Do you ever have trouble keeping up with when bills are due and paying them on time? Welcome to the club. It can be a challenge for many busy people, but paying bills on time is important. Doing so helps you dodge those pricey late fees and maintain your credit score.
For many people, a solution to this challenge is to set up automatic bill payments. This can be done through an automatic payment system, usually referred to as “autopay.” This means that, without needing to remember any dates, write any checks, or click on any payment links, your recurring bills are seamlessly taken care of.
This can be a game-changer that helps you enjoy stronger financial management status and less money stress. But it might not be right for everyone. As with most financial tools, there are pros and cons to using autopay.
So what is autopay? And how do you set it up? Learn the answers to these questions, along with the pros and cons of autopay, so you can determine whether to consider using this option.
What Is Autopay?
What many people call “autopay” is a scheduled, regular transfer of money, usually monthly. These payments are generally transferred from the payer’s bank account (or credit card) to a vendor, or what is known as a payee.
When you link an account to a particular bill or vendor, autopay usually works over an electronic payment system called ACH.
Autopay is typically set up in one of two ways.
• The first is through the company receiving the payment.
• The second is through a bank’s online bill-pay portal.
When you link an account to a particular bill or vendor, autopay usually works over an electronic payment system called Automated Clearing House (ACH). Sometimes automatic payments are referred to as “ACH payments” instead of autopay. If you were to use your credit card, the recurring payment would simply show up as a charge on your card. 💡 Quick Tip: Don’t think too hard about your money. Automate your budgeting, saving, and spending with SoFi’s seamless and secure online banking app.
How Does Autopay Work?
Here’s a closer look at how autopay works. When autopay is set up, you are authorizing debits to occur on a regular basis. You will not be responsible for sending the funds. Some people may see this, however, as not being in control of their money.
When autopay is set up, either the payee is authorized to deduct funds from your bank account or your bank will send the funds for you.
You do need to pay attention to when your funds are whisked out of your account. If you aren’t on top of your finances, you could wind up in overdraft and getting assessed overdraft or NSF fees, plus late charges.
Autopay vs. Scheduled Payments
You may hear the terms autopay and scheduled payments used interchangeably but they are actually quite different.
• Autopay means that payments have been set up in advance to happen regularly on a certain date. You establish the date and the frequency and then don’t need to do anything else to transfer the funds on a recurring basis.
• With a scheduled payment, however, you are manually setting when you want a payment to be made and for how much. You can do this regularly, of course, but it requires more effort on your part to transfer funds.
Autopay vs. Bill Pay
Here’s another situation in which you may hear two terms (autopay and bill pay) used interchangeably. There is a slight difference, however.
Bill pay refers to the process in which your bank initiates payments from your account to the payee. In other words, the payee is not authorized to go in and deduct the money; your bank is instead providing this service.
Setting Up Autopay
Here is some more detail on setting up autopay so you can have your bills taken care of more easily.
1. Looking at Vendor Requirements
You can think of autopay as either pushing money from your account to the vendor, or the vendor pulling money from your account.
Many vendors require you to set up autopay through their website, so your first step may be to look into their requirements. If you are currently receiving a paper bill, they often include instructions on where you can go online to set up autopay — looking there is a good place to start.
For example, if you have a $1,800 monthly mortgage payment, you may be able to provide your mortgage company with your checking account information (such as your bank account number and routing number). They can pull the money for payment automatically. This is the “pull” version of automated payments as the vendor is pulling the money out.
2. Choosing the Day Your Payment Is Made
You generally get to choose the day that the payment is made — you could consider doing this a few days before the bill is due. This should give the automated payment time to move through the ACH system, including when the due date lands on a weekend.
Also, you’ll likely want to be cognizant that you aren’t setting up any automatic payments until you’re sure that any necessary deposits are made. For example, if you need your paycheck to cash before making a rent payment, making sure to give your paycheck at least a few days to settle in your account may be the pragmatic choice. Or you could see if the payee is willing to move your bill’s due date slightly to better accommodate your needs.
Setting Up ACH Payments
Another potential option is to set up an ACH transfer through your bank; this is the bill pay option mentioned above. Doing this typically requires logging onto your bank account’s website and navigating to the bill pay section.
If you go through your bank, you may need to provide them with the information for the vendor, such as the account number and mailing address. You can usually find this information on your bill or monthly statements.
Using the same example as above, you would enter the information for your mortgage lender into your bank’s bill pay portal. Similarly, the money would be sent via ACH on the date you’ve picked to send the money to the vendor.
You may want to consider selecting a date a few days prior to the due date to avoid a late payment. This is the “push” method of automated payments as you are pushing the money out of your account to the vendor.
Ready for a Better Banking Experience?
Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!
Pros and Cons of Autopay
Autopay can be a wonderful tool for many people looking to simplify their finances. But it won’t be for everyone. Here’s a look at some of the pros and cons of using autopay.
Pros of Autopay
Consider these upsides of autopay:
Convenience: Gone are the days of sitting down to write a check for every last outstanding bill. In fact, these days you don’t even need to log into a computer every time a bill comes due. With autopay, you can pay all or most of your bills without lifting a finger.
This means no more having to log online to pay bills while you’re on vacation or busy with work or family. There is something beautiful about the convenience of the “set it and forget it” method to financial management, if you can make it work.
Improving Your Finances: We don’t need to tell you that it is a smart idea to pay your bills on time.
Not only can autopay help you to avoid frustrating late fees, but taking care of your bills right away may help you to avoid agonizing or allowing it to take up precious room on your to-do list.
Paying your bills on time may help your credit score.
Also, paying your bills on time may positively impact your credit score. Currently, debt payment history is the single biggest factor in terms of determining your score. It makes up 35% of a FICO®️ Score.
That means that paying debt-related bills, such as a mortgage, car loan, or credit card bill, on time, could potentially positively impact your FICO®️ Score.
Learning Good Behavior: If you can take the philosophy behind automatically paying your bills and apply it to your savings strategy, this may help your overall financial success. Just as you can automate the payment of your bills, you can automate your savings to retirement and other savings accounts.
If you don’t automatically set money aside, it can be far too easy to spend the money that lands in your checking account. Warren Buffett famously recommended that people “spend what is left after saving, do not save what is left after spending.”
Other ways to use automatic payments? Pay down debt aggressively or save for your future (even beyond a 401(k) if you have one). In either of these scenarios, you could simply set up an automatic transfer of funds as you would with autopay, but direct the funds toward your financial goal.
That way, the money is whisked from your checking account before you’ve even had the chance to consider spending it.
Potentially Saving Money: Vendors and service providers want to get paid on time. Therefore, some vendors or service providers offer a discount for customers that set up autopay, which could save you money.
For example, you may receive an interest rate discount if you set up autopay for a loan. Other vendors may provide a discount on their product or service if you use autopay.
Recommended: Understanding ACH Transfer Limits
Cons of AutoPay
Now, for the potential downsides:
Possible Overdraft Fees: If there isn’t enough money in your account to cover a bill, an ill-timed automatic payment could cause your account to overdraft. According to the FDIC (Federal Deposit Insurance Corporation), overdraft fees can average $35 a pop, depending on your bank.
You’d need to be especially careful if you leverage multiple checking or savings accounts with fluctuating balances or tend to keep your account balance close to zero. In the latter situation, you might benefit from keeping a cash cushion in your account.
Late Fees: Consider the transaction time when setting up your autopay in order to avoid annoying late fees. Late payment fees will vary by vendor but could be costly.
While giving yourself, for example, a four-day buffer could be a good start, it’s important to check with each vendor to determine their recommended timeline. Finally, after you’ve set up autopay, monitoring payments during the first few months to be sure they happen on time can help ease the transition.
Potentially Reinforcing Bad Habits: For some people and in some specific cases, it may not be a good idea to have your finances on autopilot. For example, those who are actively paying off credit card debt may want more control over how much they pay towards their debt each month.
There is almost always an option to autopay the “minimum payment” on a credit card, which may be tempting. There is no penalty when you pay the minimum payment, so it is certainly better than doing nothing.
But, it is much better to pay off the balance in full, if possible. When you do not pay the balance in full, the card will accrue interest, costing you money over time.
If you aren’t at a place where you can pay off the entire balance quite yet, you may want to try and set your autopay for an amount that’s more than the minimum payment so you can make progress on the balance. (And you may want to try to stop using your card in the meantime if this is the case.) If this won’t work for you, you may want to remain in manual control of payments.
Paying for Things You Don’t Need: Subscription services are sneaky. Amounts may seem small and you hardly notice them on a monthly basis, but they can wreak havoc on your annual budget. It is too easy to forget that you are paying for something, especially when you don’t use the service.
If you take advantage of the perks of autopay, don’t forget to reassess your subscriptions every few months to determine whether you actually need the thing you’re paying for. One example: You might not realize how much entertainment you are signed up for, and could save money on streaming services by dropping a platform or two.
Potentially Less Monitoring of Your Accounts: One issue with using autopay could be that you develop a sense of false security that your personal finances are running just fine. You might not check in with your money and review your spending as often as you might. This could have a negative impact. How often should you monitor your checking account? For many people, a couple or a few times a week is a good pace. 💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.
Should You Use Autopay?
The digital age can be confusing and overwhelming, but this is one case where it may help to simplify our lives. Managing money can be a tedious task, and paying bills is just one part of it.
By streamlining the bills portion, you may find that using autopay gives you more freedom to focus your attention on other financial goals.
That said, autopay won’t be right for everyone and in every circumstance. For example, autopay might not be a great idea for those who haven’t organized their bills and tend to overdraft their accounts. It may not make sense for someone who is between jobs or out of work.
Autopay could potentially be difficult to manage for freelancers or other workers with variable income throughout the month. Ideally, a person would have some cash buffer for bills in any of these scenarios, but that is not the way it always works out in the real world. 💡 Quick Tip: When you overdraft your checking account, you’ll likely pay a non-sufficient fund fee of, say, $35. Look into linking a savings account to your checking account as a backup to avoid that, or shop around for a bank that doesn’t charge you for overdrafting.
The Takeaway
Autopay can be a convenient way to get your bills taken care of with less time, energy, and stress. However, in some cases, it can have its downsides, so it’s wise to know the pros and cons and continue to monitor your money carefully if you do sign up for autopay.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with up to 4.40% APY on SoFi Checking and Savings.
FAQ
What should you not put on autopay?
It can be wise not to put bills that fluctuate on autopay. You are less likely to wind up with an overdraft situation that way. For instance, if your energy bill is usually $100 a month but goes up to double that during the winter or summer, that might throw off your personal finances if you autopay your bills.
When should I set up autopay?
It can be wise to set up autopay when you are familiar with your finances and cash flow and feel confident that automating your payments won’t lead to an overdraft situation. You might also consider signing up if there is a bonus or perk for you, such as a discount or a lower interest rate.
Why do people not use autopay?
Some people do not feel comfortable with autopay; they would rather be in control of making payments individually and maintaining that control over their finances. Also, some people may have bills that fluctuate considerably and they may therefore prefer to pay manually to avoid overdrafting.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.40% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.40% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 7/11/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
If you’re on the lookout for a full service online bank, you might come across CIT Bank. Founded in 2009, CIT Bank is now a division of First-Citizens Bank & Trust Company, which is a leading financial institution with more than $218 billion in assets.
The bank offers a variety of products, including savings and checking accounts, CDs, custodial accounts, and home loans. It stands out for its competitive interest rates that you may not find at traditional banks as well as no monthly maintenance fees or monthly service fees.
While there are no physical branches, live chat support on CIT’s website and mobile app as well as automated phone assistance is available 24/7. If you prefer to speak to a CIT representative directly, you can reach them during regular business hours: Monday through Friday, 9 a.m. to 9 p.m. ET, or Saturday from 10 a.m. to 6 p.m. ET.
CIT Bank doesn’t have an ATM network but it will reimburse you up to $30 per month if you incur out-of-network ATM fees. Rest assured that it’s insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 for an individual account or $500,000 for joint accounts, meaning your money will be safe, no matter what happens to the bank. Let’s take a closer look at CIT Bank so you can decide whether it makes sense for your unique situation.
CIT Bank Pros and Cons
Before you move forward and open an account with CIT Bank, it’s a good idea to consider the benefits and drawbacks.
