Tag: high-yield savings account

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Investment Apps and Websites

Atmos Financial Review: High-Yield Savings Account With Green Initiatives

If you are looking for a financial institution that offers high-yield, climate-focused savings accounts, then this Atmos Financial review is for you.

Atmos Financial Review: High-Yield Savings Account With Green Initiatives

Generally speaking, people deposit money into savings accounts just for the sake of having a safe place to keep their money.

In fact, according to the Federal Deposit Insurance Corporation (FDIC) Survey of Household Use of Banking and Financial Services, which was conducted in June 2019, “nearly 95 percent of U.S. households (approximately 124 million households) were banked (i.e., had a bank or credit union account).” 

There are several factors that people consider when choosing a bank or any financial institution for that matter.

One factor is the stability of a bank.

Based on a report by The Ascent, 51.76% of people use only physical banks, 25.18% use only online banks, while the remaining 23.06% use both.

Another factor depositors take into consideration is the interest rate. Some people prefer shopping for the highest interest rate available to be able to earn more from what they have.

Ideally, it would best if a customer gets to have both stability and a high interest rate. It’s a win-win situation, definitely.

But, here’s some good news. While there are lots of financial institutions out there that offer both stability and a high interest rate, only a few offer climate-focused accounts, which is what Atmos Financial is all about.

Atmos Financial is a financial technology (fintech) that specifically loans its deposits to green initiatives.

The company provides “banking that reverses climate change.” Definitely something not very common among banks and credit unions out there.

Imagine, with Atmos Financial, you can bank, earn high interest, at the same time, be able to help protect and preserve our planet.

Now, if you are interested to know more about what Atmos Financial is all about and what it offers, then, you should continue reading this in-depth Atmos Financial review.

In the next few sections, we are going to specifically tackle some of the most important information customers need to know about this fintech company. This includes:

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

WHAT IS ATMOS FINANCIAL?

Atmos Financial is a fintech company that was founded in January 2020 by Ravi Mikkelsen.

Technically speaking, Atmos Financial is not a bank. However, the company can offer banking services through Evolve Bank & Trust, its bank partner, a member of the FDIC.

Atmos Financial is not your typical fintech company.

While it does work on providing consumers a place to save and earn from their money, it also allows them to contribute to making the world a better place to live in.

Atmos Financial’s goal is “to provide permanent positive environmental and societal impact by shifting money away from activities that directly harm our planet and towards those that help preserve it.“

To achieve this goal, the company pledges “to only lend to sectors that help to rapidly accelerate our transition towards a clean, fair, and transformed economy.”

Furthermore, the company hopes to “flatten financial barriers so that everyone can participate in and benefit from a carbon-free future.”

Atmos Financial’s Ravi Mikkelsen & Pete Hellwig made it clear that what the company is doing is not a charity. Rather, it is on a mission “to develop the best technology solutions and banking experience available so that you never again have to give up convenience or yield for doing the right thing.“

While all these may sound idealistic, Atmos Financial assures you they can be realistically done. In fact, they’ve already started doing it.

Atmos Financial “utilizes various banking partners to offer FDIC-insured deposit products like our AtmosACTION Savings Accounts.”

AtmosACTION Savings Accounts is the “first high-performance savings account engineered to reverse the climate crisis.” Know more about this product as we go along this review.

WHO IS ATMOS FINANCIAL BEST FOR?

Atmos Financial is a company that aims to create environmental impact through the things it does.

Thus, it should appeal to consumers who want to take part in making an environmental impact.

Atmos Financial should also be an ideal choice for people who want to open a high-yield savings account with no monthly fees, as well as no minimum account requirements.

Unfortunately, ATM transactions are not supported by Atmos Financial. So, unless you are good with that, Atmos Financial should work for you.

Also, if you want to earn the best annual percentage yield possible, you should be willing to have recurring donations.

WHAT DO ATMOS FINANCIAL OFFER?

Atmos Financial offers AtmosACTION Savings Account.

As stated on its website, AtmosACTION Savings Account is “the first high-performance savings account engineered to reverse the climate crisis.”

AtmosACTION offers up to 0.51% annual percentage yield (APY), which is a fairly competitive rate.

This savings account “high-performance savings rate from clean energy investments.”

Atmos Financial funds innovative technologies as well as infrastructure that helps combat the global climate crisis.

The AtmosACTION Savings Account has no minimum balance requirement. However, when you get to see the impact you can have by depositing more, Atmos thinks you would probably want to go all-in.

AtmosACTION Savings Account also does not require a minimum deposit. Furthermore, it does not charge a monthly service fee and any other fees for that matter.

Interest Rate

As mentioned, Atmos stands out from other banks and financial institutions by loaning its deposits to clean energy initiatives. The fintech company makes money through the loan as well as the interest paid out to its customers.

AtmosACTION offers a high-interest rate. However, this varies depending on the amount deposited in your account.

For your reference, for balances of $9,999.99 and below, the rate is 0.41% APY; for balances amounting between $10,000.00 and $24,999.99, the rate is 0.46% APY; while for balances of more than $25,000.00, the rate is 0.51% APY.

It is important to know, however, that the savings rate includes a 0.11% increase if you link it to automatic monthly recurring nonprofit donations.

Initiatives

To realize its mission to help address the climate crisis, Atmos Financial ensures it only supports companies that do and believes the same thing.

Atmos Financial supports companies with projects under:

  • Renewable Energy
  • Regenerative Agriculture
  • Electric Transportation
  • Weather Resilience
  • Building Electrification
  • Energy Efficiency Overhauls

Meanwhile, the company does not loan money to companies with programs on:

  • Fossil Fuel Extraction
  • Clean energy projects that displace Black, Indigenous, or other Frontline Communities.
  • Fast Fashion Clothing
  • Industrial Agriculture
  • Industrial Livestock Production
  • Generic Real Estate
  • …and everything else

Climate Impact Measurements

Now, to get an idea of how customers’ deposits positively impact the climate, Atmos Financial measures impact in tons of carbon dioxide removed annually.

The table below shows how much CO2 customers can remove in a year based on deposits:

Deposited Amount Tons of CO2 Removed Equivalent Number Of Miles Not Driven Per Year
$1,00 1 2,634
$2,500 3 6,585
$5,000 6 13,169
$10,000 12 26,338
$20,000 23 52,676

As mentioned, Atmos Financial does not have a minimum deposit or minimum balance requirement. It’s all up to you. If you want to create climate impact, then, the table above should help you with that.

As you can see, the higher your deposited amount is, the bigger the impact will be.

Now, to compare, the average American contributes 16 tons of CO2 every year, which is one of the highest CO2 contributions of just one person in the world.

Future Plans

As stated on its website, Atmos Financial is refining and launching additional products such as a debit card account to better serve its customers.

Furthermore, the company will also be launching a few climate-positive loan products.

Atmos Financial banking apps will directly link deposits to all the good things that the company is doing in the world. Atmos will pay higher rates and rewards for the privilege of using customers’ money to be able to accomplish its goals.

HOW DOES ATMOS FINANCIAL WORK?

Atmos Financial is an online-only financial platform that offers AtmosACTION, “the first high-performance savings account engineered to reverse the climate crisis.”

The said savings account allows depositors to hit two birds with one stone – earn high interest on a savings account, at the same time, be able to help address the climate crisis as Atmos Financial deposits specifically fund innovative technologies as well as infrastructure that help in combating the said environmental concern.

As mentioned in the earlier section, Atmos Financial measures the impact of customers’ deposits in tons of carbon dioxide removed annually.

While the company does not require account holders a minimum deposit or maintain a minimum balance, depositing more to your account results in a bigger climate impact.

Atmos Financial pays high interest on its savings accounts at the same time helps address the climate crisis by loaning money to companies with projects related to renewable energy, regenerative agriculture, electric transportation, weather resilience, building electrification, as well as energy efficiency overhauls.

ARE THERE FEES INVOLVED?

Given the work that Atmos Financial has, by now, you are probably wondering already about the costs involved.

So, in this part of our Atmos Financial review, we are going to talk about how much does Atmos Financial costs.

Atmos Financial does not charge a monthly service fee as other fintech companies do. In fact, Atmos did not mention on their website any fees that they charge.

Furthermore, the company does not require a minimum balance, which means you can keep whatever amount of money you want in your account.

Unfortunately, the AtmosACTION does not seem to include a debit card. In fact, there is no mention of ATMs and ATM fees on its website.

HOW TO OPEN AN ACCOUNT WITH ATMOS FINANCIAL?

If you are convinced with what Atmos Financial has to offer, then, let’s proceed to talk about the process of signing up for an account.

To get started, interested individuals may visit the Atmos Financial website.

Primarily, you will be asked to provide your first and last name, as well as your email address.

As you continue with the account application process, you will also be asked to provide your address and phone number. After which, you will be asked to verify the information you provided.

Similar to other financial institutions, make sure to keep a valid government-issued identification like a passport or driver’s license handy for verification purposes.

The whole process is simple and easy it should only take about a few minutes to finish.

Meanwhile, if you have a few more questions about how the company works and you’d want these questions answered before opening an account, you may do so by booking a 15-minute video conference meeting with a member of the Atmos Financial team.

IS ATMOS FINANCIAL SAFE?

Security features one of the major concerns among consumers especially when it comes to online-only banks or fintech companies like Atmos Financial.

Thus, it is just right that in this review on Atmos Financial, we also look into this.

Atmos fully understands how valuable your personal data is, which is why the company’s online platform is protected by state-of-the-art encryption techniques.

Your money is equally important. So, to ensure that whatever happens your account is secured, the AtmosACTION savings account is secured by the Federal Deposit Insurance Corporation (FDIC) through its partner bank, Evolve Bank & Trust. All AtmosACTION accounts are insured for up to $250,000 per depositor in case of a bank failure.

With all these in place, is Atmos Financial safe? Definitely, yes, it is.

WHAT ARE THE UPSIDES OF ATMOS FINANCIAL?

This Atmos Financial review will not be complete without a list of the things to like and not to like about this fintech company.

To start with, here are some of the upsides of Atmos Financial.

  • High-Yield Savings Account – One of the things that would make people choose Atmos Financial is that it offers a high-yield savings account. The rate varies depending on account balances. For balances of $9,999.99 and below, the rate is 0.41% APY; for balances amounting between $10,000.00 and $24,999.99, the rate is 0.46% APY; while for balances of more than $25,000.00, the rate is 0.51% APY.
  • Helps Address Climate Crisis – Atmos Financial is a fintech company that helps address the climate crisis by helping lessen the carbon dioxide releases of its customers, at the same time, by loaning money only with companies with projects supporting the same cause.
  • No Monthly Fees – Atmos Financial does not charge monthly fees and any other fees that banks and other financial institutions usually charge. This makes it an ideal choice for people who want high-yield savings account without having to worry about monthly charges.
  • No Account Minimums Required – Similarly, Atmos does not have account minimum requirements set as well. Although, the company encourages you to deposit more if you want a bigger impact on its environmental causes.
  • FDIC Insured – Although Atmos Financial is technically not a bank, it does offer deposit products through its bank partner Evolve Bank & Trust. With the partnership, all Atmos deposits are insured by the FDIC for up to $250,000 per depositor in case of a bank failure.

WHAT ARE THE DOWNSIDES OF ATMOS FINANCIAL?

In the previous section, we’ve given you a list of the advantages of using Atmos Financial. This time, here’s a list of some of the downsides of the said fintech company:

  • ATM Transactions May Not Be Supported – Based on the information on its website, it is unclear whether or not ATM transactions are supported or not.
  • Recurring Donations – Best annual percentage yield is available but requires recurring donations, which could be quite a lot for some depositors.
  • Online-Only – Similar to the majority of fintech companies, Atmos Financial is only available online, which means it does not have physical branch locations like what traditional banks have.
  • Lacks Information – Perhaps it’s because the company is relatively new, thus, if you visit its website, the FAQ page, in particular, is not as thorough as how FAQ pages of similar companies usually have. There is also a lot of missing information including how to deposit and withdraw money from your Atmos account.
  • Limited Products – Although Atmos Financial has lots of plans when it comes to product offerings, currently, it is only limited to the AtmosACTION savings account. The company has definitely had a lot of work to do.

FINAL THOUGHTS ON ATMOS FINANCIAL

Atmos Financial is a fintech company that focuses on making a mark in addressing the climate crisis. To do so, Atmos only focuses on providing loans to companies that have green initiatives, particularly those with projects related to renewable energy, regenerative agriculture, electric transportation, weather resilience, building electrification, as well as energy efficiency overhauls.

