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Mobile Banking

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

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

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

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

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

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

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

However, things changed when the pandemic happened.

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

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

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

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

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

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

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

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

WHAT IS AMERICAN EXPRESS BANK?

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

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

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

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

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

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

WHO IS AMERICAN EXPRESS BANK BEST FOR?

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

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

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

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

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

WHAT DOES AMERICAN EXPRESS BANK OFFER?

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

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

High-Yield Savings Account

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

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

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

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

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

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

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

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

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

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

Certificate of Deposit (CD) Account

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

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

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

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

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

HOW DOES AMERICAN EXPRESS BANK’S ONLINE BANKING WORK?

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

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

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

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

ARE THERE FEES INVOLVED?

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

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

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

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

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

HOW TO OPEN AN ACCOUNT WITH AMERICAN EXPRESS BANK?

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

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

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

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

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

IS AMERICAN EXPRESS BANK SAFE?

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

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

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

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

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

WHAT ARE THE UPSIDES OF AMERICAN EXPRESS BANK?

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

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

WHAT ARE THE DOWNSIDES OF AMERICAN EXPRESS BANK?

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

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

FINAL THOUGHTS ON AMERICAN EXPRESS BANK

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

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

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

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

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

Categories
Mobile Banking

Yotta Savings Review: Saving and Winning Money In One Mobile App

In this Yotta Savings review, you will see how this fintech company makes saving more interesting by adding a weekly chance to win a lottery jackpot.

Yotta Savings Review: Saving and Winning Money In One Mobile App

For many people, saving money whether it be in the bank or other financial institutions is a drag. They find it not worth it especially since the interests on savings accounts are usually low.

Ironically, some people would rather spend money joining or betting on lotteries instead of saving their money in the bank.

In fact, a report published by the United States Bureau of Labor Statistics says that from the third quarter of 2017 to the second quarter of 2018, Americans spent an average of $132.43 on lottery tickets.

Meanwhile, data from Statista says that in 2020, the largest lottery sales were in New York, generating approximately 9.74 billion U.S. dollars. This was followed by Florida as well as Texas, with lottery sales that amount to 7.5 billion and 6.7 billion U.S. dollars, respectively.

If you think about it, that’s a lot of money spent on lotteries. More so, that’s too much money spent on something that you are unsure of. After all, only a few wins the prize, right? The probability of taking home the prize is way too far, to be honest.

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Still, a lot of people are into it instead of saving that money on banks or other financial institutions instead.

But, what if you get the best of both worlds? You know, hitting two birds with one stone?

Sounds impossible? Does it seem like a crazy idea?

Well, apparently, you are wrong, because that is exactly what Yotta Savings is trying to address.

The company offers both savings, at the same time, provides its customers an opportunity to win the weekly lottery!

So, does the company do it? Well, you are going to find out as you go along this Yotta Savings review.

Specifically, this in-depth review will focus on providing answers to some of the most commonly asked questions about this online financial platform, which include:

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

WHAT IS YOTTA SAVINGS?

Yotta Savings is a financial technology or fintech company that offers an alternative interest rate structure on savings.

Founded in October 2019 by Adam Moelis and Ben Doyle, this New York-based company provides a savings application with lottery elements, which makes it very unique to what other fintech companies offer.

Inspired by the United Kingdom’s Premium Bonds program, Yotta integrated gamification elements with traditional savings.

By using Yotta Savings, account holders get to save money, at the same time, have the chance to win a $10 million jackpot, along with a multitude of other prizes and rewards.

But the good things do not end with the lottery prize alone.

Yotta functions as a basic savings app that provides a relatively high annual percentage yield of up to 4%.

Yotta does not only provide customers with a fun take on savings app but that also provides customers a chance to hold their money in a high-yield savings account.

The good things about Yotta Saving continue —

Apart from the chance to win a lottery prize, as well as earn a high interest rate on a savings account, Yotta ensures that all deposits are safe in case of an unfortunate event.

Yotta Savings is insured by the Federal Deposit Insurance Corporation (FDIC), which means in the event of a bank failure, all deposits are insured for up to $250,000 per depositor, per account category.

Before moving on, if you want to know more about Yotta Savings, check this video by Brendan Fitness and Money:

WHO IS YOTTA SAVINGS BEST FOR?

Generally speaking, Yotta should appeal to individuals who want to take advantage of having basic savings account with a high annual percentage yield, at the same time, a chance to win a weekly lottery prize for free.

Additionally, Yotta Savings is also a good choice for people who do not want to worry about paying monthly fees or meeting account minimum requirements.

Yotta Savings is a fintech company, which means transactions are done entirely online. Thus, this app is great for people who prefer online banking and does not mind not having a physical branch to go to.

Because of the lottery aspect, this is a great opportunity for people who won’t win as much as $10 million every week without having to pay for anything! Basically, you earn 1 ticket for every $25 you deposit in your account.

WHAT DOES YOTTA SAVINGS OFFER?

