This Bank5 Connect review will focus on providing customers important information they need to know — from this online bank’s history to its product offerings, as well as the things to like and not to like about it.
Back in the early days of digital banking, there were only a few people who got into it. Most depositors prefer traditional or conventional banking primarily because it’s tried and tested over time.
Makes sense, right? People were hesitant to banking with online banks because it is something new. Needless to say, there are safety and security issues that may compromise the data they provide in the online portals, and their money, of course.
However, fast-forward to today, things have definitely changed. The industry that was once dominated by younger clients (because they are more fearless and more technology-inclined), is now being used by the majority of customers regardless of age.
According to a study conducted by Finder, they found that there is “an estimated 76.9 million Americans (30.3% of the US population) say they have or are planning to, open a digital-only — or neobank — account,” and that in fact, “54.4 million digitally savvy Americans (about 21.4% of the total US population) already bank with digital-only banks.”
These numbers only show that, indeed, times have changed. Now, people prefer the more convenient, and easier way of banking.
Regardless of age, people have managed to see the advantages of banking through a mobile bank or an online bank. This was especially true when we hit the rock bottom in 2020. It was when the pandemic transpired that a lot of people relied so much on online banking especially when they had to purchase needs and wants for their day-to-day survival.
It is, perhaps, safe to say that now more than ever, online banks and online banking in a general matter.
Anyway, sure, online banking has become a necessity for a lot of people these days. With the increasing demand, it is not surprising that online banks are competing with one another, hoping to get as many clients as possible.
Among the many online banks, rather, online-only banks out there, Bank5 Connect is one of them.
If you haven’t heard about it, or if you are eyeing this bank to do banking with, then this Bank5 Connect review is for you.
As mentioned earlier, in this review on Bank5 Connect, we are going to provide you essential information that every potential customer must know.
In particular, we are going to talk about the following:
- What is Bank5 Connect?
- Who is Bank5 Connect best for?
- What are the products offered by Bank5 Connect?
- How to do banking with Bank5 Connect?
- Is Bank5 Connect safe?
- What to like about Bank5 Connect?
- What not to like about Bank5 Connect?
WHAT IS BANK5 CONNECT?
Before we talk about the more serious stuff about Bank5 Connect, it’s best to get to know this online-only bank first.
When choosing a bank, it is important to do a little background check. It will not only give you a better idea of how credible and reliable the bank is, but it also enables you to gauge if it has the qualities you are looking for in a bank, in this case, an online-only bank.
Having said that, here’s a backgrounder of what Bank5 Connect is all about.
Bank5 Connect, as already mentioned, is an online-only bank that offers a various selection of products, including checking accounts, savings accounts, as well as certificates of deposit.
Established in 2013, the online-only bank is actually an extension of BankFive, which is a Massachusetts-based community bank that’s been operating since 1855.
While BankFive is focused on providing banking needs on a local community level, Bank5 Connect is a national bank that is available for customers from all states except Massachusetts or Rhode Island as these territories are covered by BankFive.
Like most online banks, Bank5 Connect does not charge fees. But more importantly, it does offer competitive rates than many brick-and-mortar banking institutions.
Bank5 Connect provides customers a mobile-friendly platform that is available for both Android and iOS users. It also comes with free access to a huge ATM network across the United States.
Before moving on, if you are quite unsure about the difference between traditional banking and online banking, here’s an insightful video by Economic Lifestyle Investing we thought you should check out:
WHO IS BANK5 CONNECT BEST FOR?
Compatibility is important to have long-lasting relationships, right? The same goes for when choosing a bank.
You have to make sure that the bank you are choosing provides your banking needs. Otherwise, you will end up losing your account and finding another, which is a waste of time and effort.
Now, to help you identify if Bank5 Connect is for you, in this section, we are going to talk about who it is best for.
Based on what the bank has to offer, we, therefore, conclude that Bank5 Connect is most appealing to customers who:
- Are looking for competitive rates on primary banking services such as savings and checking accounts
- Have very simple banking needs
- Prefer online banking as compared to traditional or conventional
- Do not mind using another bank for other banking needs like mortgages, loans, etc.
- Do not mind not having a physical branch
- Prefer banks that do not charge monthly and overdraft fees
- Want low minimum balance requirements
If you identify yourself in any or most or all of the above-mentioned, then Bank5 Connect is definitely right for you, and you should proceed with the next sections of this review (because you will certainly benefit from it).