What Atmos Financial offers is definitely one-of-a-kind. While it understands the importance of saving money, it also makes sure it can help address environmental concerns, particularly climate crises.

Given the information we provided and what Atmos does, do you consider opening an account with them soon?

We do hope that through this Atmos Financial review, you can gauge whether or not it is right for you, at the same time, appreciate the thing that the company aims to achieve – particularly on its green initiatives.

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Mobile Banking

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

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

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

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

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

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

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

However, things changed when the pandemic happened.

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

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

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

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

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

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

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

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

WHAT IS AMERICAN EXPRESS BANK?

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

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

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

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

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

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

WHO IS AMERICAN EXPRESS BANK BEST FOR?

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

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

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

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

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

WHAT DOES AMERICAN EXPRESS BANK OFFER?

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

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

High-Yield Savings Account

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

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

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

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

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

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

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

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

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

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

Certificate of Deposit (CD) Account

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

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

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

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

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

HOW DOES AMERICAN EXPRESS BANK’S ONLINE BANKING WORK?

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

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

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

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

ARE THERE FEES INVOLVED?

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

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

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

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

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

HOW TO OPEN AN ACCOUNT WITH AMERICAN EXPRESS BANK?

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

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

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

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

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

IS AMERICAN EXPRESS BANK SAFE?

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

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

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

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

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

WHAT ARE THE UPSIDES OF AMERICAN EXPRESS BANK?

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

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

WHAT ARE THE DOWNSIDES OF AMERICAN EXPRESS BANK?

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

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

FINAL THOUGHTS ON AMERICAN EXPRESS BANK

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

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

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

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

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

Categories
Investment Apps and Websites

Linus Review: What Makes It An Ideal Choice For Building Emergency Fund

This Linus review focuses on providing you everything you need to know about this fintech company — including both the good as well as the risks involved – which is ideal in building your emergency fund.

Linus Review: What Makes It An Ideal Choice For Building Emergency Fund

Saving for our future has become necessary especially when the pandemic hit not just in the country but the world in 2020.

A lot of people struggled because of a lack of savings. It was very unpredictable no one was prepared for it to happen.

If there is one good thing, though that the pandemic brought us, a lot of people realized how valuable it is to have savings especially in case of unforeseen events. Many had to reevaluate how they spend and manage their money to hopefully become better at that, and so next time the same thing happens, they’re already prepared.

Now, if you are one of those people, here’s a tip.

If you are thinking about saving money in a financial institution, it is important to look into the options available.

Yes, there are lots of deposit account options out there. There’s checking, savings, money market, as well as a certificate of deposit accounts. Each has its respective pros and cons. Needless to say, you also need to look into the different banks out there and see what suits your needs and preferences.

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In this article, obviously, we are going to focus on Linus, a financial technology company that provides a high-yield savings account.

If you are wondering what a high-yield savings account is, it basically is a savings account that offers a high annual interest rate.

While you may opt for a traditional savings account, in an article published by CNBC, they spoke with Shon Anderson, a certified financial planner and president at Anderson Financial Strategies. The expert recommends opening high-yield savings account especially for those who need to start using their emergency fund soon, or anyone worried that they have won’t be enough.

A high-yield savings account is the best account type for people who want to start building their emergency fund, which is very essential especially these days when everything is so uncertain. This helps you earn more from your money.

Unlike other deposit accounts like a certificate of deposit wherein you have to park your money in the bank for a specific term (and you can only withdraw until it matures), a high-yield savings account makes your money still accessible anytime you need it.

Going back to Linus, as mentioned, the company specifically offers a crypto-based high-yield savings account, which has no fees and is very easy to manage.

For your information, according to Investopedia, cryptocurrency is “a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.”

Moving on, in this Linus review, we are going to particularly tackle the following:

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

WHAT IS LINUS?

Before moving on to the more technical matters, let first and foremost know what Linus is all about.

Linus Financial, LLC or simply Linus is a financial technology or fintech company located in Nashville, Tennessee. It was founded in 2019, which means it’s one of those companies that are new in the industry.

Linus offers customers a flexible, excellent high-yield alternative to a traditional savings account.

Basically, the fintech company earns through digital asset lending. In return, it gets to offer consumers an interest rate that is very compelling.

Unfortunately, while the high-yield account seems very attractive, unlike banks and other financial institutions out there, Linus is not insured by the Federal Deposit Insurance Corporation (FDIC). It is not associated with any bank.

With that, it means there is more risk involved than saving money with a traditional bank. However, if you don’t mind it at all, and you are after the high-interest rate, then, it would be best to consider it more of an investment rather than a typical savings account.

Know more about Linus and what’s in store for you by watching this very insightful review by Eddie Yoon. This basically highlights the most important facts you need to know about the company.

WHO IS LINUS BEST FOR?

Now, obviously, in this section, we are going to talk about who would benefit the most with Linus.

Well, as mentioned, Linus is a fintech company that offers a crypto-based high-yield savings account, which means this should appeal most to those who want to earn more from their money without having to park it in a banking institution to be able to earn bigger interest.

It is best for those who want to start building their emergency fund, and be more ready should unforeseen circumstances happen in the future.

Linus is also ideal for those who are willing to take the risk. As mentioned, Linus is not affiliated with any bank, which means it is not FDIC-insured. So in case it fails, you won’t get any insurance. However, this should work if you see it as more of an investment rather than a typical savings account.

Ultimately, since Linus is entirely online and does not have branches like traditional banks, it should appeal most to those who like the idea of managing their accounts online, and do not mind not having a physical branch.

Now, if you think you fall in all these, then, you got to keep reading as Linus may probably the one you are looking for.

WHAT DOES LINUS OFFER?

In this part of our Linus review, we are going to dig deeper into the most important information you need to know — what Linus offers.

Using Open Finance protocols, the company provides retail consumers the opportunity to benefit from high-yield savings.

The company offers consumers a way to access the advantages of cryptocurrency investment without having to work hard for it at all.

With a $500 initial deposit requirement, customers are able to earn up to 4.5% on annual percentage yield (APY) on their savings account.

To compare, traditional savings accounts only offer around 0.08% APY. So, if you think about it, the difference is extremely high.

Another thing is that, unlike traditional or online banks, Linus does not require any maintaining balance. Needless to say, the company does not charge fees for its services.

So, if you come to think about it, you get to save yourself from all that, which definitely is a breather.

Bonus Offer

Linus is a relatively new fintech company having been established only in 2019.

Thus, the company is still working hard to attract more users. In order to do so, Linus currently offers a $20 bonus with your first deposit.

Apart from that, they do offer regular promotions to help boost your Linus account. You can get a $20 bonus every time you refer a friend.

Additionally, in September 2020, the company also offers a 1.0% bonus on deposit transactions. We won’t be surprised if Linus continues to offer promotions and bonuses in order to attract more new users.

HOW DOES LINUS WORK?

By this time, you are probably wondering already how Linus actually works. How in the world is the company able to produce such a high yield?

Well, the answer to that is simply converting your savings into cryptocurrency.

As mentioned in the previous section, Linus utilizes Open Finance protocols, which allows them to provide their customers with high-yield savings.

Furthermore, Linus also uses blockchain contracts via Ethereum. It is another cryptocurrency and set of blockchain protocols. This means that the company is also involved with blockchain credit markets.

Once you deposit your money into your Linus account, it is tokenized into USDC. USD Coin or USDC is a type of cryptocurrency that is referred to as a stable coin. A stable coin, meanwhile, is tied to some real estate asset.

Basically, USDC is backed one-to-one by US Dollars. Once your money is converted into USDC, it becomes available to digital capital markets. Unfortunately, Linus did not disclose the details of these markets, which could be a concern in terms of transparency as compared to banks that would provide those kinds of details.

Moving on, people get to borrow your USDC, which of course means they pay interest for borrowing.

Now, how does Linus avoid loan defaults in these digital credit markets? Basically, the markets used by the company require borrowers to put up collateral that is worth more than what they owe. This helps protect Linus’s investment.

So, how the company reduces risk? The loans that Linus are involved in are fully collateralized. More so, the company also sets aside a specific undisclosed amount of reserve based on deposits.

Everything, both digital trading and conversion happens behind the scenes.

Now, as an investor (which is a better term than the word saver given how it all works), you get to make deposits and withdrawals just like how you would do it with a regular savings account.

ARE THERE FEES INVOLVED?

Perhaps you are wondering about the fees.

Well, here’s some good news for you —

Linus does not charge any fees including transfer fees. Additionally, the fintech company does not require a minimum balance in your account.

However, it is important to be aware that if you keep a zero balance for an extended period of time, Linus may be forced to close your account.

HOW TO BANK WITH LINUS?

To open a Linus account, all you have to do is visit its website.

Again, Linus is a fintech company, which means, unlike banks, it does not have physical branches for in-person transactions.

Initially, you will be asked to provide your email address as well as your preferred password to start the online application process. To proceed with your account application, you will also be asked to provide some personal information including your legal name, address, phone number, date of birth, as well as an image of a valid government-issued identification such as passport or driver’s license.

Depositing Funds

There are two ways to transfer money into your Linus account.

First, you may use your bank’s debit card, and second, you may also use ACH to transfer money in and out of your account.

Good thing is, Linus does not limit the number of transfers you make in a month. However, it is important to remember that your Linus account is not a checking account and that it should never be like one.

Also, keep in mind that the money in your Linus account may not be accessible as soon as you want it. Don’t worry, though, as they’re not locked in your account like that of a certificate of deposit.

Withdrawals

To make withdrawals, it’s pretty much the same as when you deposit money into your Linus account.

All you have to do is transfer money from your Linus account to your regular banking account.

It takes time, though, so make sure to have lead time when making withdrawals.

Typically, a wire transfer with Linus takes one business day to get into your bank account. Meanwhile, ACH transfers can take longer, between three to five business days.

To withdraw, just log into your Linus account and then link your checking account or debit card.

IS LINUS SAFE?

Since Linus operates entirely online, it is important to look into its security features as well.

Based on the information they provided on their website, Linus uses Passbase to store sensitive personal information. Passbase allows Linus to verify the identity of its customers without having to store their sensitive information on Linus’s server.

Linus also allows users to set up two-factor authentication to further strengthen their account’s safety and security.

While Linus seems to be a perfect choice to store your money and earn high interest, unfortunately, it lacks FDIC insurance, unlike regular banks.

If you open a Linus account, there are a number of risks to consider like the fact that its underlying infrastructure is based on cryptocurrency, as well as the use of new technologies to achieve high returns.

WHAT TO LIKE ABOUT LINUS?

This part of our Linus review will provide you with a list of things to like about Linus. These basically are the pros of using Linus, which includes the following:

  • High-Yield Savings – Unlike regular savings accounts, Linus allows you to earn up to 4.5% annual percentage yield. It’s definitely high considering that traditional savings account only earn around 0.08% annual interest rate.
  • No Fees – Another thing to like about opening and maintaining a Linus account is that it does not charge any fees at all. You can use the platform and make transactions absolutely for free, which is a not-so-common thing among financial institutions like banks.
  • No Maintaining Balance Required – Linus does not also require any maintaining balance. You can even withdraw everything when you need it. However, it is important to note that Linus may close your account if you leave it with zero balance for a certain period of time, which is totally fair.
  • Minimal Initial Deposit Requirement – Considering all the benefits you get, the $500 initial deposit requirement is definitely low. Needless to say, it’s the only requirement that the company asks you to comply.
  • Ability to Deposit USD and Leverage into Cryptocurrency – With Linus, you no longer have to spend time studying cryptocurrency. They do everything for you. Once you deposit money, the company immediately turns it into USDC, and then, that’s it. You can just sit back and relax and wait for your money to grow.
  • Online Access – Linus is accessible entirely online, which is how fintech company operates really. What’s nice about it is that you can access your Linus account anytime you want, and anytime you need without having to go through the hassle of visiting a branch like in typical banks.

WHAT NOT TO LIKE ABOUT LINUS?

Of course, to complete our Linus review, here are some of the downsides of this fintech company:

  • Not FDIC-Insured – Linus is not affiliated or partnered with any bank, thus, it is not insured by the Federal Deposit Insurance Corporation (FDIC), which protects depositors in case of a bank failure. To be honest, this one of the greatest risks in opening a Linus account – unless of course if you see it as an investment rather than a savings account.
  • APY Subject to Fluctuation – Linus says that customers can earn up to 4.5% APY. But of course, this is subject to fluctuation. You may earn big now, or a little lower next time. Nevertheless, the APY is still high compared to what regular savings accounts offered by banks.
  • Entirely Online – For most, especially the tech-savvy ones, this is a pro. However, for those who are a little old-school, this may be a risk as well. Unlike banks, you can go to a branch anytime you have concerns, with this one, everything is done virtually.

