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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.

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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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

WHAT IS LEVEL BANK?

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

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

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

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

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

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

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

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

Level Bank is based in Walnut Creek, California.

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

WHO IS LEVEL BANK BEST FOR?

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

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

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

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

WHAT ARE THE PRODUCTS OFFERED BY LEVEL BANK?

Now, we get into the most exciting part.

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Level Standard
  • Level Plus
  • Level Premium

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

Level Standard

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

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

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

Level Plus

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

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

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

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

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

Level Premium

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

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

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

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

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

HOW TO BANK WITH LEVEL BANK?

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

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

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

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

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

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

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

Fees

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

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

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

IS LEVEL BANK SAFE?

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

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

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

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

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

WHAT TO LIKE ABOUT LEVEL BANK?

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

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

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

WHAT NOT TO LIKE ABOUT LEVEL BANK?

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

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

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

FINAL THOUGHTS ON LEVEL BANK REVIEW

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

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

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

Categories
Mobile Banking

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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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

GO2bank Review: The Mobile Banking Platform For The Unbanked

Are you looking for a mobile bank that provides competitive rates, instant cashback, and generous overdraft protection, and is specifically focused on providing unbanked individuals a cheaper option? If your answer is a yes, then, this GO2Bank review is for you.

GO2bank Review: The Mobile Banking Platform For The Unbanked

According to the FDIC Survey of Household Use of Banking and Financial Services, which was conducted in June 2019, while nearly 95% percent or approximately 124 million households in the United States are banked (the highest number and percentage of households since the survey was first conducted in 2009), there are 5.4% or approximately 7.1 million American households that are unbanked.

When we say unbanked, this refers to people who do not have access to either a checking or a savings account. It may sound surprising given that America is considered a first-world country, but, that is part of our reality.

These people are unbanked for various reasons. In fact, a 2017 survey by the Federal Deposit Insurance Corporation (FDIC), revealed that some of the reasons why there are unbanked households in the country include not having enough money to keep in a bank account, others simply do not trust banks, while some find banks are in an inconvenient location.

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While it can be challenging to find a solution for the first two reasons, the latter one is pretty much easy to deal with given that these days, mobile banks exist.

As you know, unlike traditional banks, mobile banks operate entirely online, which means account holders can access their accounts anytime, anywhere.

This precisely is also the very reason why GO2bank exists. The mobile bank wants to help unbanked households or individuals by providing an affordable alternative that comes with several attractive banking features similar to what traditional banks offer.

In the next few sections, we are going to look into why you should consider banking with GO2bank. Specifically, this GO2bank review will focus on providing you essential information on the following aspects:

  • What is GO2bank?
  • Who is GO2bank best for?
  • What are the products offered by GO2bank?
  • How to do banking with GO2bank?
  • Is GO2bank safe?
  • What to like about GO2bank?
  • What not to like about GO2bank?

Now, let’s start with the review —

WHAT IS GO2BANK?

Let’s begin this review by looking into what GO2bank is all about. We always say this, as a customer or a potential depositor, it is important that we do our part. To ensure that we are entrusting our hard-earned money with the right financial institution, we have to research them.

That is why to help you out, we are providing some important information about GO2bank. This will help you gauge the trustworthiness and credibility of the mobile bank.

Now, let’s move on to the real deal —

GO2bank is a digital banking initiative, a division of Green Dot Bank, which was founded in 1999 and is currently headquartered in Pasadena, California.

GO2bank was only launched in January 2021, which makes it one of the (if not the) newest mobile banking platforms in the country.

As mentioned earlier, GO2bank wanted to help unbanked families or individuals with their ordeal by providing them a cheaper alternative. It is actually the mobile bank’s core mission.

In a press release, Dan Henry, CEO of Green Dot said that “GO2bank is built to be the go-to destination for seamless, affordable, useful banking – combining the security, stability, and experience of an FDIC-insured bank with the innovation and agility of a leading fintech.”

GO2bank is FDIC-insured, which means your money is protected up to $250,000 in case of a bank failure.

Know more about the GO2bank and what it has to offer in this video by Slava-Money:

WHO IS GO2BANK BEST FOR?

So, in the previous section, we gave you a few of the most important things you need to know about GO2bank.

This time, we are going to talk about who GO2bank is best for.

As mentioned earlier, GO2bank was created to be a cheaper alternative for those who are unbanked. It is for the unbanked. But, it doesn’t mean banked individuals cannot access it. They definitely can as well. It’s just that the mobile bank focuses more on providing unbanked banking needs.

Now, generally speaking, GO2bank is most appealing to individuals or depositors who want to enjoy mobile banking and does not mind not having a physical branch location.

It is also ideal for those who want to enjoy no monthly fees but with eligible direct deposit, very generous overdraft protection with opt-in and qualifying direct deposit, as well as 1% annual percentage yield on savings, and up to 7% initial cashback on eGift Card purchases in-app.

Technically, GO2bank is easy to use and was designed to help simplify banking, help people to save time and money, as well as improve their financial wellbeing.

So, yeah, if you want to experience all these and more, GO2bank is best for you.

WHAT ARE THE PRODUCTS OFFERED BY GO2BANK?

In this part of our GO2bank review, we are going to talk about the products offered by this mobile bank.

