the account at all times.

CERTIFICATES OF DEPOSIT

Bank of America offers two options for regular, non-IRA CDs. These are Featured CDs and Standard Term CDs.

Standard Term CDs is ideal for those with a limited amount of money. With this option, you can start with as little as $1,000.

For Standard Term CDs, Bank of America offers a broad range of term lengths which start from 28 days up to 10 years!

Sadly, though, these CDs so not pay much interest, too — at least as of May 2020.

Now, if you have a bit more cash, specifically $10,000 or higher, then Featured CDs are ideal for you.

The thing about Featured CDs is that they offer better rates — at least as of May 2020. However, they are still a far cry from the best CD rates available from competing banks and credit unions.

Also, unlike other CDs, Featured CDs of Bank of America does not come in as many term lengths. They only have 7, 10, 13, 25, and 37 months.

MONEY MARKET AND CD IRAs

Monet Market IRA

There are many banks and credit unions that offer a money market account, which when compared to checking and savings accounts, are considered a hybrid.

Bank of America offers just one money market account, which they call Money Market IRA. With this account, you can save for your retirement within an FDIC-insured account.

You can start saving for as low as $100. This account can be opened within a traditional IRAor a Roth IRA.

Unlike when saving to an IRA CD, saving through a Money Market IRA allows you to withdraw money whenever you need it. However, for savers below 59 1/2, withdrawals may not be a good idea as the IRS will heavily penalize you for early IRA withdrawals.

To put it simply, withdrawals only makes sense if you are on your retirement age already.

IRA Certificate of Deposit

Bank of America offers you Standard Term IRA CDs and Featured IRA CDs when it comes to IRA CDs. While both are essentially the same thing, what makes the difference is that Featured IRA CD requires a slightly higher minimum deposit as compared to Standard Term IRA CD. It’s $2,000 versus $1,000.

But apart from the two, Bank of America offers one more option under IRA CDs. It’s the Variable IDA CD, which comes with an interest rate that changes over the CD’s term. The term ranges between 18 and 23 months. Also, this particular IRA CD requires a much smaller deposit, which amounts to $100. It’s also available as a traditional or Roth IRA.

CREDIT CARDS

As expected, Bank of America also offers a variety of credit card options. They offer 23 different cards to be exact. More so, the bank partners with many third-party companies to offer branded cards with corresponding perks.

Here’s what Bank of America offers:

Cash-Back Credit Cards

  • Bank of America Cash Rewards
  • Susan G. Komen Cash Rewards Visa Credit Card from Bank of America
  • MLB Credit Cards
  • World Wildlife Fund Credit Card
  • U.S. Pride Credit Card

Travel Rewards Credit Cards

  • Bank of America Travel Rewards
  • Bank of America Premium Rewards
  • Alaska Airlines Visa Credit Card
  • Norwegian Cruise Line World Mastercard
  • Spirit Airlines World Mastercard
  • Allegiant World Mastercard
  • Amtrak Guest Rewards World Mastercard
  • Air France KLM World Elite Mastercard
  • Sonesta World Mastercard
  • Royal Caribbean Visa Signature Credit Card
  • Virgin Atlantic World Elite Mastercard
  • Asiana Visa Signature Credit Card
  • Celebrity Cruises Visa Signature Credit Card

Balance Transfer Credit Cards

  • BankAmericard

Secured Credit Cards

  • BankAmericard Secured Credit Card

Student Credit Cards

  • Bank of America Cash Rewards for Students
  • BankAmericard Travel Rewards for Students
  • BankAmericard for Students

OTHER FINANCIAL PRODUCTS

Apart from the major products we discussed, Bank of America also offers the following:

  • Auto loans
  • Auto loan refinance
  • Business banking services
  • Financial advisors
  • Home equity lines of credit (HELOCs)
  • Investments through Merrill Edge and Merrill Lynch
  • Mortgages
  • Refinance mortgages
  • Self-directed portfolios
  • Managed portfolios
  • Private banking

WHAT ARE THE FEES THAT BANK OF AMERICA CHARGES?