FINAL THOUGHTS ON LINUS REVIEW

Linus is a fintech company that provides a crypto-based high-yield savings account. It is great for individuals who want to save their money and earn a high annual interest rate.

While it seems ideal, it does come with risks especially since Linus is not insured by the FDIC. Although it works like a savings account, Linus looks more like an investment, which is why it is a great choice to build up your emergency fund.

With that said, unless you are willing to take the risk, this may not work for you. Are you?

With this Linus review, hopefully, you are able to get all the information you need to convince you that this fintech company is worth a try especially when building an emergency fund.

Categories
Mobile Banking

Vio Bank Review: Competitive Rates And Convenience In One

An online bank that offers competitive rates and convenience. This Vio Bank review will provide essential information you need to know on what makes this digital banking platform an ideal choice for you.

Vio Bank Review: Competitive Rates And Convenience In One

Online bank is not a new thing in the United States. In fact, the very first financial institution that offers internet banking to its customers dates back to 1994 according to a report published by Go Banking Rates.

Since then, the internet or online banking grew to what it is today. A few years after, people now are, no doubt, into it. Digital banking has become part of people’s day-to-day lives.

In a survey conducted by Finder, they’ve found that “an estimated 76.9 million Americans (30.3% of the US population) say they have, or are planning to, open a digital-only — or neobank — account. “ Meanwhile, “54.4 million digitally savvy Americans (about 21.4% of the total US population) already bank with digital-only banks.”

Related Articles:

Comenity Direct Review: Best High-Yield Savings And CD Accounts For You
Varo Bank Review: Providing High-Yield Online Savings Account For You
FNBO Direct Review: High-Yield Deposit Accounts With No Monthly Fees

By the way, if you’re not quite familiar with what online-only banking is, it basically means as it is. You can only bank or make banking transactions online. Online-only banks do not have a physical branch where people can make in-person banking transactions. Again, everything is entirely online.

Online-only banks provide a lot of benefits especially for people who are always on the go and have no time to visit a bank’s branch location. Online banks give access to account holders to get to manage their accounts as well as make banking transactions all right at their fingertips through their mobile devices.

Currently, there are lots of online banks in the country already, and to be honest, finding the right online banking platform could be quite a challenge for some.

While it looks like all of them offer the same thing, the truth is, they don’t. Some of them offer a better customer banking experience than the others or offer better rates than their competitors, which is actually the case of Vio Bank.

As mentioned earlier, this review will focus on Vio Bank, an online-only division of MidFirst Bank, which is one of the largest, privately-owned banks in the country

This Vio Bank review will focus on the following to help potential customers see how good of an option this online bank is:

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

WHAT IS VIO BANK?

As you go along with this Vio Bank review, you are going to find out about the products it offers, if it suits you, the process of banking with it, and a lot more.

But, before we talk about those things, in this section, we are going to get to know more about Vio Bank is.

We always say that as potential customers, we always have to take time to look into not only what the financial institution offers, but also its history. This helps establish confidence and trust, which are key to building a good relationship with your bank.

Now, with that being said, here are some key information about what Vio Bank is all about —

As already mentioned earlier, Vio Bank is the online-only division of MidFirst Bank, one of the country’s largest, privately owned banks. MidFirst has been in the banking industry since 1911.

Currently, it has $20 billion in assets and services over 600,000 customers.

Although headquartered in Oklahoma City, MidFirst Bank also serve customers in Texas, California, Colorado, Arizona, and the rest of Oklahoma.

MidFirst Bank established Vio Bank only in 2018 in the hope of providing banking services to a larger customer base. This time, on a national level.

Vio Bank offers competitive rates and low opening minimum requirements on its savings account, which makes it really appealing to a lot of customers. Additionally, the online-only bank also offers a suite of certificates of deposit.

Since it is an online-only bank, it does not offer ATM or branch network, thus, it is best for people who want to set aside cash and let it grow.

Similar to most online banks, Vio Bank is a member of the Federal Deposit Insurance Corporation (FDIC). All deposits are insured for up to $250,000 per depositor, per account category, in case the bank fails.

In the next few sections of this review on Vio Bank, you are going to know more about this online banking platform especially on what makes it an ideal choice for those who want to save and grow their money.

WHO IS VIO BANK BEST FOR?

Vio Bank is an online-only bank, which makes it appealing to customers who want easy, no-frills access to their money. By the way, the Vio Bank app is available for both iOS and Android mobile device users.

As mentioned in the previous section, this bank is not accessible to ATMs as well as branch networks. Thus, making it an ideal choice for those who want to save their money and let them grow.

Vio Bank offers a limited selection of products, so, if you are looking for a wide variety of deposit accounts and financial products and services, you may have to look elsewhere.

Furthermore, Vio Bank is a great option for individuals who want a simple, online bank to put their money into and let it grow. It’s best for those who want a low minimum opening deposit requirement, at the same time, avoid monthly maintenance fees.

So, if you are any or all of these, then continue reading as Vio Bank may be the one you are looking for.

WHAT ARE THE PRODUCTS OFFERED BY VIO BANK?

One of the most important things that the majority of bank customers look into is the products and services that a banking institution offers.

As mentioned earlier, unfortunately, unlike other banks of the same type, Vio Bank does offer a very limited selection of products.

Currently, the bank only offers a high-yield savings account and certificates of deposit.

Now, here’s what you should know about these product offerings:

High-Yield Savings Account

Although Vio Bank does not have a lot of product offerings, customers will surely have a lot to like about the bank’s high-yield savings account.

In the video below by Martin Su, he explains how worth it Vio Bank’s savings account is if you are looking forward to earning high-interest rates from your money.

Well, obviously, as the name implies, the savings account offers a competitive interest rate. In fact, as of this writing, customers can enjoy a 0.76% annual percentage yield (APY) on all balances. Please take note that interest is compounded daily and credited monthly.

Apart from the high-interest rate, Vio Bank’s savings account only requires a low minimum deposit of $100 to open an account. More so, customers need not worry about monthly fees, because Vio Bank does not charge any of that unless you prefer getting a paper statement over an online statement.

Just so you know, opting for paper statements will cost you $5 per month. Meanwhile, the bank also charges an excessive transaction fee, which costs $10 per transaction. That is in excess of six per statement cycle.

Additionally, Vio Bank also charges $30 for outgoing domestic wire transfers, while incoming domestic or international wire transfers are free of charge.

The list of charges does not end there. Vio Bank also charges a $30 stop payment fee, as well as a $7 fee for returned deposits.

Realistically, all of these charges can be avoided to keep you fee-free. So, it should not bother you that much at all.

Certificate of Deposit Account

Certificate of deposit accounts is ideal for people who want to set aside funds that they do not need anytime soon and earn some interest from them.

Vio Bank offers CD terms that range from six months up to 10 years. The interest rate varies depending on your CD term of choice. But, to give you an idea, Vio Bank’s CD could earn as much as 0.70% APY for a 10-year term. For CD accounts, interest compounds daily.

Although Vio Bank’s CD rates may be lower as compared to other banks, overall, it’s pretty decent still.

To open a CD account, Vio Bank requires a minimum deposit of $500 regardless of the CD term you choose.

Similar to other CD accounts, once your CD reaches maturity, it may automatically renew. However, it is important to note that the bank reserves the right to allow or decline the renewal of a CD.

Vio Bank provides maturity notice before the CD’s maturity date, allowing you to enjoy a 10-day period to decide whether you want to reinvest your money in another CD or you opt to withdraw it instead.

Just like other banks, Vio charges early withdrawal penalties, which depend on your CD term. Vio Bank charges a penalty of 3% of the amount withdrawn plus a $25 fee for CD terms greater than 12 months, while a penalty of 1% of the amount withdrawn plus a $25 fee for terms of 32 days to 12 months.

Meanwhile, for CD terms of seven days to 31 days, the penalty is all of the interest earned on the amount withdrawn.

HOW TO BANK WITH VIO BANK?

So, in the previous sections, you already learned about what Vio Bank is about, as well as the products it offers.

In this section of our Vio Bank review, we are going to talk about how to actually bank with Vio.

As mentioned, Vio Bank is an online-only bank. It does not have a physical branch location, thus, all transactions including opening an account are done entirely online.

To open an account, all you got to do is fill out an account application online. Similar to other banks, Vio requires customers to provide some personal information like your name, address, phone number, as well as your Social Security number.

Additionally, you will be asked to provide a valid government-issued identification like your passport or driver’s license to help verify your identity.

For a savings account, Vio Bank requires a minimum initial deposit of $100, while for a CD account the bank requires at least $500 to open one.

As mentioned earlier, Vio Bank does not charge monthly fees. Although, it has a list of other fees charged, all of which can be avoided.

Deposits and Withdrawals

Vio Bank is an online-only bank. Unfortunately, it does not provide access to any ATM network or a physical branch location.

The bank does not support cash deposits. So, the only way you can fund your account is by linking your savings account to your existing external bank checking account.

Direct deposits are supported. Also, if you need recurring deposits to occur from your checking account, Vio Bank provides that feature.

Online and Mobile Access

Your Vio Bank accounts can be managed through the mobile app that is available for both iOS and Android devices. The app allows you to view account information, transfer funds, search transaction history, as well deposit checks.

Vio Bank provides a number of online features including eStatements, online transfers, set up notifications, contact Vio Bank’s customer service via email, as well as stop payments and download information to Microsoft Money or Quicken.

Customer Service

Vio Bank’s customer service is available via online form, secure email, website chat, and phone. It is available from Monday to Friday, 7 a.m. to 9 p.m. CT, as well as Saturday from 8 a.m. to 6 p.m. CT and Sunday from 12 p.m. to 4 p.m. CT.

IS VIO BANK SAFE?

The safety and security of all depositors are one of Vio Bank’s primary concerns. Thus, it has put bank-grade security features in place to avoid possible fraud or identity theft cases.

As mentioned earlier, Vio Bank is insured by the Federal Deposit Insurance Corporation (FDIC). Thus, the federal government protects depositors’ money for up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.

So, is Vio Bank safe? The answer would be, it definitely is.

WHAT TO LIKE ABOUT VIO BANK?

Vio Bank may not be similar to other online-only banks that provide a wide variety of products, it, however, gives customers the following benefits to enjoy:

  • Competitive Rates on Savings Account – One of the things that make Vio Bank stand out from among its competitors is the fact that it provides competitive interest rates for its savings account regardless of how much the balance is.
  • Low Minimum Deposit Requirement – To open a savings account, Vio Bank only requires at least a $100 initial deposit, while for a certificate of deposit accounts, the bank requires at least $500 to open an account. Compared to other banks out there, these are low and definitely are achievable.
  • No Monthly Maintenance Fees – Another thing that makes Vio Bank appealing to customers is that it does not charge monthly maintenance fees, allowing customers to save a couple of bucks instead of paying for monthly charges.
  • Online and Mobile Access – Since Vio Bank is an online-only bank, it means customers may access their account anytime and anywhere by simply checking through the website or by downloading the Vio Bank app, which is available for both iOS and Android devices.
  • FDIC –Insured – Vio Bank is an FDIC member, which means all deposits are insured. Each account holder can receive up to $250,000 per account category should the bank fails.

WHAT NOT TO LIKE ABOUT VIO BANK?

To complete our Vio Bank review, we are also giving you a list of things to not like about Vio Bank. These are things that Vio can improve on in the future to appeal to more customers.

Some of these things include:

  • Limited Product Offerings – Unlike other online banks, Vio Bank’s products are only limited to savings and certificate of deposit accounts. So, if you want to open a checking account, you may have to find it elsewhere.
  • No ATM Access – Another downside of Vio Bank is that it does not provide ATM access to customers. Although, it’s not an isolated case because it’s a very common thing among online-only banks.
  • No Physical Branches – Apart from the lack of ATM access, Vio Bank also does not have a physical branch location. All transactions are made entirely online.
  • No Cash Deposits or Check-Writing Capabilities – Unfortunately, Vio Bank does not support cash deposits, and has no check-writing capabilities as well.
  • CDs Automatically Renew – Unless you reach out to the bank and talk to a customer service representative within 10 days after your CD term matures, your CD account will automatically review.

FINAL THOUGHTS ON VIO BANK REVIEW

Vio Bank is an online-only bank. It is a division of one of the country’s largest banks, MidFirst Bank. It was established only in 2018 to provide banking services not only in select states but to customers across the country.

