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Mobile Banking

Popular Direct Bank review: Best Rates For Savings And CD Accounts

This Popular Direct Bank review is ideal for customers who are looking for some of the best interest rates available in both savings and certificate of deposit accounts. This will provide essential information about the bank, its products and services, and more.

Popular Direct Bank review: Best Rates For Savings And CD Accounts

According to the research entitled, “The Adoption of Electronic Banking Technologies by US Consumers” published at ResearchGate, the use of electronic banking or e-banking technology in the United States has grown rapidly. Currently, millions of Americans are using different e-banking technologies, and the number is expected to rise over the years.

By the way, in the same reference, e-banking is referred to as “a variety of different services, ranging from the common automatic teller machine (ATM) services and direct deposit to automatic bill payment (ABP), the electronic transfer of funds (EFT), and computer banking (PC banking)“.

Over time, there is an increasing demand for online banking – especially among the younger client base — making a way for digital banks to emerge, and for conventional banks to step up their game to be able to address the digital banking needs of their customers.

Related Articles:

CIBC Bank USA Review: A Closer Look On Its Online-Only Savings Account
SFGI Direct Savings Review: High-Yield Online-Only Savings Account For You
Barclays Online Savings Review: A High-Interest Rates Online Bank For You

Fast-forward to the present times, Statista found that in 2018 about 61 percent of Americans used digital banking and that the number is expected to rise to 65.3 percent by 2022.

No doubt, thanks to technology, banking has never been so easy and convenient as it is today.

Moving on, as the number of users/clients increase, the same goes for the number of digital banks present in the market.

There are lots of existing digital banks out there, and to be honest, choosing one can be very challenging. A lot of digital banks today offer really competitive rates, and amazing perks to draw more people to them. One of these banks is Popular Direct Bank.

In the next few sections, we are going to tackle some of the most important details every potential customer needs to know about this online bank.

This Popular Direct Bank review will particularly focus on providing factual information about the bank by answering some of the most commonly asked questions by customers, which include the following:

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

WHAT IS POPULAR DIRECT BANK?

Before we talk about the technical stuff, it is important that we give you a brief background about the bank first. Doing so will give you a clearer picture of how credible, reliable, and trustworthy the bank is.

After all, the bank is where you are going to keep your money, also, you will be providing your personal information and more. Thus, it is only right that you make sure the bank you are dealing with is able to keep your money and personal information safe and secure, right?

Anyway, here’s what you need to know about Popular Direct Bank —

Popular Direct is an online-only bank that was launched in 2016. It is a subsidiary of Popular Bank, which is a full-service financial services provider that was founded over 120 years ago.

The bank serves mobile and online banking customers and is ideal for those who are looking for some of the best rates available. Popular Direct Bank offers high-yield online savings accounts as well as certificates of deposit.

Before moving on, if you want to know more about Popular Bank’s mobile banking technology, you better check the video below out:

Yes, unfortunately, the bank only offers two accounts, which means, if you are looking for products other than savings and CDs, Popular Direct may not be the right one for you.

Popular Direct bank is a member of the Federal Deposit Insurance Corporation (FDIC), which is “an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system.”

Since Popular Direct is FDIC-insured, it means all accounts can receive up to $250,000 in case of a bank failure.

WHO IS POPULAR DIRECT BANK BEST FOR?

So, in the previous section of our Popular Direct Bank review, we shared with you some important details about the bank.

This time, we are going to talk about who Popular Direct Bank is most ideal for.

Generally speaking, Popular Direct Bank is ideal for anyone who is comfortable opening and maintaining an account with an online bank. It would be most appealing for those who prefer online banking to traditional/conventional banking.

Popular Direct Bank may also appeal to established savers who have more money to fund savings or a certificate of deposit account.

Overall, though, Popular Direct Bank may be best fitted for customers who:

  • Have at least $5,000 to open a savings account or $10,000 to open a CD account
  • Are looking for high-interest rates on savings accounts
  • Wants to have access to their account on a 24/7 basis
  • Do not mind not having ATM or in-person access to their money

Additionally, Popular Bank is ideal for customers who:

  • Are at least 18 years old
  • Have an existing checking account at an external bank
  • Are not looking to have one bank to handle all their deposit and lending needs
  • Are able to deposit money electronically
  • Want 24/7 access to customer service

If you are any of the above-mentioned, or that everything pertains to your personality as an account holder, then perhaps Popular Direct is the right online-only bank for you.

WHAT ARE THE PRODUCTS OFFERED BY POPULAR DIRECT BANK?

We totally understand that knowing what the institution has to offer is an important aspect when choosing a bank – in this case, an online-only bank.

So, in this section of our Popular Direct Bank review, we are going to talk about the products offered by the bank, and how they compare to other accounts of the same type in the market.

As mentioned, Popular Direct Bank only offers two accounts, and these are high-yield Savings and Certificate of Deposit accounts.

Now, here’s what you need to know about these products:

Popular Direct Select Savings Account

The Popular Direct Select Savings Account is the bank’s high-yield savings account. Since it offers a high annual percentage yield (APY), it could help you grow your money quickly as compared to a typical savings account offered by other online and traditional banks.

As of January 2021, Popular Direct Select Savings Account holders may earn a 0.55% annual percentage yield (APY).

The Popular Direct Select Savings Account does not charge monthly maintenance fees, which is definitely a plus.

To open a Popular Direct Select Savings Account, the bank requires a minimum deposit of $5,000. While this is huge as compared to what other online-only banks require, the good side is that the bank does not have a minimum balance requirement for you to earn interest.

It is important to take note, though, that once the account is opened, it must remain open for at least 180 days. Otherwise, you may be charged a $25 fee.

Furthermore, if your accounts have been inactive for 12 months, the bank charges a $5 dormancy fee per month.

Similar to most online banks, Popular Direct Select Savings Account holders are entitled to a combination of six transfers or withdrawals per month. Exceeding withdrawals will be charged a fee of $5 each.

Additionally, the bank charges $10 each for overdraft and returned items. Also, a conditional monthly maintenance fee of $4 per month is charged if your balance falls below $500.

The Popular Direct Select Savings Account allows linking to external banks for easy deposits and withdrawals, and also supports mobile check deposits.

Popular Direct Certificate of Deposit Account

If you want to save for a short-term or a long-term goal, then opening a certificate of deposit is perfect for you.

Popular Direct offers CDs with terms ranging from three months to five years — pretty much the same as most banks with CD account offerings.

To open a Popular Direct Certificate of Deposit Account, the bank requires at least $10,000.

As a general rule when it comes to CDs, the longer the CD term is, the better your annual percentage yield (APY) is.

AS of February 2021, Popular Direct Certificate of Deposit Account CD APYs ranges from 0.15% for a 3-month CD term to 0.80% for a 5-year CD term.

The Popular Direct Certificate of Deposit Account does not charge monthly maintenance fees. However, CD account holders could be penalized if they withdraw their money prior to the maturity date.

Popular Direct charges between 89 and 730 days of simple interest if money is withdrawn before the CD matures. The penalty varies depending on your CD term.

Once the CD matures, account holders have the option to either renew or withdraw their money.

HOW TO DO BANKING WITH POPULAR DIRECT BANK?

By this time, you probably know already if Popular Direct Bank is right for you or not. If you think this online-only bank is perfect for your banking needs and preferences, then, it’s time to talk about how to actually do banking with Popular Direct.

As mentioned, Popular Direct Bank is an online-only bank, which means it does not have physical branches where you can open an account or do banking transactions. Everything is done entirely online.

So, to open either a savings account or a CD account, the best way to do that is through Popular Direct’s website.

To open an account, you must be at least 18 years old. Also, you will be asked to provide personal data including your name, a valid address, your Social Security number, as well as your mobile number. Additionally, you need to have a government-issued identification like a passport or driver’s license with you for identity verification purposes.

The whole account application process will only take a few minutes to finish.

Once your account is open, you can access it by different channels like online, through mobile banking, or via telephone.

Unfortunately, being an online-only bank means the bank does not issue ATM cards as well. To be able to withdraw money from your account, you need to request a transfer to your deposit account at an external bank.

Meanwhile, to deposit money to your account, you can either initiate a transfer from your existing bank account, or you may opt to perform a mobile deposit through the Popular Direct mobile app.

The Popular Direct Bank mobile app is available for both Apple and Android devices. Apart from making deposits, the app also allows you to see an overview of your accounts, review your account history, as well as transfer money between eligible accounts.

For customer concerns, you may reach Popular Direct through its customer service by phone. You may call 800-274-5696 anytime, any day.

Customers also have the option to mail a letter instead to Popular Direct Bank’s headquarter in Florida.

IS POPULAR DIRECT BANK SAFE?

Account security and safety are important to Popular Direct Bank. Thus, the bank ensures that all security and safety measures are in place to avoid possible fraud or identity theft cases.

The bank follows standard online security and safety requirements to ensure that all money and personal data are safe and are well-taken care of.

Also, as mentioned earlier, Popular Direct Bank is a member of the Federal Deposit Insurance Corporation (FDIC). So, in case of a bank failure, each account will receive up to $250,000.

So, to answer the question if Popular Direct Bank is safe, with all these measures in place, it definitely is.

WHAT TO LIKE ABOUT POPULAR DIRECT BANK?

In this part of our Popular Direct Bank review, we are going to share with you a summary of the things that we like about this online-only bank.

These are the things that you may consider to push through with opening an account with Popular Direct over other banks of the same type out there.

With that said, here are some of the things we particularly like about Popular Direct Bank:

  • Competitive Rates – Popular Direct Bank offers one of the most competitive rates on both savings and CD accounts out there. This makes it really ideal for people who want to save, at the same time, earn quickly from their money.
  • No Monthly Fees – While the Popular Direct savings account has a minimum initial deposit requirement, the bank does not charge monthly maintenance fees. This feature is definitely a plus especially since monthly fees can be excruciating at times.
  • 24/7 Customer Service Availability – One of the unique features of Popular Direct Bank is that it offers 24/7 live customer service by phone. So, anytime you need help with your account, or you need to make transactions via phone, no matter what time of the day, you can rely on the bank’s customer service representatives to help you.
  • Easy Account Application Process – Since Popular Direct is an online-only bank, it means account applications can be done entirely online only. Good thing is, the process is easy and quick it only requires a few minutes to finish.

WHAT NOT TO LIKE ABOUT POPULAR DIRECT BANK?

While Popular Direct Bank has its share of things to like, it also has a few downsides.

In this part of our Popular Direct Bank review, we are going to share with you a list of the things we do not like about the bank, and that they could probably improve on in the future. This includes as follows:

  • High Minimum Initial Deposit Requirement – To be honest, the minimum initial deposit requirement for both savings and CD accounts is too high if compared to other online banks out there.
  • No Physical Branches – Since Popular Direct Bank is an online-only bank, it is totally understandable that it does not have physical branches. So, if you want to enjoy the benefit of an online bank and a traditional bank, then you may have to look for another bank.
  • No ATM Card Access – Again, Popular Direct is an online-only bank, which also means it does not come with ATM card access. Withdrawals can be made only if you link your account to an external account.
  • Monthly Fee for Balances Below $500 – The bank charges $4 per month for account balances under $500. This can be quite a challenge for some. It’s high compare to other online-only banks. So, if you are not sure you can keep up with this requirement, then better choose another bank instead.
  • Limited Product Offerings – Popular Direct Bank only offers two products – savings account and certificate of deposit accounts. If you want a bank with a wide variety of account options, Popular Direct is not it.