Of course, our Bank of America review will not be complete without us looking into the fees the bank charges.

As mentioned earlier while discussing each product of the bank, Bank of America charges a certain monthly fee. The amount varies depending on the type of account you have.

Meanwhile, when it comes to overdraft fees, they charge $35 as often as four times per day. So yeah, it’s quite expensive especially if you have a hard time keeping enough money in your account or accounts.

For negative balance, the bank does not charge anything for it, which is good news.

By the way, you can opt for overdraft protection, but it will cost you $12 per day that a transfer happens from a linked Bank of America savings or secondary checking account.

HOW TO DO BANKING WITH BANK OF AMERICA?

To apply for a bank account with Bank of America, you can either go online or visit a local branch near you.

In particular, it is recommended that you head to a branch if you have any of the following:

  • Limited credit history
  • Depositing more than $100,000

To open an account, you will need to provide personal information as required by federal law.

HOW IS BANK OF AMERICA’S CUSTOMER SERVICE?

Bank of America ranks below many other big banks when it comes to banking satisfaction.

Based on the 2019 U.S. Retail Banking Satisfaction Study from J.D. Power, there are a few more banks that ranked even lower than Bank of America across different regions and states when it comes to customer service.

Bank of America offers basically offers most of what you’d expect from a bank as big as it is — mobile app, online banking, and of course, FDIC insurance.

The downside though is that it may be a little tricky getting ahold of someone from the bank as it does not offer 24/7 call-in support. However, it does offer chat support real best.

WHAT ARE THE HIGHS AND LOWS OF BANK OR AMERICA?

Our Bank of America review will not be complete without us summarizing the bank’s highs and lows – basically what we like and what we do not like about it.

Here it goes —

HIGHS: WHAT WE LIKE

  • Bank of America is easily accessible across the country with about 4,200 branches and more than 16,000 ATMs.
  • It provides an award-winning mobile banking app, and have really invested in digital technology.
  • It provides a wide range of financial products and services to choose from.
  • It offers useful perks such as a round-up savings feature and a cash-back program.

LOWS: WHAT WE DO NOT LIKE

  • Both savings and CDs APY is low as compared to other banks.
  • It comes with high monthly fees, which are avoidable but customers need to meet certain requirements.
  • It has poor customer service ratings.

FINAL THOUGHTS ON BANK OF AMERICA REVIEW

Bank of America is no-doubt a well-trusted and credible bank. With years in the banking industry, they surely know what they are doing.

Unfortunately though, as compared to other banks it is not as competitive when it comes to APY – most of its products.

So, do you think Bank of America is the right one for you?

To end, based on what we have tacked in this Bank of America review, choosing Bank of America over other banks in the country depends on what you exactly need. It’s a person-to-person basis. What works for one, after all, may not always mean it’ll work for all.

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Investment Apps and Websites

Chase Bank Review: Is It The Right Bank For You?

This Chase Bank review will tell you more about what Chase is, its products and services, and more. We will also provide you information on the things that we like and we do not like about the bank.

Chase Bank Review

Chase Bank is one of the most popular names in the banking industry. It offers all major banking services, which include checking and savings accounts, loans, investments, as well as credit cards.

Chase’s mobile tools are also considered to be the best among national banks. Needless to say, the bank has the second-largest network of branches in the United States.

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Furthermore, Chase Bank has the most ATMs with 16,000 of them around the country.

When it comes to customer satisfaction, Chase was reported to have a high degree of satisfaction with its easy accessibility being the primary determiner.

You see, there is so much to love about Chase Bank. But, as a customer, a potential client, it is important to look through all the details to ensure that this is indeed the right bank for you.

Having said that, in this Chase Bank review, we are going to talk about the following:

  • Who is Chase Bank?
  • Who is Chase Bank best for?
  • What does Chase bank offer?
  • How to do banking with Chase Bank?
  • What are Chase Bank’s fees and charges?
  • How is Chase Bank’s customer service?
  • What are the highs and lows of Chase Bank?

WHO IS CHASE BANK?