Although its product offerings are limited, it does offer a high-interest savings account which makes it very competitive in the market.

Do you want to save and earn high interest from your money? If your answer is yes, then Vio may just be the right online bank for you.

To end, may this Vio Bank review was able to provide you the key reasons why you should consider this online-only banking service provider.

Categories
Mobile Banking

FNBO Direct Review: High-Yield Deposit Accounts With No Monthly Fees

An online bank that offers competitive yields on savings and checking accounts and no monthly fees. While it does sound too good to be true, you got to check this FNBO Direct review out because that’s exactly what this online banking platform has to give.

FNBO Direct Review: High-Yield Deposit Accounts With No Monthly Fees

Online banking is not new. In fact, it has been there for years. However, back in then, only a few consumers are into it mostly for safety and security reasons.

A lot of adult consumers are used to the traditional way of banking, they thought digital banking is not going to work just the same. Millennials, though, think differently. They liked the fact that online banking or digital banking allows them to manage their account and make transactions anytime, anywhere.

But things have definitely changed since then especially when the pandemic hit the country and the world in general.

According to a report by Forbes Advisor, 2020 delivered unexpected changes and challenges for the banking industry particularly digital banking. A lot of Americans were forced to become part of the whole digital banking ecosystem.

Related Articles:

OnJuno High-Yield Checking Review: Earning More On Your Cash
Comenity Direct Review: Best High-Yield Savings And CD Accounts For You
Level Bank Review: A Fintech With An Ideal High-Yield Bank Account

Last year, consumers of all ages hopped on board. Everyone’s suddenly into mobile banking. While it was good for the digital banking industry, it also brought challenges and changes. Needless to say, it brought competition to a higher level.

With lots of people getting into digital banking, banks had to step up and make sure they get as many customers as they can.

All digital banks aim to provide consumers a more convenient alternative to traditional banking. While they look like they’re all the same, the truth is, they’re not. In fact, every single digital banking platform is different, which makes it even more challenging for consumers to choose the best one.

Among the many digital banking options out there is FNBO Direct. It’s a mobile bank that offers two important things that consumers usually look for in an online banking institution — no fees and high-interest savings and checking accounts.

Sounds very promising? Well, that’s what we’re here for.

In the next few sections of this FNBO Direct review, we are going to look into each and every important aspect of this bank. We hope to provide you all the important information you need to know to see if this is indeed the best option out there.

In particular, we are going to give answers to the following most commonly asked questions about the FNBO Direct:

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

WHAT IS FNBO DIRECT?

When looking for a mobile banking platform or even a traditional bank, it is very important to look at the history of the financial institution. This will help you see how credible, reliable, trustworthy, and stable the bank is.

With that said, here’s what you need to know about FNBO Direct —

FNBO Direct was launched in 2007 and is based in Omaha, Nebraska. It is an online-only bank that boasts no fee, very competitive rates on both savings and checking accounts, as well as an easy application process.

FNBO Direct is a division of First National Bank of Omaha, which has been in the banking industry for over 160 years now, and has an existing $23 billion in assets,

Unlike its mother company, FNBO Direct is not a full-service bank. It focuses mainly on deposit accounts, as well as credit cards, and student loan refinancing.

Since FNBO Direct is an online-only bank, it does not come with physical branch locations.

FBNO Direct is FDIC-insured, which means all accounts are protected for up to $250,000 in deposits (per depositor) in case of a bank failure.

If you want to know more about FNBO Direct and how it’s coping with competition, check this review by BankTruth:

WHO IS FNBO DIRECT BEST FOR?

Before we move on to the more technical stuff, let’s talk about who FNBO Direct suits best.

Generally speaking, FNBO Direct is ideal for consumers who want easy access to their bank accounts and does not mind not having a physical branch.

Also, these online-only banks should appeal the most to those who want to enjoy high-yield deposit accounts, at the same time enjoy a fee-free feature.

Furthermore, it is great for those who want to open a checking or savings account with no minimum balance requirement.

So, if you fall in any or all of these, then, continue on with our FNBO Direct, because you’ll surely benefit from it a lot.

WHAT ARE THE PRODUCTS OFFERED BY FNBO DIRECT?

At this point of our FNBO Direct review, we are going to talk about the products that the online-only bank offers.

For most people, what a bank offers is also an important (if not the most important) factor to consider.

FNBO Direct offers the following products and services:

  • Savings Account
  • Checking Account
  • 529 College Savings
  • Credit Cards

The bank also offers Student Loan Refinancing, but, for this review, we are going to focus only on the above-mentioned products.

Savings Account

First among its list of product offerings is the FNBO Online Savings account. This account lets you earn a 0.40% annual percentage yield (as of March 2021). More so, this does not have monthly fees and no minimum balance requirements.

As compared to the current national rate, the FNBO savings account’s rate is definitely higher. But, compared to the best interest-earning savings accounts out there, it’s slightly lower.

Please note that interest is compounded and credited on a monthly basis.

To open an online savings account, customers only need at least $1. With that super minimal requirement, it’s ideal for anyone especially for those who cannot afford a higher minimum opening deposit requirement.

Anyway, once you have your account opened, you can easily access it online, mobile, or any digital platforms.

Apart from no monthly fees, the FNBO online savings account does not have standard transfer fees as well. However, next-day transfers are charged $10. Also, the bank charges a $5 fee for check issuance. Transfers, as well as withdrawals, are limited to six per month only.

With your savings account, you can enroll multiple deposit accounts as external accounts so you can transfer money to and from. Please note that you must be the sole owner of any linked account for it to be eligible. Unfortunately, you are the only person who can deposit your own funds to your savings account and no one else.

Checking Account

FNBO Direct Online checking account is also high-interest paying. In fact, as of March 2021, the APY is 0.25%, which is above the national average.

Contrary to other online checking accounts, FNBO Direct only requires a minimum of $0.01 to earn the APY.

Similar to its savings account, the minimum opening deposit required is only $1. Also, this does not charge monthly service fees.

Please note that in the first 30 days after opening your FNBO online checking account, only the first $5,525 of deposits will be available on the second business day after the said deposit. If you have anything more than that, they’re going to be available on the ninth business day after the deposit.

Although some online checking accounts pay more, what makes FNBO Direct Online Checking account stand out is the fact that offers low to no fees at all, and of course, a decent, competitive APY.

Apart from that, the checking account also features a Visa debit card, online banking platform, online pay bill, as well as account alerts to ensure you know what’s going on in your account in real-time, free debit card fraud monitoring, free income wires, and free stop payments.

Although the online checking account does not allow writing checks, it does let customers do online bill payments. It is important to take note, however, that you can only schedule one payment per merchant per day, and ensure that bills must be between $5 and $10,000.

All checking account holders have access to over 55,000 surcharge-free ATMs on the Allpoint network. Needless to say, FNBO Direct does not charge anything for using another bank’s ATM nationally or internationally. However, other bank and ATM operators might.

529 College Savings

This product is for parents who want to invest in their child’s higher education. FNBO Direct offers a Nebraska Educational Savings Plan Trust (NEST) 529 College Savings Plan, which allows you to start the account without a minimum dollar contribution.

The 529 Plan is considered as an investment, thus, it is not insured by the FDIC. It is also not guaranteed by the bank or the government, and there may be a chance that it may lose value.

However, if you do not mind such risks, this definitely is a good investment to consider.

Some of the key features of this college savings plan include:

  • Access to tax-advantaged investing
  • No account opening fee
  • No annual Fees
  • Flexible investment option
  • Option to automatically contribute from employer
  • Ability to service the account at any bank affiliated with the First National Bank

Credit Cards

FNBO Direct only offers one credit card option. It is a rewards card that does not charge annual fees.

The FNBO credit card allows users to earn 2 points per $1 on qualifying purchases for the first 12 billing cycles. Also, another 1 point per dollar on qualifying purchases after that.

The credit card, by the way, is named ExtraEarnings Visa Credit Card.

HOW TO BANK WITH FNBO DIRECT?

Now that you already know what the products of FNBO Direct are, this time around, we are going to talk about how to actually bank with them.

First of all, before you can actually bank with them you have to open an account. Fortunately, since FNBO Direct is an online-only bank, it ensures a seamless bank account application process that takes only a few minutes to finish.

To open an FNBO Direct account, all you have to do is visit their website. Since it’s all online, you can definitely do it anytime and anywhere.

Just like most banks, you will be asked to provide personal information such as your name, address, mobile number, as well as your Social Security number when opening an account. You may also be asked to present a valid government-issued identification like a passport or driver’s license to help verify your identity.

Meanwhile, if you are already a First National Bank of Omaha customer, all you need to do is log in to your existing account to enjoy a faster account application process.

Deposits and Withdrawals

For the FNBO Savings account, as mentioned earlier, you have to link an account to be able to transfer money to and from.

Meanwhile, checking accounts comes with a Visa debit card that allows you to withdraw money from more than 55,000 Allpoint network ATMs.

Fees

FNBO Direct does not charge monthly fees at all for both checking and savings accounts, which definitely is great news.

However, the bank charges for certain activities like:

  • $33 fee per overdraft
  • $10 fee for next-day transfers
  • $5 fee for check issuance

Account Limits

All account holders must take note that the bank has a few withdrawals and deposit limits.

First, you are not allowed to transfer or withdraw more than $100,000 from your account in just one transaction or within one business day.

Second, please note that your monthly withdrawal or transfer limit is capped at $500,000 only.

Third, account holders are not allowed to deposit or transfer over $250,000 into their FNBO Direct account in one single transaction or on a single business day.

Lastly, the maximum balance that the bank allows you’re to hold between accounts is $1 million only.

Customer Service

Similar to most banks, FNBO Direct has industry-standard customer service options like 24/7 phone customer support, as well as a mobile app.

IS FNBO DIRECT SAFE?

The safety and security of your account are FNBO Direct’s top concerns. Thus, the online bank made sure to follow industry-standard safety and security measures to ensure that all depositors’ personal data and account information are safe from fraud and identity theft threats.

Also, FNBO Direct is insured by the Federal Deposit Insurance Corporation (FDIC), which means all depositors may receive up to $250,000 per depositor, per account type, in case of a bank failure.

WHAT TO LIKE ABOUT FNBO DIRECT?

This FNBO Direct review will not be complete without a summary of the highs and lows of this online-only banking service provider.

For this particular section, we are going to share with you some of the things to like about FNBO Direct, and this includes the following:

  • Competitive Rates for Checking and Savings Accounts – Of all the things we like, this stands out the most. We like the fact that FNBO Direct offers high-yield savings as well as checking accounts. Particularly on the latter, as you know, it is very rare to find a high-yield checking account, and to have one is really a plus point.
  • No Monthly Fees – Another thing to like about FNBO Direct is that it does not charge monthly fees, which means customers get to save a few bucks instead of paying it off to the bank.
  • Access to over 55,000 surcharge-free ATMs – Who does not like free stuff, right? The fact that FNBO Direct provides customers access to over 55,000 Allpoint network ATMs free of charge is a big factor to consider. Needless to say, the bank does not charge out-of-network fees, although the ATM provider or the other bank may charge you instead.
  • Very Low Minimum Opening Deposit Requirement – To be honest, it’s very rare to find a bank that requires as low as $1 only to be able to open an account. Good thing, FNBO Direct requires exactly that. With as low as $1, you get to open your very own online savings or checking account.
  • Online Accessibility – FNBO Direct is an online-only bank, which means customers do not have access to a physical branch. However, FNBO Direct offers an easy-to-use mobile app and website where customers can manage their accounts anytime and anywhere they want.
  • FDIC-Insured – FNBO Direct is FDIC-insured, which means in case of a bank failure, account holders may receive up to $250,000 insurance per depositor, per account type.

WHAT NOT TO LIKE ABOUT FNBO DIRECT?

To complete our FNBO Direct review, in this section, we are going to share with you as well the things to not like about this online-only bank.

Some of the downsides of FNBO Direct include:

  • No Physical Branch Location – As mentioned, FNBO Direct is an online-only bank, which means customers do not have access to any physical branch location. So, unless you’re okay to manage your account entirely online, then you may have to look for another bank to cater to your needs.
  • Limited Deposit Account Options – Unlike other online-only banks, FNBO Direct only offers checking and savings accounts. It does not offer certificates of deposit as well as money market accounts.
  • No Check – Another downside of FNBO Direct is that it does not offer check access. So, if you want to have access to checks, this may not be the right bank for you.
  • High Overdraft Fee – Unfortunately, FNBO Direct charges $33 for an overdraft fee, which is high as compared to other banks of the same type.