FINAL THOUGHTS ON POPULAR DIRECT BANK REVIEW

Popular Direct Bank is an online-only bank that offers competitive rates for both savings and CD accounts. While the bank does not charge monthly service fees, it does have its share of different fees, which can be avoidable if you meet the bank’s requirements.

While we like the fact that the bank offers high-yield accounts, we find its minimum initial deposit requirements too high as compared to similar accounts by other online banks in the market.

Overall, Popular Direct Bank has its share of good and bad, and it’s all up to you to decide if the bank fits best for you or not.

Now, do you think Popular Direct Bank suits your preference in an online bank?

Well, we do hope that through this Popular Direct Bank review, you are able to know more about this online-only bank and what it has to offer.

Categories
Mobile Banking

Amboy Direct Review: An Ideal Online Bank For New Jersey Residents

Are you a resident of New Jersey who is looking for an online bank that offers high-yield savings account without monthly fees? If your answer is a yes, then, you got to check this Amboy Direct review.

Amboy Direct Review: An Ideal Online Bank For New Jersey Residents

Amboy Direct is an online bank that provides both high-yield savings accounts as well as money market and certificate of deposit accounts without charging monthly maintenance fees like other banks of the same time do. Well, that is like hitting two birds with one stone, right?

Anyway, in case you forgot or you totally do not know what it is, a high-yield savings account, according to an article by CNBC, “reward you with a higher interest rate, allowing your money to grow even faster as it sits in your account”.

The interest rate is called the annual percentage rate or APY. Basically, the higher the APY of a savings account or any deposit account for that matter is, the faster your money in the bank grows, which is why it is important to research and look for banks that offer the best rates.

But of course, we cannot also deny the fact that apart from rates, consumers also have to look into other perks that the bank provides. In this case, an online bank.

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Synchrony Bank Review: What Makes It An Ideal Online Bank For You
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By the way, an online bank, according to Policygenius, is a type of bank that offers pretty much the same as what traditional banks provide except for the fact that in most cases, it does not come with a physical branch.

Online banks allow you to deposit, withdraw, as well as manage your account anytime, anywhere for as long as there is an internet connection.

Over the recent years, online banks have become popular especially among the younger generations.

A report by Statista states that in 2018, about 61 percent of American people used digital banking. More so, experts believe that the number is set to increase to 65.3 percent by 2022.

We believe, however, that there is a big chance the number will even go higher because of the recent turn of events.  

When the pandemic hit in 2020, a lot of consumers, both young and adults have relied so much on digital banks. There are even studies showing that Americans are now ready to make online banks their primary bank choice.

Now, even before all these things happen, there are already a lot of existing online banks. Among the many choices in the market is Amboy Direct, and today, we are going to focus on this. We will look into what the banks have to offer and what would make it an ideal choice.

In this Amboy Direct review, we are going to provide answers to some of the most commonly asked and very important questions, which include:

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

WHAT IS AMBOY DIRECT?

Choosing an online bank can be quite difficult given the so many options out there, which is why, as we always say, it is important to do your part. Research about the banks you are eyeing, and compare them to each other.

By doing so, you get to trim down your options, and eventually come up with a decision.

When looking for a bank, whether it be traditional or online, it is essential to look into the history of the bank. This will help build up your confidence as a possible account holder. After all, your number one priority is to keep your money in a credible and trustworthy bank.

Now, to start off this Amboy Direct review, let’s take a look at what the bank is all about —

Amboy Direct is an online division of Amboy Bank, which is a full-service institution founded in 1888 for both retail and commercial clients. Amboy Bank is present throughout central New Jersey with over 20 branches to date.

Amboy Direct was established in 1990 specifically to cater to customers who prefer not to do bank in person at a bank.

Initially, Amboy Direct was meant for banking by mail. But, that changed in 2003 when Amboy Bank decided to upgrade it into an internet banking service.

Since Amboy Direct does not come with physical branches, it helps keep the online bank’s overhead costs low, which is why the bank is able to offer high-interest rates on the different accounts it offers. Needless to say, Amboy Direct does not charge monthly service fees.

Similar to most online banks, all Amboy Direct accounts are insured up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC).

Before moving on, if you want to know more about FDIC and how you, as a bank customer can benefit from it, we recommend you check the video below from FDICchannel:

WHO IS AMBOY DIRECT BEST FOR?

In the previous section, we learned some important things about Amboy Direct. This time around, we are going to share with you who Amboy Direct is best for.

Generally speaking, since Amboy Direct is an online banking platform, it makes it appealing to people who do not want to bank in-person at a bank branch. This is ideal for people who prefer managing their accounts as well as make banking transactions right at their fingertips.

Now, technically, Amboy Direct will appeal to consumers who want to enjoy competitive deposit accounts, at the same time, enjoy not having to pay for monthly maintenance fees.

Additionally, it is also ideal for those who want to open a savings account with a very minimal opening deposit requirement. In this case, Amboy Direct only requires at least $1 to open specifically for the Jersey First eSavings, which is a savings account exclusive for New Jersey residents only.

While Amboy Bank, the mother company of Amboy Direct, caters only to New Jersey residents, Amboy Direct is available for everyone.

WHAT ARE THE PRODUCTS OFFERED BY AMBOY DIRECT?

One important factor when choosing an online bank is the list of products and services the bank offers. Although every customer has his or her own preference, it would be ideal to look for a bank that offers more than what you need in case you decide to also open other accounts in the future.

With Amboy Direct, the online bank offers high-yield deposit accounts, which include:

  • Savings Account
  • Money Market Account
  • Certificate of Deposit

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

Savings Account

Amboy Direct is known for its Amboy eSavings account, which essentially is a high-yield savings account that uses the tools as well as perks offered by online banking.

Amboy claims that through the eSavings account, customers can earn 40 times more as compared to the accounts offered by major banks.

Since everything is done strictly online, Amboy Direct is able to offer higher rates as compared to most traditional banks.

If you are living in New Jersey, though, you can take advantage of the Jersey First eSavings account, which is exclusive to New Jersey residents only. This account pays higher yields and only requires $1 to open.

Meanwhile, for non-New Jersey residents, the minimum initial deposit requirement is $100.

Amboy savings account allows any account with check-writing privileges to be linked. Similar to most online banks, withdrawals are available but are only limited to six per month, per federal regulations.

Amboy Direct offers tiered interest rates. For eSavings account, customers earn 0.30% APY on balances of $300 to $2,999, and 0.55% APY on balances of $3,000 to $100,000. Meanwhile, for Jersey First eSavings account, customers can earn 1.01% APY on balances of $1 to $50,000, and 0.64% APY on balances of $50,001 to $250,000.

As mentioned, the Amboy Direct savings account does not charge a monthly maintenance fee.

Money Market Account

Apart from the savings account, Amboy Direct also offers money market accounts, which also offer very competitive rates. Needless to say, the minimum balance requirement is also astounding.

The Amboy Direct Max More money market account is available and is exclusive to New Jersey residents only.

This account comes with some notable features like it allows customers to link to any account with check-writing privileges, as well as provides an option to schedule automatic transfers from linked account.

Again, just like the savings account, account holders are only limited to six withdrawals per month.

Amboy Direct offers tiered interest rates that usually change. As of January 2021, though, Amboy Direct money market account holders can earn 0.20% APY on balances of $5,000 to $29,999.99, and 0.60% APY on balances of $30,000 to $250,000.

To open an Amboy Direct Max More money market account, you have to have at least $100 to meet the initial deposit requirement.

Certificate of Deposit

Amboy Direct offers a certificate of deposit account to both residents and non-residents of New Jersey.

However, contrary to its eSavings CD account for residents, the bank falters when it comes to CD accounts for the non-resident.

Amboy Direct CD version is a two-year variable-rate CD. The interest rates are quite competitive as well.

As of January 2021, the rates for eSavings CD with a 12-month term is 0.30% APY for balances up to $9,999.99, and 0.65% for balances of $10,000 to $250,000. Meanwhile, for Treasury Index 2-Year CD, the rate is 0.60% (three-month Treasury rate of 0.10% plus 0.50% margin). Please note, though, that the rates change on a quarterly basis.

Although Amboy Direct only requires $100 to open a CD account, unfortunately, the bank requires a whopping $25,000 balance before the CD earns interest.

However, if you are a resident of New Jersey, you have a better option. The eSavings CD earns interest on every dollar you save, as well as the ability to add funds for six months.

As for Treasury Index 2-Year CD, account holders may also add funds for 30 days after opening the account.

Similar to many CDs, a penalty may apply for withdrawals made prior to the account’s maturity date.

HOW TO DO BANKING WITH AMBOY DIRECT?

Now that you already know the products offered by Amboy Direct, it’s time to talk about how to actually open an account with this online bank.

Interested customers may open an Amboy Direct account in three different ways — by phone, by mail, or through its website.

Of all the options available, opening an account online is the most ideal way as it only takes at least five minutes to finish.

However, make sure that you have the following requirements on hand to make the account application process as fast as possible”

  • Your Social Security number
  • Valid government-issued identification such as your passport or driver’s license
  • A copy of a personal check from the account you will be used to fund your Amboy Direct account

In addition, be ready to provide your personal and employment information as well.

By the way, when you visit Amboy Direct homepage, look for the “Open” account button on each of the product descriptions. Choose the product/account that you want to open, and just follow the prompts to complete the application process.

Again, it only takes a few minutes to finish.

Once done with the application process, you may deposit or transfer your initial deposit. It takes a little patience though as the length of time for deposits to clear, and for transfers out of your account to complete may take up to five business days and up to three business days, respectively.

It’s definitely one of the downsides of Amboy Direct. Other than that, everything else should be smooth.

By the way, apart from the website, you can also access Amboy Direct through its mobile app, which is very new. The app is available on both the App Store and in Google Play.

Currently, the app is only limited to checking balances, transferring money, as well as contacting customer service.

IS AMBOY DIRECT SAFE?

One of the things that hinder people especially the older ones from opening an online account or entrusting their money to an online bank is safety and security issues.

In the past, there have been a number of fraud and identity theft cases in various online banks. So, it’s very understandable why people are kind of hesitant with online banks.

So, having said that, in this part of our Amboy Direct review, we are going to talk about how safe and secure banking with Amboy Direct is.

The same as most online banks in the country, Amboy Direct has put necessary safety and security measures to help ensure its customers that all their data, including their money, are safe.

In addition, and probably a very important feature in every bank is that all Amboy Direct accounts are FDIC-insured, which means, in the event of a bank failure, each depositor can get up to $250,000. 

With this in place, plus the safety and security measures on its website and app, we got to say that yes, banking with Amboy Direct is safe.

WHAT TO LIKE ABOUT AMBOY DIRECT?

This review on Amboy Direct will not be complete if we will not provide you with a list of the things that we particularly like about this online bank.

Some of the things that really stand out for us are as follows:

  • High-Yield Accounts – As mentioned earlier, Amboy Direct has become popular because of its high-yield account offerings. All of its products basically offer the same benefit, which makes it ideal for people who want to save money and earn from their money at the same time.
  • No Monthly Maintenance Fee – Unlike other online banks, Amboy Direct does not charge a monthly service fee. Definitely, a good feature for us.
  • 24/7 Access to Withdrawals and Deposits – Since it is an online bank, it means account holders can access their accounts and make transactions anytime, anywhere.
  • Low Minimum Deposit Requirement – Although the bank requires at least $100 minimum opening deposit for non-residents, it only requires at least $1 for New Jersey residents. So, if you are from this state, you will benefit a lot from Amboy Direct.
  • FDIC-Insured – Of course, one of the most important features of the bank is that it is a member of the FDIC, which means in case of a bank failure, clients can get up to $250,000 per account.