GO2bank is a mobile bank that has the full backing of its mother company, Green Dot Bank.

GO2bank, as mentioned, provides unbanked individuals a more affordable alternative to the more expensive check cashing options.

Surely, GO2bank is not free, however, it is absolutely less expensive than most of the non-bank alternatives out there. 

Unlike other online accounts out there, GO2bank does not run credit checks or use ChexSystems, which makes it suitable for those with less-than-perfect credit.

The GO2bank account receives direct deposited paychecks up to two days early. Furthermore, government benefits are accounted for up to four days early.

Additionally, GO2bank account holders will get to enjoy the following features:

  • Overdraft Protection
  • Secured Credit Card
  • Cashback and Interest Earnings
  • Waivable Monthly Fee
  • Cash Deposits

Overdraft Protection

If you noticed, we kept mentioning GO2bank providing generous overdraft protection.

Well, that is because GO2bank account holders can take advantage of up to $200 in overdraft protection. However, this is only possible if customers make at least two direct deposits within a span of 35 days.

Customers are given 24 hours to cover their overdrafts for free. Otherwise, a fee of $15 will be charged.

GO2bank comes with three levels of overdraft protection, which depends on the customer’s direct deposit activity. These levels are:

  • Basic – Provides a $10 coverage for a single direct deposit.
  • Premium 100 – Provides a $100 coverage for a minimum of two direct deposits of $200+ within a 35-day period.
  • Premium 200 – Provides a $200 coverage for a minimum of two direct deposits of $400+ within a 35-day period.

Secured Credit Card

In addition to its debit card, GO2bank’s secured credit card is also available. Getting a secured credit card is ideal for those who have limited or damaged credit. It’s a great way to start their credit-building process.

Basically, a secured credit card works by simply depositing money on it. For example, you deposited $500, your credit limit will then be $500 as well. Should in the long run opt to close the account and there are still funds left on the card, the money will be returned to you.

The nice thing about it is that GO2bank reports cardholder payments to each of the three credit bureaus, which is why it is really ideal for credit-building.

GO2bank secured credit card’s credit lines start at $100. By the way, if you opt to get a secured credit card, it is important to note that it comes with free credit monitoring through VantageScore®, which is powered by Equifax®.

The credit card is free of annual fees, and you can set your own limits to as low as $100. This helps avoid overspending, which is a very common dilemma among credit card account holders.

Cashback and Interest Earnings

GO2bank has so much in store for you. In fact, it also comes with cashback rewards and interest earnings.

By purchasing eGift Cards from about 100 popular merchants in the GO2bank mobile app, you get to earn up to 7% cashback, which is very competitive. Meanwhile, customers can earn 3% cashback on Amazon eGift Cards.

And the good things do not end there. For savings of up to $5,000, customers can earn 1% interest, which is higher as compared to the national savings rate.

Waivable Monthly Fee

As mentioned earlier, although GO2bank is not for free, it is definitely cheaper than most of what’s already available.

GO2bank charges a $5 monthly fee. But, this fee can actually be waived when customers have at least $500 in monthly direct deposits.

Cash Deposits

Contrary to most mobile bank accounts, GO2bank allows you to deposit cash at more than 90,000 Green Dot locations all across the country.

HOW TO DO BANKING WITH GO2BANK?

In the previous section, we discussed what GO2bank offers. This time, in this part of our GO2bank review, we are going to provide you with the steps on how to start banking with GO2bank.

Unlike GoBank, which is also an online bank by Green Dot Bank, GO2bank is only accessible entirely online. This means that while opening a GoBank account at participating Walmart stores is possible, with GO2bank, there is no other way to open an account but online.

So, to open a GO2bank account, all you have to do is visit and follow the steps to apply. On the website, click the “Open an Account” button.

Once you are on the account application page, you will be asked to provide your personal and contact information such as your full name, mobile number, address, and your Social Security number. Makes sure to have a valid government-issued ID, such as a driver’s license or passport on hand as well.

Before clicking the Continue button, make sure to review and ensure all details are correct, and then click to agree to the privacy policy.

Provide all the other requested identifying information, and then submit your account application.

Once your application is approved, you can now start banking online. Also, expect the debit card that comes with it to arrive in the mails within seven business days.

By the way, to qualify for a GO2bank account, you must be at least 18 years old, and a citizen of the United States or a resident with a permanent home address.

Deposits and Withdrawals

As mentioned earlier, your GO2bank account accepts cash deposits, which is very uncommon to most mobile bank accounts. GO2bank allows you, though, to deposit cash to your account at more than 90,000 Green Dot locations nationwide.

Apart from cash deposits, customers may also opt to do direct deposit, mobile check deposit, as well as fund the account through electronic transfers.

Meanwhile, you can withdraw cash anytime for free at all ATMs in the GO2bank network. Otherwise, you will be charged a $3 fee per transaction.

Fees

If you are wondering if GO2bank comes with certain fees, well, the answer to that is a yes.

While can be avoided, the following list of fees may apply:

  • $5 Monthly Fees (This can be waived if at least $500 direct deposit is made monthly).
  • $3 per transaction for out-of-network ATM withdrawal
  • $0.50 per inquiry for out-of-network ATM balance inquiry
  • $3 per transaction for teller cash withdrawal
  • 3% of total transaction amount for foreign transactions
  • $24.94 for expedited delivery of replacement debit or secured credit card
  • $15 overdraft fee (This can be avoided by returning the account to a $0 balance within 24 hours.)