Technically speaking, Yotta Savings is not a bank, but a fintech or neobank. However, thanks to its partner, Evolve Bank, Yotta Savings can provide banking services that are FDIC-insured.

With Yotta Savings, customers earn a small amount of interest plus cash-based prizes instead of earning cash interests.

Since Yotta Savings is a fintech company, everything is done entirely online. The app is accessible to both iOS and Android users.

Now, for a more thorough review, here’s what Yotta Savings has to offer:

Lottery Tickets

Yotta Savings is not your typical savings account. With every $25 that you save, you get a ticket into weekly number draws. So, if you deposit $100 for instance, you get 4 tickets every week for as long as you keep that amount in your account without making any new deposits.

A prize is chosen every Monday of the week at 9 PM EST.

What’s nice about Yotta is that, unlike the traditional lottery, customers do not lose any money at all. They just gain some if they win.

Meanwhile, picking numbers as well as handing out prizes is done by a third-party insurance company.

Savings Rewards

Yotta’s base savings reward is 0.20%. While multiple outlets have tried calculating how much the “average” could earn with Yotta in rewards, there has been no concrete result.

Nevertheless, effective rate calculations factor in the base rewards plus the winning prize from lottery tickets.

Currently, Yotta’s weekly lottery prize ranges between $0.01 and $10 million, including partial ticket matches that pay out small amounts of money.

Debit Card

Yotta Savings is launching its debit MasterCard soon.

What’s nice about it is that you get to earn tickets by simply using it. For every $10 spent, you will earn one ticket to the following week’s draw.

Additionally, there is a chance to win the item you have just purchased for free.

Cardholders will also be upgraded automatically to a premium metal card once they have made 10 referrals.

Referral Program

Each customer gets to have a unique referral code, which allows them to earn extra 100 tickets for the lottery.

Similarly, the person they are referring to will also earn the same number of tickets for the lottery.

HOW DOES YOTTA SAVINGS WORK?

Now that you already know what to expect from the Yotta app, this part of the Yotta Savings review will focus on providing you information on how the app actually works.

Using the Yotta Savings app is very simple and easy.

First, you make a deposit. You may deposit by simply choosing your bank to deposit from.

As mentioned, for every $25 that you save, you automatically earn one ticket into the weekly number draws.

If you deposit $50, then, you get 2 tickets every week for as long as you keep that $50 in your account without making any new deposits.

Second, for every Money, you need to pick 7 numbers for each of your tickets.

If you forget to pick your numbers before the draw, that’s fine. Your ticket will be automatically picked if you are not able to complete it in time.

Third, the draw is done every week with one number drawn every night at 9 PM EST. The final number is drawn on Sundays, and the winnings for the week are made.

Lastly, Yotta lets you earn up to $10 million every week!

If you want to earn more, you just got to match as many numbers as possible. However, if you match all seven numbers, you take home the $10 million jackpot with you.

It is important to know that Yotta Savings is primarily a savings account, which allows you to earn a 0.20% interest rate.

However, if you include the value of the current prizes, account holders could get up to 4% all-in on your savings, which is definitely the highest rate out there.

Ultimately, what makes Yotta unique is the fact that it allows its account holders to save in a separate account, at the same time, play the lottery without any risks involved.

Withdrawal Limits

Similar to other banks, Yotta Saving account holders are limited to six withdrawals only per statement period.

In addition, these dollar limits apply: $10,000 per day, $40,000 per month, and $100,000 per year.

ARE THERE FEES INVOLVED?

With all these opportunities and perks that Yotta Savings provide, you’d probably think it will cost you a lot to benefit from it all.

Well, guess what?

Yotta Savings does not charge any monthly service fee, as well as it does not require any minimum deposit or minimum balance requirements.

Furthermore, the app does not charge overdraft fees as well.

The only possible fee that you will be charged is ATM fees if you decide to make cash withdrawals.

However, the company says it is currently working on creating its very own in-network ATM system. So, sooner or later, customers will also get to enjoy free ATM transactions.

HOW TO OPEN AN ACCOUNT WITH YOTTA SAVINGS?

Now that you already know the most important details about the Yotta Savings app, this time, let’s talk about how to actually open a Yotta Savings account.

To start with, you have to download the Yotta Savings app, which is available for both iOS and Android devices.

Now, to sign up for a Yotta Savings account, similar to other banks, you will be asked to provide some basic personal and financial information such as your name, address, phone number, birth date, as well as your Social Security number.

Do not worry about seeing a hit to your score because Yotta will not pull your credit.

Once you are done creating your account, you will then be prompted to input your bank account details.

Please take note that Yotta requires account holders to have a US-based bank account. Otherwise, you will have to make one first before you can start using Yotta.

Yotta has no restrictions on which bank accounts to connect. However, it has to be a regular checking account from a bank based in the United States.

Yotta Savings has partnered with Plaid, which ensures you can connect any bank account to the app without any hassle.

IS YOTTA SAVINGS SAFE?