FINAL THOUGHTS ON FNBO DIRECT REVIEW

FNBO Direct is an online-only bank that offers high-yield savings and checking accounts with no monthly fees.

Do you think FNBO Direct is suited to what you are looking for?

If yes, we hope this in-depth FNBO Direct review was able to provide you all the information you need and more.

Categories
Mobile Banking

Comenity Direct Review: Best High-Yield Savings And CD Accounts For You

This Comenity Direct review will provide you with all the essential information you need to know about this digital bank. Specifically, it will focus on its product offerings, which include a high-yield savings account and a Certificate of Deposit (CD) account.

Comenity Direct Review: Best High-Yield Savings And CD Accounts For You

There are a lot of factors to consider when looking for a savings account. But, one of the most important things especially if your goal is not just to save but earn from your savings as well, is to find a bank that offers a high annual percentage yield (APY).

For those who are not really familiar with the term high-yield savings account, since we are going to use it a lot in the course of this review, according to CNBC, high-yield savings accounts, unlike a traditional savings account, reward customers with a higher interest rate that allows their money to grow even faster as it sits in the account.

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Technically, the higher the APY on a particular savings account is, the faster the money grows.

Having a high-yield savings account will surely give you better benefits than the conventional ones. After all, who doesn’t like to earn big from their money, right?

Now, there are quite a few banks, particularly online banks that offer high-yield savings accounts out there. And with so many options around, finding the best could be very challenging.

So, to help you a bit with your search for the right online bank that offers a high-yield savings account, today, we are going to particularly talk about one of the many banks that offer such a deal.

In the next few sections, we are going to talk about some very important details on what Comenity Direct is all about, and how competitive its product offerings are. By the way, apart from its high-yield savings account, as mentioned earlier, we are also going to look into how competitive its Certificate of Deposit account is.

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

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

WHAT IS COMENITY DIRECT?

When choosing a banking institution, whether it’s a traditional or an online bank, it is every customer’s responsibility to ensure that he or she is dealing with the right financial institution.

We always say, though, that when looking for a financial firm to bank with, you have to consider the bank’s credibility, reliability, and trustworthiness. These are important aspects to look into to ensure that your money will not be put to waste. That it is safe and secured.

Now, with that said, here are a few key points that we thought you should know about Comenity Direct —

Comenity Direct is, first of all, a brand of Comenity Capital Bank. It is a digital bank that provides consumers banking products including high-yield savings accounts and certificates of deposit (CDs).

Comenity started in the banking industry in 1986 as a credit card issuer of many retail brands. Fast forward to today, the bank has over 50 million people carry its private label, branded, as well as business credit cards.

Do you want to know more about Comenity Bank? If your answer is a yes, check out the video below by ProudMoney:

However, in the hope to provide more banking opportunities to consumers, the bank launched Comenity Direct in 2018, which, as you know by now, offers online banking services.

Since Comenity Direct is an online banking solutions provider, obviously, it does not have physical branches like what traditional banks have. However, Comenity Direct’s headquarter is based in Springfield, Missouri.

Comenity Direct is a brand of Comenity Capital Bank, a member of the Federal Deposit Insurance Corporation (FDIC), which means all deposits are insured for up to $250,000 per depositor, for every account ownership category should there be a bank failure.

WHO IS COMENITY DIRECT BEST FOR?

Every bank, whether it be traditional or online, catering to a particular group of consumers. There is no such thing as one for all.

True to that, Comenity is also not available for all. It only appeals to a certain group of people particularly those who are looking for very competitive rates on banking products.

Generally, Comenity Direct should be a great choice for those who want to enjoy the convenience that an online bank gives, and not minding not having access to a physical branch or to ATMs.

Additionally, the online bank would appeal to people who do not want to deal with monthly maintenance fees particularly on savings and CD accounts, as well as those who want flexible hours to reach customer service representatives.

WHAT ARE THE PRODUCTS OFFERED BY COMENITY DIRECT?

In the previous sections of this Comenity Direct review, we provided you with key information on what Comenity Direct is all about, as well as who the bank would appeal to the most.

Now, it’s time for the more important part.

One of the most essential things that consumers need to look at when choosing an online bank or even a traditional bank is the products that are being offered. In fact, for most consumers, it’s the very basis of selecting a financial institution to bank with.

Having said that, it’s time to discuss the products that Comenity Direct offers. Although it does offer credit cards, in this Comenity Direct review, we are going to specifically focus on providing you details about its high-yield savings account and certificate of deposit account.

High-Yield Savings Account

Obviously, as the name suggests, Comenity Direct offers a high interest-bearing savings account. It comes with a very competitive annual percentage rate that makes it very appealing to consumers who want to earn bigger on their savings accounts.

Currently, Comenity Direct’s high-yield savings account earns 0.55% APY. The APY changes from time to time, but nonetheless, the rate remains at par with other high-yield savings accounts offered by other online banks.

What’s nice about Comenity Direct is that it constantly monitors the top rates offered by other banks across the banking industry. So, when other high-yield accounts raise their rates, the bank also raises theirs to ensure that their customers always get the best rates available.

To open a Comenity Direct High-Yield Savings account, the bank requires a minimum initial deposit of $100. While it seems a big amount compared to what other online banks require, the good thing is that Comenity Direct does not charge a monthly maintenance fee. Also, account holders get to have up to six free withdrawals per month.

Additionally, high-yield savings account holders are not charged for incoming wire transfers, online statements, as well as Automated Clearing House (ACH).

However, the bank charges for certain activities like a $25 fee per transfer for outgoing wire transfers, a $15 fee per request of paper checks, and a $5 fee per request of paper statement.

Please note that interest on the high-yield savings account is compounded on a day-to-day basis and credited every month.

Certificate of Deposit Account

If you have spare money that you won’t be needing anytime soon or you have a financial goal, opening a Certificate of Deposit is a better route.

By opening a CD account, you get to leave your money for a certain period of time and earn more from it.

Comenity Direct offers five different CD terms with corresponding rates. The CD terms range from one year up to five years.

As a general rule, the longer the term is, the higher the rate will be. As of this writing, the annual percentage yield varies from 0.63% to 0.90%. Similar to the high-yield savings account, interest is compounded daily and credited monthly.

Please note that stated APYs assume that all interest is credited to the CD account. But, customers have the option to have interest paid out on a monthly basis to a verified or Comenity Direct savings account.

Additionally, CD account holders can also auto-renew their CD accounts once it matures or choose to cash out without having to pay any penalty provided it’s done within the 10-day grace period.

Meanwhile, if the account holder decides to withdraw his or her funds before the CD maturity date, an early maturity penalty will be charged.

As for CD terms of up to three years, the penalty would be 180 days of simple interest, while 365 days of simple interest for those with CD terms of four years or more.

Similar to Comenity Direct’s high-yield savings account, ACH transfers, as well as incoming wire transfers are free, too.

By the way, to open a CD account, Comenity Direct requires a minimum deposit of $1,500.

HOW TO BANK WITH COMENITY DIRECT?

Now that you already know what this mobile bank offers, at this point of our Comenity Direct review, we are going to discuss how to actually bank with them.

Since Comenity Direct does not have any physical branches, it made sure to come up with digital access to its product offerings.

Comenity Direct is accessible through a mobile app that is available for both iOS and Android users, as well as through online banking via its website.

Both platforms are accessible 24/7. However, if you need immediate help, Comenity Direct is accessible via chat through a customer service representative. The customer service feature is available Monday–Friday, 7 a.m. to 11 p.m. CT, and Saturday–Sunday (and most holidays), 9 a.m. to 5 p.m. CT.

Meanwhile, to be eligible to open a savings or CD account with Comenity Direct, you must be at least 18 years old and a citizen or a resident alien of the United States.

As with the bank account application process, all you have to do is visit the bank’s website. The whole process is done entirely online. In fact, it only takes a few minutes to open an account.

Similar to other banks, you will be asked to provide personal information such as your name, address, mobile number, and your Social Security number. Additionally, you must ensure to have with you a valid government-issued identification like a passport or driver’s license for identity verification purposes.

Deposits and Withdrawals

Unfortunately, the high-yield savings account, it does not come with ATM access. The only way customers can deposit and withdraw money from the account is by transferring via a linked account.

Fees

If you are looking to avoid bank fees, Comenity Direct is one of the best choices for you. The bank does not charge monthly maintenance fees on both its savings and CD accounts. Consequently, it does not require any minimum balance as well.

Additionally, ACH, as well as incoming wire transfers, are also free of charge.

Meanwhile, there are charges for the corresponding transactions:

  • $25 fee for outgoing wire transfer
  • $15 fee for paper check request
  • $5 for paper statement request

IS COMENITY DIRECT SAFE?

A lot of people are quite hesitant with mobile banking platforms for safety and security reasons. That is why in every review that we make, we always make it a point to look into the safety and security features of the bank.

Comenity Direct, as already mentioned, is an online-only bank, which makes it even more important to look into how safe banking with them is.

Good thing, the safety, and security of all bank account is one of the top concerns of Comenity Direct.

Thus, to ensure that customer data and funds are intact, the bank installed bank-level security features. This ensures that all accounts are safe from fraud and identity theft threats.

Meanwhile, all accounts under Comenity Direct are FDIC-insured through Comenity Capital Bank, a member of the FDIC. All accounts are insured for up to $250,000 per depositor, per account category, in case of a bank failure.

So, is Comenity Direct safe? Definitely.

WHAT TO LIKE ABOUT COMENITY DIRECT?

This Comenity Direct review will not be complete without sharing with you a list of things that we like and not like about this mobile bank.

For this section, though, let us provide you with the things that we like about Comenity Direct first. This includes:

  • Very Competitive Interest Rates – The major come-on of Comenity Direct is definitely its high-yield savings as well as a certificate of deposit accounts. For both accounts, the bank is able to provide customers with the best rates possible. Good thing, they always check other banks’ rates to ensure they’re able to keep up.
  • No Minimum Balance Requirements – Although for savings the initial deposit required is at least $100, while $1,500 for CD accounts, the good thing is, Comenity Direct does not require any balance requirements, which makes it more flexible for customers.
  • No Monthly Maintenance Fees – Another thing that we like about Comenity Direct is that, unlike other mobile banks, it does not charge a monthly maintenance fee.
  • No ACH Transfer Fees – Apart from no monthly fees, Comenity Direct does not charge ACH transfer fees, too.
  • Accessibility – Comenity Direct is available anytime and on all days of the week via the bank’s mobile app and its website. Account-holders can make banking transactions even on weekends and during late nights.
  • FDIC-Insured – Comenity Direct is a brand of Comenity Capital Bank, a member of FDIC. Thus, all deposits are insured for up to $250,000 per depositor, per account category, in case the bank fails.

WHAT NOT TO LIKE ABOUT COMENITY DIRECT?

While there are a lot of things to like about Comenity Direct, it does have its share of downsides as well. Just like the other mobile banking service providers out there, Comenity Direct is not perfect, too, and definitely has a lot of room for improvement in the future.

Some of the things to not like about Comenity Direct are as follows:

  • Limited Product Options – Unlike other mobile banking service providers out there, Comenity Direct does not offer a variety of product options. As of this writing, the online bank only offers high-yield savings and certificate of deposit accounts.
  • No Physical Bank Locations – Comenity Direct is an all-online bank, which means it does not come with any physical branch locations. So, if you want the benefit of having both mobile and traditional bank access, this is not the bank for you.
  • High Minimum Deposit Requirement for Savings and CD Accounts – Compared to other savings and CD accounts, Comenity Direct requires quite a high minimum deposit requirement for both accounts. As mentioned, for savings, the minimum deposit requirement is $100, while $1,500 is required to be able to open a CD account.
  • No ATM Access – Another thing that we wish Comenity Direct would eventually consider is having ATM access. As of now, the mobile bank does not offer ATM access. Accessing cash is only available via online fund transfers.
  • No Cash Deposits or Check Writing – Unfortunately, Comenity Direct does not allow customers to deposit cash or write checks at the moment. We hope, though, that this can be improved in the future to make it more accessible and more convenient for account holders.

FINAL THOUGHTS ON COMENITY DIRECT REVIEW

Comenity Direct is a mobile banking service provider. It was created by Comenity Capital Bank to provide banking services to consumers.

Similar to most online-only banks, it does not have ATM access or access to physical branch locations. However, online fund transfer is feasible, and account holders can access their accounts anytime, anywhere via the website or the mobile app.

While it does have its share of limitations, what’s nice about it is that it offers high-yield savings as well as CD accounts, which makes it ideal for saving money on a long-term basis.