Pros
Competitive rates: Since CIT Bank has less overhead costs than brick and mortar financial institutions, its yields on deposit accounts and several CIT Bank CDs are competitive. It can allow you to make the most out of your hard earned money.
No fees: Unlike other bank accounts, CIT deposit accounts do not have any monthly maintenance fees, or other common fees. You can use the money you save on fees to meet your financial goals faster.
ATM fee reimbursement: CIT Bank reimburses you up to $30 per month for out-of-network ATM fees. This means you can withdraw cash from any ATM without worrying about high costs.
Small minimum deposit requirements: You don’t need a lot of cash to open up CIT Bank accounts. Many. of the accounts only require $100 to start.
24/7 customer service: CIT’s live chat and automated phone support is available round-the-clock. If you have a question or concern, you’ll be able to receive assistance right away.
Cons
No physical branch locations: CIT is an online only bank, meaning there are no branches for an in-person banking experience. If you decide to bank with CIT, you should feel comfortable with online banking and mobile banking.
Limited product selection: Compared to other financial institutions, CIT’s product line is slim as there are no credit cards, car loans, or IRAs. Fortunately, its lineup of checking accounts, savings accounts, custodial accounts, CDs, and mortgages is still impressive.
Low rates on select CD accounts: Some CDs have lower rates than you may be able to find elsewhere. The good news is you can calculate your returns in advance and won’t have to worry about fluctuations in the market.
No checkbooks: CIT’s eChecking accounts do not include checkbooks. However, you can use CIT to pay other individuals and businesses electronically via Zelle, Apple Pay, and Samsung Pay.
CIT Bank Products
CIT Bank offers a variety of products to help you meet different financial goals. Here’s an overview of each of its current offerings.
Checking Accounts
You can open the CIT Bank eChecking account with as little as $100. It’s unique in that it offers interest on your balance. To earn as much interest as possible, you’ll need to keep at least $25,000 in your account.
As an online checking account holder, you’ll get a debit card with chip technology and 24/7 account access. Plus, you’ll be able to deposit checks and make unlimited withdrawals with the CIT Bank mobile app. In addition, you’ll have access to Zelle, Apple Pay, and Samsung Pay. Unfortunately, the eChecking account doesn’t come with paper checks.
Savings Accounts
CIT Bank offers a few CIT Bank savings accounts you might want to explore., including the CIT Bank Savings Connect, the Savings Builder account, and Platinum Savings account. The CIT Bank Platinum Savings account provides an interest rate of up to 12 times the national average.
There are no fees and interest compounds daily so that you can earn as much as possible. All you need is $100 to open this account. This account is ideal if you’d like to meet your savings goals quickly without a lot of effort.
With the CIT Savings Connect account, you can reap the benefits of a great interest rate and enjoy easy access to your funds. Several noteworthy perks of the Savings Connect include an interest rate of up to 11 times the national average, online banking and mobile banking, remote check deposit, and no monthly service fees.
The CIT Savings Builder is a two-tiered CIT savings account with an interest rate that’s twice the national average. As long as you make at least one $100 deposit per month or maintain a balance of $25,000 or more, you can earn a competitive rate on it. Since the Saving Builder account earns daily compounding interest, you’ll be able to maximize your earning potential. Just like the other CIT saving accounts, the Savings Builder doesn’t have any account opening or maintenance fees.
CIT Money Market Account
The CIT Bank money market account is the way to go if your ultimate goal is to grow your savings and stash your emergency fund. With a minimum opening deposit of $100, you can earn more than two times the national average.
In addition, there is no monthly service fee and you can deposit checks and transfer money using the CIT Bank mobile app. In addition, you’ll be able to earn twice the national average. Just like with the other accounts, you may only make six transactions per statement cycle and can deposit checks and make transfers with the CIT mobile banking app.
CDs
Certificates of Deposit (CDs) might be worth exploring if you like the idea of guaranteed returns. CIT offers several types of CDs, including:
Term CDs: Term CDs are traditional CDs that are widely seen at other banks and range from six months to 60 months. With a term CD, you can lock in an interest rate for a certain time period, regardless of what happens to the market. The longer term you choose, the more interest you’ll earn. You’ll need at least $1,000 to open a term CD.
No-Penalty CDs: Most CDs require you to lock up your money for a set period of time. If you’d like to access it before, you’ll have to pay a penalty. A no-penalty CD is exactly what it sounds like: a CD that doesn’t charge a penalty if you withdraw funds before your term is up. It requires a $1,000 minimum opening deposit and you may be able to access your money after seven days.
Jumbo CDs: If you have a lot of cash saved up, a jumbo CD might make sense. It requires $100,000 to open and doesn’t come with any account opening or monthly maintenance fees. Its terms range from two to five years and the longer you keep your money in one, the higher rate you can lock in.
RampUp CDs: RampUp CDs are for current CIT Bank customers with CDs. With a RampUp CD, you can increase your rate one time during your term if CIT Bank raises rates after you have already opened your account. You’ll need to reach out to CIT Bank directly to learn more about what type of rate you might qualify for.
Custodial Accounts
Custodial accounts are opened under the Uniform Transfers to Minors Act (UTMA). If you have a child under 18, a CIT custodial account can help you save money for their future. You’ll serve as the custodian and have complete control of the account until your child turns 18 or a later age that you designate.
You can contribute as much money as you’d like and may not have to pay federal taxes on part of the earnings. With a custodial account, your child may enjoy money for college, a vehicle, home down payment, and other expenses that can steer them toward a bright future.
Home Loans
CIT Loans does offer mortgages but you have to submit your contact information on its website to start the process and learn more about your options. You’ll need to state the value of the home you’re interested in, your desired loan amount, your zip code, and your credit score range. If you already bank with CIT, you may be eligible for two relationship discounts that lead to a lower rate.
Ten percent of your balance in a CIT bank account may give you 0.1% off your rate. If you keep 25% of your balance in a qualifying cit bank savings account, you might lock in a 0.2% discount. Since the CIT website has limited information about its mortgages online, it’s a good idea to fill out the form and request further details.
CIT Bank Fees
As we mentioned above, CIT Bank doesn’t charge any opening fees or monthly maintenance fees. Also, you can open most accounts with only $100. The bank won’t charge any domestic ATM fees and will reimburse you up to $30 per month for any fees you incur for using other ATMs. If you use an international ATM, however, CIT Bank will charge a monthly fee of 1% plus the fee imposed by the ATM provider. Other fees you should be aware of include:
Debit card replacement fee: 100
Overdraft fee: $30
Returned deposit fee: $10
Bill stop payment fee: $30
Outgoing wire transfer fee: $10
CIT Mobile App
With the CIT mobile banking app, you can bank on the go from just about anywhere. The mobile app is versatile so you can use it to log into our accounts via a password or fingerprint. You can also transfer funds between CIT accounts and an external bank account and take a photo to deposit checks.
Plus, the app allows you to check your balances and transaction history, send and receive money via Zelle, and make secure payments with Samsung Pay and Apple Pay. If you’d like, you can sign up for text banking, which will give you the chance to check your account balances and transactions through text. Many reviewers state that the CIT mobile app is very intuitive so you shouldn’t have any trouble using it, even if you don’t consider yourself tech savvy.
CIT Bank Reputation
Before you go ahead and open a CIT Bank account, you might want to know about its reputation. It has an A- rating on the Better Business Bureau (BBB). On TrustPilot, CIT earned 2.3 out of 5 stars due to negative customer reviews.
Most of the negative reviews have to do with poor customer service and difficulty opening deposit accounts. The majority of the five-star reviews praise CIT for a convenient banking experience and fast response times from the customer service team. You can always try out CIT Bank and move on to another financial institution if you’re unsatisfied for any reason.
How to Access Your Money
Even though there are no physical branches, CIT Bank makes it easy to fund your account and withdraw money.
Deposits
You can fund your account through these methods.
Mobile app: With the mobile app, you can deposit checks and make transfers quickly and conveniently.
ACH transfer: The simplest way to fund your account is to transfer funds electronically from your external bank accounts. Note that it may take up to two business days for the money to show up.
Check: You can mail a physical check to CIT Bank.
Wire transfer: CIT Bank accepts funds via wire transfer.
Withdrawals
Here’s how you can make withdrawals:
CIT Savings Connect: The CIT Savings Connect allows you to make up to six withdrawals or transfers per statement cycle. Keep in mind that any withdrawal and transfer requests you submit via mail don’t count toward this limit. The same goes for telephone requested withdrawals and transfers.
ACH transfer: Free ACH transfers between your account and an external bank account are available.
Check: You can call CIT and ask them to mail you a check without paying a fee.
How to Get Started
To open an account with CIT Bank, visit their website and click the green “Open Account” button on the home page. You can complete the application in 5 minutes or less. Be prepared to provide the following information:
Your home address
Your phone number
Your email address
Your Social Security number
You’ll also need to fund your new account. You can transfer funds from an external checking or savings account, wire funds to your new account, or mail a check to the following address: CIT Bank, N.A. Attn: Deposit Services, P.O. Box 7056, Pasadena, CA 91109.
Lastly, CIT will make two test micro-deposit to your account. You’ll receive an email within three business days that asks you to verify them. The bank will process your transaction as soon as you do.
CIT Bank Alternatives
While CIT Bank offers a lot of benefits, it’s not right for everyone. If you decide CIT isn’t the best choice for your unique needs and preferences, consider these alternative options. Some are online banks while others are traditional financial institutions with brick and mortar locations.
Ally Bank
Like CIT Bank, Ally Bank is an online only bank that offers low fees and high rates. Its product lineup includes checking accounts, savings accounts, CDs, credit cards, mortgages, car loans, personal loans, and retirement accounts. Perhaps the greatest benefit of Ally Bank is that it doesn’t charge any fees.
Capital One
Capital One has approximately 300 branches in select states and more than 50 Capital One Cafes that allow customers to open accounts, deposit cash and checks, and hang out. It also offers no-fee access to more than 70,000 ATMs and attractive rates on savings accounts and CDs. This bank might make sense if you want competitive rates but prefer the option of an in-person banking experience that is not available with CIT.
Chime
Chime isn’t a traditional bank or online bank like CIT. It’s a mobile banking app that provides banking services through Bancorp Bank, N.A. and Stride Bank. The Chime checking account comes with exciting perks like automated savings tools, early direct deposits and free access to over 60,000 fee free ATMs across the country. The Chime high yield savings account is also a solid choice thanks to its competitive interest rate and lack of monthly fees as well as minimum balance requirements.
Citibank
Citibank sounds like CIT Bank but is one of the largest banks in the world. It has hundreds of locations in the U.S. and thousands overseas. If you frequently travel abroad for business or pleasure and want access to branches and ATMs, it should be on your radar. It offers a plethora of accounts but they do come with fees. The good news is many of the fees can be waived if you meet certain balance or direct deposit requirements.
Discover Bank
When most people think of Discover, credit cards come to mind first. But Discover is actually an online bank that’s similar to CIT Bank. Its plethora of products include checking and savings accounts, personal loans, student loans, home equity loans, and mortgage refinancing. Discover also offers cash back on debit card purchases and, of course, credit cards with various rewards.
PNC Bank
PNC Bank is a traditional bank with brick and mortar locations. Some of its most popular products are the PNC Standard Savings account and Virtual Wallet, which combines a traditional checking and savings account. PNC also offers numerous CDs and free budgeting tools. It offers online banking, like CIT Bank, plus a robust mobile app.
Huntington Bank
Huntington Bank is a leading bank in the Midwest with branches in states like Ohio, Michigan, and Indiana. It provides checking and savings accounts, personal loans, auto loans, mortgages, credit cards, insurance, and investment options. Other perks include a 24-hour grace period, all day deposits, and online bill pay. You can download the Huntington app and bank on the go, like you’d be able to with CIT.
Bank of America
Known as one of the largest banks in the country, Bank of America has more than 6,000 locations throughout the U.S. Just like CIT Bank, it has a highly rated mobile banking app. In addition to checking and savings accounts, it has a Preferred Rewards program, which comes with perks like higher interest rates, waived fees, and cash back for certain transactions.
TD Bank
TD Bank has a strong presence in the Eastern part of the U.S. It offers many of the same products as CIT, such as personal checking accounts, personal savings accounts, and mortgages accounts. TD stands out for its generous bonuses and minimal fees. We can’t forget its intuitive mobile app, which makes it a breeze to bank on the go.
