Have you ever held back from asking a question? Although you really want to know the answer, you might hold back because you are afraid that your question is stupid. But when it comes to personal finances – there is no such thing as a stupid question.
In fact, by holding off on asking simple questions, you could seriously jeopardize your financial future. On Ask A Stupid Question Day, I will share the questions that I thought were too stupid to ask when I started my personal finance journey.
Let’s dive right in!
What’s Ahead:
Ask A Stupid Question Day
Ask A Stupid Question Day is a holiday celebrated on September 28th in the United States. School teachers started the holiday in an effort to encourage students to ask more questions.
Although the holiday is traditionally celebrated in a classroom, you are never too old to ask questions. Asking questions is important for all aspects of life, but it is especially important in building a solid financial future.
No one is simply born with the answers to all the personal finance questions you might have along the way. Instead of guessing, it is important to seek out the answers to personal finance questions. With a little bit of knowledge, you can set yourself up for a bright financial future. Without taking the time to seek out the right answers for your financial situation, you may encounter a bumpy road ahead.
Why there aren’t any stupid questions when it comes to personal finance
When I started my own personal financial journey, I had so many questions that it was intimidating to even start asking. I often worried about whether or not my questions would be seen as silly. But I quickly realized that there is no such thing as a stupid question where finances are concerned. There are even financial advisors, like those found through The Paladin Registry, that specialize in helping you find answers. It is much better to ask the question than let it burn a hole in your brain – and potentially derail your financial future.
You can, and should, take the time to ask any questions that pop into your brain. As you start to approach your finances, you’ll encounter a litany of questions. That’s okay! If you have plenty of questions, that means that you are ready to take responsibility for your finances.
Don’t be afraid to seek out the answers to the money questions that are swirling around in your head. With more information, you will be better prepared to build a worry-free financial future.
Questions that helped me on my personal finance journey
As you first start making decisions that have financial ramifications, you will find that many questions will pop up. You’ll start wondering about things that you had truly never considered before.
I found that asking a series of basic questions over the years has helped me create a relatively secure financial position. I will share a few of the questions that have helped me over the years below.
How to set up a bank account that works with me?
If you are anything like me, then you likely opened up a bank account with a big bank to get you started. It seemed like the simplest option when I was 18 and needed a bank account to accept my direct deposited paychecks. But what I didn’t realize at the time was that the big bank that I had chosen would provide an account experience riddled with fees.
For a while, I simply accepted that fees were just a part of my banking experience. But then, I started to question my logic and look at what other banks had to offer. One financial app that I wish I had known about sooner is Chime®.* The online financial services app offers a completely no fee experience that can come in handy. 2
Chime allows you to manage your money without worrying about any fees along the way. With the help of automatic savings features, real-time alerts, and no minimum balances to hold you back, you’ll be ready to up your savings game in no time.
Instead of working against the endless stream of account fees with a bigger bank, why not look for a bank that won’t stand in the way of you reaching your financial goals?
* 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. 2 There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.
How can I avoid taking on too much debt?
When you are starting out, then the thought of paying for everything upfront can seem overwhelming. Especially when everything from school tuition to living expenses can be covered with a variety of loans. It can be very tempting to take on loans to cover your expenses. But taking on too much debt early in life can dramatically negatively impact your financial future.
It is no secret that a heavy debt burden can put a damper on your finances for years to come. But how can you avoid taking on too much debt? Consider living as cheaply as possible when you are faced with the option of taking on more debt. Do your best to limit extra expenses if you know that you cannot afford it at the moment.
If you can’t lower your expenses, then consider picking up a side hustle to make ends meet. Or if you are looking to cover educational costs, then seek out scholarships or work-study opportunities to lower your overall costs. If you are able to avoid taking on more debt, your future self will thank you!
How can I save more money?
As you likely know, saving money is important. But you might not know how you can keep more money in your wallet. After all, life can be expensive, and it can be all too easy to feel light on savings!