IS GO2BANK SAFE?

Safety and security are every customer’s top concerns when choosing a bank.

With GO2bank, safety and security are one of its main priorities as well. In fact, GO2bank monitors all accounts 24/7. The bank sends a text message if it detects fraudulent activity. Through the mobile, app, you can instantly lock your card in case an unusual activity is detected.

GO2bank ensures that it follows also safety and security protocols for online banks.

Additionally, GO2bank deposits are FDIC-insured up to $250,000 per account. Also, as with its debit card, it is an EMV chip-enabled card, which means it is safe and secured.

WHAT TO LIKE ABOUT GO2BANK?

This GO2bank review will not be complete without a summary of the things to like about this mobile bank.

With that said, here are some of the key things we like about GO2bank:

  • Generous Overdraft Protection – One of the major features of GO2bank is its overdraft protection. Each account may enjoy up to $200 overdraft protections, which honestly is very hard to find among other accounts of similar type.
  • Direct Deposits for Up to 2 Days Early – With GO2bank, customers can expect to have up to two days early access to their funds. Meanwhile, government benefits are made available up to four days early. If you are wondering how the bank is able to do that, well, this was made possible through GO2bank’s partnership with Plaid, which connects directly with most payroll services.
  • No Annual Fee Secured Credit Card – For GO2bank’s secured credit card, customers can enjoy a lifetime of fee-free annual charges, which, again, is not very common among accounts of a similar type.
  • Cashback Rewards – Customers can earn up to 7% of cashback rewards from eGift Cards purchased in about 100 merchants in the Go2bank mobile app. Meanwhile, a 3% cashback is provided on Amazon eGift Cards.
  • Competitive Interest for Savings Account – GO2bank offers an optional savings account, which allows you to earn a 1% annual percentage yield for savings of up to $5,000. Compared to what other banks offer, and with the national savings rate, this is definitely higher.
  • Accessibility – GO2bank is a mobile bank, which means it is only accessible through the website or through the mobile app. This also means that account holders may access their account anytime, anywhere as long as there is an internet connection, of course.
  • FDIC-Insured – GO2bank was created by Green Dot Bank, which is an FDIC member. With that, it is not surprising that all GO2bank accounts are FDIC-insured for up to $250,000 per depositor in case of a bank failure.

WHAT NOT TO LIKE ABOUT GO2BANK?

Of course, to make sure everything is covered, we are also giving you a list of some of the things that we do not like about GO2bank, which includes the following:

  • No Physical Branches – As mentioned, GO2bank is a mobile bank, which is why it does not come with a physical branch location. This can be a concern to those who are used to traditional banking.
  • Monthly Fee – GO2bank charges a $5 monthly fee. However, it can be waived only if at least a $500 direct deposit is made monthly.
  • The requirement to Qualify for Highest Overdraft Protection – GO2bank is known to have very generous overdraft protection, however, it is only possible if you make at least two direct deposits within a span of 35 days.
  • Other Fees and Charges – GO2bank comes with several fees and charges. Apart from the monthly fee, the mobile bank also charges out-of-network withdrawal and balance inquiry, teller cash withdrawal, foreign transactions, as well as an overdraft fee if the account does not reach a $0 balance within 24 hours.

FINAL THOUGHTS ON GO2BANK REVIEW

GO2bank is a mobile bank that is very new to the market. Although new, it comes with a great promise by providing customers amazing mobile bank features including high overdraft protection.

Also, we like the fact that the mobile bank is focused on the unbanked. In fact, the very reason the bank exists is that to help unbanked people to have a cheaper alternative to what is already available out there.

Given all that’s been said, if you are among the unbanked, does this make you look forward to being banked soon?

May this GO2bank review provided you everything you need to know to come up with a decision on whether this mobile bank matches your banking needs.

Categories
Mobile Banking

MemoryBank Review: How Does It Provide Great Digital Banking Experience

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

MemoryBank Review: How Does It Provide Great Digital Banking Experience

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

Just to give you a little backtrack –

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

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

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

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

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

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

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

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

WHAT IS MEMORYBANK?

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

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

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

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

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

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

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

WHO IS MEMORYBANK BEST FOR?

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

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

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

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

WHAT ARE THE PRODUCTS OFFERED BY MEMORYBANK?

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

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

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

Checking Account

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

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

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

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

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

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

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

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

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

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

Money Market Account

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

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

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

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

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

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

HOW TO DO BANKING WITH MEMORYBANK?

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

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

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

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

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

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

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

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

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

IS MEMORYBANK SAFE?

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

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

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

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

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

WHAT TO LIKE ABOUT MEMORYBANK?

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

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

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

WHAT NOT TO LIKE ABOUT MEMORYBANK?

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

Some of the downsides/downfalls of MemoryBank include:

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

FINAL THOUGHTS ON MEMORYBANK REVIEW

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

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

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

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

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

Categories
Mobile Banking

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

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

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

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

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

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

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

These questions include:

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

WHAT IS CIT BANK?

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

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

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

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

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

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

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

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

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

WHO IS CIT BANK BEST FOR?