The safety of your money and your personal information is important to Yotta. That is why it has put all necessary safety and security measures in place.

First, Yotta Savings uses military-grade 256-bit AES encryption on all customers’ personal data and transfers information using secure SSL channels. With these security measures in place, hackers should have a hard time trying to get into your account.

Second, your money is not actually held with Yotta. This means that if the company goes under, creditors cannot come after your funds.

Lastly, as mentioned earlier, all deposits on Yotta Savings are FDIC-insured. Thanks to its partnership with Evolve Bank.

All accounts are insured for up to $250,000 per depositor, per account category in the event of a bank failure.

So, overall, the Yotta Savings app is very safe to use. Both your personal information and your money are well taken care of.

WHAT ARE THE UPSIDES OF YOTTA SAVINGS?

This Yotta Savings review will not be complete without sharing with you a list of the pros and cons of using Yotta Savings.

In this section, we are going to focus on the upsides of Yotta Savings first. This includes:

  • Excellent Savings Account – Yotta Savings’ base interest rate is 0.20%, which means no matter what, your money will grow. However, if you add the weekly cash bonuses, most account holders could end up earning as much as 4% (even more) APY on their accounts.
  • Unique Gamification Elements – Apart from providing you a basic savings platform, Yotta also takes advantage of the oddities of human psychology to incentivize people to save more money.
  • No Monthly or Overdraft Fees – Apart from the fact that Yotta provides a very unique way to make people save money by providing them a chance to win a prize at the same time, Yotta also makes saving stress-free by not charging monthly service fees or overdraft fees.
  • Free Weekly Lottery – Unlike typical lotteries, with Yotta, account holders need not worry about paying for lottery tickets, because they’re free! All you need to do is deposit money into your account. For every $25, you automatically earn 1 ticket for yourself.
  • Chance to Win Millions – Yotta Savings app provides each account holder the chance to win for up to $10 million every week. What’s nice about it is that you have chances to win without having to lose any at all. As mentioned, you earn a lottery ticket for every $25 deposit made.
  • Referral Bonus – Just when you thought the good things are over, well, not yet. If you refer a friend to Yotta, you instantly get 100 lottery tickets for free when they sign up and make an account. Furthermore, the same number of tickets will also be given to your friend/s.

WHAT ARE THE DOWNSIDES OF YOTTA SAVINGS?

In the above section, we’ve shared some of the highlights of Yotta Savings.

To complete our Yotta Savings review, here are some of the downsides of the app:

  • Entirely Mobile – Unfortunately, Yotta Savings is only accessible through its mobile app. Unlike other fintech companies, this does not allow you to access your account on a desktop computer. Good thing though as the app is very easy to use, and does not have major concerns.
  • Average Base Rate – If we are just going to look at the base rate, there are surely other banks and financial institutions that offer higher than that.
  • No Fee-Free ATM Network – As of this writing, Yotta Savings does not have a free ATM network. So, while it does not charge monthly service fees or overdraft fees, customers will have to deal with ATM fee charges instead.
  • Lack of Features – Yotta was created solely for savings. It does not offer any other traditional banking services like checking accounts, certificate of deposit accounts, or retirement accounts.

FINAL THOUGHTS ON YOTTA SAVINGS

Yotta Savings is a fintech company that offers savings account as well as an opportunity to win a weekly lottery prize of up to $10 million.

It’s a great option especially for people who love joining lotteries. What’s nice about Yotta is that you don’t lose anything. You earn a ticket for the lottery draw for every $25 deposited to your account.

Given all that Yotta Savings offers, do you think this is the right account for you?

Through this Yotta Savings review, we conclude that Yotta is definitely worth considering, especially for people who want to enjoy the benefit of having a savings account and a chance to win up to a $10 million lottery prize for free.

Categories
Mobile Banking

Digit Review: Automatic Savings Tool That Helps People Save Consistently

Creating a savings habit can be difficult. But, in this Digit review, you’ll see how this platform helps people consistently save money.

Digit Review: Automatic Savings Tool That Helps People Save Consistently

Not all people are good at saving money. Some are geniuses and consistent, but most of us, we sometimes find it hard — or maybe we are just being stubborn.

The majority of Americans are terrible savers, says a report online by CNN Money. In fact, the report, which was published in 2017, says that a quarter of people in the United States still have no savings at all.

Of course, there are various reasons for that — there’s not having enough money to save, no trust in banks, etc. But then again, if you think about it, having no savings is a scary place to be in because you never know what life will be throwing at you. You have to be prepared.

Meanwhile, an article published by The Wall Street Journal says that in 2018, saving was up by 17% from the previous year based on a report by the Commerce Department. This number beats consumer spending’s at 5.2% and business investment’s, which was at 7.8%.

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It’s probably safe to say that year after year, American saving habit changes — for the good.

With the pandemic that has happened in 2020, we wouldn’t be surprised if the numbers grow even more by the end of this year. You know, people learn from their mistakes.

But apart from what’s happening around, one of the many factors that must have helped change the way people save is the advent of digital banking.