Luckily, there are many ways to save more money. Although you’ll likely need to get creative, it is likely possible to squirrel away more of your income. As you build your savings, stash them somewhere safe. Specifically, a high yield savings account is one of the best places to store your savings. Not only will you enjoy the protection of FDIC insurance, but also a relatively high return on your savings compared to traditional savings accounts.
One of the best available high yield savings accounts is the CIT Savings Builder. The account provides an APY of 1.00% if you have a balance of $25,000 or deposit $100 each month. See details here. With this account, you won’t need to worry about account fees cutting into your savings. Plus, the incentive of a higher APY will encourage you to build strong saving habits each month.
CIT Bank. Member FDIC.
What is my credit score and why does it matter?
As if the world of personal finance wasn’t confusing enough, you’ll eventually encounter your credit score. The three-digit number can have a big impact on your finances. But what does it even mean?
Your credit score is based on your credit history. Your credit history is a record of financial transactions that provides the details which determine your credit score. Generally, a clean report without any late payments or large outstanding balances will lead to a high credit score. With a high credit score, you can access credit opportunities more easily. For example, you could more easily obtain a mortgage with a low interest rate with a high credit score. On the flip side, a bad credit score could reflect a history of late payments or a high credit utilization rate.
Take some time to better understand how credit works today.
How can I start investing?
As you get your financial bearings, the call to invest money for your future will become stronger. The good news is that it can be fairly easy to get started investing. Even starting with a small amount of money can lead to big long term rewards.
The best place to get started is to seek out an investment platform that will allow you to work towards your goals.
If you want to learn more about the inner workings of building an investment portfolio, Public’s platform is designed to work with you beyond simply choosing your preferences. With Public, you’ll have access to helpful guidance and answers to all of your investment questions. Plus, you’ll enjoy the commission-free trading offered by Public.
Should I buy a house?
As you venture into adulthood, the question of where to live becomes more important every day. The big question is whether you should buy a place or continue renting for now. The answer to this question depends on your situation.
You’ll need to consider your current savings situation and your plans for the future. If you want to leave the area in a year or two, then renting might be easier. But if you are planning to stay for years, then owning a home might be the best economic approach.
Personally, I’ve chosen to buy a home with my husband. But only after asking many questions and listening to both sides of the debate. If you are struggling to determine the best solution, then check out MU30’s rent vs. buy calculator to help you crunch the numbers of this decision.
How can I maintain a budget and still have fun?
As you stare down your long term money goals, it can seem a bit overwhelming at first. After all, how are you supposed to have any fun while attempting to save every last penny? The answer is that you need to determine your spending priorities when creating a budget.
It is completely possible to enjoy your life and have fun while sticking to a budget. Although frugal fun will require some creativity, you can make it happen. But remember that it is important to find a balance between saving and spending. Both are important, so find a way to strike a balance that you can live with.
For me, this means allocating a substantial portion of my budget towards travel spending. But I still sock away a larger portion of my income to reach my long term financial goals. I could meet those goals sooner if I gave up my travel spending habits – but I’m not willing to sacrifice that balance.
A budgeting and savings app like Empower can help with that. Using Empower, I can set spending limits for each category in my budget. As I reach my limit, the app alerts me so that I know to cut back a little.
Best of all, after I tell Empower my savings targets, the app will automatically set a little money aside each week to help me reach my goals. And, if expenses are unusually high, Empower cuts back on what it sends to savings.
*Empower is a financial technology company, not a bank. Banking services provided by nbkc bank, Member FDIC.
Summary
I hope you’ve realized by now that the ‘stupid’ questions I asked about money weren’t stupid at all! As I continued to make decisions about my financial future, a curious mind has helped me seek out the best possible options for my situation.
As you continue making decisions about your personal finances, I strongly encourage you to ask all the questions that pop into your head. After all, it never hurts to ask the question – especially when the answer can help you reach your financial goals. Don’t let anything stand in your way from learning what you want to. Let the knowledge empower you to take charge of your finances and move in the direction you desire!