Citizens Bank
Citizens Bank is a national bank with locations in the New England, Mid-Atlantic and Midwest regions. Just like CIT Bank, it doesn’t charge monthly maintenance fees as long as you meet specific criteria, like making one deposit per month.
Additionally, many accounts are free of minimum balance requirements. In addition, Citizen offers the Peace of Mind overdraft protection program which will send you an alert if you overdraft your account. Other perks include an overdraft fee grace period and early paycheck deposit and early paycheck deposit.
Bottom Line
If you feel comfortable with online banking and would like to take advantage of the best annual percentage yield APY available, CIT Bank is a great choice. You’ll enjoy access to a plethora of products and watch your money work for you. While you won’t get to bank in-person, you can perform pretty much any banking task online or on your mobile phone via the CIT banking app.
CIT Bank FAQs
What types of products does CIT Bank offer?
CIT Bank offers deposit accounts, like checking accounts, high yield savings accounts, and money market accounts. It also provides CDs and home loans.
Who is CIT Bank for?
CIT Bank is a good fit if you’re looking for an online bank with high interest rates and low fees. You’ll be able to open and manage CIT Bank’s savings accounts and checking accounts from the comfort of your own home. If you prefer a traditional bank with physical locations, you might want to explore other options, like Bank of America, PNC Bank, and Huntington Bank.
Is CIT Bank FDIC insured?
Yes, CIT Bank is insured by the Federal Deposit Insurance Corporation. This means that if the bank fails for any reason, the federal government will protect your money up to $250,000 per depositor. The FDIC insurance can give you the peace of mind of knowing your money will be safe and sound, regardless of what happens to CIT.
Do I need a lot of money to open a CIT Bank account?
Each CIT account has its own requirements. However, many of its deposit accounts can be opened with as little as $100. This is great news if you’d like to start your savings journey but don’t have a lot of cash at your disposal.
Is it safe to bank with CIT?
CIT makes security a top priority. If you open an account with the bank, it will be protected with safety measures like antivirus protection, SSL encryption, firewalls, and account monitoring. With CIT, you don’t have to be skeptical about entering your personal information.
Is CIT Bank legitimate?
CIT Bank is a division of First Citizens Bank, which dates back to the 1800s. Plus it’s FDIC-insured.
Where can I go to find CIT Bank’s routing number?
Log into your online account to find your CIT Bank routing number. For online-only accounts, this number is 124084834.
Does CIT Bank have physical branches?
CIT Bank is a digital bank. This means there are no branches and you must do all your banking on your laptop, computer, or mobile device. Many reviewers state that the CIT website and mobile app are very easy to use so you don’t have to worry about a learning curve.
Is CIT Bank compatible with Zelle?
Yes. You can use Zelle to quickly send and receive money through the CIT Bank mobile app. Fortunately, you won’t have to pay any fees to do so as Zelle is free to use.
Should I open an account with CIT Bank?
You might benefit from a CIT Bank account if you’re looking for a financial institution that offers high interest rates and low fees. However, you should feel comfortable with online and mobile banking as you won’t be able to step into a local branch to deposit a check or ask a question.
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
Most business bank accounts aren’t built with very small businesses in mind, let alone freelancers and solo entrepreneurs. If you have big plans for your company or independent professional practice but haven’t grown to the point where a traditional business bank account makes sense, you’re probably a bit frustrated by your options.
If that’s the case, look to the NorthOne Deposit Account. It’s a flexible business account with a reasonable monthly fee, no minimums, and some useful built-in tools. It can’t do everything and might not be appropriate for every growing business, but it’s definitely worth a closer look.
What Is the NorthOne Deposit Account?
Also known as the NorthOne Business Account or simply the NorthOne Account, the NorthOne Deposit Account is a small-business checking account. It has a flat $10 monthly fee that can’t be waived but has few additional fees, which makes it a lower-cost alternative to most traditional business bank accounts.
The NorthOne Deposit Account is a fully online bank account. NorthOne itself is a financial technology app; banking services and FDIC insurance come courtesy of The Bancorp Bank, NorthOne’s banking partner. The NorthOne Deposit Account is NorthOne’s only deposit account product.
Despite having no physical branches, NorthOne offers a comprehensive lineup of business banking services, including remote check deposit and bill payments, same-day ACH transfers, built-in budgeting tools, and external integrations with third-party accounting and payroll apps. Other benefits include no NorthOne ATM fees at any ATM in the United States (though third-party fees may still apply) and virtual debit cards on demand.
What Sets the NorthOne Deposit Account Apart?
The NorthOne Deposit Account stands out from other business accounts for several reasons:
No ATM fees charged by NorthOne. You can use your NorthOne debit card to withdraw cash at any U.S. ATM without paying any fees to NorthOne. Some ATMs may charge third-party fees that NorthOne can’t control, but this is still a big advantage over most business banks.
Built-in budgeting tools. NorthOne has a built-in envelope budgeting system that makes it easy to track and control business expenses through the month.
Unlimited virtual card numbers for account owners. You can create unlimited virtual card numbers on demand, which is a huge plus if you make a lot of online purchases with vendors you don’t fully trust.
Few additional fees. This account comes with some additional fees, like for wire transfers and instant ACH transfers, but it’s a far cry from the long, convoluted fee schedules found at most traditional business banks.
No way to avoid the $10 monthly fee. This account’s biggest downside: there’s no way to avoid the $10 monthly maintenance fee. But you get what you pay for.
Key Features of the NorthOne Deposit Account
The NorthOne Deposit Account is simple enough as business bank accounts go, but do take the time to understand its core features and capabilities before opening an account.
Account Fees & Minimums
The NorthOne Deposit Account has a $10 monthly fee that can’t be waived. There’s no minimum opening deposit or ongoing balance.
Debit Card & ATM Access
This account comes with a free Mastercard debit card accepted wherever Mastercard is. You can use it to deposit or withdraw cash at any U.S. ATM with no fees charged by NorthOne. ATM owners may still charge fees that are out of NorthOne’s control.
Envelope Budgeting
NorthOne has a built-in envelope budgeting tool that lets you create pools of cash earmarked for specific expenses or goals, such as payroll, rent, and debt service. Each envelope remains part of your main account, but you can pay bills directly from them to avoid commingling funds.
Payments & Transfers
The NorthOne Deposit Account allows you to cut physical checks to third-party payees directly from your account. There’s no fee for this service.
Standard ACH transfers also cost nothing. However, same-day ACH transfers cost 1.5% of the transaction amount (maximum $15) and domestic wire transfers cost $20 to send.
Third-Party Software Integrations
The NorthOne Deposit Account integrates directly with more than a dozen business and consumer software apps:
Accounting tools like QuickBooks
E-commerce platforms like Amazon, Etsy, and Shopify
Payment processors like Square, Stripe, PayPal, and Venmo
Payroll processors like Gusto
There’s no cost to link your NorthOne account to any external platform, though all charge fees for their services.
Mobile Features
NorthOne has a comprehensive mobile app that’s well-reviewed (over 4.5 stars) by thousands of verified users and has a long history of reliability and usability. Anything you can do with the desktop interface, you can do with the mobile app.
Deposit Insurance
This account comes with FDIC insurance coverage up to $250,000. If NorthOne or its banking partner go out of business, the federal government reimburses you up to this amount.
Pros & Cons
There’s more to like than dislike about the NorthOne Deposit Account, but no business bank account is perfect.
No minimum balance
No NorthOne ATM fees
Built-in budgeting capabilities
Numerous third-party software integrations
No way to avoid the $10 monthly fee
No interest on balances
Extra fees for certain account activities
Pros
The NorthOne Deposit Account is a flexible, relatively low-cost deposit account for small, growing businesses.
No minimum balance requirement. This account has no minimum deposit or ongoing balance requirement. You can fund your account in any amount and keep as little cash in it as you wish.
No ATM fees charged by NorthOne. NorthOne charges no ATM fees at any U.S. machine. ATM owners may still charge fees that NorthOne can’t control, but your overall cash withdrawal costs should still be lower than with a traditional bank.
Free remote check deposit and payments. You can deposit checks on your phone with NorthOne and cut physical checks to send to vendors right in the app. There’s no fee for either action.
Built-in budgeting capabilities. NorthOne has a built-in envelope budgeting system that helps you keep your expenses straight and identify potential problem spending areas. Many business accounts have nothing similar.
Easy integration with third-party business software. The NorthOne Deposit Account integrates with more than a dozen third-party business apps, including QuickBooks, Shopify, Stripe, Square, and Gusto.
Cons
The NorthOne Deposit Account has an unavoidable monthly cost and some important limitations that could give you pause.
No way to avoid the $10 monthly fee. This account’s $10 monthly fee is unavoidable. There’s no way to avoid it with a minimum balance or transaction activity.
No interest on balances. This account pays no interest on balances. This is a big downside if you’re looking to put your company’s cash reserves to work.
Fees for some account activities. NorthOne doesn’t charge a ton of extra fees, but it does charge for activities like instant ACH transfers and wire transfers, both of which you may need to do as your business grows.
How the NorthOne Deposit Account Stacks Up
Before you open a NorthOne Deposit Account, see how it stacks up against other popular business bank accounts. One popular alternative is Bluevine Business Checking, which also has no minimums and relatively low fees.
NorthOne Deposit Account
Bluevine Business Checking
Monthly Fee
$10
$0
Minimum Balance
$0
$0
Subaccounts
No, but Envelopes have similar function
Yes, up to five
Yield
None
2.00% APY on eligible balances
ATM Access
Unlimited
120,000+
NorthOne beats Bluevine on ATM access and subaccount availability (if you count Envelopes as subaccounts, which they basically are). But it falls short on the monthly fee (Bluevine is free month-to-month) and account yield (NorthOne doesn’t pay interest).
Final Word
The NorthOne Deposit Account is a flexible, user-friendly account for independent professionals and small businesses. While it’s not appropriate for larger companies, or even for small businesses with really complex finances, it nevertheless appeals to millions of people who aren’t well-served by traditional bank accounts.
If you’re among them, the NorthOne Deposit Account isn’t your only option. But it’s one of the better ones.
The Verdict
Our rating
NorthOne Deposit Account
The NorthOne Deposit Account is a flexible, easy-to-use business bank account for small, growing businesses and sole proprietors, including freelancers. Although it has an unavoidable monthly maintenance fee, capabilities like built-in budgeting and external software integrations justify the price tag. Just don’t expect to earn any interest on your balance.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
@media (max-width: 1200px)
body .ns-buttons.ns-inline .ns-button-icon width: 100%; .ns-inline .ns-button –ns-button-color: #000000;
Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Your first job thrusts you into the adult world and the tricky balancing act of managing your money. The key to a healthy, wealthy, and low-stress lifestyle is not to get rich, but to master this balance as early as possible.
Here are six money-related moves to make during your first job so you feel good about your future.
What’s Ahead:
1. Open a Checking Account and Set Up Direct Deposit
If you don’t have one already, you’ll need a checking account to safely store your money.
The two most common reasons Americans are hesitant to open bank accounts are a) they don’t think they have enough cash, and b) they want to avoid bank fees. But many banks won’t charge you a penny for opening an account. And as long as you maintain the required minimum balance, if there is one, you won’t get charged any low balance fees and might be able to avoid maintenance fees.
The next question would be: which bank? You might’ve heard shifty things about some brick-and-mortar banks in the headlines, so who can you trust? Chime® and LendingClub are two great online-only options for modern banking.
Chime
Designed to help young people build their savings while they bank, Chime offers a safe and rewarding place to keep the money from your first job — and even get it early.*
When you set up direct deposit with Chime, you may be able to get your paychecks up to two days in advance if you qualify for early direct deposit.3 What’s more, Chime not only doesn’t charge overdraft fees but will cover up to $200 in overdrafts for eligible accounts with a feature called Chime Spot Me®. If you overdraw, Chime will “spot” you the money and deduct it from your next deposit at no cost to you.5
For its simple tools and variety of features to help make your life easier when money is tight, this is an ideal first checking account.
Open a Chime account or read our Chime review.
* Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. 3 Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date. 5 Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.
LendingClub
If you want a bank with more features that’ll pay interest on your balance, check out LendingClub. LendingClub offers a fee-free checking account that earns interest and cash back.