As stated on their website, Chase Bank is “proud to serve nearly half of America’s households with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans, and payment processing.“

Chase is also known as a global banking powerhouse. It’s a division of the famous JPMorgan Chase & Co., which owns more than $2.6 trillion in assets.

Chase Bank, as we have mentioned earlier has the second-largest network of branches in the United States with nearly 4,900 of them, next to Wells Fargo. But apart from that, Chase also offers the best online banking experience, which means you can definitely work with the bank entirely online.

Furthermore, banking with Chase is made more accessible and easier having 16,000 ATMs across the country. With that, you can make deposits and get cash anywhere and anytime.

With everything said, no doubt Chase Bank is not just a big name in the banking industry, but that it also is one of the most trusted banks in the country and even outside the U.S.

If you are interested to know more about Chase, here’s a very informative review by Carter Farr. We actually thought he said all the right words about Chase. Click the play button below to watch the video:

By the way, apart from catering to millions of clients across the country, JP Morgan Chase where Chase Bank is a division of (as mentioned earlier) is home to over 250,000 employees as of 2019 according to MacroTrends.

Chase Bank is headquartered in Manhattan, New York City.

WHO IS CHASE BANK BEST FOR?

Now that you already know who Chase Bank is, as part of our Chase Bank review, we’re also going to share with you who the bank is ideal for, and see for yourself if you are a part of it.

Given the background, and the products and services that Chase Bank offer, it may be ideal for people who prefer dealing with the resources of big banks or a megabank.

In particular, Chase Bank’s products and services may appeal to those who want to:

  • Lessen bank relationships by opening checking accounts as well as credit cards at the same financial institution
  • Use a free checking account (this applies to those qualified for a waiver) with a debit card, online bill pay, as well as paper checks
  • Earn rewards for using a credit card
  • Bank in person or do banking traditionally
  • Use ATMs often

If you see yourself in any of the above-mentioned, then, let’s proceed to the next agenda.

WHAT DOES CHASE BANK OFFER?

Our Chase Bank review will focus on this as we believe this is the most crucial part when deciding whether or not a bank is for you.

Given how large the Chase Bank is, it’s not surprising that they provide a broad offering of both products and services for individual and business customers.

However, in this review, we are going to particularly focus on the following:

  • Savings Accounts
  • Checking Accounts
  • Certificates of Deposit
  • Credit Cards

SAVINGS ACCOUNTS

To set your expectations right, like most traditional banks, Chase Savings Account pays a small amount of interest as well. The annual percentage yield or APY, however, is not that impressive.

As of February 2020, Chase Bank’s APY is 0.01%. The best high-yield savings accounts in other banks, meanwhile, pay more than 2.00%.

Chase Bank, however, does have a top-yielding savings account called Chase Premier Savings, wherein you can earn a few basis points more as compared to the national average APY. The catch though is that you must have at least $15,000 in the account to earn the said rate. In addition, you need to link it to a Chase Premier Plus Checking or Chase Sapphire Checking account as well and make at least five customer-initiated transactions in a monthly statement period with that particular linked account.

The Chase Savings Account comes with a $5 monthly fee. But, this can be waived provided you meet any of the following criteria:

  • Keep a minimum balance of $300 at the beginning of each day
  • Link a Chase College Checking account, while using the savings account for overdraft protection
  • You are below 18 years old
  • Save a minimum of $25 every month from a personal Chase checking account or Chase Liquid card
  • Link the account to a particular premium Chase checking accounts

It is also important to note that Chase Savings Accounts only allow six withdrawals per month regardless of the type of withdrawal you make. Once you have used up the limit, you will be charged $5 for every subsequent withdrawal in the month.

The withdrawal limit of Chase Bank is more stringent than what is required by Regulation D limits, which is under federal law.

CHECKING ACCOUNTS

Chase has a lot of checking account options to choose from. There’s Chase Total Checking, Chase Premier Plus Checking, Chase Sapphire Checking, Chase Secure Checking, Chase College Checking, and Chase High School Checking.