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

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

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

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

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

WHAT ARE THE MAJOR PRODUCTS OFFERED BY CIT BANK?

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

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

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

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

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

eChecking Account

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

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

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

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

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

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

Savings Account

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

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

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

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

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

Money Market

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

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

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

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

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

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

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

Certificate of Deposit

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

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

Term CDs

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

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

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

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

Jumbo CDs

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

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

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

No-Penalty CDs

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

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

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

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

RampUp CDs

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

WHAT ARE THE OTHER FINANCIAL PRODUCTS CIT BANK OFFER?

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

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

  • Business Loans
  • Home Purchase Loans
  • Mortgage Refinancing

HOW TO DO BANKING WITH CIT BANK?

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

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

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

IS CIT BANK SAFE?

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

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

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

WHAT TO LIKE ABOUT CIT BANK?

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

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

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

WHAT NOT TO LIKE ABOUT CIT BANK?

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

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

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

FINAL THOUGHTS ON CIT BANK REVIEW

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

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

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

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Investment Apps and Websites

Simple Review: What Makes It The Right Mobile Bank For You

If you are looking for an online banking service provider with competitive rates plus other amazing features, then, this Simple review is right for you.

Simple Review: What Makes It The Right Mobile Bank For You

In a report entitled, “The Mobile Banking and Payment Revolution” by Sunil Gupta, he said that:

“Mobile technology is revolutionizing the global banking and payment industry. It offers new opportunities for banks to provide added convenience to their existing customers in developed countries, and reach a large population of unbanked customers in emerging markets.”

Furthermore, the same report, says that “Mobile penetration is 105% in the U.S. and France and it is even higher in the U.K. and Germany at 130%.”

However, the said report was published around 2012-2013, so imagine how the numbers have grown by now.

In the United States, in particular, based on data published by Statista, in a 2018 survey, it was found that the usage of mobile banking in the country vary depending on demographic groups.

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Among Millennials, 69.3% of them are using or have used mobile banking. Meanwhile, only 24% of Baby Boomers have used or are using it.

Regardless of the difference in number, though, one thing’s evident – Americans these days are using mobile or online banking, and it is projected to increase even more in the years to come.

Without a doubt, technology and the internet have changed the way banking is done. But, it’s all for the better, if we may say.

Moving on, thanks to the continued innovation in the banking industry, over the years, more and more mobile banking entities are coming up, which gives consumers more options to choose from.

Among these options is Simple Bank.

As stated earlier, in this Simple review, we are going to provide you essential information on why Simple Bank may just be the right mobile banking for you.

In particular, we are going to tackle the following:

  • What is Simple Bank?
  • What does Simple Bank offer?
  • How to open an account with Simple Bank?
  • What are the benefits of using Simple Bank?
  • What are the downsides of using Simple Bank?
  • Is it safe to do banking with Simple Bank?

WHAT IS SIMPLE BANK?

First of all, let’s get to know more about Simple Bank.

As a consumer, it is our obligation to check the history of the bank to see if it is legit or if it is credible. After all, we are going to put our money into their care, right?

Based in Portland, Oregon, Simple Bank was launched in the market in 2009 as a way for consumers to have the option to escape from the usual frustrations they get from dealing with traditional banks.

Simple Bank is an entirely online mobile banking service provider that provides competitive rates, focuses on budgeting and payments, as well gives users the best mobile banking experience possible.

Simple’s founders, since its inception, have always envisioned to create a mobile banking platform that is less expensive and provides a frustration-free banking experience.

To ensure the bank stays true to its vision, Simple Bank uses BBVA USA for its banking services and FDIC insurance.

Meanwhile, if you want to know more about Simple Bank, and also get a glimpse of the bank’s mobile app, we recommend you check out this very informative video by Resolute Capital – Finance Videos:

WHAT DOES SIMPLE BANK OFFER?

In this section of our Simple Bank review, we are going to talk about the different products and services the bank offers.

This will give you an overview of what to expect from the bank. At the same time, help you gauge if Simple Bank is indeed the right bank for you.

So, Simple Bank offers two major products:

  • Checking Account, and
  • Certificate of Deposit.

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

Checking Account

Technically speaking, Simple Bank has three different checking accounts – Online Checking (Simple Account), High-Yield Checking (Protected Goals Account), and Shared Checking (Simple Shared Account).

However, for Protected Goals Account, in particular, it requires the customer to have a Simple Account first so he or she can open one.

Now, let’s take a look at each of these product offerings so we get to understand each better —

Online Checking (Simple Account)

As mentioned, Simple Account is Simple Bank’s primary account. Living up to its name, this account type comes with a simple fee structure.

The checking account, at least, as of this writing, does earn 0.01% APY. Contrary to other online banking services providers, the bank’s Simple Account does not have monthly fees, as well as minimum balance requirements.

Furthermore, the Simple Account also includes the following features:

  • No overdraft fees
  • No out-of-network ATM fees from Simple’s end
  • Check writing (The bank charges $5 for a book for checks.)
  • Mobile check deposit
  • Fee-free transactions in 40,000 ATMs through the Allpoint network
  • 1% international transaction charge when you use your debit card outside of the United States

Apart from these amazing features, Simple Bank’s Simple Account also comes with various built-in tools to help consumers manage their finances effectively. These tools include:

Automated Savings. This feature allows customers to set up their financial goals. By turning on round-up riles, every purchase made is rounded up to the dollar. The moment that changes reach $5, the money is automatically transferred to a Protected Goals account.