Digital banking helps make things so much easier for savers and consumers in general. With just a click of a finger, you get to manage your finances. No hassles at all.

While there are lots of online banking platforms out there to choose from, today, we are obviously going to focus only on one — that’s Digit.

Digit is a company that might have revolutionized the way consumers save money by launching an app that helps you automate and separate your savings by connecting to your checking account and uses an algorithm to make automatic withdrawals every few days, and then deposits the money into a separate, but non-interest bearing savings account.

Sounds interesting?

Well, in the next few sections you are going to know more about Digit and how it makes saving ease.

In particular, we are going to tackle the following:

  • What is Digit?
  • Who is Digit best for?
  • What does Digit have to offer?
  • How does Digit work?
  • How to get started with Digit?
  • Are there fees involved?
  • Is Digit safe?
  • What are the upsides of Digit?
  • What are the downsides of Digit?

WHAT IS DIGIT?

Digit is a micro-savings app that was established in 2015 by Ethan Bloch, who at that time was only 29 years old.

The Digit app makes saving money so much easier and uncomplicated by using a sophisticated algorithm to analyze the user’s money habits and save money for the user when he or she can afford it.

The app was created with people who need help saving money in mind. At the same time, those who want to save but want a simple tool to help them with.

Basically, Digit helps users automate and separate their savings by connecting to their respective checking account. As mentioned, the app uses an algorithm to make automatic withdrawals every few days and then deposits the money into a separate, but non-interest-bearing savings account.

Apart from savings, Digit also offers to invest as well as saving for retirement services.

Obviously, unlike typical online savings accounts, though, Digit does not make you rich by using the app. Also, since it is all digital, you won’t find a branch location like what traditional banks have.

Before moving on, get to know more about the Digit App in this very insightful and informative review by Money at 30:

WHO DIGIT IS BEST FOR?

Digit is an app that’s ideal for people who want to save money for specific financial goals. It’s actually a great app if you are saving for a short-term goal like a vacation, the furniture you want to buy, a birthday party, etc.

However, it also does offer to invest as well as saving for retirement services.

As mentioned in the previous section, it does not make you rich since it does not pay interest. So, unless you’re okay with that, then this app is for you.

Digit was created with people who are having hard time saving money in mind. If you want to save but find saving a difficult task to do, Digit should work for you. Digit automates and separates your savings by simply connecting it to your checking account, and then withdraws money from it and deposit it to your Digit account.

Basically, it does the job for you. Making your like so much easier and hassle-free. Needless to say, it does help you not miss saving a portion of your money for future use.

Digit is all-digital, which makes it appeal to the tech-savvy ones – especially the younger generations. It does not have a physical branch location like what traditional banks have.

WHAT DOES DIGIT HAVE TO OFFER?

Digit offers three different types of services namely: digit savings, investing, and saving for retirement.

Now, let’s get to know more about each service offered —

Digit Savings

Unlike a typical savings account, you don’t transfer or deposit money to your Digit account. All you have to do is link your bank account, and then Digit will take a look at your past expenses and income to be able to determine what your future expenses and income would be.

The app will then pull small amounts of money from your bank account and into your savings.

To be honest, how the app works are such a genius that it can be a little scary.

Anyway, in most cases, Digit pulls $5-$50 every two to three days. To avoid overdraft fees, Digit has products and tools in place to help you with that.

Although technically speaking, Digit is not an interest-bearing account, it does reward a 0.1% annualized Savings Bonus for accounts that have saved with the app for three consecutive months.  The Savings Bonus is automatically deposited into the user’s Digit account.

All of the money that the app withdraws from the user’s bank is put into an FDIC-insured Digit bank account to ensure your money’s safety and security.

Digit Investing

Digit investing will help you invest strategically for the long term. So, if you are looking at saving for future use, this is definitely the option for you.

Basically, the app will look for safe amounts to invest every day to a fund that can grow over time.

Save for Retirement

We all need to save money for retirement, right?

With Digit, what it does is match you with the right tax-advantaged retirement account based on your income. The app will then save intelligently throughout the month along with your other financial goals.

Once every month, the app will invest your retirement savings into a diversified portfolio.

What’s nice about it is that it does not require account minimums or fixed deposits, which makes it appealing to anyone who wants to save for their retirement as early as now.

HOW DOES DIGIT WORK?

At this point of our Digit review, let’s talk about how it specifically actually works.

After creating an account with Digit, you start by linking a bank account. Currently, Digit supports over 7,000 banks. Make sure to check first if your bank is included in the list.

Moving on, once you are done linking your bank account to your Digit account, the app’s algorithm comes in to analyze your spending and income to be able to determine how much you can save.

The app’s algorithm analyzes four things, which include your:

  • Checking account balance
  • Upcoming bills
  • Upcoming income (Including paycheck and/or predicted irregular income)
  • Recent spending

The above-mentioned items are analyzed on a day-to-day basis, and if the app finds that it can safely pull money from your linked bank account, the app does without you even noticing it.