Inside: Looking to put money on your Cash App card? This guide will show you how to do everything from adding funds to verifying your identity. Whether you’re using a debit card, bank account, or mobile payment service, this guide has you covered.
The Cash App Card, often called the Cash Card, is a top-rated, mobile electronic money transfer service.
This reloadable tool functions like a Visa debit card, allowing it to easily serve as a primary banking solution for users. Not limited to traditional banking hours and locations, the Cash App Card provides high flexibility for financial management.
The good news is this free and customizable debit card is linked to your Cash App balance, providing you the convenience and flexibility to handle your finances effectively and efficiently.
So, the question remains… how do you put money on the Cash App Card?
In this guide, we will teach you where can I load my Cash App Card.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is a Cash App Card?
A Cash App Card, often mentioned as the Cash Card, is a free, reloadable debit card designed to let you tap into your Cash App balance.
Picture it as your ticket to your digital wallet, allowing you to:
Shop anywhere Visa is accepted, both online and in physical stores.
Make use of the Cash Boost feature for instant discounts at participating retailers and eateries.
Personalize it with your unique design from the app.
Reload it at places like 7-Eleven, CVS, Walmart, and more.
Send or receive funds among friends and family.
Manage your spending and stay on budget.
The catch? Your spending power ties strictly to your Cash App balance, so be sure to top it up!
How to Get a Cash App Card
Cash App is one of the hottest new payment apps on the market.
And, like most things these days, there’s a Cash App card you can use to make purchases or withdraw money from your account.
This is great to use for the cashless envelope system.
So, how do you get started with a Cash App Card?
Step #1: Download the Cash App
To get started with Cash App, you first need to download the app.
The easiest way is to scan this QR code to get started.
After locating it, simply tap “Install” or “Get.” Once the app has finished downloading, hit “Open” to launch it.
Pro tip: Be sure you’re downloading the genuine Cash App, look for the icon that’s green with a white dollar sign (pictured above). That’s it, you’re one step closer to your Cash App Card! Now, let’s get you set up.
Step #2: Create an Account
It is ideal for digital banking, allowing you to make cash deposits, and pay in-store or online with the convenience of a Cash App Cash Card, simulating many of the features of a typical checking account.
To create a Cash App account, follow these steps:
Once installed, open the application and follow the on-screen instructions to set up your account.
You will have to enter your phone number or email address.
For security certification, the Cash App will send you a secret code to verify you. Enter it.
Select a $cashtag, which is a unique username to send and receive money (similar to Venmo)
Step #3: Link a bank account or card
Remember, in “My Cash” you’ll spot the “Add Money” option for funding.
This is the easiest way to load your Cash App Card, so you should set it up properly.
Open Cash App; it’s the icon with a white dollar sign on a green background.
Tap the top-right profile icon.
Navigate to “My Cash” – it’s a tab on the home screen.
Click “Link a Bank,” nestled within the options.
Follow the prompts to add your bank account or debit card info.
Once your card is linked, you’re all set.
Insider’s guide: Double-check your digits to prevent delays!
Step #4: Order a Cash App Card
To order a Cash App card after successfully establishing your account, follow these steps:
First, open the Cash App on your mobile device.
On the bottom of the screen, locate the card icon that is second from the left and tap on it.
Click on the green ‘Get a Free Cash Card‘ button.
You may choose your desired card style (color). Please keep in mind that certain color options may entail a small fee.
If you’d like, click on ‘Personalize Card’ to add a unique touch such as a drawing or stamp.
When you’re ready, simply click ‘Order Card.’
Through this process, Cash App provides a credit card number straight away for immediate online use. Meanwhile, your physical card should arrive in your mail within 5 to 10 business days.
How to Put Money on Cash App Card
Adding money to your Cash App card is an easy and straightforward process that can be done within a few minutes directly from the Cash App.
This process essentially involves transferring funds from your linked bank account or card to your Cash App card balance.
Below, you will learn other ways you can also deposit money, easing the process of managing your digital finances.
Step 1: Open the Cash App on your phone
To add money to your Cash App card, begin by launching the Cash App on your phone.