Having said all that, do you think Comenity Direct is the one you are looking for?

With this Comenity Direct review, we hope you are able to see more of the benefits that it offers over its limitations. Hopefully, it is exactly what you are looking for.

Categories
Mobile Banking

Varo Bank Review: Providing High-Yield Online Savings Account For You

Finding a savings account that earns a high annual percentage yield could be challenging. With this Varo Bank review, though, we are going to share with you essential information on why it’s the right financial institution to bank with.

Varo Bank Review: Providing High-Yield Online Savings Account For You

According to an article published by CNBC, when the COVID-19 pandemic hit the United States last year, the Federal Reserve has decided to drop the interest rates to almost 0% in the hope of supporting the economy.

Because of this, most banks also lowered their interest rates on different financial products — from checking accounts to mortgages — that they offer to consumers.

However, while most opted for that route, there are certain banks that managed to still provide high annual percentage yield, and one of them is Varo Bank.

For those who are not familiar or do not exactly know what a high yield savings account is, CNBC, in another article, described it as an account that provides higher interest rate, “allowing your money to grow even faster as it sits in your account.“

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

Contrary to a typical savings account, having a high-yield savings account allows you to take advantage of what you have. Basically, this is how it goes — the higher the annual percentage yield is, the faster your money grows. To make it short, it means higher earning.

…and who does not like a higher earning, right? We all do, for sure.

So, if you have a good amount of spare money that you do not intend to use anytime soon, at the same time you want to make the most out of what you have, then, the best way to go is to open a high-yield savings account.

But, as mentioned earlier, these days, especially with the ongoing pandemic around, finding a bank – in this case, an online bank — that offers a high annual percentage yield could be a challenge. Let’s face it, the reality right now is that the economy is really struggling to get back on its feet.

However, while it seems impossible at the moment, there are still some banks that managed to pull it through. Varo Bank is one example. The bank has made it possible to still provide high APY to its savings account holders.

For sure, you are interested to know more about what this bank has to offer now, right?

So, with that said, today, in the next few sections we are going to provide you more information – of course, essential ones – about Varo Bank.

Specifically, we are going to tackle the following:

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

WHAT IS VARO BANK?

Before we even talk about the more serious details, as a potential customer, it is our responsibility to get to know about the institution we are eyeing to bank with.

It is important to look into how stable, reliable, and trustworthy the bank is — and what better way to do that than looking into the history of the firm, right?

Now, here are some key information that you should know about the Varo Bank —

Varo Bank was established in 2015. It is a mobile-based bank, which means physical branches are not available for those who prefer to bank in the more traditional way.

Since it is a mobile-based bank, it is only right that the company makes its mobile banking app available for both Apple and Android users. By the way, the mobile app is downloadable for free.

By downloading the app, you get to access the various products and services (including several deposit and loan products) offered by Varo Bank.

Varo Bank N.A. is insured by the Federal Deposit Insurance Corporation (FDIC), which means the federal government protects all deposits for up to $250,000 per depositor for every account ownership category, should there be a bank account failure.

Varo Bank, although it does not have physical branches, is headquartered in San Francisco, California.

To know more about Varo Bank and what makes it one of the best online banks out there, check out this informative review by Eddie Yoon:

WHO IS VARO BANK BEST FOR?

Now that you already know a few important information about the bank, this time, let’s talk about who Varo Bank appeals to the most.

Generally speaking, Varo Bank appeals to customers who prefer mobile banking and do not mind not having any physical branches around.

But more specifically, Varo Bank is best for people who want to earn a high annual percentage yield on a savings account, at the same time, enjoy a no minimum balance requirement when opening an account.

With access to a large Allpoint ATM network, Varo Bank will surely be great also for those who want easy cash access.

Furthermore, Varo Bank is ideal for those who want to get away with fees like monthly maintenance, overdraft, foreign transaction, and transfer fees.

Now, if you are any of the above-mentioned, then, Varo Bank is right for you.

WHAT ARE THE PRODUCTS OFFERED BY VARO BANK?

Probably one of the most important things that a customer needs to look at when choosing a bank is the variety of products being offered by the financial institution. This way, you get to see if you are able to make the most out of what it offers, or not.

Having said that, in this part of our Varo Bank review, we are going to particularly discuss the products and services offered by Varo Bank.

Varo Bank’s products are limited to checking and savings accounts. Now, let’s see what’s in store for you in each of these accounts –

Varo Bank Account (Checking Account)

Varo Bank’s online checking account is known as the Varo Bank Account. This has no monthly maintenance fee, no overdraft fee, and does not require a minimum balance as well.

The Varo Bank Account comes with a free Visa debit card, which can be used across all Allpoint network ATMs, which currently is at more than 55,000 across the United States, Canada, Mexico, Puerto Rico, as well as in the United Kingdom.

Yes, ATM transactions made in these ATMs are all free of charge — including foreign transactions for both ATM withdrawals and debit card purchases made abroad. So, if you are a traveler, this account would be ideal for you.

Moving on, while making ATM transactions in any Allpoint ATMs is free, Varo Bank does charge a $2.50 fee for non-Allpoint ATM transactions made. In addition, certain fees may be charged by the ATM owner as well.

Varo Bank Account offers early access to direct deposit payments. The bank posts deposits as early as on the same day they’re received or up to two days earlier than the payment schedule.

As mentioned, Varo Bank Account does not charge an overdraft fee, which means account holders can overdraw their checking account by up to $50 when making debit card purchases. More so, there are no fees or interest charges, too, for as long as the account holder meets the following requirements:

  • Must make five debit purchases for each month
  • Must receive payroll or government direct deposits amounting to at least $1,000 per month

Please take note, though, to avoid an overdraft fee, you must enroll in No Fee Overdraft in the Varo mobile app. Once enrolled, the feature will then be activated. In the event, however, that you overdraft your account, customers are given 30 calendar days to pay the amount back. Varo Bank automatically deducts the amount from your next direct deposit. That way, you won’t miss the payment.

Varo Bank Account also lets you send money to other Varo account holders without being charged a transfer fee. Unfortunately, though, Varo does not offer a wire transfer yet at this time.

Meanwhile, to open a Varo Bank Account, make sure you are at least 18 years old and have a mobile device that can access the Varo mobile app.

Also, make sure to have your government-issued identification such as passport or driver’s license, as well as your Social Security number when opening an account. These are essential in verifying your identity. The bank does not have a minimum deposit requirement, which means you can open a Varo Bank Account for as low as $1.

Varo Savings Account

Varo Savings Account is considered a high-yield savings account. It is important to note, however, that it has a tiered rate.

For balances up to $10,000, the annual percentage yield (APY) is 2.80% provided certain conditions are met. Meanwhile, when conditions are not met, your money will still earn but only for a 0.40% APY. The same APY applies to those with balances above $10,000.

Regardless, though, the APY is definitely higher as compared to the national average of 0.04% APY for a savings account. So, yeah, either way, you are still earning above-average — a win-win situation still.

As mentioned, there are certain conditions to be able to earn the 2.80% APY on balances up to $10,000. This includes:

  • Must receive a minimum of $1,000 in total qualifying direct deposit from either payroll or government sources
  • Must make at least five purchases using the Varo debit card between the first and the last business day of the month
  • Account balance must not drop below zero at any point during the month
  • The balance should not exceed $10,000

The Varo Savings Account also comes with two automatic savings tools, which include:

  • Save Your Pay – This allows the account holder to set up a recurring transfer from checking to a savings account every time he or she receives a direct deposit payment. The user gets to choose the percentage of payment that he or she wants to move to savings.
  • Save Your Change – This feature allows you to round up every checking transaction to the nearest dollar, and then move the extra cents to the account holder’s savings account.

Similar to the Varo Bank Account, the Varo Savings Account does not charge monthly fees or require a minimum balance.

To open a Varo Savings Account, the requirements are pretty much the same as the Varo Bank Account. Your personal information is required, and an identification issued by the government must be presented to verify your identity.

HOW TO BANK WITH VARO BANK?

By now you probably have gauged already if you want to open an account with Varo Bank or not.

Now, if you opt to open an account, then this part of our Varo Bank review is for you as we are going to tell you more about banking with them.

To be eligible to open an account with Varo Bank, you must be at least 18 years old. Similar to most banks, your personal information including your name, address, mobile number, and Social Security number is required, and you will also have to present valid government-issued identification such as your driver’s license or passport.

To open an account, all you have to do is visit the Varo Bank website, click the “Get Started” button, and then, follow the prompts.

According to Varo, the whole application process should not take longer than five minutes — now that’s very convenient and fast, right?

Apart from the website, you may also apply for an account via the Varo Bank mobile application, which is available for both Apple and Android Users.

Deposits and Withdrawals

To deposit money to your account, apart from direct deposit, Varo Bank also supports mobile check deposits. Bank transfer is another option. As of this writing, cash deposits are not yet supported, which is a very common thing among mobile banks.

As with withdrawals, all Varo Bank account holders are handed with a Varo Visa debit card, which enables them to withdraw money from any of the over 55,000 Allpoint network ATMs.

Fees

As mentioned in the previous section, Varo Bank does not charge a monthly maintenance fee, overdraft, ATM fee (unless you use a non-network ATM), transfer fee, as well as foreign transaction fee.  

IS VARO BANK SAFE?

The safety and security of all depositors are one of Varo Bank’s top concerns. Thus, the bank has ensured that all safety and security measures are in place to avoid fraudulent acts as well as identity theft.

Meanwhile, in case of a bank failure, Varo Bank is FDIC-insured, which means all depositors will get up to as much as $250,000 per account holder, per account category.

With all that being said, Varo Bank is indeed a safe mobile banking platform where you can store your hard-earned money.

WHAT TO LIKE ABOUT VARO BANK?

We’ve come to the point of our Varo Bank review wherein we are going, to sum up, all the good things we found at Varo Bank.

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

  • No Minimum Balance Requirement for Opening an Account – Unlike most mobile banks, Varo Bank does not require a minimum balance requirement when opening an account, which means you can open an account with as little as $1 only.
  • No Monthly Maintenance Fee – Another thing to like about Varo is that it does not charge a monthly maintenance fee for both checking and savings accounts.
  • No Overdraft fee – Similarly, Varo also does not charge an overdraft fee. If you do an overdraft, however, you are given 30 days to pay it back to the bank. The amount is in fact automatically deducted from your next direct deposit to ensure you do not miss it out.
  • No Foreign Transaction Fee – Another plus for us is that Varo Bank does not charge a foreign transaction fee, which makes it an ideal bank partner for those who love traveling.
  • Competitive APY for Savings Account – One of the most important features that Varo Bank offers is its high-yield savings account wherein you can earn as much as 2.80% APY for balances up to $10,000, and 0.40% for balances below $10,000 and those who do not meet certain requirements to avail the higher interest.
  • Highly-Rated Mobile App – Given the fact that Varo Bank is a mobile bank, it is really important that the app works very well. Good thing Varo ensures their customers have the best mobile banking experience with both their website and of course, ultimately, their mobile app.
  • Access to over 55,000 Allpoint ATM Network – All Varo account holders are given a Visa debit card, which allows account holders to withdraw cash from among Allpoint’s ATM network.

WHAT NOT TO LIKE ABOUT VARO BANK?

To complete our Varo Bank review, here are some of the not-so-good things we found:

  • No Physical Branches – Varo Bank is a mobile-only bank, which means it does not come with physical branches. So, if you want a feature of a conventional bank, then, this may not be the right bank for you.
  • High-Yield Savings Account is Only Available to Checking Account Holders – Yes, you read it right. Unfortunately, one of the conditions for you to earn a high-yield savings account is that you have to have an existing checking account. Otherwise, you’d only earn 0.40% APY, which, to be honest, is still high as compared to the average APY of savings accounts nationwide.

FINAL THOUGHTS ON VARO BANK REVIEW

Overall, we got to say that Varo Bank, while it does have its share of downfalls, it is overshadowed by its good features, especially its high-yield savings account option.

Also, since it is a mobile bank, it provides customers a more convenient and fast banking experience.

So, given all that’s been said about the bank, do you think it has all the features you are looking for?

It is our hope that this Varo Bank review provided you with all the information you need to convince you that this is the right bank for you.

Categories
Mobile Banking

Axos Bank Review: What Makes It One Of The Country’s Best Online Banks

Rewards on checking accounts, ATM fee reimbursements, and solid annual percentage yield — all of these in just one bank. This Axos Bank review will tell you more about the perks you will get from them once you open an account.