LendingClub’s Rewards Checking account pays 1.00% APY on balances between $2,500 and $100,000 (and 0.15% on balances above this). It’s not much, but the interest will add up the more you deposit. Plus, you can earn 1.00% cash back on qualifying purchases you make with your LendingClub debit card. And like Chime, users may be able to get their paychecks up to two days ahead of schedule.
Open a LendingClub account or read our LendingClub review.
Related: Best No-Fee Checking Accounts
2. Get the Right Credit Card
Once you’ve opened a checking account, your next step is to apply for a credit card. This can be through your current bank or a new institution altogether.
As a good rule of thumb, you should look for cards that have no annual fees and come with benefits like cash back and free stuff. But as you’re browsing rewards cards, make sure you choose one that actually makes sense for your spending habits.
Most likely, a fancy metal card that offers a high rewards rate on one category wouldn’t be as useful to you as a more basic rewards card that offers less cash back on more categories. Watch out for high annual fees and high interest rates with any rewards card.
One of the best cash back credit cards out there is the Chase Freedom Unlimited®. We recommend this card for anyone looking to build their credit when they start earning money from their first job.
For starters, this card offers a wide array of cash back categories. These are:
5% back on travel booked through the Chase Ultimate Rewards® portal
3% on dining, takeout, and drugstore purchases
1.5% on everything else
For a card with no annual fee that you can qualify for with average or good credit, you can’t do a lot better.
Read our Chase Freedom Unlimited® review.
Secured Credit Cards
Depending on your income and credit score, you might not qualify for the exact card you want. Most unsecured credit cards like the Chase Freedom Unlimited® have income requirements and want to see a certain credit score from applicants. Frankly, it can be tough to meet these as a newbie.
Secured credit cards can be a great option for people applying for credit for the first time. These are called secured because they require a security deposit, which is used as collateral in the event that you can’t pay back your balance. Secured cards tend to be easier to qualify for than unsecured cards but help you build credit all the same.
The OpenSky® Secured Visa® Credit Card is one of the best secured cards out there. With this card, you’ll put down a security deposit of between $200 – $3,000 when applying and this will become your credit limit.
All of your payment activity is reported to the three major credit bureaus, so making your payments on time will set you up for success and a better credit score.
What’s unique about the OpenSky® Secured Visa® Credit Card is that it doesn’t require a credit check or affect your credit when applying.
Read our review of the OpenSky® Secured Visa® Credit Card.
3. Start Budgeting
Budgeting is like driving. When you’re first starting out, it’s awkward, anxiety-inducing, and decidedly un-fun. But eventually, it kind of becomes second nature.
Effective budgeting can help you save money and feel less stressed. Knowing precisely how much money you have and where it’s going means there are no surprises and helps you plan for your financial goals. But making a budget and following it is a whole lot easier said than done.
If you’ve ever tried and failed to stick to a budget, it’s probably because you weren’t using the right tools. Trust us when we say the right tool makes all the difference.
We recommend PocketSmith and YNAB to beginners. If you want to make sure the money you’re earning from your new job is being put to good use, start with one of these budgeting products.
PocketSmith
PocketSmith is not your average budgeting app.
Yes, it’ll track your income and expenses and sound warning bells when you’re about to go over budget. But its most unique and useful feature is financial forecasting. With this, can insert a “dummy expense” and see how it’ll affect your finances as far as 30 years into the future. For example, if you want to go on a $3,000 vacation, you can see how much of a hit your money will take a year or two from now from that trip.
This feature is especially helpful for people with a new source of income.It takes a lot of practice to learn what you can afford to buy with each paycheck, and PocketSmith can save you from making some costly mistakes.
Start budgeting with PocketSmith or read our Pocketsmith review.
YNAB
You Need a Budget (YNAB) makes zero-based budgeting not only possible but simple. By linking your bank accounts, the app pulls information about your cash flow to quickly show you how much you have to spend. Then, you “give every dollar a job” each month by allocating all of your money to different spending and expense categories. Throughout the month, YNAB logs your transactions for you to help you stay on track in each budgeting category.
YNAB offers a variety of visuals and resources to help you figure out what you’re doing as you’re doing it. If you’re budgeting (or even just making money) for the first time and want to start out on the right foot, this tool is for you.
Start budgeting with YNAB or read our YNAB review.
4. Start Building Good Credit
You’ve probably heard a used car commercial say: good credit, bad credit, no credit, no problem! So what exactly is “credit,” why is it important, and how can you build it?
Your credit score is a three-digit number between 300 and 850 automatically assigned to you and updated regularly by the big three credit bureaus: Equifax, Experian, and TransUnion. Each bureau will have a slightly different score for you, but they’ll be roughly the same. Your score essentially tells financial institutions how reliable you are and how likely you are to actually pay your debt.
Having good credit throughout your 20s and 30s pays off big time. For example, if you take out a $25k auto loan with a credit score of 750 instead of 650, you could end up paying ~$6,000 less in interest over 60 months.
Thankfully, building credit is pretty simple if you’re consistent.
Here are the two main things you can do to build good credit:
Spend less than 30% of your credit limit each month on your card – this is called your credit utilization ratio and it says a lot to lenders about how responsible you are
Pay your balance in full and on time – set up automatic payments to avoid missing due dates
Related: How To Build Credit the Right Way
5. Open a Retirement Account
Is it ever too early to think about retirement? Nope! In fact, opening a retirement account as soon as you get your first job is one of the best decisions you can make.
A retirement account is a specialized savings account that you add to while you’re working and withdraw from when you retire.
The sooner you open a retirement account, the longer your money has to mature and earn interest (and interest on that interest).
How much interest you earn depends on the type of retirement account you open. The two most common types of retirement accounts are 401(k)s and IRAs.
The main difference between a 401(k) and an IRA is that your employer opens a 401(k) on your behalf but you open an IRA yourself. Some employers will match your 401(k) contributions up to a certain percentage each year. 401(k)s are common for full-time employees on payroll and IRAs are more common among self-employed folks.
If your employer doesn’t offer 401(k) options, you can open an IRA yourself pretty easily.
So after you open an account, now what? Your bank can manage your retirement accounts for you or you can hire a third-party advisor to take over.
There are a lot of ways to go about getting help managing and optimizing your retirement accounts, but one of the best options for beginners is a robo-advisor.
A robo-advisor is an automated platform that uses an algorithm to help advise your investments. Blooom and Betterment are two of our favorites.
Related: How To Figure Out What Retirement Account To Open First
Blooom
Like other “robo-advisers,” blooom uses AI to optimize your retirement accounts.
To get started, you give blooom information about how much risk you’re willing to take with your investments and when you hope to retire. Maybe retirement is the last thing on your mind now that you’ve started a new job, but it shouldn’t be.
With blooom, there’s no pressure to know what you’re doing with your retirement accounts. The platform will make recommendations to make your 401(k) or IRA more profitable, rebalance your investments, and save more by avoiding hidden fees. They’ll even suggest an investment strategy for you and help you set goals.
Blooom can help manage both employee-sponsored 401(k)sand Roth IRAs at an incredibly low rate.
Start investing with blooom or read our blooom review.
Betterment
Betterment is another great choice. This robo-advisor can help you pick the right retirement accounts for your needs from a list of options. If your go-to retirement account is an IRA, Betterment can help you choose between traditional IRAs, Roth IRAs, and SEP IRAs.
To get started, all you’ll need to do is answer a few questions, and Betterment will build and manage an investment portfolio for you that aligns with your retirement goals. Then, they’ll handle rebalancing and managing your investments too according to your goals. Plus, Betterment offers tax-smart tools to help ensure your investments are always working efficiently.
Start investing with Betterment or read our Betterment review.
6. Sign Up for Health Insurance
Most medium- to large-sized employers offer health insurance and automatically deduct your premiums from your paycheck. Sometimes your company’s health insurance is optional and sometimes it’s required. Usually, you can save when you get health insurance through your work because employers can negotiate better benefits and premiums from providers.
Once you opt in, you’ll receive a benefits package detailing everything your insurance covers. Take the time to read through this carefully because understanding the benefits and perks of your plan can seriously pay off.
For example, one common perk of employer-sponsored health insurance is free or subsidized gym memberships, which can save you hundreds annually. You might also be able to save on everyday health items you buy anyway.
Choosing Health Insurance
If your employer doesn’t offer health insurance benefits, you’ll probably want to get some health insurance on your own to protect yourself from medical debt. Policygenius can help you choose the right provider for you.
Policygenius aggregates insurance quotes for any type of insurance you may need, ranging from auto insurance to life insurance to pet insurance. Basically, it does the hard work of comparison shopping for you.
The site saves you time and money by showing you only the best health insurance offers based on your answers to a few basic questions about what you’re looking for. Your privacy is protected and your personal details are not shared with any companies until you sign up.
Get insurance through Policygenius or read our Policygenius review.
Related: How To Pick a Health Insurance Plan
Summary
Becoming happy and well-off isn’t a matter of making money, but managing it. Making these six smart money moves when you get your first job shouldn’t take you more than a few hours and a few hundred bucks, and will accelerate you on your path to financial freedom.
Focus on doing these things – and doing them right – soon after you get that first paycheck.
Servicing, Lead Source, AI, MERS Review Products; Cybersecurity News; STRATMOR on Artificial Intelligence
<meta name="smartbanner:author" content="We now have a native iPhone and Android app. Download the NEW APP”>
This website requires Javascrip to run properly.
Servicing, Lead Source, AI, MERS Review Products; Cybersecurity News; STRATMOR on Artificial Intelligence
By: Rob Chrisman
8 Hours, 47 Min ago
As the U.S. faces nationwide flight delays, one must ask if there are processes in place for the FAA to deal with them. “Trust the process” is a common thing to hear, but attorney Brian Levy reminds us of why process is important in the actions of government in light of the FHFA’s rescinded DTI pricing. The CFPB knows a thing or two about the process, and the Consumer Financial Protection Bureau issued an order against Nebraska’s ACI Worldwide and one of its subsidiaries, ACI Payments, for improperly initiating approximately $2.3 billion in unlawful mortgage payment transactions. ACI’s data handling practices negatively impacted nearly 500,000 homeowners with mortgages serviced by Mr. Cooper (formerly known as Nationstar). “By unlawfully processing erroneous and unauthorized transactions, ACI opened homeowners to overdraft and insufficient funds fees from their financial institutions. Today’s order requires ACI, among other things, to pay a $25 million civil money penalty.” (Today’s podcast can be found here and is sponsored by Visio Lending. Visio is the nation’s premier lender for buy and hold investors with over 2.5 billion closed loans for single-family rental properties, including vacation rentals. Through its top-rated Broker Program, Visio brokers can earn up to 5 percent. Hear an interview with Visio Lending’s Jeff Ball on all things rental lending and debt service coverage ratio – DSCR – lending.)
Lender and Broker Services, Products, and Software
“Need a third-party reviewer for your 2023 MERS® Annual Report? Look no further than Falcon Capital Advisors. Only our review team consists of former members of the MERS legal, operations, membership, and compliance departments, who have first-hand experience developing, reviewing, and enforcing the requirements of the Annual Report. The MERS® Annual Report is not due until 12/31, but the submission window has already opened. Don’t delay. Contact Tim Renner today to learn more about how Falcon can put our unmatched experience and expertise to work for you. Discounted pricing available to those who sign up by September 1.”
Hey there, mortgage industry movers and shakers! Let’s talk tech, baby! Technology has been revolutionizing the mortgage industry, from LOS systems and underwriting systems to cloud-based credit reports. But wait, there’s more! Artificial Intelligence (AI) is on the horizon, and we’re here to explore how it’s going to shake things up. Love it or hate it, understanding its potential is crucial to staying relevant in the industry. Our free eBook is your ticket to discovering how AI can take your customer experience to the next level, boost productivity, slash costs, keep you compliant, streamline workflows, and give you a crystal ball into your borrowers’ future. Don’t miss out! Download Artificial Intelligence: 7 Ways AI is Transforming the Mortgage Industry today. Follow Birchwood Credit Services to gain access to a plethora of industry-related news and informative content that will aid you in closing more loans at lightning speed!