This app flaunts a simple green icon that should be pretty easy to spot amongst your other apps.
Bonus Tip: remember to link your bank account or debit card for smoother transactions.
Step 2: Tap on the “My Cash” tab
Now that the Cash App is opened on your device.
Tap on the ‘My Cash’ tab at the bottom-left corner of the screen.
Expert Tip: Use biometric features (facial recognition or fingerprint) for faster and more secure access.
Step 3: Select “Add Money”
After you’ve successfully navigated to the “My Cash” tab within the Cash App, the next step is selecting the “Add Money” option.
Type in the exact amount you’d like to transfer to your Cash App Card.
Be sure to double-check this figure – you don’t want to add more or less than you intended.
Learn about how to unlock borrow on Cash App.
A handy tip: If you enter an amount that surpasses your current bank balance, the App will kindly let you know.
Step 4: Confirm with your PIN or Touch ID
After entering the desired amount to load onto your Cash App card, you’re going to see a little “Add” button – go ahead and tap that.
The app now needs to confirm it’s really you, so you’ll be asked to put in your PIN or use Touch ID.
Remember, this is just to make sure your money stays secure, so it’s an important step.
Pro-tip: Make sure your PIN is both easy for you to remember and tough for others to guess.
Step 5: Wait for the money to be added
Alright, you’re almost done!
After you’ve confirmed your transaction, just sit tight while the money gets added to your Cash App Card. This usually occurs within a few moments—it’s pretty speedy. But just in case, give it a good few seconds before you check your balance.
Remember, patience is a virtue, even in the digital world! You’ve now successfully added funds to your cash card. Easy, right?
The simplicity and speed of the process is genuinely impressive, isn’t it?
Step 6: Tap “Sign Out” button at the bottom of the screen
You are going to want to do is tap that “Sign Out” button you’ll find chilling at the bottom of the screen.
Go ahead and tap it.
Do you know why this step is crucial? Because it’s like leaving your house and locking the front door. It keeps your account secure from any sneaky hands looking to fiddle with your money.
So always, always remember to sign out, alright? It’s a small step but it does a big job in keeping your account safe.
Where Can I Load My Cash App Card?
If you’re wondering how to put money on a Cash App card, you’ve come to the right place.
In this section, we’ll show you where and how to load your Cash App card so you can start using it right away.
1. Bank Account
The easiest place to load money is your bank account. Plus you can keep yourself within a spending limit for your budget.
Let’s get that Cash App Card loaded up with money from your bank.
First, make sure your bank account is linked with your Cash App. If not, just click on the ‘Banking’ tab and follow the prompts. Easy peasy!
Now, tap the ‘Money’ tab on your Cash App.
Hit ‘Add Cash’.
Choose the amount you want to transfer.
Tap ‘Add’ again, then confirm using your PIN or fingerprint.
Don’t go overboard, friend; remember, there’s a limit of $1000 per week!
2. Debit Card
Now, let’s load it up using your debit card.
Head to your profile on the Cash App.
Found the “Linked Banks” button? Great! Click it to add your debit card.
You’ll need the card number, expiry date, and security code.
Cash App might run a quick test to confirm the connection.
Now you’ve got to spend money on your Cash App Card.
3. Retail Stores
Did you know you can load your Cash App Card at various retail locations?
Forget running to a bank, just pop into one of these convenient spots. Here’s a quick list to guide you:
Walmart
Rite Aid
Family Dollar
Duane Reade
Walgreens
GoMart
Sheetz
Kum & Go
GoMart
KwikTrip
Speedway
H-E-B
Thorntons
TravelCenters of America
Dollar General
Pilot Travel Center
7-Eleven
Remember, availability may vary by location. So, ensure to check your nearest store whether they support Cash App deposits.
4. Visa Gift Cards
Similar to how to use a Visa Gift Card on Amazon, you can conveniently load your Cash App Card.
As such Visa Gift Cards are popular gifts with their widespread acceptance makes them a favorite choice.