Budgeting Tools. What we like about Simple Account’s budgeting tools is that it gives consumers access to expense tracking, as well as budgeting within their checking account. This type of feature is particularly helpful among moms and other individuals who are responsible for budgeting finances. By the way, not many online banks provide such kind of tool.

Safe to Spend. This feature is a more advanced version of “available balance”. The Safe to Spend tool is very useful for things like savings goals, and future bills as this allow you to see how much you can actually afford to spend.

High-Yield Checking (Protected Goals Account)

Simple Bank’s high-yield checking account, which they call as Protected Goals Account actually works more like a savings account.

The only difference is that it requires you to open a Simple Account first before you can open one.

Protected Goals Account also offers impressive features, but the best of all is that it pays up to 1.20% APY on all balance tiers.

Furthermore, what’s nice about the Protected Goals Account is that customers are given the prerogative to set up savings goals using the account, and then, enable automated savings to help build up the goal balance faster.

Similar to the Simple Account, Protected Goals does not charge monthly fees, as well as require a minimum deposit amount.

The only downside of this type of account is that it does not come with an ATM card or checkbook. The account is meant entirely for savings.

The Protected Goals Account is ideal for those who want to build up savings for a specific cause like a travel fund, emergency fund, home renovation fund, etc.

Shared Checking (Simple Shared Account).

Another checking account that Simple Bank offers is the Shared Checking or what they call as Simple Shared Account.

This type of account is ideal for individuals (like husbands and wives, partners, friends, siblings, etc.) who want to share a bank account or pool funds together to achieve a common goal.

However, to be able to avail of this account option, both individuals need to open first a Simple account, respectively. The Simple account will then be used to fund the Shared Checking account.

The Simple Shared Account earns an interest that mirrors that from individual accounts.

Similarly, there is also what they call Shared Protected Goals to account where you can earn a 1.20% APY.

Certificate of Deposit

Another product offered by Simple Bank is the Certificate of Deposit.

Contrary to other mobile or online banks, Simple Bank offers a CD with only one term option only, which is 12 months.

Unlike its checking account options, Simple’s certificate of deposit requires a minimum opening deposit of $250. Also, the CDs come with a fixed interest rate of 1.00% APY, which compared to other traditional banks is definitely higher. However, it is much less contrary to other popular online banks.

What makes Simple Bank’s CD attractive to customers, though, is the fact that this one’s a no-penalty certificate of deposit. This means that customers get the benefits of a locked-in savings rate, as well as the ability to withdraw all their funds without any penalty whenever they want for as long as it has been seven days since opening.

Other Products

Apart from the checking account options, plus certificate of deposit, Simple Bank also offers personal loans, which is for another Simple review (a Simple personal loan review, perhaps?).

HOW TO OPEN AN ACCOUNT WITH SIMPLE BANK?

Now that you already know a little history of Simple Bank plus the products that the mobile bank offers to the market, in this section of our Simple review, we are going to share with you how to actually open a Simple Bank account.

Compared to most neobanks and challenger banks out there, opening an account with Simple Bank does not require you to download an app. You can process your application instead of on its website.

As part of the entire account application process, you will be asked to fill in some basic personal information. Once done, you will then be asked to verify your identity.

Simple Bank does state, however, that once your Simple bank account is already up and running, you must download their app to get more out of the services that the bank provides.

Since Simple Bank has eliminated all fees from the financial services that they offer, this only means that customers can avail of their services for free, which definitely is something rare among mobile is banking service providers out there.

By the way, apart from its website, interested individuals may also open an account by calling 888-248-0632.

Similar to the process on its website, those who opt to open an account through phone calls will also be asked to provide personal information to push through with setting up the bank account.

Requirements to Open an Account

In relation to the process of opening a Simple Bank account, please note the following important requirements:

  • The account holder must be a citizen of the United States.
  • The account holder has to be 18 years old and above.
  • The account holder must hold a valid U.S. taxpayer identification number.

WHAT ARE THE BENEFITS OF USING SIMPLE BANK?

All banks, traditional or mobile do have their respective pros and cons, which is not surprising at all because there is no such thing as a perfect bank.

In this section, we are going to talk about the benefits of using Simple Bank.

In particular, we commend Simple Bank for providing the following features:

  • No Monthly Fees. One of the core principles of Simple Bank is not having hidden fees, which in their perspective is best done by not charging any fees at all.  Thus, by using Simple Bank, you do not have to worry about monthly maintenance fees, ATM fees, or other common fees charged by banks.
  • No Minimum Balance Requirements. Whether it be a checking account or a certificate of deposit, Simple Bank does not have a minimum balance requirement.
  • Competitive APY on Protected Goals Account. Simple Bank offers competitive interest rates among its Protected Goals account (whether it be for individuals or shared).
  • No Overdraft Fees. As mentioned earlier, Simple Bank does not have hidden charges. In fact, they do not charge common bank charges at all — which includes overdraft fees.
  • 40,000+ fee-free ATM network. With Simple Bank, you can use your debit card in over 40,000 ATM network for free.
  • Built-in Budgeting Tools. Not all mobile banks offer this kind of tool, which makes Simple Bank standout also from other mobile banking service providers. Simple Bank’s budgeting tools are especially helpful for people who need help when it comes to handling finances.
  • Quick and Easy Online Sign-up Process. Similar to most online banks out there, Simple Bank does offer a quick and easy online sign-up process through its website.
  • Slick and User-Friendly Web and App Interface. The bank lives up to its name that is why even though its platforms, the bank ensures you go through a simple, easy to navigate web and app interface.