Own Up is the nation’s only mortgage concierge marketplace enabling mortgage companies, banks, credit unions and brokers to access exclusive, high intent and highly qualified borrowers. A recipient of numerous accolades, including Fintech Breakthrough’s “Best Digital Mortgage Platform,” Own Up is currently onboarding select lenders to further its national expansion. Own Up seamlessly integrates into all major lender CRMs, lead management systems and pricing engines. Lenders interested in acquiring qualified leads with industry-leading conversion should reach out to [email protected] to learn more.
Servicing Products and Tools
It’s time for a quick riddle! Every company wants this, but few achieve it. And when you have it, it speaks for itself. The answer? CREDIBILITY. Mortgage servicers of all sizes trust their portfolios to MSP®, Black Knight’s loan servicing system – and for good reason. MSP has consistently set the industry standard for delivering best-in-class functionality and fully integrated solutions that support every servicer’s unique needs. No need to take our word for it, though, just check out what MSP clients are saying. Credibility speaks for itself. If you want to learn more about the proven system capabilities to transform your servicing operations, contact our team today.
Top mortgage subservicer PHH is asking “what if?” What if you could reduce your servicing complaints by 75%? What if you could save more than $1 million per year just by switching subservicers? What if your subservicer could help reduce defaults and increase recapture? What if your customers loved your servicing technology, including mobile apps, videos, and online chat capability? No other servicer has been more highly decorated for servicing excellence over the past two years than PHH with top awards from Fannie Mae STARTM and Freddie Mac SHARPSM. Clients like Curtis Dair, CFO of Sierra Pacific Mortgage Company, said “PHH has shown an unwavering commitment to providing the highest levels of customer service.” In 90-120 days, PHH can help you make the jump to the next generation of subservicing: cost savings, customer-centric tech, and award-winning service. Find out how to join the PHH Mortgage family, starting with a call or email to Chris Sabbe at 415-828-1222.
Prepare to act on your servicing portfolio when delinquencies increase! Do you have the right team in place to help manage your servicing portfolio when borrowers become delinquent? When it comes to mortgage delinquencies, getting in front of distressed borrowers is important. Velocity Servicing™, a LoanCare® division focused on specialty servicing and investor ROI, can provide you with critical and specialized support for your distressed loan portfolio. Within 12 months, Velocity achieved a 36% lift in loan resolution compared with traditional servicing models for their specialty servicing clients. We accomplish return on investment earlier through an intelligent network of triggers, exceptions, and loan-level conditions to keep your most distressed customers’ loans on their pathway to performance. Velocity’s team prioritizes maximizing opportunities to return your distressed loans to performing portfolios faster by using an award-winning data analytics platform to drive payment success. Click to learn more or call today: 646-361-6808.
STRATMOR on Artificial Intelligence
Let’s face it: AI is part of our industry’s future, and we’d all like to have insight into its potential impact. In the June issue of STRATMOR Group’s Insights Report, STRATMOR experts including Senior Partner Garth Graham, Senior Advisor Brett McCracken and Principals Jennifer Fortier, Jennifer Smith and Kris van Beever answer questions about artificial intelligence and its future in our industry. For the AI perspective, STRATMOR went to ChatGPT, the current poster child for AI, and asked it the same questions posed to STRATMOR’s team. On some questions STRATMOR and ChatGPT agree; on others, the experts with decades of mortgage experience show why AI isn’t the be all, end all answer. Read, “The Rise of AI: STRATMOR Experts and ChatGPT on Artificial Intelligence in the Mortgage Industry,” for a glimpse into what may be a best-case scenario for how we share the future with these powerful new technologies in the June Insights Report.
Cybersecurity and Protection
Kris Van Beever with STRATMOR observes, “Everyone needs to be ultra-diligent in watching out for fraudulent texts and emails. With the availability of highly functional AI, perpetrators of fraud are now able to leverage this new tech to eliminate many of the things that used to give them away. All employees should be trained in looking for misspellings, poor grammar, and otherwise inappropriate tone. ChatGPT and similar tools now eliminate all the obvious telltale signs of fraudulent messages. They can even mimic the style and tone of humans with references that are near impossible for us to decipher. We may be heading into an electronic world where we have to use complicated multi-factor authentication for all interactions. I am not claiming the sky is falling… It has fallen.”
Along these lines, FundingShield announced a partnership with Mastercard. “As payment related fraud spikes, we are addressing the cybersecurity-based challenges with solutions that deepen our ability to serve the mortgage and real estate sector but provide industry agnostic payment verification tools. FundingShield entered a partnership with Mastercard to leverage its open banking platform delivered by Finicity, a Mastercard company. FundingShield provides live, source data-based technology products and SaaS solutions that have been used to secure the funds of over $2.5 trillion in mortgage closings.”
FundingShield CEO Ike Suri shared, “FundingShield has over 95% coverage of licensed service providers in the real estate, mortgage, closing and settlement space in our live repository. This partnership with Mastercard allows us to leverage its open banking connectivity of over 95% of U.S. based deposit accounts for consumer-permissioned access to real-time, bank-sourced data to expand our B2B and B2B2C payment verification solutions for clients.”
“FundingShield’s solutions manage risk for B2B and B2B2C firms facing a surge of cybersecurity threats like hacking and fraud. FundingShield’s payment verification solutions support bank account ownership that is confirmed with consumer-permissioned data from the banking institution where the account is held, using Mastercard’s open banking platform. This source data is then used to help approve payments ahead of a FundingShield client initiating a wire, ACH, or other payment method from the customer’s banking institution.”
Capital Markets
Economies have so far proved more resilient to rate hikes than most had expected, with the Fed’s benchmark rate now north of 5%. There are several explanations for the phenomenon, ranging from pandemic-era forces and tight labor markets to wage gains and consumer spending. It also takes time for higher rates to filter through the economy, with many economists still anticipating a recession over the next six to 18 months if central banks extend their hiking cycles. The yield curve between the 2-Year Treasury (US2Y) and 10-Year (US10Y) has even widened by more than 100 basis points, marking the greatest disparity between the two instruments since late 1981. But…
Looking forward, expectations stubbornly call for a recession starting in a few months, but various economic data are telling a far different story. Stronger than expected durable goods orders data and an above-consensus and highest year-to-date Consumer Confidence report for June released yesterday morning helped harden sentiment that the Fed will remain hawkish, with rates subsequently rising as a result. It was a busy day for data, most of which depicted continued strength and resilience in several corners of the U.S. economy, including the May New Home Sales report that came in at 763k, easily beating 665k estimates. That was the fastest annual rate of new home purchases in more than a year, and up 15.5 percent compared to May of last year. Markets also responded to the day’s $43 billion 5-year note auction, which met weaker demand than Monday’s stellar 2-year note sale.
The May New Home Sales figures are consistent with the recent firming in home price growth and homebuilder optimism over the past few months. Steady buyer demand and low existing home supply continue to bolster the new home market across all regions. May saw the second largest increase on record for sales of new homes that have not yet been started, which surged to an annual rate of 195k, the highest level since January 2022. Also aiding homebuyers is stalling home price growth: the Case-Shiller Home Price Index reported an annual overall decrease of 0.2 percent in April. The median new home price fell 7.6 percent on a year-over-year basis to just over $416k. The average sales price fell 6.6 percent to $487k. Separately, FHFA reported that home prices rose 0.7 percent month-over-month in April and 3.1 percent on a year-over-year basis, though there were declines in the West and the Mountain states.
On the central bank front, ECB President Christine Lagarde indicated yesterday that the European Central Bank will likely hike rates in July and that additional rate hikes may be required to thwart inflation. That largely echoes the Fed’s message that rates are likely to remain elevated throughout 2024. However, there have been some Fed members that think the Fed should stand pat, such as Atlanta Fed President Raphael Bostic. “My baseline is that we should stay at this level for the rest of the year (to assess the impacts of the Federal Reserve’s rate-hiking cycle on the real economy),” he said. Market participants are slowly capitulating to the Fed’s “higher rates for longer” theme, as pricing in fed funds futures have largely priced in another 25-basis points rate hike at the upcoming July FOMC meeting. That said, markets continue to price in a nearly one-in-three chance that the Fed pulls an about-face and cuts rates by a quarter percentage point by December.
Mortgage applications from MBA kicked off today’s economic calendar, increasing 3.0 percent from one week earlier. The week’s results included an adjustment for the Juneteenth holiday. We’ve also received Advanced indicators for May with the goods trade deficit (down to $91.1 billion which could add to GDP), wholesale inventories (+.8 percent), and retail inventories (+.8 percent, strong). Later today brings remarks from Fed Chair Powell in Portugal and Treasury auctions of $22 billion reopened 2-year FRNs and $35 billion 7-year notes. We begin the day with Agency MBS prices a few ticks (32nds) better, the 10-year yielding 3.73 after closing yesterday at 3.77 percent, and the 2-year’s at 4.74.
Employment and Transitions
“Homestead Funding’s commitment to community service is evident through the involvement of our Loan Originators in various volunteer activities. By living in the same areas they serve, our LOs are deeply connected to their communities and actively contribute to their betterment. Debb, for instance, selflessly volunteers her time as a driver for Disabled American Veterans, supporting veterans in need. Joel’s annual golf game raises funds for the local Boys & Girls Club, showcasing his commitment to empowering youth. Phil’s involvement in National EMT Day demonstrates his recognition of the vital role emergency medical technicians play in saving lives. Mark’s hockey team raises funds for Make-a-Wish, supporting critically ill children. We not only recognize the efforts of our LOs, but we provide corporate, marketing, and financial support, which helps amplify their impact and enables them to contribute more effectively. Interested in pursuing a career with Homestead Funding? Call Michele Teague (518)-368-1494.”
Agile, the industry’s first MBS fintech, has appointed a new company president, Greg Vacura, former SVP of Correspondent Pricing at Wells Fargo Funding. “He’s now been tasked with applying that deep industry expertise towards achieving Agile’s mission of creating a better MBS market… to fulfill Agile’s mission to create a better mortgage-backed securities (MBS) market through increasing liquidity and automation in TBAs, MBS pools, and AOTs.
And there was this news recently out of St. Louis: Employee-owned USA Mortgage, announced new leadership roles for three senior executives. Announcing the transition was Doug Schukar, who formed DAS Acquisition Company, LLC, (marketed as USA Mortgage nationwide) in 2001. Schukar handed off his duties as DAS Acquisition’s Chief Executive Officer to current President and Chief Operating Officer Linda Pring. (Schukar retains his role as Chairman of the Board.) Ron Mueller assumed the role of President of DAS Acquisition. And Dani Ploch, Chief Administrative Officer, succeeds Pring as the company’s Chief Operating Officer. The company has offices in 34 states and licensed in 49 plus the District of Columbia. Currently, it employs nearly 800 people at 142 locations nationwide.
Download our mobile app to get alerts for Rob Chrisman’s Commentary.
Share via Social Media:
All social media shares will include the image and link to this page.
Whether you are a freelancer, side hustler, or run a full-time business, opening a separate business bank account should be your first move after starting your business.
A business bank account helps you keep your business finances and personal income and expenses separate. Having a business bank account for all your business finances makes it easy to run records and track your costs and deductions at tax time.
Business checking accounts can also help business owners establish credit, which they can use for net terms with suppliers or to take out business loans or business credit cards.
But which business checking account is best? And can you find good options with free business checking accounts?
12 Best Free Business Checking Accounts
We’ve done the legwork for you, compiling a list of the 12 best free business checking accounts available in the U.S. today.
1. Bluevine: Best Free Business Checking Account Overall
Bluevine offers one of the most comprehensive and best free business checking accounts you’ll find. It has no monthly maintenance fees, no overdraft fees, and an annual percentage yield APY of 2% on up to $250,000 of your balance if you meet monthly activity goals. To qualify, simply make $500 in debit card purchases with your Bluevine business debit or receive $2,500 per month in customer payments to your account.
Bluevine offers features that make it great for a team, including the ability to open multiple sub-accounts and even have separate logins for employees or contractors, like accountants and virtual assistants.
While some free business checking accounts have transaction limits, your Bluevine business checking account does not. Funds are backed by Coastal Community Bank, Member FDIC. Coastal Community Bank provides business banking services for Bluevine customers.