To load your Cash App Card using a Visa card, follow these simple steps:
Open your Cash App: Tap on the “Banking” tab visible on the screen’s bottom left.
Choose “Add Cash”: Input the amount you want to load onto your Cash App Card.
Tap “Add”: Make sure you select the Visa gift card you want to transfer money from.
Authenticate your Identity: Depending on your setting, you may have to use Touch ID, Face ID, or a PIN.
Voila! That’s it, remember to keep an eye on your card balance to ensure the correct amount was loaded.
5. PayPal
While PayPal is a popular option to transfer money, you cannot transfer money directly to your Cash App Card.
You will need to transfer the money from PayPal to a linked bank account first and then move the money to Cash App.
Learn which payment type is best if you are trying to stick to a budget.
What are Paper Money Deposits?
Just like the slang for how much is a rack, paper money deposits are what Cash App calls the transfer of your money.
Remember, you can deposit up to $1,000 every 7 days and $4,000 every 30 days. Deposits must be a minimum of $5 per transaction and not exceeding $500.
There is no fee to use the card. As Cash App makes their money by the transaction may be subject to a small fee charged by certain retailers.
What are Boosts?
Heard of ‘Boosts’ in the Cash App world? Let’s break it down.
Boosts can help you get more bang for your buck, offering discounts on eateries or stores you frequent. It’s like enjoying 15% off your latte at your go-to coffee shop, neat, right?
Here’s how to utilize ‘Boosts’:
Open your Cash App and find the Boosts.
Scrutinize your options and activate one Boost.
Swiftly switch on and off your Boosts to fit your needs.
So, add a little boost to your Cash App Card and enjoy some savings!
Tips for Using Cash App Card Safely
To make the most of your Cash App card, it’s crucial to have a grasp on the safety and security measures.
The Cash App card offers users the flexibility of managing money without the restrictions of traditional banking. Plus it serves as a tool for receiving and sending money, and also helps in money management and budgeting.
1. Check Your Card Balance and Transactions
Knowing your balance and checking transactions is crucial when using your Cash App Card.
Being aware of your balance ensures you can make transactions without exceeding your available funds, helping avoid any embarrassing situations or penalties.
Monitoring transactions regularly allows you to spot any fraudulent activities promptly and acts as a deterrent for any additional, unwarranted fees that could be associated with specific transactions.
Additionally, when you add funds to your card at a physical store, you should always confirm that the funds have been accurately transferred to your Cash App account before leaving, to sidestep any discrepancies or issues.
To check your balance, log into your Cash App account and click on the dollar symbol on the home screen. This will promptly display your current balance.
Now, for transactions, tap the “Cash” tab to view your recent transactions.
2. Avoid Scams
Navigating Cash App Card could be a breeze, but it’s crucial to be aware of potential scams that might catch you off guard.
**Be Aware of Who You’re Trading With** Transactions on Cash App are instant and can’t usually be reversed. Be cautious in your dealings.
**Secure Your Account:** Maintain strict privacy over your Cash App PIN and use your phone’s security lock feature to avoid unauthorized access.
Remember, your alertness is your best bet to keep scams at bay! Keep yourself informed and stay safe.
3. Use the Security Features
The Cash App strives to prioritize security and protect its users’ money, making it a pocket-friendly financial tool.
The Card is issued by Sutton Bank and has FDIC insurance, ensuring your hard-earned money is safeguarded.
But, besides this innate security feature, there are multiple ways to assure maximum security while using your Cash App Card:
Securing Your Cash App Account: Before using the Cash App Card, it is pivotal to add strong security measures to your Cash App account. This can include setting up a unique and complex password, enabling two-factor authentication, or using touch ID/facial recognition if your device supports it.
Transaction and Deposit Limits: Cash App sets transaction and deposit limits to protect your account. Familiarize yourself with these limits and stick to them. Going beyond these restrictions might expose your account to risks.