As mentioned in the previous section, the amount of money pulled from your bank account varies but usually amounts somewhere between $5 and $50. Digit pulls out money every two to three days.

The money from your checking account goes into your Digit account or your Rainy Day Fund.

Unlike a typical savings account, Digit does not have a minimum balance requirement. Also, it allows you to withdraw from your account anytime you want.

HOW TO GET STARTED WITH DIGIT?

To get started, head on to Digit.co and then, sign up.

To be able to create a Digit account, you will need to provide your phone number and then, enter a special code.

Please take note that Digit was designed to work primarily through text messages. Thus, the need to provide your phone number first.

After that, you will be asked to link your bank accounts to the app. You will then need to select your bank from the menu or via the Search bar. As mentioned, Digit supports over 7,000 banks.

You will then need to provide your bank login information, and then verify that it’s you by using a security code that will be sent to your phone number.

Once you’re signed up with Digit, you can now set and customize goals, as well as track your saving progress, withdraw funds, and a lot more.

ARE THERE FEES INVOLVED?

In this section of our review on Digit, we are going to talk about the fees.

By now, you are probably impressed already with how Digit works. Of course, it’s very legit to think about how much it will cost you if you get to enjoy the services provided by the app.

When you sign up for Digit, you are eligible for a 30-day free trial. Once the trial period is done, you will be charged $5 a month as a service fee.

While you may be wary about paying off a monthly fee and adding that up to your monthly budget, it may be worth the money still considering how much the tool could help you in saving money. Needless to say, it does all the work for you. All you need is to link an account and it does everything else.

Now, for those wondering about overdraft fees, Digit has an overdraft prevention feature, which allows the user to set a minimum balance you want to keep in your bank account. You can choose any amount you want, and the app won’t withdraw funds if that means your balance falls below the set amount.

Users may turn Overdraft Protection on or off in the Digit app.

In case the overdraft protection does not work and Digit saved too much, and then, you are being charged for an overdraft fee, Digit also offers Overdraft Reimbursement. This means Digit will return the fee charged to your account.

In addition, if your account falls below the minimum balance you want in your checking account, Digit will automatically deposit money from your Rainy Day Fund back into your checking account. All these happen without you having to do things manually.

IS DIGIT SAFE?

With everything that Digit does for you to help you save money, it is important to look into how safe your personal data and your money are with them.

Your account’s safety and security are one of Digit’s topmost priorities.

The app uses the latest security measures to ensure that all accounts are protected. Furthermore, all personal information provided is anonymized and encrypted.

With all these in place, users can relax knowing that Digit is doing its best to protect their accounts.

Similarly, your money is also safe with Digit. All deposits are secured because Digit is insured by the Federal Deposit Insurance Corporation (FDIC). All funds are insured for up to $250,000 in case of a failure.

In addition, Digit understands that linking your bank account to the app can be scary, but it ensures that all personal data and its users’ money are all protected.

WHAT ARE THE UPSIDES OF DIGIT?

To complete this Digit review, we are providing you with a list of pros and cons to help you gauge if this app is applicable to you.

Let’s begin with the pros. Some of the upsides of using Digit include:

  • Automatic Savings – With a Digit account, you don’t have to worry about setting aside money for savings anymore. The app does it for you! All you have to do is link it to your bank account, and the app does all the work on your behalf.
  • Saving Money without Thinking – Once your Digit account is set up, you can just relax as the app does everything else for you. The next thing you know, you already have saved money for your dream vacation or an item you’ve been wanting to buy for a long time now.
  • Savings Bonus – Although Digit does not pay interest, it does provide a savings bonus of 0.1% annually. The Savings Bonus is automatically deposited into the user’s Digit account.
  • $5 Referral per Signup – Digit gives away $5 for every friend you refer to the app.
  • All-Digital – Digit is an all-digital micro-savings platform, which makes it easier to track and manage your account.
  • Safe and Secured App – Security is one of Digit’s top priorities, thus, the app ensures all security and safety measures are in place to keep your personal information protected.
  • FDIC-Insured – All deposits on Digit are FDIC-insured, which means in case of an unfortunate event, all accounts will receive up to $250,000 per depositor.

WHAT ARE THE DOWNSIDES OF DIGIT?

Moving on, in this section, we are going to share with you some of the downsides of Digit, and this includes the following:

  • $5 Monthly Fee – Unfortunately, there is a price to pay for all the work that Digit does for you, and it amounts to $5 monthly. Although it may be an addition to your budget, it may be worth it in the end given all the work that the app does for you.
  • Cannot Perform Transactions via the Website – Digit’s website does not support making transactions like deposits or withdrawals. You need the app to do these things instead.
  • Low to No Interest – Compared to a typical savings account, Digit does have low to no interest at all, which makes it not ideal if you want to save and earn from your money at the same time.
  • Unexplained Savings Algorithm – It can be quite scary how exactly the app gets to determine how much money is transferred from your bank account to your Digit account. To be honest, it’s kind of bothering and scary at the same time. Nonetheless, it does the job well.
  • One Checking Account at a Time – Digit only works with one checking account at a time. So, if you have multiple accounts, this may not be work for you.