WHAT NOT TO LIKE ABOUT AMBOY DIRECT?

While Amboy Direct has its share of good points, it does have some downsides as well.

To complete our Amboy Direct review, we are sharing with you some of the things that the bank can improve on. This includes the following:

  • Limited Account Options – Unfortunately, Amboy Direct only offers savings, money market, and certificate of deposit accounts only. This means that if you are looking for a checking account or a business account, you may have to look elsewhere instead.
  • Money Market Max More is Available for New Jersey Residents Only – Unfortunately, the Amboy Direct Money Market Max More account is only available for residents of New Jersey. Non-residents may have to consider looking for another bank.
  • Mobile App is New – Although the Amboy Direct website is doing pretty well, and is providing an excellent online banking experience when it comes to the mobile app, it’s not as functional as other mobile banking apps out there yet. However, we believe that there’s a chance it would be better and more functional in the long run.

FINAL THOUGHTS ON AMBOY DIRECT REVIEW

To be honest, Amboy Direct has a lot of things to work on especially if the bank looks forward to catering to a larger client base.

However, if you are a New Jersey resident, we must say that Amboy Direct is perfect for you. You can absolutely benefit a lot from what the bank has to offer.

Through this Amboy Direct review, we hope we are able to provide all the necessary information you need and more about this online bank fitted for New Jersey residents and for non-residents as well.

Categories
Mobile Banking

Synchrony Bank Review: What Makes It An Ideal Online Bank For You

This Synchrony Bank review talks about essential matters you need to know about this online bank that offers competitive deposit products and credit cards for all types of consumers.

Synchrony Bank Review: What Makes It An Ideal Online Bank For You

Surely, the past year was a challenging year not only for the American people but everyone across the world.

But, we cannot deny the fact that 2020 also brought so many realizations. Needless to say, it allowed different industries to shine — business-wise.

One of the many industries that stood out during the whole pandemic thing is the digital banking industry. In fact, according to the Global Mobile Consumer Trends Report, downloads of mobile banking apps grew by 20 percent globally from the first to second quarters of 2020.

Furthermore, the report also states that there was a nearly six percent increase in the Daily Active Users (DAU) of banking apps since the pandemic started.

This is not surprising though since people were restricted to go out, they had to rely on the most accessible way to access cash to pay off for goods, bills, and other things. Digital banking helped people survive on a day-to-day basis given the fact that most transactions were done online — from buying food to paying bills and transferring money to loved ones or people in need.

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Barclays Online Savings Review: A High-Interest Rates Online Bank For You
Radius Bank Review: What Every Potential Customer Must Know
NorthOne Bank Review: What Makes This Mobile-Only Bank Exceptional?

A report published by Forbes says that according to the July 2020 survey of US consumers from Cornerstone Advisors, it was found that “14.2 million Americans—6% of US adults with a checking account—now consider a digital bank to be their primary bank—a 67% jump from January 2020”.

You see, these reports show that indeed, digital banking has instantly become in-demand not just in the United States, but even across the world.

Now, in the country, there are lots of online banks. In fact, the choices are too many it can get overwhelming to choose the one that’s right for you.

But, today, we are going to focus on one particular online bank that provides high-yield deposit products and credit cards for retailers and healthcare providers, as well as ordinary individuals. And yes, we are talking about Synchrony Bank.

In this Synchrony Bank review, we are going to provide you with the essential information you need to be able to compare it among other online banks in the market and see for yourself if this, indeed, is your perfect fit.

For your reference, we are going to specifically talk about the following:

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

WHAT IS SYNCHRONY BANK?

One important thing to look at when choosing an online bank or any other bank for that matter is history. This will provide you confidence and trust you need. After all, what you are entrusting them is hard-earned money, right?

With that said, in this section of our review on Synchrony Bank, we are going to share with you a few important pieces of information about what the bank is all about.

Synchrony Bank is an online bank, which started as a division within General Electric (GE) and eventually became a separate, independent company in 2015.

The bank provides a variety of high-yield savings options, which include certificates of deposit (CDs), a savings account, a money market account, and individual retirement accounts (IRAs).

As an online- and mobile-only bank, the services and accounts that Synchrony Bank offers are only accessible through its online banking website and its mobile banking apps. While the website and the app allow you to manage your account anytime, anywhere, being an online- and mobile-only bank means it does not have access to physical branches.

However, even without the physical branch, Synchrony Banks has created one of the best online and mobile banking experiences across the market today. Synchrony Bank’s mobile app is available for both Android and iOS users.

Synchrony Bank is a Fortune 500 company and is a proud member of the Federal Deposit Insurance Corporation (FDIC), which means all bank offerings are FDIC-insured up to $250,000 in case of a bank failure.

Before moving on to the next section, we are sharing with you the video below by ProudMoney wherein he shares information as well as helpful insights about Synchrony Bank that we thought you might want to know, too.

WHO IS SYNCHRONY BANK BEST FOR?

In the last section, we talked about some of the most important things you need to know about Synchrony Bank.

Now, for this part of our Synchrony Bank review, we are going to share with you who the bank is fitted for. Hopefully, this helps you gauge if the bank is right for you based on your needs and preferences.

Anyway, Synchrony Bank is most appealing for consumers who fall in any (or all) of the following:

  • Want a high-yield personal deposit account
  • Do not want to change their primary checking account
  • Do not mind not having access to a physical branch
  • Want to enjoy the benefits of having a retailer credit card
  • Want to finance healthcare expenses as time goes by
  • Want 24/7 access to their bank account

WHAT ARE THE PRODUCTS OFFERED BY SYNCHRONY BANK?

Probably the most important thing that consumers need to look into when choosing a bank, in this case, an online bank is the product offerings.

As much as possible, it would be nice to have everything you need in one place, right?

In the case of Synchrony Bank, it offers a variety of high-yield personal deposit accounts, which include the following:

  • Savings Account
  • Money Market
  • Certificates of Deposit
  • Credit Cards

Before we move on to discuss each of these products, it is important to note that the bank has a Synchrony Bank Perks Rewards program wherein customers earn elite status based on their deposit levels or length of the relationship. Those who reach the top-level “diamond” status (deposits exceed $250,000) or those who have been banking with Synchrony Bank for five years get to enjoy unlimited domestic ATM reimbursements, three free wire transfers per statement cycle, as well as a dedicated customer service.

Now, let’s take a look at each of the product offering:

Savings Account

Synchrony Bank offers a high-interest rate savings account. The rates a competitive among other online banks that offer the same type of account.

Synchrony Bank customers can earn an annual percentage yield of 0.50% on all balances, which means even if you have only $1 in your account, you will still earn.

To open a savings account, all you have to do is go Synchrony Bank website or download the app, and provide the information required such as your name, email address, mobile number, your Social Security number, as well as make sure to have a government-issued identification like driver’s license and passport in hand.

The account does not have a minimum deposit requirement, which means you can open an account with a little or as much as you want. Also, the bank does not charge a monthly maintenance fee as well as ATM fees. In fact, it reimburses up to $5 per statement cycle for ATM-related fees.

Synchrony Bank’s partnership with Accel allows its customers to access its 412,000 ATMs across all 50 states.

Money Market

The Synchrony Bank money market account (MMA) is also very competitive in terms of rates. It offers 0.35% APY with no minimum balance required.

As compared to the bank’s high-yield savings account, the APY is lower. However, the money market account offers check-writing capabilities, which makes it a good choice as well.

Similar to the high-yield savings account, Synchrony Bank’s money market account comes with an optional ATM card to enable account holders to withdraw cash.

Unfortunately, similar to most money market accounts out there, this one is subject to monthly convenient transaction limits as well. Transactions are limited to up to six per month only. If you exceed the allowable limit, the bank will not charge you, but, maybe forced you to close your account instead.

Money market accounts are also available with a traditional or Roth IRA. However, if you opt to open an IRA money market account, it is important to note that there is a minimum opening deposit requirement, which amounts to $250.

With the IRA account, account holders are allowed to contribute anytime (up to the annual limit), as well as transfer an IRA from another bank or rollover an employer-sponsored retirement plan to Synchrony Bank.

Certificates of Deposit

Another product that Synchrony Bank offers are certificates of deposit (CDs). The bank’s CD terms range from three months to five years.

It requires a minimum deposit of $2,000, and the APY ranges from 0.15% on a three-month CD term to 0.80% on a five-year CD term.

As compared to a high-yield savings account, CDs may or may not offer a higher APY depending on the term of the account. It is important to keep in mind, though, that the APY of CD accounts is fixed based on the term you choose.

Synchrony Bank provides customers an option to open a traditional CD or one inside of a traditional or Roth IRA.

Once the CD matures, it will automatically renew for the same term at the prevailing interest rate. The bank provides a 10-day grace period, though, to allow you to add funds, withdraw, or change the term. Customers may provide instructions during the grace period or they may opt to submit a written instruction within 30 days before the maturity date of the CD.

Similar to most banks, if an account holder decides to withdraw the money prior to the maturity date, there will be a penalty, which depends on the length of the CD. For CD terms of one year or less, the penalty is 90 days simple interest, while for those that are more than a year to less than four years, the penalty is 180 days of simple interest. As for four years and above, the penalty is 365 days of simple interest.

Credit Cards

Unlike other online banks, Synchrony Bank offers a wide selection of credit cards from retailers around the country.

In addition, the bank also offers healthcare financing through its CareCredit product, which we thought is very unique to the bank.

This financing can be used for different purposes like dental, hearing, cosmetic, as well as LASIK and vision, veterinary, and other specialties.

From an array of options, here are some of the retailers that the bank has partnered with to offer credit cards:

  • Amazon.com
  • PayPal
  • Ashley HomeStore
  • The Container Store
  • Banana Republic
  • Old Navy
  • Lowe’s
  • Lumber Liquidators
  • Midas
  • Sam’s Club
  • T.J. Maxx

HOW TO DO BANKING WITH SYNCHRONY BANK?

Technically speaking, Synchrony Bank is an online- and mobile-only bank. However, what makes it even more appealing to a lot of customers is that it also comes with four branches — one each in  Georgia, North Carolina, Kansas, as well as in Utah.

However, because of the amazing banking experience, it provides in both its website and mobile apps, most customers still prefer to open an account or a credit card online.

Opening an account at Synchrony Bank online is very easy and simple. In fact, it is so easy and simple that it could only take you a few minutes to finish.

Similar to all the other banks out there, Synchrony Bank will ask you to provide personal information such as your Social Security number, your name, and a valid address, as well as an email address, and your mobile number. Make sure to keep a government-issued identification such as a passport and driver’s license as well to verify your identity.

Once you have opened an account, you can now make a deposit into it electronically or by mail. You can also make a mobile deposit through Synchrony Bank’s mobile application. As mentioned earlier, the mobile app is both available for iOS and Android devices.

Since both savings and money market accounts come with a debit card, this allows account holders to make ATM transactions like withdrawal at over 400,000 Accel Network ATMs for free.

To apply specifically for a credit card, you may browse the choices online first before proceeding with the application either online or in the branch. With so many options, it’s best to choose the one that would really work for you.

By the way, please note as well that there are credit cards that come with a welcome bonus when you apply and complete certain activities. It would also be nice to take advantage of that.

IS SYNCHRONY BANK SAFE?

In this section of our Synchrony Bank review, we are going to talk about how safe and secure your money and your personal information when you bank with Synchrony.