Axos Bank Review: What Makes It One Of The Country’s Best Online Banks

Over the years, especially recently, online banks have become a trend in the United States. In fact, according to a study conducted by Finder in 2020, they’ve found that “76.9 million Americans (30.3% of the US population) say they have or are planning to, open a digital-only — or neobank — account.”

Of this number, “54.4 million digitally savvy Americans (about 21.4% of the total US population) already bank with digital-only banks,” while “22.5 million Americans (8.8% of total US population) intend to open a digital-only bank account in the coming months.”

The online banking industry has increased especially in 2020 when the pandemic hit not just the United States but the whole world. People relied so much on online banking to send and receive money, especially to purchase their day-to-day needs.

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Now, with an increasing demand year after year, it is not surprising that the number of online banks in the market has grown as well. While this means people will have more options to choose from, the reality is, it can get a little overwhelming for customers, too.

In an article by Forbes, they came up with a list of things to look for in an online bank. This includes Federal Deposit Insurance Corporation (FDIC) insurance, fee-free ATM transactions, high-yield accounts, multiple banking products, helpful financial management tools, as well as online investment management tools.

To be honest, finding an online bank that has all of these requirements could be tough. But, for sure, there one or two or even more that have almost all of the items mentioned.

Among the financial institutions that provide almost all of the things to look for in an online bank as stated by Forbes is Axos Bank, and today, we are going to share with you what these are, and why Axos could be the most ideal choice for a customer like you.

In the next few sections of this Axos Bank review, we are going to specifically provide you answers to the following questions:

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

WHAT IS AXOS BANK?

Choosing one from a variety of online bank choices can be tough. That is why it is important to look at every single aspect to see if the bank you are eyeing meets your personal banking needs and preferences.

To begin our Axos Bank review, here what Axos Bank is all about –

Axos Bank was launched in 2000, making it one of the oldest online-only banks existing in the country today.

Initially named as Bank of Internet USA, Axos Bank was renamed in 2018 and has become one of the most popular online-only banks in the United States.

Axos Bank is a full-service online bank that has grown over the years. It offers full-service banking for both individuals and businesses.

Meanwhile, before we proceed, if you are a newbie in online banking, here’s a video by Economic Lifestyle Investing that would help you understand better the pros and cons of it and the difference between traditional and online banking:

Apart from banking products, which include checking, savings, and certificate of deposit accounts, the online bank’s list of services also includes a variety of investment portfolios, lending options, as well as business and commercial banking solutions.

Apart from providing a wide array of product choices, the bank is also known for doing away with many fees, as well as offering clients products with competitive rates.

Since Axos is an online bank, customer support is only available remotely. The bank’s customer service options include 24/7 online chat, phone line, secure online messaging, as well as Twitter.

WHO IS AXOS BANK BEST FOR?

Axos Bank is an online-only bank, which makes it suitable for a specific group of people only. Unless you are okay with doing all banking transactions right at your fingertips, then Axos is not for you.

To be more specific, Axos bank should appeal the most to consumers who are looking for a full-service online bank. It may also fit people who:

  • Want to earn competitive rates or rewards with a checking account
  • Want a checking or savings account that has no monthly maintenance fees
  • Want to earn high interest on savings account
  • Prefer to do online banking compared to traditional or conventional banking
  • Want to open an online checking account for a child
  • Want to enjoy limitless reimbursement for ATM fees

Additionally, Axos Bank should appeal to customers who are looking for a credible and reliable online bank with years of experience to back them up. Needless to say, a member of the Federal Deposit Insurance Corporation (FDIC).

Overall, Axos Bank is best for people who want a “one-stop-shop” online bank.

WHAT ARE THE PRODUCTS OFFERED BY AXOS BANK?

In the previous two sections of this Axos Bank review, we shared with you what the bank is all about and who would it appeal to the most.

This time, we are going to talk about one of the most important things you need to know as a potential customer – the products and services that the bank offers.

As mentioned, Axos Bank is a full-service online bank. The bank primarily offers the following products and services:

  • Savings Account
  • Checking Account
  • Money Market Account
  • Certificate of Deposit Account

Now, here’s a more detailed explanation about each product for your reference –

Savings Account

Axos Bank offers a High-Yield Savings Account. While this account offers higher rates than most of the ones you will find at brick-and-mortar banks, it still not as much as some of the best high-yield savings accounts out there.

Currently, this savings account earns a 0.61% annual percentage yield (APY) on all balances.

Axos Bank High-Yield Savings Account does not require monthly maintenance fees unlike other banks of the same type. More so, it comes with a free ATM card upon client’s request, which in the online-only bank industry.

Moving on, the savings account allows six total transactions per monthly billing statement. This excludes withdrawals as well as transfers made through ATM or by mail.

To open an Axos Bank High-Yield Savings Account, the bank requires at least a $250 initial deposit. While it may be a bit high as compared to what other online banks require, the good thing is, it does not have a minimum balance requirement beyond the initial amount.

Checking Account

Unlike other online banks, Axos Bank offers five different checking account options, which includes the following:

Essential Checking

This is Axos Bank’s standard checking account. Essential Checking account does not earn interest, as well as offer rewards. But the good thing about it is that it does not charge monthly maintenance fees as well overdraft fees, it comes with unlimited domestic ATM reimbursements, and that it has no minimum deposit requirements.

Furthermore, this checking account offers Direct Deposit Express, which allows account holders to get paid up to two days early.

Rewards Checking

Axos Bank’s Rewards Checking offers three tiers of interest, allowing depositors to earn a total of up to 1.25% APY. To earn the highest APY, account holders must meet these requirements:

  • Monthly direct deposits of $1,000 or more
  • Use of the debit card for at least 10 transactions of at least $3 per month
  • Use of the debit card for five or more additional times per month

This account does not charge fees, and also, has no minimum balance requirements.

To open a Rewards Checking account, the bank requires at least a $50 initial deposit. Similar to the previous one, this also allows customers to enjoy unlimited domestic ATM reimbursements.

CashBack Checking

Normally, cashback rewards are reserved for credit cards. However, Axos Bank is an exception as it offers CashBack Checking account, which allows depositors to earn up to 1% cashback on all signature-based purchases.

Similar to the other checking accounts, the CashBack Checking account also features no monthly fees and unlimited domestic ATM reimbursements. Additionally, this checking account also offers unlimited check-writing privileges.

Golden Checking

If you are 55 years old and older, then the Golden Checking account is perfect for you as it is specifically designed for people within that age range.

Axos Bank’s Golden Checking account is an interest-bearing account that earns 0.20% APY on all balances.

Similarly, it also comes with a number of perks including no monthly maintenance fees and free personal checks. Unlike the other checking accounts, it does have a limit of up to $8 only when it comes to monthly domestic ATM fee reimbursements. 

First Checking

Earlier we mentioned Axos Bank is suitable for customers who want to open a checking account for a kid. That is because Axos Bank offers a First Checking account, which is an account specifically designed for kids between 13 and 17 years old.

This account is ideal for parents and guardians who want to introduce young kids to banking early.

Similar to other checking accounts offered by Axos Bank, this one also earns interest. The First Checking account earns 0.25% APY on all balances.

While this account does not have monthly fees, it does have a daily transaction limit of $100 for cash, and $500 for debit. Additionally, it featured up to $12 in domestic ATM reimbursements per month.

Money Market Account

What makes Axos Bank’s money market account interesting is that it combines both high-interest rates with the conveniences that come with a checking account.

The Axos Bank High-Yield Money Market account comes with check-writing privileges as well as a free debit card. When it comes to rates, currently, the account earns 0,30% APY regardless of balances.

To open a money market account, the bank requires a minimum of $1,000 balance. While it seems high compared to other money market accounts out there, what is nice about it is that similar to the other account types, this does not charge monthly maintenance fees as well.

Similarly, this account is accessible through the Axos mobile app that includes mobile check deposits.

Certificate of Deposit Account

Lastly, Axos Bank also offers Certificate of Deposit accounts that has terms that range from three months to five years.

Unfortunately, Axos Bank’s CD accounts do not match up well against other top online banks. Its paying rate is just 0.20% APY.

To open an Axos Bank CD account, you will need at least $1,000 for the initial deposit requirement. Like most CDs in the market, this does not charge monthly fees as well.

Once the CD term matures, Axos Bank automatically renews it. Customers are given a 10-day grace period to take other actions without having to be charged with penalties. These actions include closing your CD account, withdrawing the money, adding more funds to it, or changing your CD term.

Similar to most CD accounts, customers who withdraw their money before maturity is penalized for up to 24 months’ worth of interest, depending on the CD term.

Other Bank Offerings

Apart from traditional personal banking solutions, Axos bank also offers a wide selection of other bank offerings, which include the following:

  • Personal Loans
  • Auto Loans
  • Purchase Mortgages
  • Refinance Mortgages
  • Federal Housing Authority (FHA) Loans
  • Home Equity Loans and Lines of Credit
  • U.S. Department of Veterans Affairs (VA) Loans
  • Automated Investing Options
  • Business and Commercial Banking and Lending Solutions

HOW TO DO BANKING WITH AXOS BANK?

In this part of our Axos Bank review, we are going to talk about how to actually bank at Axos Bank.

To open an Axos Bank account, all you have to do is go to the bank’s website. Make sure to prepare all the requirements to have a smooth and fast account application process.

Similar to other online banks, you will be asked to provide your personal information such as your name, mobile number, a valid mailing address in the United States, as well as your Social Security number, and valid government-issued identification such as passport, driver’s license, or state ID.

It is important to note also that Axos Bank is only limited to American citizens as well as resident aliens who are at least 18 years old.

Meanwhile, for the First Checking Account, the bank requires to have a parent or guardian who is at least 18 years old to be a joint owner on the account.

Once done with the application process, you may now proceed to fund your account depending on the requirement.

Banking with Axos Bank was made easy. Thanks to its highly-rated mobile app that allows users to enjoy the following features:

  • Funds transfers
  • Account balances
  • Mobile check deposits
  • Mobile bill pay
  • Transaction history

The Axos Bank mobile application is available for both Android and iOS users.

By the way, most of Axos Bank’s accounts come with a free ATM card. To access it, customers may head on to any of the over 90,000 fee-free ATMs across the country.

Additionally, Axos customers have access to Evo, which is the bank’s virtual banking assistant accessible through the mobile app or the website. Evo provides questions to common banking inquiries and it can help you in managing your account as well.

IS AXOS BANK SAFE?

Safety and security concerns are valid when it comes to online banks. It’s actually something that online banks constantly work on to ensure that unfortunate events are avoided.

With Axos Bank, standard safety and security measures are put in place to ensure that fraud and identity theft threats are avoided.

Additionally, as mentioned earlier, Axos Bank is insured by the Federal Deposit Insurance Corporation (FDIC). This means that the federal government protects all its customers’ money for up to $250,000 per depositor, for every account ownership category, should there be a bank failure.

WHAT TO LIKE ABOUT AXOS BANK?

This review on Axos Bank will not be complete without sharing with you a list of the advantages and disadvantages of this financial institution.

With that said, here’s a list of the things we like about Axos Bank.

  • Competitive Rates – In particular, Axos Bank offers high-yield savings and money market accounts.
  • No Monthly Fees – Most of the account offered by the bank has this no monthly maintenance fee feature.
  • Full-Service Online Banking – Contrary to most online banks, Axos Bank is a full-service online bank that offers a wide range of products and services for both individuals and businesses.
  • Multiple Checking Account Options – Unlike most online checking accounts, Axos Bank does have lots of checking account options depending on customer needs preferences.
  • Unlimited ATM Fee Reimbursements – Although not all, most of its products offer unlimited ATM fee reimbursements.
  • Free ATM Card – Axos Bank provides customers the option to have an ATM card access or not on most of its accounts.

WHAT NOT TO LIKE ABOUT AXOS BANK?

To complete the review, below is a list of some of the things that we particularly not like (something that the bank can definitely change or improve on in the future) about Axos Bank:

  • No Physical Branches – Axos Bank is an online-only bank, which means it operates entirely online. So, if you are looking for in-person help from a bank teller or other bank employee, then, this is the wrong choice for you.
  • Average CD Rates – Compared to other CD rates in the market, Axos Bank’s CD rates fall under the average level. While its rates are above the national average for shorter terms, it falls below the average for longer terms.

FINAL THOUGHTS ON AXOS BANK REVIEW

Overall, Axos Bank lives up to its reputation as being one of the country’s top online banks. With a wide array of account options, the bank certainly has something for every customer’s need.

Of course, while it does have its share of upsides, it does have some downsides as well, including not having a physical branch where customers can receive in-person customer support.