FINAL THOUGHTS ON DIGIT

Digit is a trendsetter. It probably is one of the best solutions to make saving money so much easier.

It basically does all the job. All you need is to link an account, and then, you can sit back and relax.

However, to be brutally honest, if we were to weigh things up, we thought while Digit may one of the best automatic savings apps out there, there may still be better choices to choose from. Do you agree?

At the end of the day, even with this Digit review, it all boils down to how Digit helps you achieve your savings goals.

Categories
Mobile Banking

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

WHAT IS PENFED CREDIT UNION?

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

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

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

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

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

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

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

WHO IS PENFED CREDIT UNION BEST FOR?

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

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

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

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

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

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

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

WHAT ARE THE PRODUCTS OFFERED BY PENFED CREDIT UNION?

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

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

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

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

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

Access America Checking Account

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

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

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

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

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

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

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

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

Regular Savings Account

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

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

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

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

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

Premium Online Savings Account

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

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

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

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

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

Money Market Savings Account

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

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

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

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

Money Market Certificates

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

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

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

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

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

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

HOW TO BANK WITH PENFED CREDIT UNION?

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

Joining the credit union comes in three very easy steps.

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

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

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

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

ATM Access

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

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

Online and Mobile Access

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

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

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

Fees

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

IS PENFED CREDIT UNION SAFE?

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

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

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

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

WHAT TO LIKE ABOUT PENFED CREDIT UNION?

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

The list includes:

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

WHAT NOT TO LIKE ABOUT PENFED CREDIT UNION?

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

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

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

FINAL THOUGHTS ON PENFED CHECKING AND SAVINGS REVIEW

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

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

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

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

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

Categories
Mobile Banking

Barclays Online Savings Review: A High-Interest Rates Online Bank For You

While there are a lot of online savings accounts out there, only a few offer high-interest rates. If you are looking for such, though, then this Barclays Online Savings review is perfect for you.

Barclays Online Savings Review: A High Interest Rates Digital Bank For You

Obviously, the recent pandemic has brought a lot of changes in people’s day-to-day lives. For a time, most of us were restricted to go out unless necessary, and it was during that time when people relied so much on anything digital — including banking.

In fact, an article published by Reuters says that digital banks “have won over more U.S. customers during the coronavirus pandemic” most particularly because of the fact that it has helped process stimulus payments faster. Thanks to digital banking, people survived.

But then, pre-pandemic era, digital banks have already captured a lot of consumers/customers in the country, especially young people. It was just that during the pandemic, even older customers have seen how valuable online banks are.

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In a study conducted by Statista, it was found that in 2018, roughly 61 percent of Americans are using digital banking and that experts project it to increase to 65.3 percent by 2022.

We would not be surprised, though, if the number rises higher than projected given the turn of events in recent years.

Moving on, as the number of digital bank users is increasing, the same goes for the number of existing digital banks. Customers have so many options that sometimes it can really get overwhelming to choose one.

However, at the end of the day, it all boils down to what your needs and preferences are as a digital bank user. One example is – are you looking for an online savings account that provides one of the best – if not the best — rates out there?

If your answer to this question is a yes, then you got to keep reading this Barclays Online Savings review.

In this review, we are going to provide you with thorough information about Barclays Online Savings, and the bank itself, which is very important especially if you are a first-time customer or a first-time digital bank user.

In particular, this Barclays Online Savings review will touch on the following:

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

WHAT IS BARCLAYS BANK?

Before we even go into a detailed review of Barclays online savings, it is important that we get to know the bank itself first.

Knowing about the bank will greatly help us be confident with the institution that will help keep our money.

So, with that said, here are a few important things you need to know about Barclays Bank —

Barclays Bank is a London-based bank that services 48 million people from all over the world since 1690. The bank’s operation in the United States, however, is online-only, which means, it does not provide traditional or conventional banking products and services.

However, the online-only bank is known for providing customers one of the best annual percentage yields on savings accounts as well as certificates of deposit (in this review, though, we are just going to particularly focus on the savings account).

Since it is an online-only bank, at least in the country, similar to other all-digital banks out there, it lacks a branch network, making it suitable for customers who prefer online banking or those who do not require in-person assistance.

If you are interested to know more about Barclays, we recommend you check this video out:

WHO IS BARCLAYS BANK BEST FOR?

As mentioned in the previous section, Barclays Bank in the United States is an online-only bank, thus, making it ideal for people who prefer online banking, and does not need in-person assistance.

Apart from that, Barclays also appeals to customers who are looking for an online-only bank with savings account that provides competitive rates. In this case, though, Barclays Bank’s savings account, as well as its CDs are known to be one of those that provide the highest annual percentage rate in the market.

Furthermore, the online-only bank is also suitable for customers who are looking for a digital bank that does not require a minimum balance, as well as does not charge monthly fees.