Now, let’s take a look at each of these:

Chase Total Checking

According to Chase, the Chase Total Checking is the bank’s most popular checking account. This easily satisfies the clients’ day-to-day checking needs to give the fact that it has online bill pay and is accessible through a mobile app.

Some of the key features of Chase Total Checking include ATM check deposit, mobile check deposit, paper checks, as well as Zelle transfer to family and friends.

The Chase Total Checking account charges a $12 monthly fee. However, you may qualify for a waiver if you meet any of the following:

  • Must have at least $1,500 in your account
  • Must have at least $5,000 combined Total Checking and eligible accounts
  • Receive a minimum of $500 direct deposit every month into your account

Chase Premier Plus Checking

Unlike other checking accounts, the Chase Premier Plus Checking account pays a small amount of interest (which is quite negligible at 0.01%), as well as provide a few freebies every month.

This particular type of checking account from Chase Bank is ideal for those who have a substantial relationship with the bank.

It comes with $25 monthly fee, but this fee can be waived provided you meet any of the following requirements:

  • Must keep a $15,000 or higher daily balance in qualified Chase Bank accounts
  • Must have a qualifying Chase mortgage that you are paying using your Chase account

Apart from the features of Total Checking that comes with it, the Chase Premier Plus Checking account also includes the following perks:

  • Free basic personal, counter, cashier’s checks, and money orders
  • Four foreign ATM withdrawal fees waived in a month (Note: The ATM owner may charge fees, and Chase may also charge extra if you are using a different currency apart from U.S. dollars.)
  • Free or discounted safe deposit boxes
  • Potential monthly fee waivers on additional savings and checking accounts

Chase Sapphire Checking

The Chase Sapphire Checking comes with additional benefits. However, the hurdle for banking fee-free is higher.

Apart from the 24/7 customer support, as well as higher ATM and debit card limits, this particular checking account also includes the following features:

  • No ATM fees globally
  • Interest on the account holder’s balance
  • Four free overdrafts annually
  • No wire transfer or stop payment fees
  • Other perks and discounts on other Chase services

Meanwhile, to qualify for a waiver, which amounts to $25 a month, you have to keep an average balance of $75,000 in eligible accounts or investments with the bank.

Chase Secure Checking

If you are just starting with your financial journey, then this product is ideal for you. The Chase Secure Checking account is a no-frills account. It does not include paper checks with discounts. However, it allows you to pay bills online or with the use of your debit card.

Furthermore, it also includes the following features:

  • No overdraft fees
  • No minimum deposit required
  • $4.95 monthly fee (definitely cheaper as compared to the previous checking account types)

Chase College Checking

Obviously, this account type is ideal for college students. The Chase College Checking account is specifically designed for customers aged 17 to 24 years old.

While it comes with a $6 monthly fee, this can be waived if you:

  • Are enrolled in college (up to five years)
  • Keep an average of $5,000 daily balance
  • Have a monthly direct deposit into the account

This particular account may be ideal for college students who have more time studying as compared to earning an income.

Chase High School Checking

The last on Chase Bank’s checking accounts list is the Chase High School Checking. This particular account is available for kids aged between 13 and 17 years old. It also comes with NO monthly fee.

However, the bank requires that the account holder’s parent or guardian must own an eligible Chase Bank checking account. The parent or guardian must also be a co-owner of the Chase High School Checking account.

What’s nice about this account is that it converts to a Total Checking account once the child reached the age of 19.

CERTIFICATES OF DEPOSIT

Just like any other bank, Chase Bank also offers Certificates of Deposit.

If you are interested to open one with Chase, the bank requires $1,000 to begin with. The bank offers different terms to choose from, which include:

  • 1-2- or 3-month
  • 6-month
  • 9-month
  • 12-month
  • 15-month
  • 18-month
  • 21- to 120-month

Since Chase Bank is a brick-and-mortar bank or a traditional bank, it is not surprising that the rates are quite low.

So, to maximize your rate, make sure to qualify for a “relationship rate” with a linked checking account, and then, purchase of at least $10,000.

CREDIT CARDS

Chase Bank also offers a variety of credit cards. They do have a rich lineup of credit cards to choose from depending on the customer’s needs and preferences.