If we are going to base it on Synchrony Bank’s mobile app ratings in both Apple’s App Store and Google Play, then we have to say that banking with Synchrony is safe and secured. Well, in both app stores, Synchrony’s mobile app got solid ratings.

Having such ratings only means that the bank has all the necessary safety and security precautions in place to ensure all accounts are protected from possible fraud and identity theft.

Apart from that, Synchrony Bank is rated A+ in trustworthiness by the Better Business Bureau. According to Business Insider, “a strong BBB rating indicates the company is transparent in how it handles business, responds effectively to customer complaints, and is honest in its advertising.”

Of course, as stated earlier, Synchrony Bank is an FDIC member, which means all accounts are insured up to $250,000.

WHAT TO LIKE ABOUT SYNCHRONY BANK?

This Synchrony Bank review will not be complete without giving you a summary of the things we like about this online bank, which include the following:

  • High-Yield Deposit Accounts – Synchrony Bank offers high-yield savings, money market, and certificate of deposit (CDs) accounts. For savings accounts, customers earn a 0.50% annual percentage yield (APY); for money market accounts, customers earn 0.40% APY; while CD rates vary depending on the term, but it could go as high as 0.80% for the long CD term.
  • No Monthly Maintenance Fee – All of the bank’s deposit accounts do not have monthly maintenance fees.
  • No Minimum Initial Deposit Requirement – Customers can open a Synchrony Bank savings or money market account with as little as $0. However, to open an Individual Retirement Account (IRA) money market accounts, there is a $250 minimum initial deposit requirement, while a minimum of $2,000 initial deposit is required for all CDs.
  • A Variety of Credit Card Options – Synchrony Bank partnered with hundreds of retailers as well as healthcare providers around the country to offer to finance. This allows customers to purchase products and services now, and pay for them over time.
  • 24/7 Online and Mobile Access – Synchrony Bank is an online- and mobile-only bank, which allows customers to access their accounts anytime, anywhere.
  • Traditional and Roth IRA Accounts – Unlike other online banks, Synchrony Bank offers both traditional and Roth IRA accounts, which allows it to cater to a larger customer base.
  • ATM Cards and Checks – For both savings and money market accounts, the bank offers an optional ATM card, which allows account holders to easily access cash in case the need arises. As for money market accounts, checks may also be requested.

WHAT NOT TO LIKE ABOUT SYNCHRONY BANK?

While we stated the things we like about Synchrony Bank in the previous section, to complete our Synchrony Bank review, here are some of the things we do not like about it or things that the bank can improve on in the future:

  • No Checking Account Options – Unfortunately, Synchrony Bank does not offer to check account option. So, if you are looking for this specific product, Synchrony may not be the right bank for you.
  • Limited Branch Locations – Although it’s nice knowing that Synchrony Bank does have physical branches, unfortunately, they’re only limited to one each in one each in Georgia, Kansas, North Carolina, and Utah.

FINAL THOUGHTS ON SYNCHRONY BANK REVIEW

Synchrony Bank is a solid online- and mobile-only bank that offers competitive rates on savings, the money market, as well as its CD accounts.

It is an ideal choice for people who want to earn a higher interest rate on their savings. More so, it is also ideal for consumers who want to open a credit card account because of the variety of options it provides.

Synchrony Bank is also a great choice for consumers who want to enjoy all these features without getting charged monthly maintenance fees. Also, to have access to ATMs without having to worry about ATM fees.

Given all the information we provided, do you think Synchrony Bank is the perfect online bank for you?

We hope this Synchrony Bank review provided you with everything you need to convince you that this bank is worth it.

Categories
Mobile Banking

SFGI Direct Savings Review: High-Yield Online-Only Savings Account For You

Are you looking for a high-yield online-only savings account? If so, then this SFGI Direct Savings review is for you as it focuses on providing essential information customers need to know about the product and the bank as well.

SFGI Direct Savings Review: High-Yield Online-Only Savings Account For You

Digital banking is a rising industry. Over the recent years, the number of people who prefer digital or mobile banks increases, and experts say there is no sign of slowing down. This prediction was made even more evident with the turn of events that happened in 2020.

According to a study conducted by J.D. Power, it was found that during the height of the COVID-19 pandemic, “37% of retail bank customers said they were using their bank’s mobile app more frequently than ever before, and 48% said their preferred means of depositing a check during that period was via mobile phone.”

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More so, in July 2020, Cornerstone Advisors published a report, which says that “14.6 million Americans considered digital banking to be their primary way to the bank“.

These studies are proof that, indeed, the future of digital banking is bright. With the pandemic still ongoing, and health experts not knowing when people get to go back to their normal lives, the digital banking industry will continue to be in demand.

Of course, we also cannot deny the fact that digital banking provides a lot of benefits as compared to traditional or conventional banking. Digital banks are very convenient, easy to use and do banking jobs in real-time.

Even before the pandemic hit, digital banks are already becoming the preferred choice by most young people. It was just that during the pandemic, adult people who are used to traditional banking have also transitioned to mobile banking for health and safety reasons.

Now, with the increasing demand, the competition among digital banks is really high. Today more than ever, digital banks see to it that they have the best offerings in order to keep up with the competition.

Surely, there are lots of digital banks out there, and for customers, choosing one could really be tough. However, for as long as you know what you need and what you prefer in a bank, picking among an array of options should be a lot easier.

Anyway, one of the digital banks out there is SFGI Direct, and today, we are going to specifically do an SFGI Direct Savings review to help you find out if this account and the bank is exactly what you are looking for.

To help you compare and do a thorough assessment on the bank and the product, in this SFGI Direct Savings review, we are going to particularly tackle the following:

  • What is SFGI Direct?
  • Who is SFGI Direct best for?
  • What are the products offered by SFGI Direct?
  • What is SFGI Direct Online Savings Account?
  • What are the advantages and disadvantages of the SFGI Direct Online Savings Account?
  • How to do banking with SFGI Direct?
  • Is SFGI Direct safe?
  • What to like about SFGI Direct?
  • What not to like about SFGI Direct?

WHAT IS SFGI DIRECT?

When selecting an online bank, there are a lot of things that you need to consider. Apart from ease of use, convenience, products and services offered, and many more, one of the most important things every customer needs to look into is the bank’s credibility.

Sure, there are a lot of digital banks out there. Many of them offer really amazing deals, but the question is, are these banks reliable? If things come to the worst, will you be assured that your money is intact?

Now, to be able to know if a bank is credible and reliable, it is every customer’s responsibility to do a background check.

Good thing, you need not go elsewhere, because we are giving you some of the most important things you need to know about SFGI Direct in particular.

As stated on its website, SFGI Direct is an online division of Summit Community Bank, which is owned by the Summit Financial Group Inc., a financial holding company based in Moorefield, West Virginia that provides community banking and insurance services.

SFGI Direct allows customers to bank safely and easily, at the same time, enjoy competitive rates on its online-only savings account.

Yes, currently, the bank only offers one product and that is a high-yield online-only savings account.

By the way, if you want to know more about what a high-yield savings account is, here’s a very informative video by Think Wealthy with Mike Adams. This will surely help expand your knowledge.

The online bank is committed to “offering efficient banking products with personal customer service“. Furthermore, the bank assures customers that their “tradition of old fashioned service with regular investments in technology yields a unique combination of high-quality service standards and high-tech capabilities.”

With SFGI Direct, customers need not worry about their money in case the bank fails, because all accounts are covered by Federal Deposit Insurance Corporation (FDIC) insurance up to $250,000.

WHO IS SFGI DIRECT BEST FOR?

In the previous section of our SFGI Direct Savings review, we talked about what SFGI Direct is about.

As we have said, as customers, we have to be responsible for choosing the right bank. We need a credible and reliable bank that won’t fail us come what may.

Now, before we even proceed with the main point of our review, to help you assess, we are sharing with you who SFGI Direct is best for.

Generally speaking, SFGI Direct is appealing to people who want high-interest rates on their savings. Of course, it also suits people who prefer to do online banking.

Additionally, SFGI Direct will attract people who prefer online banks without monthly fees, as well as a bank that provides easy transfers from your external checking account.

So, if opt for these features, then SFGI is perfect for you.

WHAT ARE THE PRODUCTS OFFERED BY SFGI DIRECT?

Unlike other online banks, SFGI Direct only offers a single type of account, and that is a high-yield savings account.

In the next section, we are going to discuss more the product. After all, this is an SFGI Direct savings review, right?

WHAT IS SFGI DIRECT ONLINE SAVINGS ACCOUNT?

When we talk about a savings account, the first thing that comes to mind is that it is a way of keeping our money secure as we work towards a particular financial goal.

However, for sure, you will agree with us, that a savings account is even better when it allows us to earn interest on what we save.

SFGI Direct offers a high-yield savings account, which makes it at par when it comes to digital banking competition.

Apart from the fact that it allows you to earn a high-interest rate, SFGI Direct online-only savings account is simple and easy to use. Of course, since it is online-only, it means it is accessible anytime and anywhere for as long as there’s internet access.

By the way, as of January 2021, the annual percentage rate of SFGI Direct online-only savings account is 0.56%. The rate fluctuates, so, it is best to always check.

Moving on, another feature that SFGI Direct Savings Account offer is that it does not charge a monthly maintenance fee, which is very common in many online banks. Also, it allows you to set up automatic transfers from your external account, as well as allows you to transfer money from your SFGI Direct savings to your external account.

As mentioned earlier, all SFGI Direct savings accounts are FDIC-insured up to $250,000.

Now, since the account is an online-only savings account, it does not come with an ATM card, which means you need to perform an electronic transfer when you want to withdraw your money. Fund transfers usually take two working days.

More so, the account can only be funded with electronic transfers from another bank account. Unfortunately, the account does not accept paper checks.

To open an account, all you need to do is go online. You will need to plug in your name, as well as other personal information including Social Security number, date of birth, address, and phone number. Your employment information will also be asked. More so, you will need a valid government-issued ID as well.

Apart from all that, the bank requires a minimum initial deposit of $500. By the way, to earn interest, you must have at least a $1 account balance.

Once your account is activated, please note that the bank limits your transactions on your savings account to six per month only.

WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF THE SFGI DIRECT ONLINE SAVINGS ACCOUNT?

In this section of our SFGI Direct Savings review, we are going to give you a summary of the advantages and disadvantages of the SFGI Direct savings account. This, hopefully, helps you decide if this online-only savings account is fit for you or not.

Advantages

  • High-Interest Rate – As of January 2021, the APY of the SFGI Direct savings account is at 0.56%. But, in the past, it has reached as high as 1%, which makes it one of the best online-only savings accounts out there.
  • No Monthly Maintenance Fee – Not all online banks offer this perk, thus, we find this a good advantage. SFGI does not charge monthly maintenance fees, which allows account holders to save a few bucks.
  • 24/7 Accessibility – Since it is an online-only savings account, for as long as you have an internet connection, you can access your account and make transactions.
  • Simple and Easy to Use – Unlike other online-only savings accounts, SFGI offers a simple and easy-to-use online banking platform.
  • FDIC-Insured – All accounts under SFGI Direct are FDIC-insured up to $250,000.

Disadvantages

  • No ATM Access – SFGI Direct savings account is an online-only account, which means it does not come with ATM access. So, if you want an account that allows you to withdraw or deposit cash using an ATM, you may have to look elsewhere.
  • No Paper Check Deposit – Unfortunately, the SFGI Direct savings account does not allow paper check deposits. Needless to say, it does not have a paper check feature as well.
  • No Cash Deposit – The online-only savings account does not come with ATM access, which is why it’s understandable that it does not allow cash deposits as well.