Ultimately, Barclays is best for those who want to have the ability to set and achieve savings goals.

WHAT ARE THE PRODUCTS OFFERED BY BARCLAYS BANK?

When looking for an all-digital bank such as Barclays, it is important to look into the products and services available. This helps a lot in deciding which bank to put your money into.

As a customer, you would want your bank to serve you the best way possible. Needless to say, be able to easily access different banking products and services.

With Barclays, though, the online-only bank is limited to providing customers with only two products. These are:

  • Barclays Savings Account, and
  • Barclays Certificates of Deposit.

Later on, we are going to tell you more about the savings account. For now, let’s talk about the Barclays Certificates of Deposit.

Barclays Certificates of Deposit

Barclays Certificates of Deposit also provides one of the highest annual percentage yields (APY) in the industry. It is particularly slightly better for customers who are interested in 3-month CD terms. At the moment, for a 3-month CD term, the APY is 0.35%, while a 60-month CD term has 3.10% APY.

The online-only bank’s CD terms range from 3 months up to 60 months.

To open a CD account, the bank does not require a minimum opening deposit, which means you can save any amount you can afford. This is actually what we find really convincing to opt for Barclays CDs.

WHAT IS BARCLAYS ONLINE SAVINGS?

As mentioned earlier, while we are providing you relevant information about the bank, ultimately this is a Barclays Online Savings review. Thus, we provided a separate section just to tackle this product.

Barclays Bank offers one of the highest annual percentage yields nationwide, which is absolutely great, to begin with. As of January 2021, the APY for Barclays online savings account is 0.45%. The rates vary every now and then, so, it’s best to always check.

Because of the savings account’s competitive interest rate, the effects of compound interest are more obvious.

Unlike other online savings accounts, Barclays does not charge monthly maintenance fees, withdrawal fees for online withdrawals as well as fund transfers to other banks. More so, the online-only bank does not require a minimum balance, however, Barclays has the right to close the account if you have a balance of less than $1.00 for 180 days.

Additionally, the bank does not have a minimum initial deposit requirement as well, which means, you can open an account in as little as $1.

However, it does charge the following:

  • $5 each for Excessive Transaction (after the allowed six withdrawals or external transfers per month),
  • $5 for Official Check,
  • $5 for Returned Deposit Items,
  • $5 for Non-Sufficient Funds (NSF),
  • $0.50 for Statement Copy, and
  • $25 for Express Mail/Rush Delivery Charge.

Since Barclays does not come with an ATM card, it means customers need not worry about ATM fees.

Since Barclays is an online-only bank, to open an account, all you need is to access the website or download the mobile app. You may contact the bank’s customer service every day from eight in the morning until eight in the evening (Eastern Time).

Barclays is an FDIC member, which means all accounts are insured up to $250,000 in case of bank failure.

WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF BARCLAYS ONLINE SAVINGS?

Since this is a Barclays online savings review, we are going to provide you with a list of the advantages and disadvantages of the account. Hopefully, this insight will give you a clearer picture of what and what not to expect in this online savings account.

Advantages

  • Very Competitive Rates – As stated, Barclays Bank’s online savings account provides one of the most competitive interest rates among its contemporaries. Currently, it’s at 0.45%, but in the past, it has been as high as over 4% APY.
  • No Monthly Maintenance Fee – Unlike other online-only banks, Barclays does not charge a monthly maintenance fee.
  • No Minimum Balance Required – Another perk that we like about Barclays online savings account is that it does not require a minimum balance, which means, you can leave as low as $1 in your account and you won’t be charged for anything.
  • No Minimum Initial Deposit Requirement – Another great advantage of Barclays online savings is that you can open an account for as little as $1. It’s definitely one of the most flexible accounts out there.
  • Low Insufficient Funds Fee – While the bank does not have a minimum balance requirement, it, however, charges accounts with a $0 balance. The charge, though, is relatively low at $5 as compared to $30 charged by many other banks.
  • 24/7 Online Access – Since Barclays is an online-only bank, at least in the United States, you can easily access your account anytime as long as there is an internet connection.
  • Easy Online Transfers – With Barclays online savings account, you can easily transfer as well as receive funds.
  • Allows Linking Your Savings To Your External Checking Account – Last, but not least in our list is that you can link your online savings account to your external checking account without any fuss.
  • Remote Deposits – Barclays online savings account provides an option for remote deposits through the website. The process is simple and fast. However, deposits made after 3 PM Eastern Time will not be available until the next working day. It is important to note, though, that there are limits when using this feature such as $5,000 maximum individual check amount, $10,000 maximum daily amount, 10 maximum daily number of checks permitted, 50,000 maximum 10-day amount, and 20 maximum 10-day number of checks permitted.