2. Capital One Business Bank Account: Best for Local Branches
If you’re looking for personalized service at local branches, consider Capital One business checking. Capital One offers two tiers of checking accounts: Basic and Enhanced. Both accounts offer unlimited digital transactions, free overdraft coverage, access to Capital One’s mobile app, no ATM fees at 70,000 Capital One, Allpoint, and MoneyPass ATMs, and low monthly fees that are easily waived when you meet minimum balance requirements.
Capital One Enhanced business checking is designed for larger businesses who can meet $25,000 average daily balance requirements needed to waive the $35 monthly service fee. Enjoy free incoming wire transfers, five free outgoing wire transfers monthly, and a remote scanner for mobile check deposits.
3. GO2bank: Best for Online Banking
GO2bank is a complete mobile banking solution with digital banking services provided by Green Dot Bank. The bank offers many features in its online business checking account that will appeal to business owners and their employees, including co-branded debit cards, optional overdraft protection, and a co-branded app for businesses. You can also get a secured business credit card through GO2bank.
Waive the monthly fees with qualifying direct deposits, and receive ACH payments up to two days early. You can also purchase eGift cards for yourself or as employee incentives and earn up to 7% cash back.
4. Found: Best for Freelancers
Hailed as the debit card for the self-employed, we rate Found as the best free business account for freelancers. It has no monthly maintenance fees, no minimum deposit or minimum balance requirements, and no credit check to open your account.
Found has a few features that can help you streamline your business. By evaluating your income and expenses, Found can calculate your tax bill, categorize tax write-offs, and even auto-save the correct amount from each deposit to cover your quarterly taxes. You can also send invoices from the app.
Found is a financial technology company, not a bank. Deposits are FDIC insured through Piermont Bank.
5. First Citizens Bank Basic Business Checking: Best for Checking Account Choices:
Most business checking accounts have one option for a business owner. First Citizens has four choices to help you choose the right business checking account with the features you need. The basic business checking account offers 100 transactions with no monthly fee, and has a minimum opening deposit of $100.
Business Banking I is free with a merchant account or a minimum daily balance of $25,000. It offers processing of up to $250 transactions per month, plus $10,000 in cash processing, including cash deposits. Business Banking II has similar features with 500 free transactions and $15,000 in cash processing, including cash deposits. There is a $50 monthly fee unless you have a merchant account or an average daily ledger balance of $50,000.
Business Banking III is best for larger enterprises who want choices and do a high volume of business. Process up to 750 transactions free each month, with $20,000 in cash deposits. You’ll need a merchant account or $75,000 in your average daily ledger balance to avoid the monthly maintenance fee.
Business Banking I, II, and III accounts also let you customize your plan with additional discounted services.
6. Novo Business Checking Account: Best for E-commerce and App Integrations
Novo is not a bank, it’s a financial technology company with deposits backed by Middlesex Federal Savings, Member FDIC. Novo is one of the most tech-forward financial institutions on our list, offering easy integration with apps like Shopify, Wise, Stripe, Square, and Quickbooks.
The Novo Business Checking account has no monthly fees, no minimum balance requirements, no cash deposit fees, and ATM fee reimbursement for out-of-network ATM use. Account holders can also get discounts on popular business software and services, including LegalZoom, Constant Contact, and Stripe.
7. Mercury Banking For Start-ups: Best for Start-ups
Bootstrapped and venture-backed startups of every size have unique needs in a business checking account. A Mercury free business checking account helps your money stretch further with no monthly fee, no minimum balance requirements, and no minimum deposit to open. You can earn 5.11% annual percentage yield APY with mutual funds invested through Mercury Treasury if you have an account balance of $250,000 or more.
Mercury free business checking offers unlimited free transactions, including no cash deposit fees, for businesses who process less than $200,000 per month. The account offers team management tools, debit cards for multiple employees, and capabilities to open multiple checking and savings accounts to manage cash flow.
Plus, your Mercury account is backed by up to $5 million worth of FDIC insurance through partner banks. Banking services are provided by Choice Financial Group and Evolve Bank & Trust, Members FDIC and deposits are held in various partner banks.
8. U.S. Bank Silver Business Checking: Best for Sign-up Bonus
If you’re looking to earn free cash to boost your business, consider a U.S. Bank Silver Business checking account with a $100 minimum deposit before June 30, 2023. You can earn a $500 bonus when you make new deposits of at least $5,000 and maintain a minimum balance of at least $5,000 until 60 days after the account opening. Increase that to $15,000 in new money deposits and maintain that balance for 60 days and earn $750 deposited into your new business checking account.
U.S. Bank offers tons of benefits for business owners, including no transaction fees for up to 125 transactions each month, 25 free cash transactions (or up to $2,500 in free cash deposits, whichever comes first), no monthly maintenance fee, and 50% off on your first check order, up to $50.
Larger businesses may prefer a Gold Business Checking Account, with no transaction fees for up to 300 transactions per month. It also has a waivable $20 monthly fee.
There is also a Platinum Checking Account Package with 500 free transactions and a $30 monthly fee. This fee is waived by meeting monthly minimum balance requirements.
9. Chase Business Complete Banking: Best for Payment Processing
For those who want to avoid online only banks and are looking for a big bank with international recognition and branches and ATMs across the U.S., Chase Business Complete Banking offers a solid solution. It comes with many ways to waive the monthly service fee.
Chase also makes it easy to accept credit and debit card payments without using a third-party payment processor. Chase QuickAccept is a built-in feature as part of Chase Business Complete Banking. You don’t need to apply for a separate merchant account, and the transaction fees are competitive with other credit card processing companies.
QuickAccept also allows you to access money faster with same-day deposits with no added fees. If you need a merchant payment processing provider that works in synch with your bank account, Chase Business Complete Banking could be the best choice for you.
Right now through August 3, 2023, businesses can earn a bonus up to $500 when they open a Chase Business Complete Checking account and meet requirements, which including total deposits of $15,000 or more. Deposit just $2,000 or more and snag an easy $300 for your new business checking account.
10. Huntington Business Checking 100 (Midwest): Best for Community Banking
Huntington National Bank, headquartered in Columbus, Ohio, since 1866, offers three business checking accounts, including a business interest checking account, Unlimited Plus Business Checking.
The top-tier account includes unlimited transactions, plus cash deposits of up to $25,000. Waive the $40 monthly fee with up to $50,000 in total deposit relationship balances across business accounts. Designed for larger businesses, the Unlimited Plus Business Checking allows you to choose two bonus services such as a fraud tool, waived returned deposited items fees on up to 25 items per month, or two free incoming domestic wires monthly.
The Unlimited Business Checking account offers similar features, with unlimited transactions, free cash deposits on up to $10,000 per month, and a choice of one bonus service. Waive the $20 monthly fee by maintaining a minimum balance of at least $10,000. A Business Checking 100 account offers up to 100 transactions per month, and up to $5,000 in cash transactions with no monthly fee.
Huntington is devoted to the local communities it serves and spotlights small business owners on its website. It also specializes in SBA loans and offers a linked business money market account to earn interest on savings with no monthly maintenance fee if you maintain an average daily balance of $10,000+.
11. Relay Business Checking: Best for Money Management
Relay online banking offers up to 20 primary business checking accounts for members of your team or for different business expenses, plus 50 virtual or physical Visa debit cards. Designed to assist with cash flow and money management, your Relay online banking account allows automated transfers into the various checking accounts based on percentage of income or flat-rate dollar figures.
Your Relay online and mobile banking account also includes up to two business savings accounts with APYs of 1% to 3%. Best of all, unlike many free business checking accounts that are only free if you meet transaction or balance requirements, Relay has no monthly maintenance fee, no transaction fees, no overdraft fees, no ATM fees, and no minimum balance requirements.
12. Axos Basic Business Checking Account: Best for No Fees
Axos Bank has been voted best online bank by Money Magazine and its business offering stands out for small business owners as a straightforward business checking account with no transaction fees, no monthly maintenance fee, and no minimum opening deposit. You also don’t have to worry about balance requirements or ATM fees. You’ll even receive unlimited reimbursements for using out-of-network ATMs within the U.S.
You will need to maintain a minimum balance of at least $5,000 for the first five statement cycles to earn a $100 account opening bonus. You will receive $25 into your business account each month you maintain the minimum requirements. However, if you close the account within 120 days, you might have to pay a $100 early closure fee.
What to Consider When Choosing the Best Free Business Checking Account
The best free business checking account for your business depends on the volume of cash deposits, number of transactions, the size of your company and your general banking needs.
It’s important for a business of any size, including a sole proprietor or 1099 contractor, to open a business checking account to keep business funds separate from your personal checking account and other personal finances. This is especially important at tax time.
Many of the business bank accounts on our list of best free business checking accounts make it easy for you to track your business finances. They offer end-of-month or quarterly reports or integrate with QuickBooks or other accounting software to make money management easy. This, along with costs, quality of customer service, mobile apps, and more should factor into your decision when you choose a small business checking account.
Monthly Maintenance Fee
Account fees have long been a fact of life for individuals and business owners, but they no longer have to be with so many free checking accounts available today. Some of the banks on this list, including Axos and Relay, offer no monthly fee of any kind. Others make it easy to waive the monthly fee by meeting balance requirements.
See if there are any balance requirements, direct deposit requirements, or minimum debit card purchases to avoid the monthly service fee, and if you will be able to meet those minimums easily each month.
Easy-to-use Online and Mobile Banking
Even basic business checking today should have a robust app and mobile banking solutions, including mobile check deposits, capability to turn your debit cards on or off, and to monitor spending in a user-friendly app.
You may think online-only banks have better mobile capabilities, but that’s not always the case. All the best business checking accounts on our list have intuitive, user-friendly mobile apps.
Low Minimum Opening Deposit Requirements
Most of the free checking accounts on our list have low minimum opening deposit requirements. Some may have higher minimums to earn a bonus on your business checking account. Make sure to read the fine print and know the minimum deposit requirements if you want to earn that sign-up bonus.
Reasonable Fees
While it’s possible to find a business checking account with no monthly service fee, your bank may have some fees. Read the fine print so you know exactly what you’re getting for your money. It should be easy to avoid ATM fees, overdraft fees, and even monthly fees.
However, you may have to pay for wire transfers, out-of-network ATMs, and other transactions. Unlike personal accounts, it’s common for business bank accounts to have fees if you deposit cash. Sometimes, a certain number of cash transactions is included in your monthly fee.
Customer Service
It’s important to research the bank’s customer service before you commit to a business checking account. Online only banks, especially, may have limited ways to reach customer support. Find out if they offer 24/7 service. Many people prefer online banking for the convenience and low account fees. But if you experience a problem, you want to make sure you can get help promptly.
Positive Customer Reviews
When you’re looking for the best business checking account, it pays to research the opinions of other business owners like you. Customer reviews can give you a feel for the level of customer service, ATM fees, monthly fees, fraud protection, and more.
Practical Transaction and Cash Deposit Limits
Many of the best business checking accounts offer unlimited transactions and reasonable monthly limits to deposit cash. Many banks offer different tiers of business checking accounts, so you can pay a set monthly fee for the level of service you need.
Linked Business Savings Account or Business Interest Checking Account
If you want to earn interest on your cash reserves, look for a checking account that pays interest or for a bank with a high interest savings account. Pay attention to account fees, withdrawal limits, and
Consider the Need for a Bank With Physical Locations
Online banking offers lower monthly fees and convenience. But if your business needs to deposit cash regularly or you just want personalized service and relationship banking, you might prefer a bank account at a financial institution with brick-and-mortar locations.
Questions to Ask Before Deciding on a Business Checking Account
When you’re shopping around for a free business checking account, consider your needs, the number of transactions you conduct daily, your account balance, and whether you prefer a traditional bank or are willing to consider online only banks for your business checking needs. Ask yourself the following questions so you can compare your options.
Will you be making regular cash deposits?
Many business checking accounts charge a fee if you want to deposit cash. Sometimes, a number of cash deposits will be included in your monthly fee. Make sure to pick an account with the capabilities you need.
Do you prefer a bank or credit union?
You might prefer the personalized service of a credit union instead of choosing a large bank or an online bank. When you’re evaluating credit unions, compare all the features and fees the same as you would evaluate business bank accounts.
Do you need to process customer transactions?
Banks like Chase offer credit card processing as an add-on feature to their services. If you are using an online bank, you might want one that integrates with Stripe, Square, or other payment processors. The capability to process customer transactions is one element that sets a business bank apart from a personal checking account.