HOW TO DO BANKING WITH SFGI DIRECT?

In the previous sections, we already talked about what SFGI is about and what it has to offer, as well as the important details you need to know about the SFGI Direct online-only savings account.

This time, we are going to talk about how to do banking with SFGI Direct.

As we have already mentioned earlier, SFGI provides an easy process when it comes to account applications. Since SFGI Direct is an online banking platform, you can easily open an account for as long as you have an internet connection.

To open, go to the SFGI Direct website and client “Open an Account”. Make sure, however, to collect everything you need to open an account as your session will time out if you leave it inactive for 30 minutes. This is a security feature of the site. If that happens, unfortunately, you have to start over again.

To proceed with your account application, you will be asked to provide your personal information such as your name, Social Security number, date of birth, address, and phone number. You will also be asked to provide your employment information.

In addition, you will need a valid government-issued identification such as a driver’s license and passport as well.

To complete the account application process, you will need to make a minimum initial deposit of $500.

To deposit, you can link your account to an external checking or savings account. Also, you can put money into your account via ACH transfer or direct deposit but not through an incoming wire transfer or paper check deposits. Since SFGI Direct does not have a mobile app, it does not support mobile check deposits as well.

IS SFGI DIRECT SAFE?

Online banking can be crucial especially because of fraud and identity theft threats. So, in this SFGI Direct savings review, we are also looking into the safety and security features of the bank.

SFGI Direct uses multiple security measures to help ensure the safety and security of its customers’ personal information as well as banking transactions.

The bank’s security measures include 128-bit SSL encryption, password, and other authentication methods.

As mentioned, SFGI Direct is FDIC-insured under the Summit Community Bank umbrella. This means that the federal government protects the account holders’ money up to $250,000 (combined between all SFGI Direct and Summit Community Bank accounts) per depositor, per ownership category, in case of a bank failure.

WHAT TO LIKE ABOUT SFGI DIRECT?

Earlier in our SFGI Direct savings review, we talked about the advantages and disadvantages of the online-only savings account. This time, we are going to share with you a summary of the things that we particularly like about SFGI Direct.

This includes the following:

  • Competitive Rates – What makes SFGI Direct known in the world of digital banking is that it offers a high-yield online-only savings account that could go as high as 1%, which definitely is one of the best rates in the United States.
  • No Monthly Maintenance Fees – SFGI Direct does not charge a monthly maintenance fee as compared to other banks of the same type. This allows account holders to save a few bucks, really.
  • 24/7 Online Access – SFGI Direct savings account is accessible through the website anytime, anywhere.

WHAT NOT TO LIKE ABOUT SFGI DIRECT?

Of course, to complete our review, we also listed down some of the things we particularly do not like about SFGI Direct. Well, nothing is perfect, as they say – and the same goes for SFGI.

So, some of the not-so-good things about SFGI Direct are as follows:

  • No Mobile Banking App – Currently, SFGI Direct does not have its own mobile app, however, you can access your account through the Summit Community Bank mobile app.
  • Limited Personal Account Options – SFGI Direct only offers online-only savings account. It does not have other products like checking, CDs, money market, loans, etc. So, if you are someone who needs this kind of feature, SFGI Direct is not for you.
  • No Physical Branches – SFGI Direct is an online bank, and does not cater to what traditional banks offer. So, it is understandable that it does not come with physical branches.
  • High Minimum Deposit Requirement – Contrary to other online banks out there with similar product offerings, the $500 minimum initial deposit for SFGI Direct bank savings account is high. Although, the good thing is that the minimum balance requirement is only at least $1.
  • No Cash or Check Deposits – Since the online-only savings account does not come with ATM access, cash and check deposits are not allowed. In addition, since it does not come with its own mobile app, mobile check deposits are also prohibited.
  • No Business Accounts – Again, SFGI Direct only offers one account, which also means it does not provide business account options as well.

FINAL THOUGHTS ON SFGI DIRECT SAVINGS REVIEW

SFGI Direct has its share of advantages and disadvantages, and the same goes with its online-only savings account.

We must say, though, that the best feature that this online bank offers is the high-interest rate on its savings account. As mentioned, it is one of the highest in the industry. It definitely is very competitive even with what the top online banks have to offer.

However, we must admit that functionality is a major factor as well when choosing a bank. Unfortunately, SFGI does have a lot to work on in this aspect. It would be best if the bank also has its own mobile app, as well as additional product offerings to give customers more options.

Nonetheless, overall, SFGI Direct serves its purpose based on what it promises to offer.

Now, given all the information we have provided, do you consider opening a savings account with SFGI?

Well, we hope that through this SFGI Direct savings review, we are able to help you compare your options, and weigh whether this bank is worth it or not.

Categories
Mobile Banking

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

WHAT IS NORTHONE BANK?

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

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

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

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

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

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

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

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

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

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

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

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

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

WHO IS NORTHONE BANK BEST FOR?

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

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

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

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

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

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

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

WHAT ARE THE PRODUCTS OFFERED BY NORTHONE BANK?

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

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

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

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

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

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

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

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

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

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

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

HOW TO DO BANKING WITH NORTHONE BANK?

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

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

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

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

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

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

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

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

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

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

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

IS NORTHONE BANK SAFE?

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

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

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

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

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

WHAT TO LIKE ABOUT NORTHONE BANK?

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

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

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

WHAT NOT TO LIKE ABOUT NORTHONE BANK?

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

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

These are:

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

FINAL THOUGHTS ON NORTHONE BANK

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

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

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

Categories
Mobile Banking

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

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

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

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

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

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

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

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All About Checking Accounts: A Customer’s Guide

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

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

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

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

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

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

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

WHAT IS BLUEVINE CAPITAL?

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

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

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

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

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

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

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

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

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

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

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

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

WHO IS BLUEVINE CAPITAL BEST FOR?

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

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

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

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

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

WHAT ARE THE PRODUCTS OFFERED BY BLUEVINE CAPITAL?

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

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

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

Now, let’s discuss more these products:

BlueVine Business Checking Account

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

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

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

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

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

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

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

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

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

BlueVine Invoice Factoring

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

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

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

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

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

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

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

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

Line of Credit

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

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

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

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

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

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

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

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

HOW TO DO BANKING WITH BLUEVINE CAPITAL?

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

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

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

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

IS BLUEVINE CAPITAL SAFE?

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

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

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

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

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

WHAT TO LIKE ABOUT BLUEVINE CAPITAL?

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

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

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

WHAT NOT TO LIKE ABOUT BLUEVINE CAPITAL?

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

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

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

FINAL THOUGHTS ON BLUEVINE REVIEW

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

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

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

Categories
Mobile Banking

Novo Bank Review: The Digital Bank For Small Business and Freelancers

This Novo Bank review will provide small business owners, entrepreneurs, and freelancers all the essential information they need to know. This will particularly tackle the products and services, as well as features that make it stand out from the rest.

Novo Bank Review: The Digital Bank For Small Business and Freelancers

A research conducted by Statista found that there is an increasing number of people using digital banking in the United States. In fact, in 2018, about 61 percent of American people used digital banking. More so, the study shows that by 2022, the number will rise to 65.3 percent.

The increasing number of Americans using digital banking platforms is actually not surprising given the fact that people nowadays prefer the more convenient and efficient option. Needless to say, with the recent turn of events — with the pandemic restricting a lot of our day-to-day transactions or activities — people have relied more on anything digital to limit their exposure to the outside world.

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Having said that, businesses, over the years and most especially in the very recent year had to adapt to changes. They had to address the needs of customers by going digital on their daily operation – and that includes banking, of course.

An article published by BBC online says that “several major technology trends are converging and transforming digital banking services for businesses”. Again, this has something to do with adapting to change as well as customer demands.

Furthermore, the article says that based on research, it has been found that banks these days need to “provide a better, more relevant service, and invest in products that meet the changing customer needs of real-time, mobile, frictionless and simple banking“.

You see, the demand is so high that even banks, particularly digital banks need to step up their game, otherwise, they will end up at the bottom of the competition.

Anyway, while there are a lot of digital banks for personal use, they’re quite a few that focuses on small businesses, entrepreneurs, as well as freelancers – and Novo Bank is one of them.

So, if you belong to the business world, and you are looking for a reliable and dependable digital bank that meets your needs, this review on Novo Bank is for you.

In this Novo Bank review, we are going to tackle some – if not all – of the most important details you need to know prior to opening an account.

This will particularly provide you answers to the following most commonly asked questions:

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

WHAT IS NOVO BANK?

Before moving on to a more detailed review, let us first and foremost know more about the Novo Bank.

As a potential customer, it is important to do a little research on the banking institution that you are eyeing for. This helps you compare among different digital bank choices, and eventually make a choice based on what suits best your needs and preferences – in this case, though, to your business’s needs.

So, with that said, here’s what you need to know about Novo Bank:

Novo Bank is an online bank that is specifically designed for small businesses, entrepreneurs, and freelancers. In fact, the bank lives by its motto, which is “customer first banking for the modern entrepreneur“.

If you want to know more about what makes Novo Bank an ideal choice for small businesses and side hustles, you better check the video below by Magnified Money. He provided really good insights.

Novo Bank, which was founded in 2016, is a completely digital banking platform that is based in New York City.  It is an independent tech company that has partnered with Middlesex Federal Savings, which is a full-service bank based in Massachusetts.

The bank offers a simple product menu that is user-friendly. Furthermore, the bank relies on third-party partners to provide certain business services to make the banking process as convenient as possible for small businesses, entrepreneurs, and freelancers.

Since the bank follows a simple, targeted business model, customers get to enjoy extremely light banking fees.

As mentioned, Novo Bank operates mainly as a mobile banking app and is available on both Google Play and the App Store.

WHO IS NOVO BANK BEST FOR?

Now that you already know what Novo Bank is, this time, let’s talk about who is it best for.

This helps you assess whether Novo Bank is indeed the right digital bank for you.

Novo Bank, as mentioned earlier, is an all-digital bank designed for small businesses, entrepreneurs, and freelancers, which makes it an ideal choice for business owners who are comfortable in managing their money online.

Unfortunately, the bank does not offer every feature that you get from a traditional checking account. However, the bank offers various features for most cashless businesses as well as modern entrepreneurs.

Since it is a digital bank, Novo Bank does not have a physical branch location. So, if you are a business owner who prefers a bank that has a physical branch, then you might have to look for another bank option.

In addition, Novo Bank is ideal for business owners who want to enjoy light banking fees and a product menu that is user-friendly.

To put it simply, Novo Bank is best for small business owners who:

  • Prefer to manage their money online
  • Do not need cash to deposit cash frequently
  • Want a free business checking account without a minimum balance requirement
  • Want to use ATM locally and internationally without having to worry about fees
  • Want to connect their business checking account to financial tools they currently are using

WHAT ARE THE PRODUCTS OFFERED BY NOVO BANK?

In this part of our Novo Bank review, we are going to tackle the most important detail every customer needs to know — the products offered by the bank.

Unfortunately, Novo Bank only offers checking accounts at the moment. So, if you are looking for a digital bank for small businesses with a wide array of product options, this is not the right bank for you.

So, having said that, let’s take a look at what makes Novo Bank Checking account an ideal choice.

Checking Account

Novo Bank, as we have said, just offers one type of account, and that is a free business checking account.

Unlike other checking accounts out there, this one only requires a small minimum balance to open, and no minimum monthly balance requirement, as well as no monthly fees, to worry about. Also, the checking account does not have hidden fees, which is usually prevalent among other checking accounts offered by other digital banks.