Disadvantages

  • No ATM Access – Unfortunately, Barclays online savings account does not come with an ATM card, which means, have no access to ATM transactions. If you are someone who prefers having the ability to withdraw cash from your savings account, then, you might have to look for another bank.
  • Excessive Transaction Fee – While other online-only banks offer unlimited transactions, Barclays does not. The online-only bank charges a $5 excessive transaction fee per month after the allowed six online withdrawals and external transfers.

HOW TO DO BANKING WITH BARCLAYS BANK

Barclays is an online-only bank. Thus, opening an account and all the other banking transactions are done using either your smartphone or computer.

Similar to any other banks, you are required to provide personal information like your Social Security number, mobile number, and email address. Make sure to prepare a government-issued identification like a driver’s license and passport to complete the account application process.

Since everything is done online, expect to finish the account application process in just a few minutes.

Furthermore, if you have questions, you may reach the bank’s customer service every day from eight in the morning until eight in the evening (Eastern Time).

IS BARCLAYS BANK SAFE?

When people talk about digital banks or digital banking, one of the major concerns is safety and security. This is valid, though, given the fact that there have been a lot of fraud and identity theft cases that happened in the past.

So, we would not be surprised if you, too, are concerned about this. That is why in this section of our Barclays online savings review, we are going to talk about the safety and security measures that the bank has.

As mentioned earlier, Barclays has been around as a bank since 1690. With that kind of longevity in the industry, it is safe to say that the bank already knows what to do to ensure their customers’ money and personal information are safely kept.

Following all standard safety and security measures in online banking, Barclays Bank assures that all their customers’ money and personal information are safe and secured.

Additionally, the bank is a proud member of the Federal Deposit Insurance Corporation (FDIC), which means every account is insured for up to $250,000 in case of bank failure.

WHAT TO LIKE ABOUT BARCLAYS BANK?

While this is specifically a Barclays online savings review, we thought it is also beneficial that we provide you with an overall summary of the things we like about Barclays Bank. Yes, as a whole. Anyway, we already provided you with a list of the highs and lows of the online savings account earlier.

To help you decipher if Barclays is indeed the right one for you, here are a few things that we particularly like about this online-only bank:

  • Competitive Rates – We honestly like the fact that Barclays offer very competitive rates and is one of the highest interest rates in both online savings accounts and certificates of deposit. It definitely is one that makes this online bank very appealing to customers.
  • 24/7 Online Access – As mentioned earlier, since Barclays Bank is an online-only bank, obviously, customers get to access their account and make bank transactions anytime, anywhere for as long as there is an internet connection.
  • No Minimum Opening Deposits – For both online savings and certificates of deposit accounts, Barclays does not require a minimum opening deposit, which means, anyone can open an account in as little as $1 only. This feature also means anyone, regardless of status in life is able to open an account.
  • No Monthly Maintenance Fees – Another amazing perk that Barclays Bank offers is that it does not charge a monthly maintenance fee, which is contrary to its competitors. Again, this applies to both savings and CD accounts.
  • FDIC-Insured – Of course, we also love the fact that Barclays Bank is a member of the FDIC, which gives an extra layer of assurance to its customers that whatever happens especially in the event of a bank failure, they will get something and that their savings will not be put to waste.

WHAT NOT TO LIKE ABOUT?

In the last section, we provided you with a summary of the things we like about Barclays Bank. This time, to complete our review, we are going to share with you some of the things that we do not particularly like about this online-only bank.

This includes:

  • No Physical Branches – Although Barclays Bank is a conventional bank that is based in London, unfortunately, its U.S. operations do not have access to physical branch locations. Thus, it is tagged as an online-only bank in the American market. But, who knows? Maybe in the future, Barclays will eventually have bank branches here as well?
  • No ATM Card – Barclays in the U.S. is an online-only bank. This means that everything is done entirely online and without ATM access. So, if you are an ATM-reliant kind of customer, then, this one’s not fit for you.
  • No ATM Cash Deposits and Withdrawals – Since the bank does not issue an ATM card, it obviously is not surprising that it does not offer cash deposits and withdrawals as well.
  • Limited Account Options – Barclays Bank in the United States only offers two products — the online savings account and the certificate of deposit account. Unfortunately, the bank does not offer checking accounts. Although, it allows you to link your savings account to an external checking account.
  • Excessive Transaction Fee -Barclays Bank only allows up to six transactions per month. Anything over the allowed number will be charged $5 per transaction. This includes online cash deposits and transfers.

FINAL THOUGHTS ON BARCLAYS ONLINE SAVINGS REVIEW

Barclays Bank is a banking institution that has been around for so long, and while it only offers online accounts in the United States, it does offer one of the highest savings and CD accounts in the market.

Similar to any other online-only bank, it sure has its advantages and disadvantages. But we would like to say that the advantages that the bank offers are still overpowering the disadvantages.

Particularly on its online savings account, we got to say that it definitely has the best offerings in terms of rates among other online savings accounts out there.

So, have you decided about opening online savings account on Barclays yet?

To end, we hope that this Barclays online savings review has indeed served its purpose. May this brings light to your apprehensions in terms of opening an online savings account with Barclays Bank.