Do you want to earn interest on your balance?
Several banks on our list offer high yield savings accounts, which is a benefit for small businesses, start-ups, and any business that wants to earn free money from their balance. You might also consider an interest earning business checking account like Bluevine, which pays interest on your checking account balance.
Business Checking vs. Money Market Account
A money market account is a special savings account designed to hold money that you may need to access in the short term. Some money market accounts offer higher APYs than other savings accounts. A money market account often has limits on the number of fee-free withdrawals per month.
Most business owners will want to open a free business checking account and link it to a money market account to earn interest on cash reserves.
What You Need to Open a Small Business Checking Account
You may not need an Employer Identification Number or Tax ID number to open a business checking account. If you have one, you should open the account using that number instead of your Social Security number to help keep your business and personal funds separate.
But if you are a freelancer and file taxes as a sole proprietor/self-employed, you can open your business checking account with your SSN. However, if your business has a DBA (doing business as) you will need a certificate or paperwork showing that name.
Likewise, if you are an LLC, you’ll need your business registration along with your EIN. If you have a partnership, you’ll need your partnership agreement and paperwork showing the business name.
Beyond that, you can open a business checking account with your business address, a phone number, email address and the minimum deposit (if required). Visit a branch for personalized service or open your free business checking account online.
FAQs
See what people are asking about free business checking accounts.
Do you need to pay account or transaction fees?
Some business checking accounts have monthly fees that you can waive by meeting specific requirements. You may also pay ATM fees, fees for cash deposits, and fees for wire transfers or international transactions.
Read the fine print or speak to a personal banker to choose the account that’s right for you.
Can you open a business checking account with no credit check?
Most banks and credit unions will allow you to open a business checking account with no credit check. By maintaining a positive balance in your account, you can build your business credit. A credit check may be required for business loans, lines of credit, or “net” terms with vendors.
What are the most important features of business checking accounts?
Most business owners are looking for business checking with no ATM fees and no monthly fee or easy ways to waive the monthly fee. Beyond that, consider the type and number of transactions you complete monthly, whether you need payment processing capabilities, and if you want a linked savings account to earn interest.
What banks offer free business checking accounts?
Many online and traditional banks offer free business checking or easy ways to waive the monthly fee. The list above describes 12 of our favorite options in free business checking.
The Consumer Financial Protection Agency hit ACI Worldwide and its subsidiary ACI Payments with a $25 million fine Tuesday for illegally initiating withdrawals from borrower bank accounts totaling over $2.3 billion in April 2021.
According to the government watchdog, the payment software company accidentally triggered “erroneous bill payment orders to be sent to consumers’ banks for processing,” while contractors conducted internal testing of Speedpay, a payment system ACI acquired from Western Union in 2019.
This snafu impacted close to 500,000 borrowers with mortgages serviced by Mr. Cooper. Roughly 100 of those impacted incurred non-sufficient funds fees from their banks as a result of ACI’s error, the mortgage servicer previously said.
This error stemmed from the company’s lack of security protocols and training and “caused substantial consumer harm including significant frustration, confusion, and monetary loss,” the government watchdog’s consent order read.
“The CFPB’s investigation found that ACI perpetrated the 2021 Mr. Cooper mortgage fiasco that impacted homeowners across the country,” said CFPB Director Rohit Chopra in a written statement Tuesday. “While borrower accounts have now been fixed, we are penalizing ACI for its unlawful actions that created headaches for hundreds of thousands of borrowers.”
Per the CFPB’s order, ACI contractors testing the company’s electronic payment platform used data containing sensitive consumer information, contrary to ACI policy.
Further, during its performance testing, ACI improperly sent several large files filled with Mr. Cooper’s customer data into the ACH network, unlawfully initiating electronic mortgage payment transactions from homeowners’ accounts. As a result, many borrowers unknowingly had multiple debits for monthly mortgage payments scheduled to hit their bank account on a single day.
The Elkhorn, Nebraska-based company responded to the consent order by highlighting that “Speedpay was a recently acquired addition to ACI’s portfolio, and the inadvertent transmission occurred shortly after the company assumed management of Speeday’s legacy data environment.”
The company noted that it “consented to the issuance of the consent order without admitting any wrongdoing to avoid the expenses and distraction of litigation.”
Apart from paying a penalty, the CFPB is requiring ACI to beef up its information security practices, while prohibiting the company from processing payments without obtaining authorization and using sensitive consumer information for software development for testing purposes without having a good reason for it.
ACI Worldwide and one of its subsidiaries, ACI Payments, agreed to pay a $25 million civil penalty for illegally processing $2.3 billion in unauthorized mortgage payments from nearly 500,000 homeowners serviced by Mr. Cooper two years ago.
The Consumer Financial Protection Bureau (CFPB) issued a consent order against the company on Tuesday for improperly initiating the transactions in April 2021, which opened homeowners to overdraft and insufficient funds fees from their financial institutions.
In response, ACI said it consented to the order “without admitting any wrongdoing to avoid the expense and distraction of litigation.”
Meanwhile, Mr. Cooper said it’s “aligned with the agency’s approach to identifying our prior vendor’s mishandling of our customers’ critical information and taking appropriate actions as a preventative measure against similar future events.”
The case began in 2021 when the CFPB said it was looking into a situation with Mr. Cooper for making unauthorized withdrawals from borrower accounts during a weekend. Mr. Cooper soon pointed the finger at its vendor ACI Worldwide.
“The CFPB’s investigation found that ACI perpetrated the 2021 Mr. Cooper mortgage fiasco that impacted homeowners across the country,” CFPB director Rohit Chopra said in a statement. “While borrower accounts have now been fixed, we are penalizing ACI for its unlawful actions that created headaches for hundreds of thousands of borrowers.”
According to the CFPB, ACI conducted tests of its platform in April 2021, but instead of using deidentified or dummy data, it used actual consumer data from Mr. Cooper’s clients, such as names and bank account details. In total, ACI initiated around 1.4 million ACH withdrawals.
On Saturday, April 24, 2021, homeowners noticed inaccuracies in their account balances. For example, around 7,300 borrowers had their available balances reduced by more than $10,000 overnight, the CFPB said.
In a statement, ACI said that the consent order is related to the “previously disclosed” inadvertent transmission of ACH files to its network during a test of the recently acquired Speedpay bill payment platform in April 2021.
“An internal review determined that ACI’s policies and procedures were not followed. ACI took swift action to reverse the ACH entries and prevent any consumer loss. At all times during and after the error, consumers’ money and personal information remained safe,” the company wrote in a statement.
ACI also settled a consumer class action arising from the error in May. The company expects most of the costs will be covered by third parties in both the consent order and the lawsuit.
Are you a small business owner looking to find a bank that offers a comprehensive list of services, convenience, and safety? Do you want a bank that offers a brick and mortar in-person option or are you fine with online? Are you looking for a high APY? Or, are you just totally overwhelmed with all of the choices and different options?
Regardless, having a business bank account is just a smart move. You’ll be able to keep your business finances separate from your personal finances and, as you’ll see below, you’ll have access to critical business tools like invoicing for your clients.
No matter where you’re at in your search for a bank to support your small business, read on and let’s see if I can find a bank that best fits your needs.
What’s Ahead:
Overview of the best banks for small businesses
Financial Company
Best for
Fees
APY
Bluevine
Those who need to write paper checks
None
2.0% on balances up to $250,000 (conditions apply)
Novo
Freelancers and those with side-hustles
None
None
Lili
Freelancers looking for accounting tools
$0 for Lili Standard; $9 monthly for Lili Pro
2.00% APY with Lili Pro
Chase Business Checking
Those who want an in-person banking experience
$15 per month
OR
$0 per month if you deposit $2,000 or more in new money within 30 days of enrollment and maintain a $2,000 balance for 60 days OR if you maintain a linked Chase Private Client Checkings or Chase Sapphire Checking personal account
0%
Axos Bank Business Checking
Someone looking for a stellar online bank
No monthly fees No maintenance fees No overdraft fees
1.01%
LendingClub Bank
More established businesses
$10 per month if your balance is less than $5,000
0.10% APY if your balance is above $5,000
Bluevine
Bluevine has made a name for itself in the business banking world. With free business checking from Bluevine, you don’t need a minimum balance to start. Get unlimited transactions each month and online statements at no charge.
Keep more cash in your business’s coffers—you won’t be charged any fees for incoming wire transfers or insufficient funds. You’ll also receive two free checkbooks.
You can access your account at no charge at more than 38,000 MoneyPass ATMs nationwide. If your card is missing, you can lock the account in no time. And, when you need to deposit cash, you can visit GreenDot at more than 90,000 locations.
The mobile app provides a full range of features you’d get at a brick-and-mortar location, with the convenience of banking wherever you are. Check your balance, set up a transfer, and deposit checks with ease. Though Bluevine does not offer in-person service, you can get assistance from the support team via email or phone.
Bluevine also pays interest on your checking account. Currently, the APY is 2.0% on balances up to $250,000, which is significantly higher than the national average. To qualify for that interest rate you must meet one of the following monthly eligibility requirements:
Spend $500 per month with their Bluevine Business Debit Mastercard®, which can be used everywhere Mastercard® is accepted
Receive $2,500 per month in customer payments into their Bluevine Business Checking account via ACH, wire transfer, mobile check deposit, or directly from their merchant payment processing provider
Banking with Bluevine can help your small business grow. Its checking account and additional features are flexible, quick, and easy to use. Bluevine also offers financing options, and it provides expertise in small business funding.
Learn more about Bluevine or Read MU30’s full Bluevine review here.
Novo
Novo was built with small business owners in mind. They offer a business checking account that comes with unique, easy-to-use features that are perfect for almost any business or freelancer.
Open your account whenever, wherever, in a matter of minutes with as little as $50. Novo won’t charge you a monthly fee.
The company prides itself on not surprising customers with any hidden fees. ACH transfers, funds wired to your account from the U.S. or abroad, and ATM use all have zero fees attached. Novo does charge a $27 fee if you have an overdraft on the account.
Novo’s made for banking on-the-go. Convenient features include TouchID app login, the ability to deposit checks by snapping a photo, and transferring funds with the touch of a finger. Novo offers stress-free integration with existing software like Quickbooks and Slack to pull your small business together.
While Novo was built for efficiency and simplicity, the company does have a top-notch customer support staff to assist you during regular business hours. You’ll get a real person—not a bot—and an answer to your question in less than an hour. If you’re working early or late, you can reach out for customer support via the app.
Learn more about Novo Bank or Read MU30’s full Novo review here.
Lili
Lili niches down even further than Novo, creating a banking platform designed specifically for freelancers.
You’ll get banking with no minimum balance or opening deposit required. That makes it easy to create a separate account for your business transactions, which becomes vital during tax time. There are no hidden fees, and the standard account is free.
With Lili, if you are paid via direct deposit, you’ll have access to those funds as early as two business days before you could use them in other bank accounts.
Access your account at no charge at more than 38,000 MoneyPass ATMs nationwide, and if your Visa® business debit card is missing, you can lock the account in no time.
But where Lili really shines is in its freelance-geared accounting tools. You can easily track your transactions in real-time and assign them categories. At tax time, just pull a report and you’ll have all your deductions right in front of you.
Lili also has a pro account (Lili Pro) that takes those business tools to the next level. With Lili Pro you’ll get customizable expense categorization and unlimited invoicing, and earn cash back on your spending with certain merchants, as well as 2.00% interest on your savings. There’s a $9 monthly service fee with this account, but it also covers you for up to $200 in fee-free overdrafts.
Lili also offers automatic savings features that allow you to have small amounts of money pulled out of each deposit and put into “buckets.” You can save for taxes, build an emergency fund, and more using this tool.
What’s best is that you can set up your account in just three minutes, perfect for the freelancer looking to save time (and money).
Learn more about Lili or Read MU30’s full Lili review here.
Chase Business Complete BankingSM
Chase offers in-person and online options. Whether you’re looking to open a personal or business account, credit card, or take out a loan they offer a total banking experience.
With Chase Business Complete BankingSM, you can handle your business banking on-the-go, online, or in person. Chase gives you access to more than 16,000 ATMs and more than 4,700 brick-and-mortar branch locations.