Linking your Cash App Card with Trusted Accounts: While you can link your Cash App Card to multiple banks or external bank accounts, it’s crucial to ensure these accounts are trustworthy and secure. Avoid linking to accounts on public computers or networks to prevent unauthorized access or data theft.
Watching out for phishing scams and suspicious activities: Always be vigilant when receiving unsolicited communications asking for your Cash App Card Information. Remember, Cash App will never ask for your PIN or sign-in code outside of the app.
Real-time Alerts: You can also activate instant transaction alerts. This way, if your card is utilized, you will get immediate notification on your mobile device, helping you stay on top of your spending and identify any potential fraudulent activity.
Safe deposit and withdrawal: Making sure to use secure networks when depositing to or withdrawing from your Cash App Card can offer an additional layer of protection.
Navigating through these security features is not overly complex, but it reinforces your financial safety.
4. Know Your Limits
Knowing your Cash App Card limits plays a vital part in managing your finances effectively.
You want to be wary of overspending and blowing your budget.
So, if you transferred $500 for the week, stick to the $499 spending limit.
5. Use the App’s Help Function
Knowing how to use the Cash App’s help function is crucial, as it assists you in troubleshooting any issues quickly. It also shows you how to maximize the platform’s robust offerings.
To access the help function, simply tap on the “Profile” icon in the bottom-right corner of the Cash App screen, then scroll down and select the “Support” option.
If you need to get in touch with customer service, tap “Contact Support” and explain your situation in the message field.
6. Use Cash App Card for the Things It’s Meant For
The Cash App Card puts a world of financial opportunity in your hands. Convenient as a debit card, you can use it for online shopping, paying bills, or sending cash to mates. It’s your money manager without the hassles of bank operating hours.
Primarily, here’s what you should do:
Add funds to the card: You can reload your card at numerous locations, with options such as CVS, Walmart, or Dollar Tree.
Manage wisely: Budget and spend your earnings across your essentials and save some for a rainy day! This will help you to spend money wisely.
Use cash boosts: Add thrills to your regular shopping by using the exclusive ‘Cash Boosts’ for instant discounts.
The goal of the Cash App Card is to not go into debt but to live within your means.
Now, Add Cash to Cash App
In conclusion, obtaining and using a Cash App Card can greatly enhance your financial savviness by providing a convenient way to use your Cash App balance both in-store and online.
The process for getting this card is straightforward and cost-free, and gives you instant access to your card number for immediate online purchases, while the physical card arrives within 5-10 business days.
Whether it’s sharing money with friends and family, managing your personal budget, or teaching young adults about financial responsibility, this card offers a sophisticated and straightforward approach. Although it doesn’t replace traditional checking accounts, it’s an excellent alternative for unbanked consumers, those looking to rebuild credit, or teenagers with money to spend.
Just remember to keep track of the transaction and deposit limits set by Cash App to avoid any surprises.
Take hold of your finances today with your Cash App Card and experience the convenience it offers.
Start leveraging the benefits of your Cash App Card now!
Know someone else that needs this, too? Then, please share!!
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.
Many freelancers and independent professionals get by without a separate business bank account. They commingle their personal and business funds on the reasoning that it all ends up in the same place eventually.
To the extent that this happens because self-employed folks without serious business chops feel overwhelmed by the idea of separating business and personal finances, it shouldn’t. Not with small-business and freelancer-friendly business banking options like nbkc Free Business Checking.
With no minimum balance requirements or monthly fees, nbkc Free Business Checking is designed for value-conscious entrepreneurs. While it’s nowhere near perfect, it’s worth considering if the alternative is a messy status quo.
What Is nbkc Free Business Checking?
nbkc Free Business Checking is a small-business checking account with no monthly fee, no minimum balance requirement, and FDIC insurance up to statutory limits.
nbkc Free Business Checking has some other features worth noting, including free overdraft coverage, free domestic wire transfers, a Mastercard debit card, a generous ATM surcharge allowance, and robust mobile capabilities. However, it has no debit card rewards program and doesn’t pay interest on balances. It lacks some nonbanking features that many similar accounts offer, such as custom expense tracking and built-in invoicing.