Moreover, the Novo Bank Business Checking Account can be used for different transactions like fund transfers, mail checks, as well as in accepting incoming wires.

Unfortunately, the Novo Bank Checking account does not have its own ATM network, but, what’s nice about it is that the bank refunds all ATM fees charged by other banks.

For your reference, here are some of the best features that come with Novo Bank free business checking account:

  • Minimum Initial Deposit. Unlike other business checking accounts, Novo Bank only requires a $50 minimum requirement to be able to open an account. Also, the bank does not require a minimum account balance, as we have mentioned earlier.
  • MasterCard Business Debit Card. Your Novo Bank business checking account comes with a Mastercard Business Debit Card, which can be used anywhere MasterCard is accepted. More so, you can use the card at ATM machines to withdraw cash without having to worry about ATM fees.
  • Mobile Deposits. The bank allows you to make deposits into your account by simply taking a photo of the check and then uploading it to your account.
  • Foreign Checks. Another feature that makes Novo Bank checking account ideal not just for small businesses but freelancers as well is that the bank accepts foreign checks. The checks can be deposited using mobile check deposits in the Novo mobile banking app.
  • Send and Receive Funds Via Transferwise. You can transfer Australian, Indian, British, Japanese, Mexican, Swedish, Swiss, and Canadian currencies, as well as Euros through Transferwise without having to pay large transaction fees.
  • Digital Wallet Connection. The bank allows you to connect various digital wallets like PayPal, Venmo, Google Pay, and Apple Pay to your checking account.
  • Free ACH transfers. Unfortunately, similar to most digital banks, Novo Bank does not offer paper checks. But, the bank offers free ACH transfers. You can have physical checks processed and mailed out directly from the app.
  • Xero Integration. If you have Xero account, you can absolutely connect your Novo Bank Checking account with it, which automatically saves your transactions every hour, at the same time, reconciles to your Xero account.

As mentioned, the bank does not charge monthly fees. However, it does charge $27 non-sufficient funds or returned deposited items. Even so, the fee is still below what is usually charged by other banks of a similar type.

HOW TO DO BANKING WITH NOVO BANK?

This Novo Bank review will not be complete if we are not going to talk about how it actually works.

Novo Bank is a digital bank and does not have any physical branches. Thus, just like any other digital banking platform, all transactions including opening an account are done online.

Obviously, you must be a business owner to be able to open an account with Novo Bank. You must have any of the following types of business organizations:

  • Sole Proprietorship
  • Limited Liability Company (LLC)
  • Corporation
  • General Partnership
  • Non-profit Organization

To open an account, all you have to do is go visit the Novo Bank website and click on the Get Started Button.

Once you click that button, you will be directed to the application process. You will need to input a business email, as well as a password.

Also, to complete the application process, you will be asked to provide your background as well as financial information. The data provided will be used by the bank to determine whether you qualify for the account or not.

Some of the information required to proceed with your application include:

  • A valid Social Security number or an employer identification number (EIN)
  • U.S. address
  • U.S. cell phone number

In addition, business documentation (in pdf, jpg, jpeg, or png file formats.) will also be required. However, the specific requirements will depend on your state of residence and your legal entity status.

Once you get approved for an account, you can now link other bank accounts to your Novo Bank account to easily transfer funds. Also, you can already start accepting ACH payments, depositing checks, and paying your bills using your new account.

To make a deposit to the account, you may do so via ACH, international or domestic wire transfer, or with a mobile check deposit on your smartphone.

In addition, you can withdraw and send money via ACH or send a paper check by mail with the Novo Bank mobile app.

IS NOVO BANK SAFE?

One of the things that people look into when it comes to choosing a bank – in this case, a digital bank – is the security features in place.

Fortunately, just like any other all-digital banking platforms out there, Novo Bank made sure to put in place all standard security and safety features to ensure that customers are protected from possible fraud or identity theft.

Novo Bank employs a dedicated security team and bank-grade encryption to ensure that customers’ personal information is protected around-the-clock.

As with the Novo Bank debit MasterCard, it is protected by EMV technology, which makes it impossible for the card to be counterfeited.

Meanwhile, all Novo Bank account is FDIC insured for up to $250,000 per depositor, through its partner bank, Middlesex Federal Savings.

So, to answer the question, is Novo Bank safe? Yes, it is.

WHAT TO LIKE ABOUT NOVO BANK?

In the previous sections, we have tackled the most important things that every potential customer needs to know about Novo Bank.

Of course, this Novo Bank review will not be complete without us giving you a summary of the things we like about the bank, which include:

  • $50 Minimum Deposit Requirement To Open An Account – Unlike other digital business checking accounts, Novo Bank only requires at least $50 to open an account. Definitely low compared to its competitors.
  • No Credit Check Required – Novo Bank does not check your credit history when opening an account, which makes it ideal for all business owners.
  • No Monthly Fees – Apart from charging $27 for non-sufficient funds and returned deposited items, Novo Bank does not charge any fees.
  • No Minimum Balance Requirement – Another plus of Novo Bank is that it does not require a minimum balance in your account, which means, you can withdraw all your money and you do not have to worry about penalties.
  • ATM Fee Reimbursements – Novo Bank does not have its own ATM network. But the good thing is, the bank reimburses all ATM fees charged to you by other banks. Needless to say, this applies whether you make ATM transactions here in the United States or internationally.
  • Discounts and Credits for Third-Party Business Services – Novo Bank provides valuable discounts as well as credits for third-party services for small business customers.
  • Easy-to-Use Online Banking – Apart from the mobile app, which is available for both Android and iPhone users, you can also access your account conveniently on its website.
  • Deposit and Send Checks Using the Mobile App – Novo Bank allows you to use mobile check deposits to add paper checks to your account. You can also send paper checks in the mail using the app.
  • Free Transfers and Payments – Novo Bank does not charge incoming wires, as well as incoming and outgoing ACH transfers. More so, sending a check by mail is also free.
  • Integration with QuickBooks, Xero, Stripe, and Shopify – Another plus point for the bank is that it is integrated with top business tools such as QuickBooks, Xero, Stripe, and Shopify.

WHAT NOT TO LIKE ABOUT NOVO BANK?

This Novo Bank review will not be complete without a list of downsides. In the previous section, we provided you with a list of things to like about Novo Bank. This time, it’s a summary of the things we do not like about it.

The list includes the following:

  • Available for Business Owners Only – Novo Bank accounts are only limited to business owners, entrepreneurs, and freelancers.
  • No Interest – Unlike other checking accounts out there, Novo Bank checking account does not allow you to earn interest. However, this is totally understandable because of the fact that Novo is not a full-service banking institution.
  • No Paper Checks or Outgoing Wires – Unfortunately, most traditional banking features are not available at Novo — and that includes checkbooks and outgoing wires.
  • No Integration with Payroll Services – The mobile app does not integrate directly with any payroll providers, which could be a major concern if you have employees. If you have none, this should not bother you at all.
  • Limited Products – Unfortunately, Novo Bank does not offer any other products except for a business checking account.
  • Does Not Allow Recurring Payments or Direct Deposits – The bank cannot accommodate recurring payments or making direct deposits. It only allows you to receive direct deposits.
  • No Cash Deposits – This is definitely not new to digital banking platforms. Similar to most digital banks, Novo Bank does not have a cash deposit option.

FINAL THOUGHTS ON NOVO BANK REVIEW

By now you probably have already figured that Novo Bank is not for everyone. The bank only offers a checking account, which is specifically designed for small businesses, entrepreneurs, and freelancers.

Contrary to other digital banks, Novo Bank does not offer personal accounts or interest-bearing accounts, which makes it even more ideal for a specific sector only.

It is probably safe to say that Novo Bank is very straightforward when it comes to what they offer — targeting a very specific market only, and that is small business owners and freelancers. However, since the bank is relatively new, the possibility of additional products and services in the future is surely just around the corner.

With that said, do you think Novo Bank is the right digital bank for your business?

To conclude, we hope that through this Novo Bank review, we are able to provide you the answers you are looking for to some of the most common questions about this digital banking platform.  

Categories
Mobile Banking

Charles Schwab Bank Review: What Makes This Online Bank Stand Out

If you are looking for a digital bank that offers a stellar checking account, at the same time, free use of any ATM, and does not require you to deposit regularly, then you better read through this Charles Schwab Bank review.

Charles Schwab Bank Review: What Makes This Online Bank Stand Out

Wondering why?

Well, apparently, Charles Schwab Bank is providing all that to their customers. This Charles Schwab Bank review, however, will give you more information you need to see if this, indeed, is the right mobile bank for you.

A report published by Statista, says that in 2018, there was about 61 percent of American people used digital banking. Experts project that the population of digital bank users will increase to 65.3 percent by 2022.

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Meanwhile, an article by Forbes, says that while “digital banking had been moving mainstream, particularly for younger Americans, consumers of all ages have now hopped on board“.

So, what are we trying to say here?

Well, as you can see, these reports/studies show that digital banking has indeed become a necessity over recent years particularly in the last year when the country and the world faced one of the hardest times in history.

Moving forward, digital banking does not seem to be slowing down rather only rising – with people of all ages leaning towards it as compared to traditional banking (or have both).

Anyway, what we are trying to point here is that since there is an increasing demand for digital banking platforms, it opens up more opportunities for digital banks to come to life, which is good because it gives customers more choices.

Among the digital banking platform choices out there right now is Charles Schwab Bank, and today, we are going to particularly focus on this digital bank. Will look into what it has to offer, and what makes it right for you.

In this Charles Schwab Bank review, we are going to specifically tackle and provide answers to the following commonly asked questions about the bank:

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

WHAT IS CHARLES SCHWAB BANK?

Before we go into more detailed information about the products and services that the bank offers, as well as other equally important information, let’s take a look at the bank’s history or who and what the bank is all about.

Remember, as a customer, it is your responsibility to know your bank first before you even open an account. This helps you build trust and confidence knowing you are putting your money in the right, reliable place.

Moving on, here’s a quick briefer on what Charles Schwab Bank is all about —

Charles Schwab is more popularly known as an investing platform. However, it does also offer checking and savings options under Charles Schwab Bank, which is an online bank. Additionally, the bank also offers other banking services like home loans and an asset line of credit.

Charles Schwab has been part of the country’s financial landscape for more than 40 years now. With that on their shoulder, it’s safe to say that customers can rely on its stability and trustworthiness.

Although we are going to particularly focus on the Charles Schwab Bank (the online bank) today, just to give you an overview, the brokerage firm offers various investment accounts (should you need them in the future), which include stocks, bonds, mutual funds, annuities, ETFs, and a lot more.

Moreover, the firm also offers multitudes of retirement account options like Traditional IRAs and Roth.

While Charles Schwab Bank is purely online, Charles Schwab Co. has over 360 brokerage branches, which are mostly concentrated in California, Connecticut, and Arizona.

If you want to know more about Charles Schwab Bank, check this video out:

WHO IS CHARLES SCHWAB BANK BEST FOR?

When choosing a bank, it is important to do a self-assessment first. You ask yourself what you are specifically looking for, what product or service do you need, and more. Doing so will help trim down your choices – especially these days when there’s a lot to choose from.

Now, in this part of our Charles Schwab Bank review, we are going to share with you who this bank is ideal for.

Charles Schwab Bank is known as the “bank for investors”. This alone should give you a hint on who the Charles Schwab Bank is ideal for.

Technically, the bank should appeal to customers who hope to move money between various types of accounts — not just savings or checking, but also brokerage.