As a small business owner, you watch your budget closely. Chase Business Complete Banking℠ has a $0 monthly service fee if you maintain a $2,000 minimum daily balance for 60 days or if your account is coupled with your personal Chase Private Client Checking or Chase Sapphire Checking account. Otherwise, the monthly service fee is $15 with ways to waive (or $12 if you skip paper statements and get them electronically).
For a limited time, the bank is offering a $300 bonus to new Chase Business Complete Banking℠ customers who make a $2,000 new money deposit within 30 business days of the start of your new account. You also need to carry a $2,000 minimum balance over the span of 60 days and make five qualifying transactions, like debit card payments or wire transfers, in 90 days.
If you like the convenience of online access mixed with the comfort of knowing you can visit a traditional branch, Chase is a great banking option for your small business.
Learn more about Chase Business Complete BankingSM or Read MU30’s full Chase Business Complete Banking℠ here.
Axos Basic Business Checking
Axos is a digital bank that offers its customers a comprehensive banking experience — from checking and savings accounts to home, auto, and personal loans.
Its Basic Business Checking and Business Interest Checking are the best fit for small businesses. New business owners get a $200 welcome bonus with promo code NEWBIZ200. Not a new business? Use promo code NEWAXOSBIZ for a $100 bonus.
Basic Business Checking requires a $0 minimum opening deposit requirement. The account is not subject to monthly maintenance fees plus you get unlimited transactions.
Business Interest Checking requires a $100 minimum deposit to start. There’s no monthly maintenance fee if you carry a $5,000 daily balance. If the account dips below that, the monthly fee is $10. You get 100 transactions a month at no charge, then pay $.50 per item. With Business Interest Checking, you’ll earn a 1.01% APY*.
Enjoy the convenience of remote deposits anywhere and anytime via your mobile device. You can make cash deposits through wire transfer. Axos offers free online banking, mobile banking, and online bill pay free of charge.
You can integrate your account with QuickBooks to streamline your small-business budget processes.
If you’re ready to open an account for your small business, Axos has been in business for 20 years and provides a variety of online services to fit your needs. It’s a solid small-business choice.
Learn more about Axos or Read MU30’s full Axos review here.
LendingClub Bank
LendingClub is an online-only bank that offers a full suite of services for businesses of all sizes.
Its Tailored Checking product is the best choice for small businesses. It also features Relationship Checking and Account Analysis Checking for larger companies with a higher transaction volume, as well as Interest Checking for non-profits and municipal organizations.
If you’re a small business owner or independent contractor, Tailored Checking boasts ease of use and 27/7 online and mobile access. Account management features include the ability to deposit checks, do a balance inquiry, and examine statements and transaction history.
With your LendingClub account, you can transfer funds to internal accounts, conduct wire transfers, and issue payments to others.
You can access funds fee-free at 20,000 ATMs across the country. The LendingClub debit card comes with a host of protection options, including setting transaction, activity, and location limits, receiving real-time security alerts, and deactivating a missing card via the app.
Your LendingClub account integrates with Autobooks so you can create and email customer invoices, then receive payments via card or electronic transfer.
LendingClub accounts do have fees attached. You’ll pay $10 per month if your account balance is under $5,000, a $5 per day overdraft fee, and fees to initiate and receive wire transfers.
Learn more about LendingClub Tailored Business Checking or Read MU30’s full LendingClub review here.
What’s the difference between a personal and a business bank account?
It just so happens that there are some extra benefits that come with opening a business bank account including:
Added protection. A business account offers limited personal liability protection and purchase protection for your customers.
Line of credit. Many business banks offer you the option to take out a line of credit for your company. So, if you encounter an emergency or require some cash this can be incredibly helpful.
Additional information required. When it comes to opening a business bank account you will need to provide some additional information such as your Employer Identification Number (EIN) or Social Security number if you’re a sole proprietorship and business license.
Do I need a business bank account for my small business?
It is highly recommended that as a small business owner you have a separate business bank account for the following reasons. First, it helps to keep your business and personal expenses separate
Second, this separation is extremely useful when it comes time to do your taxes. You don’t want to be sifting through your personal expenses trying to identify a business cost.
Third, having a business account makes you appear more professional and legitimate. And fourth, if your company is legally separate from you, as with an LLC or Corporation, then you need to have a separate account to protect your personal property in case of a lawsuit.
What are some important features to look for in a small business account?
When you start your search for a small business bank account that will best suit your needs consider the following features:
Fees (maintenance fees, transaction fees, etc.).
Interest rates for savings and checking accounts.
Minimum balance requirements.
Security (FDIC member).
Location.
Access to ATMs.
Online vs. in person.
Card options (is a debit or credit card available).
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
The biggest banks generally aren’t known for competitive savings account yields. Even with interest rates higher than they’ve been in years, many big-bank savings accounts remain stuck in near-zero interest rate territory.
Citi® Accelerate Savings is a rare exception. While not quite at the top of the heap, its yield is well above the national average — competitive enough to qualify as a legitimate high-yield savings account. If you’re looking for a strong return on your money without leaving the stable, comforting embrace of an international financial powerhouse, it could be a perfect fit for you.
But before you run out to open an account, make sure Citi Accelerate Savings really is the best choice. Like every bank account, it has some notable shortcomings too.
What Is Citi Accelerate Savings?
Citi Accelerate Savings is a high-yield savings account from Citibank. It yields 4.05% APY on all balances and has no minimum balance to open or maintain. You do need to maintain a balance of at least $500 to avoid the $4.50 monthly maintenance fee.
Like most Citi deposit accounts, Citi Accelerate Savings is the savings part of a checking-savings account package. You must open an Accelerate Savings account alongside a corresponding Citi checking account. Citi Access Checking or Basic Checking are both no-frills checking account options with low, easy-to-waive monthly maintenance fees.
Eligibility is limited to residents of certain states — enter your ZIP code on the application page to see whether Accelerate Savings is available in your area.
What Sets Citi Accelerate Savings Apart?
Citi Accelerate Savings stands out for a few key reasons, not all positive:
Yield well above the national average. Citi Accelerate Savings yields 4.05% APY on all balances. That’s well above most other big-bank savings accounts and the national savings account average too.
No minimum balance to open. You can fund your new Citi Accelerate Savings account with any amount of cash.
Monthly maintenance fee applies on lower balances. Watch out for the $4.50 monthly maintenance fee assessed in any statement cycle your balance drops below $500.
Only available in certain states. Citi Accelerate Savings is available in most areas* but not all. Enter your ZIP code on the application page to find out if you’re eligible.
Key Features of Citi Accelerate Savings
Citi Accelerate Savings has all the hallmarks of your typical savings account, but the details vary a bit from what you might be used to. Familiarize yourself with its key features before moving ahead with your application.
Account Yield
Citi Accelerate Savings pays interest at a very competitive rate: 4.05% APY on all balances. There’s no minimum balance to earn interest, and every dollar in your account earns at the same rate.
Account Fees & Minimums
There’s no minimum balance to open this account. However, if your balance drops below $500 in a given statement cycle, you must pay a $4.50 maintenance fee for the period.
Savings Automation
Citi’s AutoSave feature makes it easy to automate deposits to your Accelerate Savings account. Choose weekly, biweekly, monthly, or some other frequency and take the human element out of building your nest egg.
Overdraft Protection
Citi’s optional overdraft protection plan is called Safety Check. If you enroll, you can use your Accelerate Savings account as a backup for an overdrawn Citi checking account (except Access Checking), pulling from the savings account as needed to cover overdrafts. Citi rounds each draw up to the nearest $100.
Mobile Features
Citi Accelerate Savings comes with a comprehensive mobile app with capabilities like:
Digital bill payments
Person-to-person transfers
Mobile check deposit
Rapid electronic transfers
Single-dashboard view of all active Citi accounts
Deposit Insurance
Citi Accelerate Savings comes with FDIC insurance on balances up to$250,000. In the unlikely event that Citibank fails, the federal government guarantees deposits up to this amount.
Pros & Cons
There’s a lot to like about Citi Accelerate Savings and a few things to dislike.
Excellent yield on all balances
No minimum balance to open
Excellent mobile app
Minimum balance to avoid the maintenance fee
Requires a linked Citi checking account
Not available in all markets
Pros
Citi Accelerate Savings’ advantages go beyond its competitive yield. It’s one of the more mobile-friendly accounts on the market and serves as a valuable backstop for checking overdrafts — a capability many online banks can’t match.
Excellent yield on all balances. Accelerate Savings doesn’t quite have the best yield of any savings account on the market, but it’s well above the national average and better than the vast majority of big-bank savings products.
No minimum balance to open. There’s no minimum balance to open an Accelerate Savings account, which makes it a realistic choice for savers just starting out.
Optional overdraft protection for your linked Citi checking account. Citi’s optional Safety Check feature enlists your Accelerate Savings account as a backup for overdrawn checking accounts. The only checking account excluded from the deal is Access Checking. If you anticipate overdrafting often, think twice about opening an Access Checking account as the checking portion of your package.
Robust mobile app. Citi’s mobile banking app is better than most. You can do just about anything with it that you can through the regular online dashboard (or in a Citi branch for that matter).
Deposit insurance up to $250,000. Rest assured that your money is safe in the very unlikely event that Citi goes under.
Cons
Citi Accelerate Savings has some inconvenient features and limitations.
Must keep at least $500 in the account to avoid the monthly fee. This is one of the few high-yield savings accounts that charges a monthly maintenance fee. Fortunately, it’s easy to avoid with a balance of $500 or more, but it’s not ideal for frugal savers.
Must open alongside a Citi checking account. You can’t open a Citi Accelerate Savings account by itself. You need to pair it with a Citi checking account, which may have its own monthly fee and waiver requirements.
Not available everywhere. Accelerate Savings is available in most areas* but not quite nationwide. Even if it seems like the perfect savings account for you, it might be out of reach unless and until you move.
How Citi Accelerate Savings Stacks Up
The Citi Accelerate Savings account compares favorably to most big-bank savings accounts. But before you apply, see how it compares to one of the best high-yield savings accounts around: the Marcus Online Savings account, backed by Citi competitor Goldman Sachs.
Citi Accelerate Savings
Marcus Online Savings
Yield
4.05% APY
4.15% APY
Minimum Balance
$0
$0
Maintenance Fee
$4.50 if your balance drops below $500, otherwise $0
$0
Linked Checking Account
Yes
No
Savings Automation
Yes
Yes
Overdraft Protection
Optional
No
Available Nationwide
Almost
Yes
Marcus Online Savings comes with fewer strings than Citi Accelerate Savings, which must be opened as part of a checking-savings package and has a monthly maintenance fee if your balance drops below $500. But Citi Accelerate Savings is a better fit if you want the security of overdraft protection.
Final Word
Citi Accelerate Savings is one of the best big-bank savings accounts on the market. Its yield is well above the national average (if not quite best in class) and it’s easy to waive the monthly maintenance fee with a $500 balance. Optional overdraft protection is a nice touch too, one missing from many online savings accounts.
This account does have some shortcomings though. First of all, it’s not available in all markets. The maintenance fee is a problem for people just starting out on their savings journeys. And you must open it as part of a checking-savings package.
All in all, there’s more to like than dislike about Citi Accelerate Savings. But it might not be right for you.
*The Citi® Accelerate Savings account is available to customers with a residential/home address (not mailing address) in AA, AE, AL, AK, AZ, AR, AS, CO, DE, GA, GU, HI, ID, IN, IA, KS, KY, LA, ME, MA, MI, MN, MP, MO, MS, MT, NE, NH, NM, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VI, VT, WA, WV, WI, WY, and select markets in Florida and Illinois.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
The Verdict
Our rating
Citi® Accelerate Savings
Citi Accelerate Savings stands head and shoulders above most other big-bank savings accounts. If you’re looking for a reliable savings account with a very competitive yield and full deposit insurance, it’s worth a close look. However, it has some important shortcomings and isn’t available in all areas, so it might not be the best option for you.
@media (max-width: 1200px)
body .ns-buttons.ns-inline .ns-button-icon width: 100%; .ns-inline .ns-button –ns-button-color: #000000;
Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Banking
What Does ACH Stand For in Banking Terms?
The Automated Clearing House Network, or ACH, is how Americans send electronic funds transfers. Virtually every bank, credit union, and fintech company in the U.S. uses the ACH network. Find out how it works and how to use it to send and receive money.