WHAT ARE THE PRODUCTS OFFERED BY BANK5 CONNECT?
In the previous sections, we provided you with a short backgrounder on Bank5 Connect, at the same time, provided you with items of who this online-only bank fits the most.
Meanwhile, in this section of our Bank5 Connect review, we are going to talk about one, if not, the most important thing – the product and services offered by the bank.
As mentioned earlier, Bank5 Connect does offer the following:
- Checking Account
- Savings Account
- Certificate of Deposit
Now, here’s thorough information about these products –
Bank5 Connect offers a high-interest checking account. It offers a 0.20% annual percentage yield (APY) on balances of $100 and above.
Like many online banks out there, Bank5 Connect does not charge monthly maintenance fees.
Furthermore, electronic statements are free. However, if you wish to have mailed statements, you may have to pay a $1 fee per statement per month.
Since it is a checking account, it is only right that basic checks are provided. While the first order of basic checks is free, the succeeding orders will cost a fee.
When it comes to transferring funds to and from your Bank5 Connect checking account to your account at other banks or financial institutions, there is also zero fees for that.
Additionally, overdraft protection is also available for free but only if you link your checking account to a Bank5 Connect savings account. Please take note, though, that there are daily purchase limits of $1,000 only.
Bank5 Connect checking account also comes with a free ATM card, which you can use in thousands of in-network ATMs across the country free of surcharges. ATM fees billed by other banks are reimbursed up to $15 per month. Cashback rewards are also available for using the debit card linked to your account.
To open a Bank5 Connect checking account, a $10 minimum initial deposit is required. Definitely, a very much lower requirement as compared to many online-banks out there.
Another product that Bank5 Connect offers is its high-yield savings account. The account offers 0.40% APY on balances of $100 and above, the same as the bank’s checking account.
Similar to Bank5 Connect checking account, the savings account option does not charge monthly maintenance fees.
The Bank5 Connect savings account can be connected to the bank’s checking account to avoid overdraft fees.
To open a Bank5 Connect savings account, at least a $10 initial deposit is required as well.
Certificate of Deposit
Lastly, but not least, Bank5 Connect also offers Certificate of Deposit accounts. The bank’s CD account terms range from six up to 26 months, and the annual percentage yield (APY) ranges from 0.35% to 0.55%, depending on the CD term.
While the bank does not charge monthly maintenance fees, it does implement penalties for early withdrawals, which is a very common thing among banks.
To give you an idea about the penalty, for a six-month term CD, early withdrawals will cost three months’ worth of interest, while longer-term CDs will be charged six months’ worth of interest. So, unless you are not going to use the money anytime soon, then CDs may not work for you.
Bank5 Connect also offers a 24-Month Investment CD, which is an add-on that allows customers to deposit additional funds anytime during the two-year term period. This comes with a 0.50% APY.
To open a CD account at Bank5 Connect, a minimum deposit of $500 is required. The same requirement minimum deposit requirement is applied for the 24-Month Investment CD.
HOW TO DO BANKING WITH BANK5 CONNECT?
Now that you already know the different products and services offered by Bank5 Connect, by now, you probably have decided already if this online-only bank is perfect for you or not.
If your answer is a yes, then, it’s time to talk about how to actually bank with Bank5 Connect.
Similar to most online banks, setting up a Bank5 Connect account (whether it be a checking, savings, or CD account) is very straightforward.
The application process pretty much resembles how you do it in any other banking institution. What makes the big difference is that you have to do everything online.
To begin with the account application process, you will be asked to provide personal information like your name, address, email, mobile number, as well as your Social Security number.
Make sure to also prepare a valid government-issued identification like your driver’s license or passport for identity verification purposes. Make sure also to prepare the account with funds wherein the money you will use to fund your new Bank5 Connect account will be coming from.
When it comes to customer service, Bank5 Connect has online chat support, which is available during weekdays only. In case you need to talk to customer support, though, you may opt to get in touch with a U.S.-based representative via phone during Eastern time business hours, some weekday evening hours, as well as on weekends.
The bank’s highly-rated mobile app allows you to do various banking transactions like depositing checks, paying bills, transferring funds, as well as finding an ATM near you. Similarly, the Bank5 Connect website is also very user-friendly and has essential information customers need such as accounts, rates, and fees.