For your reference, here is Chase’s list of credit cards:

Balance Transfer Credit Cards

  • Chase Slate

Business Credit Cards

  • Ink Business Preferred Credit Card
  • Ink Business Cash Credit Card
  • Ink Business Unlimited Credit Card

Cash-Back Credit Cards

  • Chase Freedom
  • Chase Freedom Unlimited
  • Chase Freedom Student

Travel Rewards Cards

  • Chase Sapphire Preferred Card
  • Chase Sapphire Reserve
  • United Explorer

OTHER FINANCIAL PRODUCTS

Apart from savings and checking accounts, CDs, and credit cards, Chase Bank also offers other financial products, which include the following:

  • Auto loans
  • Business loans
  • Business checking accounts
  • Financial advisers
  • Home equity loans
  • Home equity lines of credit (HELOCs)
  • IRAs
  • Managed investment portfolios
  • Private banking
  • Purchase mortgages
  • Refinance mortgages
  • Self-directed trading

HOW TO DO BANKING WITH CHASE BANK?

As part of our Chase Bank review, we are also going to share with you information on how to do banking with Chase.

To open an account with Chase Bank, all you need to do is visit Chase.com or you may pay a visit to one of their branches near you. You may also call 1-800-935-9935 if you have queries or you need clarifications on certain products and services prior to opening an account.

Just like in any other bank, and as required by law, Chase Bank will ask you to provide personal information such as your name, address, contact details, Social Security number, and more.

WHAT ARE CHASE BANK’S FEES AND CHARGES?

Our Chase Bank review will not be complete without us looking into the fees that the bank charges.

Earlier, we already mentioned that each of the Chase Bank accounts does have their respective monthly fees. But apart from the monthly fees, the bank also charges an overdraft fee. Chase Bank charges a $34 nonsufficient funds fee for up to three times per day.

The fee can be avoided though if a customer links their savings account as a backup.

HOW IS CHASE BANK’S CUSTOMER SERVICE?

As we have mentioned earlier, the bank has earned high marks in terms of customer satisfaction. One of the reasons behind this is the bank’s amazing customer service.

According to the J.D. Power 2019 U.S. National Banking Satisfaction Study, Chase Bank ranks first.

With such a position, it makes sense that the bank invests in technology, as well as in training, and staff to ensure clients are satisfied and would keep their assets with Chase for a long time.

WHAT ARE THE HIGHS AND LOWS OF CHASE BANK?

Our Chase Bank review will not be complete without us sharing with you what we like and what we do not like about Chase Bank.

Hopefully, this section helps you decide whether Chase Bank is the right financial institution for you or not.

HIGHS: WHAT WE LIKE

  • Chase has almost 4,900 branches plus 16,000 ATMs across the country. It makes them easily accessible.
  • There’s free checking available from megabank that comes with fee waivers.
  • Chase offers a wide selection of bank accounts and credit cards to choose from depending on the client’s needs and preferences.

LOWS: WHAT WE DO NOT LIKE

  • The probability of getting charged for a monthly fee if you do not qualify a waiver.
  • The bank has an unimpressive interest rate for both savings accounts and CDs as compared to other banks.
  • They have limited branch presence outside metropolitan areas.

FINAL THOUGHTS ON CHASE BANK REVIEW

No doubt, Chase Bank is one of America’s biggest banks, needless to say, most-trusted financial institutions. It provides a variety of products and services to choose from – too many in fact that the bank almost has a certain product or service for every type of customer.

While the banks have a lot of highs, we cannot deny the fact that just like any other banks out there, it’s not perfect. Thus, it also comes with lows.

To be honest, when it comes to interest rates, it is not as competitive, especially when compared to online banks. Customers may find way better interest rates on both savings accounts and CDs elsewhere. The only consolation you have though is that Chase is a credible and well-established bank. The probability of risk is low.

So, would we recommend Chase Bank?

Of course! As we have said in this Chase Bank review, there’s so much to love about Chase. But then, at the end of the day, the decision is all yours. After all, you know what you need exactly in a bank, right?

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.