WHAT ARE THE DOWNSIDES OF USING SIMPLE BANK?

As we have said earlier, no bank is perfect, and the same goes for Simple Bank.

Now that we’ve already shared some of the best features of Simple Bank, this time, we’ll share with you some of the downsides we found out about using Simple Bank.

Our list includes the following:

  • Average CD rates. Simple Bank’s certificate of deposit earns 1.00% APY only, which is very decent compared to that of traditional banks. Although, as mentioned, it is kind of lower as with other well-known online banks.
  • No Savings Account. Although Simple Bank’s Protected Goals Account functions similarly to that of a savings account, it still does not count as one because first and foremost, you have to open a Simple checking account to be able to open one. So, yeah, technically, Simple Bank does not have a concrete savings account option.
  • No Cash Deposits. Unfortunately, customers do not have an option to do cash deposits with Simple. The only available options to fund your account is through direct deposits, electronic transfers, mobile deposits, or by sending a check via mail.
  • No Online Bills Payment. Contrary to other mobile banks out there, Simple Bank does not have an online bill payment option. Although customers can opt to set up bill pay through vendor options, they do not have one that is direct to the Simple online account.
  • One CD Term Only. Unlike other mobile banks, Simple Bank only offers one-term on its certificate of deposit, which means you have no other options. Unless you are looking for a 12-month CD term only, then Simple Bank’s CD may work for you.

IS IT SAFE TO DO BANKING WITH SIMPLE BANK?

One of the most important questions among customers of online banks is if the bank is safe and secured, which is totally understandable because, at the end of the day, you are entrusting them your hard-earned money.

Anyway, with Simple Bank, you are assured that they are legit and credible.

All funds deposited in Simple Bank account are FDIC-insured through Simple’s partner bank, BBVA USA (FDIC# 19048).

FDIC insurance means the federal government protects your money up to $250,000 per depositor, for each account ownership category should the bank fails in the future.

FINAL THOUGHTS ON SIMPLE REVIEW

Overall, with all that’s been said, we’ve come to the conclusion that Simple Bank is particularly ideal for those who are looking for (more than just what we’ve initially mentioned) any of the following:

  • A payment account that works both with a debit card and checks
  • An account that does not charge you fees
  • A clear view of their monthly expenses through the bank’s budgeting tools
  • An account that will help you reach your financial goals
  • Competitive interest earnings particularly on long-term savings
  • Zero-sum budgeting that is integrated into their bank accounts
  • Mobile alerts every time an amount of money is withdrawn from the account

To end, we hope that through this Simple review, we are able to provide you with the right information to help you get into a decision on whether this mobile bank is the one you are looking for.

Categories
Investment Apps and Websites

NorthOne Review: Why It Is The Better Mobile-Based Bank For Businesses

In this NorthOne review, we are going to tell you why this bank is the better online-based bank account option for your business.

NorthOne review; why it is the better online business bank choice

In a data published by Kommando Tech, based on internet banking statistics from a 2018 survey by Deloitte, “73% of consumers use an online banking channel at least once every 30 days, whereas only 59% use a mobile banking application.”

This data shows that more and more consumers today prefer using online banking channel as well as mobile banking apps in making transactions – including purchases.

Meanwhile, a report by Statista, says that in 2012, it was found that 54% of Small-to-midsized business (SMB) owners accessed their business accounts through mobile devices like tablets and smartphones.

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If you come to think about it, based on the different data we presented and other references that are available on- and offline, digital banking or mobile banking plays a very important role nowadays not only in the banking experience of individuals but among businesses as well.

Businesses today definitely do not lack options when it comes to online banking. In fact, there are a lot of choices to choose from.

With online banking, businesses get to set up an account immediately on their preferred online banking site, and then, start banking activities like transferring funds and making payments right away.

As mentioned, there are a lot of choices available, and one of them is NorthOne.

So, to help you get to know better what this bank has to offer, in this NorthOne review, we are going to particularly tackle the following important information:

  • What is NorthOne?
  • How does NorthOne work?
  • What are the features offered by NorthOne?
  • What are the fees and charges?
  • What are the benefits of using NorthOne?
  • What are the downsides of using NorthOne?

WHAT IS NORTHONE?

First of all, before you even register or apply to a certain banking institution, it is important to know a little history. This helps you establish the credibility and authenticity of the bank.

Remember, you are going to entrust your money to the bank. For this reason alone, you have to be very sure that you are dealing with the right entity to ensure that your money is safe and secure.

So, what is NorthOne?

NorthOne is “a simple and fast digital business bank account,” which is why it is ideal for businesses. They particularly focus on them.

Furthermore, the bank states on its website that they aim to “help builders and makers manage their money by making banking effortless“.

Founded in 2017 by Eytan Bensoussan and Justin Adler, NorthOne was specifically designed as a mobile-only business banking.