Everything is done entirely online, which makes it ideal for people who are always on the go and would want an online bank that offers almost everything they need in a financial institution.

With all that said, do you consider opening an account with Axos now?

We do hope that this Axos Bank review has indeed provided you with all you need to know about it.

Categories
Mobile Banking

CIT Savings Builder Review: A Deposit Account That Pays High APY

Unless you a diligent saver who wants to earn high-interest rates, and is comfortable managing your money entirely online, then, this CIT Savings Builder review is not for you.

CIT Savings Builder Review: A Deposit Account That Pays High APY

This review on CIT Savings Builder will focus entirely on what the bank is all about, the product it offers, as well as other relevant and equally important information every customer needs to know.

According to research conducted by Statista, it has been found that the value of savings deposits in the United States increases every single year. In fact, in 2018 alone it has reached $9.28 trillion.

Meanwhile, in a separate study also by Statista, it has been found between that 2010 and 2019, families in the country save for different reasons, however, according to most of the respondents, the top three reasons why they save is for liquidity, retirement, as well as purchases.

Let’s face it, saving money is important. It helps us buy the things we want and need, but more so, it helps us get through challenging times.

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Savings is important that most – if not all – financial experts always advise people to always keep a certain percentage of their monthly income to the bank (or whatever financial institution of your preference for that matter). That, before you even allot money for your expenses, make sure to put a certain amount into your savings first.

Now, when saving a portion of what you earn, you have different places to put your money into for safekeeping. But, the most common and the most popular one is through banks.

There are lots of banks out there, and to be honest, it could get a little challenging choosing the right institution. However, if you know exactly what you need and want in a banking institution, trimming down your options should be a lot easier.

Ideally, when choosing a bank to safe-keep your money, you should go for banks that offer high-interest rates. That way, your savings grow faster than usual.  

As mentioned earlier, there are lots of banks out there, and each bank offers products appealing to specific target markets. Today, though, we are going to focus on the CIT Savings Builder, it’s a product by CIT Bank that providers customers at very competitive rates.

In the next sections, we are going to provide you essential information not just about the product, but the bank as well.

Specifically, in this CIT Savings Builder review, we are going to provide answers to the following questions:

  • What is CIT Bank?
  • What are the pros and cons of CIT Bank?
  • Who is CIT Bank best for?
  • What are the products offered by CIT Bank?
  • What is CIT Savings Builder?
  • Who would benefit from the CIT Savings Builder?
  • What are the advantages and disadvantages of CIT Savings Builder?
  • How to open a CIT Savings Builder account?
  • Is banking with CIT Bank safe?

WHAT IS CIT BANK?

Before we even talk about the product, which is the very reason for this review, it is important that we also get to know the institution that actually provides it.

Knowing a little about the bank is about being able to build that confidence you need as a potential bank account holder. You need to ensure that the bank is credible and reliable because after all, it is your hard-earned money, and that as much as possible, you should be with a bank that provides amazing features and perks.

Anyway, so here are some key points about CIT Bank —

CIT Bank is a subsidiary of CIT Group, which is a popularly known financial holding company.

CIT Bank is an online-only company, which means it has lesser operating costs as compared to traditional or conventional banking institutions.

Since it operates online only, it enables the bank to offer customers higher interest rates and fewer fees.

CIT Bank offers a variety of products and services, including checking, savings, as well as certificates of deposit accounts. In this review, however, we are going to particularly focus on the CIT Savings Builder account that comes with the highest annual percentage yield (APY).

Since CIT Bank operates entirely online, this means the bank does not have physical branches. Thus, if you are not comfortable with banking online only, then, CIT Bank and its products and services are not for you.

CIT Bank is insured by the Federal Deposit Insurance Corporation (FDIC), which means all deposits receive up to $250,000 in the event of a bank failure.

If you want to know more about CIT Bank, here’s an insightful review by BankTruth:

WHAT ARE THE PROS AND CONS OF CIT BANK?

The previous section provided some of the most important things you need to know about CIT Bank, the provider of the CIT Savings Builder account.

This time, we are going to share with you a few of the pros and cons of CIT Bank, which includes:

PROS

  • High-Interest Rates – One of the best benefits customers get from opening an account, particularly a savings account with CIT Bank is that it offers a high annual percentage yield as compared to other online-only banks in the market.
  • No Monthly Service Fees – Another feature of CIT Bank is that it does not charge monthly service fees contrary to some banks of the same type.
  • Minimal Banking Fees – While CIT Bank does implement certain fees, theirs are definitely minimal and bearable.
  • FDIC Insured – Of course, another feature that CIT Bank does have is that it is FDIC-insured, which means, should the bank fails, each account holder receives up to $250,000 insurance money.

CONS

  • Online-Only – Unless you are okay with managing your account entirely online, then, the fact that the CIT is an online-only bank will be a downside for you.
  • No ATM Access – Similar to most online-only banks out there, CIT Bank does not provide ATM access as well. To withdraw money, you will have to transfer it to a different account that comes with an ATM card or access to in-person withdrawal from the bank.
  • No Physical Branches – Obviously, since CIT Bank is an online-only bank, it does not have physical branches. Again, all banking transactions are done entirely online.

WHO IS CIT BANK BEST FOR?

CIT Bank is an online-only bank that offers a high annual percentage yield (APY) particularly only its Savings Builder account.

With that said, CIT Bank is appealing to customers who:

  • Want to save money in a bank, and grow their money quickly because of high APY
  • Want to manage their accounts entirely online
  • Do not mind not having ATM access
  • Want an online bank that does not charge monthly fees
  • Have minimal charges in common bank fees

If you see yourself in any or all of the above-mentioned, then CIT Bank is perfect for you.

WHAT ARE THE PRODUCTS OFFERED BY CIT BANK?

Although this is a CIT Savings Builder review, just to give you an idea, we are sharing with you other products that CIT Bank offers.

Apart from the CIT Savings Builder, which we are going to discuss further in the next section, CIT Bank also offers checking and CD accounts.

Here’s a quick backgrounder of these two accounts:

Checking Account

Generally, standard checking accounts do not earn interest. So, the fact that CIT Bank eChecking Account pays 0.10% APY on balances below $25,000 is a big plus.

Sure, there are other online checking accounts out there that pay more, but usually, these accounts require a series of spending as well as deposit requirements to be able to earn the high rate.

With their eChecking account, CIT Bank offers $30 per month in reimbursements of outside ATM fees. Additionally, for this account, the bank does not charge any ATM fees.

The bank does not offer its own free ATM network, which means if you withdraw cash more than what is allowed in a month, it may cost you a lot.

CIT Bank eChecking account does not charge a monthly fee, which is also a perk that not all online-only bank provides.

To open an eChecking account, CIT Bank requires at least a $100 initial deposit.

Certificate of Deposit

To compare to other CD accounts offered by other banks of the same type, CIT Bank’s Certificate of Deposit accounts are above average.

The bank’s CD terms range from six months to five years. The APY also varies depending on the term. As a general rule, the longer your money is in the bank, the higher the APY is.

To open a CIT Bank CD account, a minimum deposit of $1,000 is required. While the amount is common for national banks, some online banks as well as credit unions have lower minimums as compared to CIT Bank.

WHAT IS CIT SAVINGS BUILDER?

In the previous sections, we talked about CIT Bank and what it has to offer. Now it’s time to do a serious CIT Savings Builder review.

So, what is CIT Savings Builder?

The CIT Savings Builder is CIT Bank’s high-interest rate savings account product. It offers two-tier interest rates, which are the Upper Tier and the Base Tier.

While the two tiers offer good rates, the Upper Tier definitely shines the most. It’s one of the highest APYs on savings accounts out there. The Base Tier, though, is still higher than a lot of what brick and mortar banks offer.

The CIT Savings Builder account upper-tier pays up to 0.40% APY for accounts with less than $25,000 with at least $100 monthly deposits or for accounts with a balance of more than $25,000 balance.

Meanwhile, the CIT Savings Builder account base tier pays up to 0.29% for balances below $25,000.

To open a CIT Savings Builder account, the bank requires at least a $100 initial deposit. Compared to other online banks that offer savings accounts, this stands in the middle ground, because while some do not require any initial deposit at all, others would have at least $5,000 to open or earn interest.

So, definitely, this one’s a “just right” kind of deal.

Overall, the CIT Bank Savings Builder account has strong rates and just the right perks that come with it.

WHO WOULD BENEFIT FROM THE CIT SAVINGS BUILDER?

So, in the last section of our CIT Savings Builder review, we talked about what this product is all about.

Now, let’s discuss who would benefit from it the most.

With what CIT Savings Builder has to offer, it would be most ideal for people or customers who:

  • Are looking forward to earning quickly from their savings account
  • Want high annual percentage yield
  • Can afford the initial deposit requirement of $100
  • Have the capacity to main at least $25,000 with a minimum of $100 deposit a month to earn the highest rate available

WHAT ARE THE ADVANTAGES AND DISADVANTAGED OF CIT SAVINGS BUILDER?

This CIT Savings Builder review will not be complete if we are not going to give you a list of the advantages and disadvantages of the account.

So, here it is —

ADVANTAGES

  • High Annual Percentage Yield – As mentioned earlier, the CIT Bank Savings Builder account has one of the most competitive rates in the market today.
  • No Monthly Fees – CIT Bank does not charge monthly fees for Savings Builder account holders, however, it does charge a $10 outgoing wire transfer fee if your account balance falls below $25,000.
  • No Ongoing Balance Requirement – CIT Bank requires at least a $100 deposit to open a Savings Builder account. Once the account is open, customers need not worry about maintaining a minimum balance requirement. It is important to take note, however, that if your account balance drops below $25,000 and you are not depositing a minimum of $100 per month, then expect that your APY will drop until such time you meet one of these bank requirements again.
  • Easy Fund Transfer – CIT Bank has an app that is available for both Apple and Android devices. The app allows customers to view account balance, quickly transfer money between linked accounts, as well as remotely deposit checks.
  • Free 24/7 Online and Mobile Banking – CIT Bank is an online-only bank, thus, it’s only right that it is accessible both online and mobile.
  • Mobile Check Deposit – As mentioned, earlier, CIT Bank supports mobile check deposit, which is not available in other online-only banks.

DISADVANTAGES

  • No ATM Access – This one’s not surprising, though, because it is common for almost all online-only banks’ savings accounts not to have ATM access. So, if you are someone who wants to have access to your account not only through online or mobile, but ATM as well, then you may have to look for another bank. To withdraw money from your account, you may do an electronic funds transfer, request a mailed check, or wire transfer.
  • Minimum Initial Deposit – Although compared to other savings accounts, the minimum initial deposit requirement of $100 is still considered low. The only reason why we consider it as a disadvantage is that other online-only banks that offer savings account product does not minimum initial deposit requirement at all.

With all the pros and cons listed, it’s up to you now to decide if the CIT Savings Builder is the right deposit account for you, or something else.

HOW TO OPEN A CIT SAVINGS BUILDER ACCOUNT?

By now, you are probably wondering already how to actually open a CIT Savings Builder account.

To open a Savings Builder account, you must be at least 18 years of age and must be a citizen of the United States or a permanent resident.

Since the application process is done online, it would only take a few minutes to finish.

To begin the process, you will need to fill out the application, and provide basic information such as your name, address, phone, email, and Social Security number (or other taxpayer ID).

Once done, you may proceed to fund your account with at least $100. To deposit, you may opt to link another bank account and perform an electronic transfer or choose to do bank wire or mail in a check.

IS BANKING WITH CIT BANK SAFE?

One of the major concerns of depositors when it comes to online-only banks is how secure it is.

With CIT, the bank has made sure to put all security and safety measures in place to avoid possible fraud or identity theft threats.

The bank follows the standard requirement to ensure all depositors’ data and of course, money is safe and secured.

Ultimately, CIT Bank is a member of FDIC, which means all deposits are insured up to $250,000 per deposit in case of a bank failure.

FINAL THOUGHTS ON CIT SAVINGS BUILDER REVIEW

Overall, there’s much to love about CIT Bank and CIT Savings Builder accounts per se. It comes with lots of perks that not all online-only banks can offer.

However, of all the features available, the fact that CIT Savings Builder offers a high annual percentage yield as compared to most online as well as brick and mortar savings accounts out there, definitely makes CIT shine the brightest.

So, given all the perks that CIT Bank has to offer particularly on its savings builder account, are you convinced that this one’s the right account for you?

To conclude, this CIT Savings Builder review only proves that the account is best for savers who are diligent in saving money and that it is one of the few online-only bank savings account products to beat.

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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.

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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.