IS BANK5 CONNECT SAFE?
We mentioned earlier that back in the days, one of the reasons why people are not so into online banks or online banking is because of safety and security threats.
So, with that said, it is just right that in this Bank5 Connect review, we tackle how safe it is to bank with them.
Similar to almost all online banks, Bank5 Connect made sure to put all necessary safety and security features to avoid online fraud and identity theft cases. With all measures in place, customers are assured that all the personal information they provide as well as their hard-earned money are safe and secured.
Additionally, Bank5 Connect is insured by the Federal Deposit Insurance Corporation (FDIC), which means all balances are covered for up to $250,000 per depositor, per ownership category. Also, Bank5 Connect insures amount more than that by offering Massachusetts Depositors Insurance Fund (DIF) protection on its accounts.
So, to answer the question if Bank5 Connect is safe, we got to say that yes, it is.
WHAT TO LIKE ABOUT BANK5 CONNECT?
This Bank5 Connect review will not be complete if we are not providing you a list summary of the things that struck us the most, as well as things for improvement.
So, to start, in this section, we are providing you with a list of things we like about this online bank:
- Competitive Rates for Savings and CD Accounts – Bank5 Connect offers competitive rates among its savings and CD rates. While it’s not the best in the industry, it surely is above average.
- No Monthly Maintenance Fees – Customers need not worry about monthly fees, because Bank5 Connect does not charge any allowing you to save a couple of bucks.
- No Internal and External Transfer Fees – With your Bank5 Connect account, you can make free internal and external transfers free.
- Free Overdraft Protection – The bank offers free overdraft protection provided your savings account is linked to a Bank5 Connect checking account.
- Low Minimum Initial Deposit Requirement – For both checking and savings accounts, Bank5 Connect only requires at least a $10 minimum initial deposit. While there are online banks that do not require any initial deposit at all, what Bank5 Connect requires is definitely way lower as compared to other online banks out there. For CD accounts, the bank only requires at least a $500 deposit.
- Low Minimum Balance Requirement – To earn high interest for both checking and savings accounts, customers need to at least have a $100 balance. Definitely, way lower as compared to what other banks of the same type required.
- ATM Access – Bank5 Connect comes with free ATM access to thousands of in-network ATMs across the country.
- Basic Check Access – Unlike other online banks that offer checking accounts, Bank5 Connect provides basic checks. Initially, it is given for free. Succeeding check requests will be charged for a minimal fee.
- Reimbursement of Out-of-Network ATM Fees – The bank reimburses up to $15 per month for out-of-network ATM fees.
WHAT NOT TO LIKE ABOUT BANK5 CONNECT?
To complete our review, while we discussed the benefits of banking with Bank5 Connect in the previous section, this time, we are going to provide you with a list of things that we do not like and that the bank could possibly improve on in the future.
This includes the following items:
- No Physical Branches – Bank5 Connect is an online-only bank, which is why it does not have physical branches available. However, its mother company, BankFive has brick-and-mortar locations in both Massachusetts and Rhode Island.
- Limited Account Options – Unfortunately, the products and services offered by Bank5 Connect are only limited to checking, savings, and CD accounts. If you are looking for or you think you might need other financial products and services, then you might need to look for another bank instead.
- Monthly Fee for Paper Statements – While electronic statements are free, should you wish to have a mailed paper statement, expect to be charged a $1 fee per statement.
- Not Available for Massachusetts or Rhode Island Residents – As mentioned, Bank5 Connect is not available for Massachusetts or Rhode Island residents because it is where branches of BankFive, the local community bank are located.
FINAL THOUGHTS ON BANK5 CONNECT REVIEW
Bank5 Connect is an online-only bank that offers competitive rates for its checking, savings, and CD accounts, which also is the reason why it is appealing to a lot of customers.
What’s even nicer about it is that the bank requires a very minimal balance requirement to earn interest. Needless to say, for just $10, one can already open a checking or savings account, while it requires at least a $500 initial deposit for a CD account.
Overall, Bank5 Connect is great for people who want to take advantage of what an online-only bank has to offer in terms of functionality and convenience, at the same time, enjoy high annual rates.
With all the information we have shared, do you think Bank5 Connect hits your banking requirements?
We do hope do.