More so, Charles Schwab Bank may also be a good fit for people who want to earn valuable interest on their checking account, travel abroad and access their money without having to pay expensive ATM and foreign transaction fees, receive unlimited ATM fee rebates, and that the bank is also ideal for those active investors who want a combination of liquidity, $0 equity trades, as well as over 13 different investment products.

So, if you are looking for or you are any of these, then Charles Schwab Bank may just be the right choice for you.

WHAT ARE THE PRODUCTS OFFERED BY CHARLES SCHWAB BANK?

In this part of our Charles Schwab Bank review, we are going to look into the products offered by the bank.

Charles Schwab Bank currently offers the following bank accounts and services:

  • Savings Account
  • Checking Account
  • Certificates of Deposit (CDs)
  • Credit Cards

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

Savings Account

One of the accounts offered by Charles Schwab Bank is its Schwab Bank High Yield Investor Savings account.

This account earns a 0.05% annual percentage yield (APY), which is well below other online savings accounts rates.

Although that is the case, what’s nice about the Schwab Bank High Yield Investor Savings account is that it does not require a minimum opening deposit, does not require a minimum balance, has unlimited ATM fee rebates worldwide, allows mobile check deposits, does not charge service fees, and of course, all savings accounts are FDIC-insured up to $250,000.

Unlike other online banks, Charles Schwab Bank provides several options when it comes to opening an account. Customers may opt to fill out and submit an application via mail, in person at a Schwab branch, or upload online (this option, however, is only applicable for existing customers).

Meanwhile, customers can make deposits to their savings accounts through any of the following choices:

  • Direct deposit
  • Fund transfer from Charles Schwab brokerage account or checking account
  • Mobile deposit through the mobile app
  • Wire transfer from another financial institution
  • Mail a check to Charles Schwab Bank

Although other digital banks may offer better rates as compared to what Charles Schwab Bank offers, the bank’s High Yield Investor Savings account may still offer a better rate as compared to other local brick-and-mortar banking out there.

Checking Account

Another product option offered by Charles Schwab is its Schwab Bank High Yield Investor Checking account.

While there is nothing extreme about this checking account, customers could earn 0.03% APY.

What makes the Schwab Bank High Yield Investor Checking account stand out from other checking accounts offered by other online banks is that when you open one, you automatically get a Schwab One brokerage account as well. This makes it not ideal for those who are not interested in opening a brokerage account.

Moving on, the Schwab One brokerage account comes with free standard checks as well as a Schwab Visa Platinum Debit Card. Since it is part of the Visa family, the debit card is accepted almost anywhere in the world, making it an ideal choice for travelers as well. Needless to say, when you use it outside the United States, you are free from foreign transaction fees.

Furthermore, another very notable perk of the Schwab Bank High Yield Investor Checking account is that it provides unlimited ATM fee rebates worldwide, which means wherever you go, you will always get reimbursed for any ATM fees you have incurred. The funds are usually received at the end of the same month in which you were charged ATM fees.

Similar to its savings account, Charles Schwab Bank’s checking account does not have account minimums requires as well as service fees.

As with opening an account, the same applies to its checking account as its savings account. Customers may opt to open an account online or by filling out and mailing a paper application. Just the same, you may also opt to drop by a local Schwab branch near you.

To make deposits, you may also opt to do any of the following ways:

  • Direct deposit
  • Fund transfer from Charles Schwab brokerage account
  • Mobile deposit through the mobile app
  • Wire transfer from another financial institution
  • Mail a check to Charles Schwab Bank

For those who already have a Charles Schwab brokerage account, it is important to note, though, if you have a brokerage account that comes with a debit card as well as check-writing and bill pay capabilities when you open a checking account, all of those featured are automatically transferred to your checking account, and will no longer be available with your brokerage account.

Certificates of Deposit (CDs)

Here’s the thing, Charles Schwab acts as a virtual middleman for various CDs from other banks. Customers can use the Schwab CD OneSource online to compare rates and terms, as well as to purchase CDs.

Unfortunately, the CD rates are far lower as compared to what you’ll get from other online banks.

For CDs, deposit start at $1,000 and increase in $1,000 increments. The terms range from a month to 20 years. A notification will be sent to you once your CD reaches maturity so you get to access your funds and reinvest into a new CD if you want to.

If you are going to open a CD account, it is important to note that the bank includes a selling concession in new issue CDs for online and broker-assisted trades. A $1 transaction fee per $1,000 CD is charged for secondary trades, while broker-assisted ones are charged the online price of $25 per trade service charge.

Similar to both checking and savings accounts CDs are FDIC-insured at each bank for up to $250,000. Also, you may opt to extend your FDIC coverage by purchasing CDs across multiple banks through Schwab.

Credit Cards

Charles Schwab per se offers two credit cards only — one is a premium credit card called Schwab Investor Card from American Express, which is ideal for investors, and the other one is a travel credit card called the American Express Platinum Card for Schwab.

HOW TO DO BANKING WITH CHARLES SCHWAB BANK?

In case you did not notice, earlier we already mentioned how to open an account particularly on Charles Schwab Bank’s savings and checking accounts.

Again, to open either a savings or a checking (or both) accounts, you may choose from several options, which include filling out and submitting an application via mail, in person at a Schwab branch, or upload online.

Meanwhile, to make an initial deposit or future deposits for that matter, you may do so through the following ways:

  • Direct deposit
  • Fund transfer from Charles Schwab brokerage account or checking account
  • Mobile deposit through the mobile app
  • Wire transfer from another financial institution
  • Mail a check to Charles Schwab Bank

IS CHARLES SCHWAB BANK SAFE?

With over 40 years of existence in the brokerage industry, Charles Schwab has, for sure, mastered ensuring the safety and security of their customers’ accounts.

The Charles Schwab online bank per se comes with the latest encryption technology, Voice ID, notifications and alerts, and card lock/unlock features to ensure the security and safety of their customers’ accounts.

Furthermore, Charles Schwab also has a security guarantee in place, providing 100% coverage of any losses in their customers’ bank accounts due to unauthorized activity.

Also, the bank is FDIC insured, which means should it fail, the federal government will pay up to $250,000 per customer.

WHAT TO LIKE ABOUT CHARLES SCHWAB BANK?

Now, we already tackled what Charles Schwab Bank is, who it is for, the products and services it offers, as well as how to do banking with them.

In this section of our review on Charles Schwab Bank, we are going to share with you a summary of the things we like about the bank.

This includes the following:

  • No Monthly Maintenance Fees – Contrary to other online banks, Charles Schwab Bank does not charge monthly maintenance fees for both checking and savings accounts.
  • No Minimum Opening Deposit Required – This is probably one of the things we love the most about Charles Schwab Bank. You can open an account anytime without having to worry about an opening deposit requirement.
  • No Minimum Balance Required – Another thing to love about Charles Schwab Bank’s savings and checking accounts is the fact that it does not require any minimum balance.
  • Unlimited ATM Fee Rebates Worldwide – Charles Schwab Bank is an ideal bank for constant travelers as it offers unlimited ATM fee rebates from all over the world.
  • Mobile Check Deposit – Another feature that not all online banks offer, but Charles Schwab Bank does.
  • High Yield Checking Account – Although it’s not as high as other mobile banks out there, the rates are still competitive considering the other perks you get from the bank.
  • Free Overdraft Transfers from Linked Accounts – With Charles Schwab Bank, you do not have to worry about overdraft transfer fees as it is free.
  • Free Investment Account with Checking Account – Once you open a checking account, you automatically get a brokerage account as well.
  • FDIC-Insured – Both savings and checking accounts of Charles Schwab Bank are FDIC insured, which means, in case of bank failure, depositors can get up to $250,000 from the federal government.

WHAT NOT TO LIKE ABOUT CHARLES SCHWAB BANK?

While there are a lot of things to like about Charles Schwab Bank, it does sure have a few downsides as well.

To help you decide if Charles Schwab Bank is the right bank for you, take a look at these disadvantages as well. It includes:

  • Below-Average APY on Savings Account – As mentioned earlier, if compared to other online banks out there, the APY offered on the Charles Schwab Bank savings account is not that competitive.
  • No Money Market Accounts – Unfortunately, unlike other banks of a similar type, Charles Schwab Bank does not offer money market accounts. So, if you are looking for one, you may check out other digital banks instead.
  • No Banking Services at Charles Schwab Branches – Although Charles Schwab has over 360 brokerage branches across the country, these branches do not provide banking service, which is actually understandable as Charles Schwab Bank is an online bank, and technically speaking, the bank is different from the brokerage (which they are really known for, by the way).
  • A Linked Brokerage Account is Required for the Checking Account – If you want a sole checking account only, Charles Schwab Bank may not be the right one for you, because the bank’s checking account automatically comes with a brokerage account.
  • No ATM Network – Although Charles Schwab Bank provides a Visa debit card, the bank does not have its own ATM network.

FINAL THOUGHTS ON CHARLES SCHWAB BANK REVIEW

Surely, there are lots of online banks out there and Charles Schwab Bank is only one of them.

While the other banks may have better offerings as compared to what Charles Schwab Bank has to offer, it surely does have some features that are unique to it — one of them is when opening a current account, you automatically get a brokerage account as well.

Overall, we have to say that Charles Schwab Bank is ideal for people who are into brokerage at the same time, want to save up for a fair enough rate.

To end, we hope that this Charles Schwab Bank review has provided you with all the essential information you need. More so, we hope we are able to help you decipher if this online bank is the one that fits 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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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.

Categories
Mobile Banking

CIT Bank Review: What Makes It An Ideal Digital Bank Choice For You

In this CIT Bank review, we give you everything you need to know about this banking institution, and what makes it stand out from the rest.

CIT Bank Review: What Makes It An Ideal Digital Bank Choice For You

Fifty-one percent of adult people or equivalent to 61% of internet users in the United States bank online. This was based on the findings of a survey conducted by Pew Research Center.

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The above result is actually not surprising given the fact that we now live in the digital world where people are mostly online. Technology has brought so much convenience to people that even banking institutions had to adapt. More so, the digital era has brought opportunities for online banks to come to life – bringing more banking choices among consumers.

There are a lot of online banks these days. In fact, there are too many that finding the right bank could get a little tricky. So, with that in mind, today, we are going to particularly focus on providing you with all the essential information you need about one of the digital banks out there – the CIT Bank.

In this CIT Bank review, we are going to particularly tackle some of the most common questions people look for answers to when choosing a bank – an online bank per se.

These questions include:

  • What is CIT Bank?
  • Who is CIT Bank best for?
  • What are the major products offered by CIT Bank?
  • What are the other financial products CIT Bank offer?
  • How to do banking with CIT Bank?
  • Is CIT Bank safe?
  • What to like about CIT Bank?
  • What not to like about CIT Bank?

WHAT IS CIT BANK?

Just like in everything, before dealing or settling with a banking institution, it is important to get to know the bank first. This helps you get to know more about their history, affiliations, products, and more – which we are going to tackle in the next few sections.

Knowing what the bank is all about will also help you determine whether it is the right one for you according to your needs and preferences.

So, with that, here’s a quick briefer on what CIT Bank is all about —

CIT Bank, N.A. or simply CIT Bank is a subsidiary of one of the well-known financial holding companies in the country, the CIT Group, Inc.

The bank aims to be every consumer’s go-to online banking solution, which is why while they do not local branches you can walk into like other online banks out there, CIT Bank does offer easy-to-open accounts with impressively low opening deposit requirements.

CIT Bank makes banking easier and convenient by ensuring you can check your account and make banking transactions conveniently using your computer or mobile device any time of the day, anywhere you are.