With a minimal fee of $10 a month, you get to enjoy seamless mobile banking. The fee includes invoices, bill payments, as well as the ability to manage your business’s money.

As compared to other mobile banking institutions, what makes NorthOne stand out is its easy-to-use mobile interface. Unlike others, you do not have to worry about tracking down details and information when you need them because everything is placed in just one place.

To put it simply, NorthOne is a mobile bank that provides FDIC-insured business banking entirely through your smartphone. Its services were specifically designed to cater to freelancers, startups, and small businesses.

HOW DOES NORTHONE WORK?

In this section, we are going to provide you further information about how exactly NorthOne works.

As mentioned, NorthOne is a mobile bank specifically designed for freelancers, startups, as well as small businesses.

It is available only via an app. While they do have a website, signing up for an account requires you to do it using your mobile device, which is also the device you will be using to do all your business banking.

The NorthOne mobile app is available on both iPhone and Android phones.

Once done uploading the app, open it to start the signing up process.

During the initial process, you will be asked to provide some personal information including your phone number, email address, and your preferred password.

You will then be asked to confirm your email address in your inbox. Although you can do this process later on.

You will also be asked to read and accept the terms of service to finalize the whole account setup.

Similar to many apps available these days, NorthOne also allows you to enable Face ID for an easier login every time you open the app.

Once done with the initial steps, you will then be asked to verify your identity.

To verify your identity, you will be asked to provide your business and personal financial details, which include your Social Security number, as well as your business’s Employer Identification Number.

To ensure the safety and security of your account, NorthOne allows you to choose push notifications so you get alerted should there be any activity on your account.

After this step, you will then be asked to provide the necessary information for NorthOne to run a credit check both on you and your business. Do not worry though as this check won’t affect your credit score at all.

Once you’re done with all the steps, NorthOne will then go on to review your details and approve your account. This process only takes a few minutes depending on a range of factors.

The moment your account goes live, you can now start using the app to do mobile banking. You can make deposits through any of the approved methods like wire, ACH, or through mobile check.

To know more about how to put cash into your NorthOne bank account, check the video below by NorthOneBanking:

NorthOne also allows you to create sub-accounts, define rules, as well as get your integrations going. All these allow you to save much-needed time and money.

While NorthOne allows you to use it for as much as you’d like, the number of transactions you can carry out for a month is limited based on your tier of account, which starts from $10 to $50 rocket ship tier.

WHAT ARE THE FEATURES OFFERED BY NORTHONE?

Businesses should look for a mobile banking partner that could provide them options when it comes to their banking needs.

NorthOne provides a few reasons why it is worth your consideration rather than your ideal choice.

As we continue with our NorthOne review, here are some of the best features we thought would be very helpful for business in need of a mobile banking partner:

  • Mobile App
  • Web Banking
  • Sub-Accounts
  • App Integrations
  • Read-Only Access
  • Transaction Search
  • Customer Support

Let’s discuss further what each of these features is all about –

Mobile App

All your banking needs are done through the NorthOne mobile app, which means you only need your smartphone to do all the transactions you need. Needless to say, it helps keep everything in one place, at the same time, allowing you to do banking transactions while on the go.

Furthermore, what’s about it is that you can control your NorthOne cards within the app. You can also lock one temporarily if necessary (especially when it’s missing).

Making banking even more convenient, the NorthOne mobile app allows you to easily deposit checks without having to go through the hassle of tracking down a bank.

Should you need to deposit cash, you can easily get the funds out of your wallet and into your bank account by visiting one of the 300,000 ATMs located across the country.

Definitely, the NorthOne mobile app is true to what the bank promises – easy and seamless mobile banking.

Web Banking

Another thing to like about NorthOne is its web banking feature.

Apart from the fact that the bank offers a robust mobile app, NorthOne also recognizes that the ability to access your account through a desktop or laptop computer is just as important.

With NorthOne’s web banking feature, its customers can easily pay bills — within just a few minutes — without the need to go elsewhere.

Apart from that, customers can also export financial information into Excel or Quickbooks without any hassle. More so, they can jump between sub-accounts with just a few clicks!

Additionally, through NorthOne’s web banking feature, customers are able to see all their transactions on the dashboard. That way, they can keep track of where their money is going.

Sub-Accounts

The ability to create sub-accounts allows you to save money, at the same time, manage your expenses.

The availability of sub-accounts is probably one of the amazing features of NorthOne.

You can use it for the sole purpose of saving money, at the same time, you can also create rules that move money to them automatically on a periodic basis.

But that’s not all. You are not limited to using this feature to that. In fact, you can use it for various tasks.

You can use it to set aside money for renovations of your store, expansion of your business, as well as money for paying taxes. It’s really all up to you to take advantage of what this feature offers.

App Integrations

In most cases, when it comes to businesses, one of the biggest benefits of any app usually comes from integrations — and NorthOne definitely has it, too!

Integrations allow businesses to boost productivity by using apps that work with whatever solutions or tools you already have.

With NorthOne, the app allows integration with some of the most popular payment and accounting tools like the following:

  • Amazon
  • Expensify
  • Freshbooks
  • PayPal
  • Quickbooks
  • Shopify
  • Stripe
  • Wave
  • Xero

Read-Only Access

The read-only feature makes it easier to hand off certain duties to internal employees as well as contractors outside the business or company.

For example, you can set it up so that your bookkeeper or accountant can easily access your accounts and gather information without having to worry about the safety and security of the details you share.

Transaction Search

Businesses do have various transactions they get into, and sometimes it can be tiresome to go over all these transactions just to find one specifically.

With NorthOne’s transaction search feature, you no longer have to worry about finding a specific transaction.

All you have to do is do the search either by name or using filters to pull out the types of transactions you are looking for.

Don’t worry, NorthOne does not limit you to how far back you can search, so it doesn’t matter if you are looking for a transaction you made a year or so ago. You’d still find it for sure.

Customer Support

When we think about mobile banking or mobile banks, one of our immediate concern is customer support.

NorthOne totally understands this, which is why the bank offers both phone and chat support.

Unlike other online banks out there, NorthOne offers live one-on-one support from a human representative.

The bank’s customer support is reachable between 8 in the morning until 1 in the morning (ET) all days of the week.

While live chat is available within NorthOne’s mobile app, you also have the option to send and ask for help via email or through a scheduled phone call at a time that is most convenient for you.

WHAT ARE THE FEES AND CHARGES?

In this section of our NorthOne review, we are going to talk about NorthOne’s fees and charges.

Another thing we like about NorthOne is that the bank is very transparent when it comes to fees and charges.

First of all, as mentioned earlier, you are charged a $10 monthly account fee for you to get to enjoy unlimited transactions, which include debit card purchases, as well as check deposits.

Unfortunately, regardless if you maintain a certain balance in your account, the monthly account fee will not be waived.

Second of all, although NorthOne does not charge you for in-network or out-of-network ATMs, any third-party machines you use may charge a fee.

By the way, you can get fee-free ATM transactions at any of the 300,000 ATMs that are in NorthOne’s network.

Lastly, apart from the above-mentioned, NorthOne also charges for the following:

  • Overdrafts: $5 per day
  • Non-Sufficient Funds: $25
  • Domestic Wire Transfers: $10
  • International Wire Transfers: $25
  • ACH/PAD Returns: $10 (for a bounced electronic payment due to insufficient funds, stop payment, or incorrect account information)
  • Expedited New Debit Card: $35
  • Dormant Account for a Year: $5 per month
  • Abandoned Account for 5 Years: $50 per account

Additionally, unlike other online business banks, NorthOne does have a minimum opening deposit requirement of $50 only. Keep in mind though, that while the opening deposit is low, the bank does have an ongoing minimum balance requirement.

WHAT ARE THE BENEFITS OF USING NORTHONE?

Now that you already know some of the most important information about the NorthOne mobile bank, this time around in our NorthOne review, we are going to dun down some of the things that we like most about NorthOne.

Some of the benefits of NorthOne include:

  • Accounts start on a starter level and are adjusted to meet your business’s demands. This process reduces admin requirements, at the same time ensures its customers that they are getting the best value for their money.
  • Highly valuable integration feature with well-known reporting, payment, and accounting tools. This, in particular, is very helpful during tax season.
  • NorthOne debit cards use MasterCard. This one’s an excellent benefit especially among startups and small businesses. It allows them to make transactions in thousands of locations across the country and other parts of the world.
  • Transparent fee structure. Unlike other mobile banks, NorthOne is very transparent when it comes to its fees and charges, which is great for its customers as this spare them from worrying about account limits and other transactions.
  • Simple and easy overall mobile experience. NorthOne allows you to consolidate all your banking needs in one app, which makes it convenient regardless if you are at home or on the go.
  • Ability to set money aside for particular purposes. With its sub-accounts feature, users are able to set aside money for certain purposes like savings, tax payments, business expansion, etc. without the need to move it to another bank account.

WHAT ARE THE DOWNSIDES OF USING NORTHONE?

Nothing is entirely perfect and so is NorthOne. While it does have its ups, it surely does have its downsides as well.

Some of the points of concern about NorthOne include:

  • Minimum opening deposit requirement. Although the minimum opening deposit requirement is not that big, many other online-based business bank accounts do not require a minimum deposit.
  • The monthly fee cannot be waived. Unfortunately, NorthOne does not waive the monthly fee amounting to $10 regardless if you meet the minimum account balance requirement or not.
  • Mobile-only. NorthOne is definitely an ideal choice for business owners who are not into app-based banking.
  • Does not have branch access. Unlike traditional banks and other online banks, NorthOne customers do not have access to a physical branch as well as in-person support.
  • No reimbursements for out-of-network ATM fees. While there are a lot of online bank accounts that offer reimbursement of fees incurred from using your debit card at an out-of-network ATM, unfortunately, NorthOne does not offer this kind of feature.

FINAL THOUGHTS ON NORTHONE REVIEW

Mobile banking is definitely the way to go these days regardless if it is for personal or business use.

Good thing, there are a lot of mobile bank options available. There are many to choose from – and obviously, NorthOne is among them.

NorthOne, though, is particularly ideal for small businesses, freelancers, as well as startups.

Are you a business owner who is always on the go? If yes, NorthOne may just be the right online-based bank for you.

To conclude this NorthOne review, we hope that we are able to provide you all the essential information on why this mobile-based bank is the better online business bank.