One of the impressive things about CIT Bank as well is that it focuses on providing consumers some of the most competitive interest rates on the market today.

While CIT Bank does have a business and commercial banking solutions, too, in this CIT Bank review, we are going to specifically focus on personal banking to help you see if CIT is the perfect institution for your banking needs.

Before moving on with our CIT Bank review, here’s an equally informative review by BankTruth we thought you might want to check as well:

WHO IS CIT BANK BEST FOR?

In the previous section, we talk about some of the highlights of what CIT Bank is. In this section, we are going to talk about who will greatly benefit from what the bank offers.

CIT Bank is ideal for people who prefer a digital bank offering checking and savings accounts that can be opened conveniently online with no fees or minimum balance requirements. More so, the bank also appeals most to customers who want to earn high rates in deposit accounts — because after all, that is one of the things that CIT Bank is known for.

To be more specific, CIT Bank is a good fit for people who:

  • Want an online savings account or a money market account without monthly fees
  • Want to enjoy flexible CDs that allow early withdrawal
  • Plan to use CDs for long-term savings
  • Do not want to write checks
  • Want to enjoy ATM rebates and the freedom to withdraw cash from any machine
  • Do not need a bank to print as well as mail checks for bill payments
  • Have access to no-penalty CDs

If you are looking for any – if not all – of the above benefits and services, then CIT Bank may be the right digital bank for you.

WHAT ARE THE MAJOR PRODUCTS OFFERED BY CIT BANK?

This CIT Bank review will not be complete if we are not going to tackle the products – particularly the major ones — that the bank offers.

Before moving on, it is important to note that since CIT Bank is an online-only bank, it offers a limited selection of deposit accounts as compared to regular banks out there.

Meanwhile, for the reason that the bank is not burdened by the expense of branches and ATMs, CIT Bank can offer higher interest rates as compared to traditional bank accounts. Needless to say, the bank also offers relationship pricing for its customers when it comes to their home loan product.

Now, in this section, we are going to share with you essential information you need to know about each of the following major products from CIT Bank:

  • eChecking Account
  • Savings Account
  • Money Market Accounts
  • Certificate of Deposit

eChecking Account

It was only in late 2019 when CIT Bank added eChecking accounts among its product line. With this type of product, customers get to fully access an array of banking products offered by CIT. Needless to say, customers are able to check and do banking transactions 24 hours a day through the CIT mobile app.

Unlike other checking accounts, CIT Bank’s eChecking account pays interest. Although it is not that remarkable, what makes it stand out is that the fees are low, and the account comes with some very handy features.

Some of the highlights of CIT Bank’s eChecking account are as follows:

  • Requires $100 minimum deposit to open an account
  • Pays 0.10% annual percentage yield (APY) on balances under $25,000
  • Pays 0.25% APY on balances amounting to $25,000 and above
  • Provides a complementary debit card with EMV chip technology for spending and cash withdrawals
  • No monthly maintenance charges
  • No ATM fees
  • Provides up to $30 per month in ATM fee rebates
  • Remote check deposit
  • Locks debit card to reduce the possibility of fraud
  • Allows automatic payments when account information is provided to billers
  • Payments with Zelle, Apple Pay, and Samsung Pay

Contrary to other checking accounts out there, the CIT Bank eChecking account does not allow customers to write checks. More so, it does not offer an online bill-pay feature that allows customers to push payments out.

Although these restrictions may not be a deal-breaker for some, it may be for people who need to pay people and organizations that do not accept electronic payments on a regular basis.

Savings Account

CIT Bank offers a two-tiered savings accounts, which is called Savings Builder account that have specific earning requirements. The requirements are either customer maintain a balance of $25,000 or more, or make at least one deposit of $100 or more on a monthly basis.

Some of the great features of CIT Bank’s savings account are as follows:

  • Requires only $100 minimum to open an account
  • Pays 0.29% APY on accounts with balances under $25,000 without $100 monthly deposits
  • Pays 0.45% APY on accounts with balances under $25,000 but with $100 monthly deposits or balances over that amount
  • No monthly maintenance fees
  • Mobile check deposit

If you want to take full advantage of what the account has to offer — meaning the highest APY possible, again, you have to either keep an account balance of $25,000 or more or deposit $100 every month.

A lot of banks set limits when it comes to how often customers can withdraw from their savings accounts. CIT Bank is one of them. Per the bank’s rule, customers are only allowed to make six transactions per statement cycle. However, it is important to note that checks received by mails do not count against the limit.

Money Market

Another account option that CIT Bank offers is its Money Market account. Unlike other banks, CIT Bank only offers one money market account.

Among other accounts offered by the bank, its Money Market account pays the highest rates. Needless to say, it is readily available anytime you need the money. You can use your money with third-party payment networks and online bill pay in the future.

Anyway, some of the key features offered by CIT Bank’s Money Market account are as follows:

  • Requires at least $100 deposit to open an account
  • Pays 0.50% APY
  • Allows online bill pay
  • An ideal funding source for PayPal payment (a maximum of $50 per day and per transaction)
  • Allows mobile check deposit
  • Person-to-person payments through Zelle (a maximum if $600 a day and $300 per transaction)

What is nice about money market accounts is that customers can earn higher rates on cash as compared to other accounts, and also, the money can be spent any time without having to transfer it to a checking account like what you may need to do with a savings account.

Unfortunately, though, unlike other banks, CIT Bank does not provide as many payment methods. However, the fact cannot be denied that the bank offers an excellent rate.

While the money market account makes it easier to pay from your balance, there are limitations set as well. Customers can only make six external transfers every month. Also, it is important to note that CIT Bank’s dollar limits on Zelle and PayPal payments only.

Certificate of Deposit

CIT Bank offers a number of CD options, which include term CDs, jumbo CDs, as well as no-penalty CDs. Previously, the bank also offered RampUp CDs, but, it is no longer available for new customers.

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

Term CDs

Term CDs refer to standard CDs that reward you for locking up your savings with the bank. To open a Term CD at CIT Bank, the requirement is to deposit at least $1,000.

For CIT Bank’ Term CDs, the term range from six months up to 60 months, and customers can earn annual percentage yield from 0.30% to 0.50%.

Remember that Term CDs allow you to lock in a rate for a particular period of time. The longer your term length is, the higher your interest will be.

CIT Bank does not charge any opening or maintenance fees, which is great because some banks do charge one.

Jumbo CDs

Jumbo CDs, which are offered by CIT Bank allow customers to earn higher APYs on deposits of a minimum of $100,000. Unlike Term CDs, the Jumbo CDs are not a common option for most customers given the minimum opening deposit requirement.

The Jumbo CD have longer terms, which range from two to five years. It comes with locked-in rates that range from 0.40% to 0.50% APY depending on how long the term is.

Similar to Term CDs, though, Jumbo CDs do not charge opening or maintenance fees as well.

No-Penalty CDs

CIT Bank also offers No-Penalty CDs, which allow customers to lock in a rate, at the same time, keeping the options open since there is no penalty to withdraw the money before maturity. No-Penalty CDs are ideal especially since it allows customers to withdraw their money in case of emergency without getting charged.

No-Penalty CDs is an 11-month term CD. To open, you only need at least $1,000. Customers can earn 0.30% APY with this CD option.

Seven days after opening, you can already withdraw funds with no penalty.

Similar to the other CD options, it also does not have an opening of maintenances fees.

RampUp CDs

As mentioned earlier, this CD option is no longer available for new accounts. However, just to give you an idea, with this CD type, customers can raise their rate one time during their CD’s term — only if CIT Bank raises rates on these CDs.

WHAT ARE THE OTHER FINANCIAL PRODUCTS CIT BANK OFFER?

In the last section, we provided you with the major products that CIT Bank offers.

Now, apart from those, the bank also allows customers to borrow money through the following:

  • Business Loans
  • Home Purchase Loans
  • Mortgage Refinancing

HOW TO DO BANKING WITH CIT BANK?

At this time, you are probably wondering already how to start banking with CIT Bank.

Well, to open an account with CIT Bank, all you have to do is download its app or visit its website, and follow the process stated there.

Remember, CIT Bank is a digital bank with no physical branches or locations. Thus, everything is done online.

IS CIT BANK SAFE?

Just like most digital banks out there, security is a top priority for CIT Bank. To ensure all accounts are protected, it does have SSL encryption, account monitoring, antivirus protection, firewalls, and other security measures.

More so, the bank provides support in circumstances of fraud or identity theft.

Meanwhile, in the event of bank failure, CIT Bank is an FDIC insured bank, which means the federal government protects your money for up to $250,000 for every account ownership category.

WHAT TO LIKE ABOUT CIT BANK?

In this part of our CIT Bank review, we are going to provide you with some of the advantages of CIT Bank. Hopefully, this helps you gauge better if the bank is indeed the one you are looking for.

Based on the information we already provided, here are some of the things to like about CIT Bank:

  • Competitive Annual Percentage Rate (APY) – CIT Bank offers competitive rates among all its products, which is great and a real come-on among customers.
  • eChecking Accounts Earn Interest – It is not that common for banks to offer checking accounts with interest, but not with CIT Bank as they do pay interest for checking accounts. Although not that remarkable, still pro for customers.
  • No Monthly Maintenance Fees – Unlike other banks out there, CIT Bank does not charge a monthly maintenance fees across all its products.
  • 24/7 Mobile and Online Access – CIT Bank is an online-only bank, which makes perfect sense that it is accessible anytime, anywhere for as long as there is an internet connection, of course.
  • Low Minimum Deposit Requirements – As compared to other banks, CIT Bank requires a fairly low minimum deposit requirement in all its products.
  • Refunds ATM Fees Up to $30 per month – Since the bank does not have its own ATMs, it does not charge its customers when they use another bank’s machine. In fact, when the customer is charged, they are refunded for up to $30 a month.
  • FDIC Insured – All money deposit on CIT Bank are FDIC-insured, which means, should something happen to the bank, customers won’t be left with anything.

WHAT NOT TO LIKE ABOUT CIT BANK?

While there is a lot to like about CIT Bank, there are also some disadvantages on the side.

Some of the things we particularly not like about CIT Bank include the following:

  • No Physical Branch/Location or ATMs – Unfortunately, if you are the type who prefer the traditional way of banking, CIT Bank does not offer that. Again, it’s an entirely online bank, which explains the absence of a physical branch as well as their own machines.
  • No Checkbooks for eChecking Accounts – Another downside of the bank is that it does not offer checkbooks on its eChecking Account. But then again, the bank is an online-only bank explains it all.
  • Limited Account Options – Contrary to other banks of the same type, CIT Banks has limited account options. So, if you want wider account options, this may not be perfect for you.
  • APYs for CDs is Not the Best Nationally – The APYs for CIT Bank’s CDs are not the best in line. There are other banks that offer better CD rates out there.
  • Does Not Have 24/7 Customer Support – Since CIT Bank is a digital bank, most customer inquiries are handled online through its app or through automated telephone banking. Also, the customer support hours are limited, which is only available from 9 a.m. to 9 p.m. Monday through Friday and 10 a.m. to 6 p.m. on Saturday. Customer service is, unfortunately, not available on Sundays.

FINAL THOUGHTS ON CIT BANK REVIEW

CIT Bank is just one of the many digital bank options out there.

Apart from the fact that CIT Bank is an online-only bank, it also makes an ideal choice for people who want to have 24/7 access to their bank accounts, at the same time, enjoy earning higher rates.

To conclude, we hope that this CIT Bank review has provided you with all the essential information you need to know whether it is the right bank for you or not.