What Sets nbkc Free Business Checking Apart?
nbkc Free Business Checking stands out from other small-business bank accounts for several reasons:
Very few fees. This account has no monthly fee, no overdraft fees, no wire transfer fees, and very few of the less-common fees other bank accounts typically charge.
No minimums or transaction limits. nbkc Free Business Checking has no minimum balance requirements and no limits on transaction count or value. Many other business checking accounts impose such limits, which can be costly and inconvenient.
Generous ATM surcharge reimbursement. nbkc reimburses up to $12 in out-of-network ATM surcharges each month. That should be plenty for most users.
No rewards. One notable downside of this account is its total lack of a debit card rewards program. As more business accounts offer returns on debit card spending, this omission looms ever larger.
Key Features of nbkc Free Business Checking
nbkc Free Business Checking has all the features you’d expect from a basic business checking account, and few extras beyond that.
Account Fees & Minimums
There’s no minimum balance to open or maintain your account. There’s also no monthly maintenance fee and very few fees for other account activities.
Account Yield
This account pays no interest on any balances. Nbkc has no business savings account either, leaving no way to earn interest on business balances.
Debit Card & ATM Access
This account comes with a Mastercard debit card that works at millions of in-person and online points of sale worldwide.
As part of the MoneyPass network, nbkc offers fee-free withdrawals at tens of thousands of ATMs across the United States. Out-of-network ATM withdrawals may incur fees that nbkc can’t control, but nbkc reimburses them up to $12 per monthly statement cycle.
Overdraft Coverage
nbkc Free Business Checking offers complimentary overdraft coverage at its discretion. If the bank allows an overdraft transaction to go through, it charges no fee for the privilege. However, nbkc reserves the right to deny overdraft transactions at its discretion, also with no fee.
Mobile Features
nbkc’s mobile app has solid ratings from verified users in the Apple App Store and Google Play marketplace. It shares its core functions and capabilities with the desktop banking interface:
Remote check deposit
Person-to-person payments
Scheduled and one-time bill payments
Expense tracking
Viewing and managing statements
Deposit Insurance
This account comes with federal deposit insurance up to the current limit of $250,000. If nbkc goes out of business, the FDIC steps in to ensure you lose nothing below this amount.
Pros & Cons
nbkc Free Business Checking is a straightforward small-business bank account with some clear advantages and some equally notable downsides.
No monthly fee
No minimum balance requirements
Generous ATM fee reimbursements
Free overdraft coverage
No interest on balances
No rewards
Few nonbanking features
Pros
nbkc Free Business Checking is affordable, easy to understand, and easy to use.
No monthly fee. This account charges no monthly fee, no matter how little (or how much) you keep in your account. This is excellent news for budget-conscious freelancers and small-business owners.
No minimums. There’s no minimum deposit or ongoing balance required to keep this account in good standing. Again, that’s good news for users without lots of cash to spare.
No transaction limits. Unlike some business bank accounts, nbkc Free Business Checking has no upper limit on transaction volumes. This is good if your business makes or receives lots of small-dollar transactions each month.
Generous ATM fee reimbursement. nbkc reimburses up to $12 in out-of-network ATM fees each statement period. That’s in addition to free withdrawals at tens of thousands of MoneyPass ATMs around the country.
Free overdraft coverage. nbkc charges nothing to process overdraft transactions. Though it may decline these transactions on a case-by-case basis, there’s no nonsufficient funds fee associated with a denial either.
Comprehensive mobile app. nbkc has a straightforward, easy-to-use mobile app that replicates the traditional online banking interface in a smaller format. Some competing business bank accounts are unacceptably clunky or feature-poor on mobile.
Cons
Nbkc Free Business Checking isn’t particularly rewarding and lacks some of the potentially valuable business capabilities available from some similar accounts.
No interest on balances. This account pays no interest on balances. If you want to earn a return on your company’s emergency savings fund or any other funds you don’t need right away, you’ll need to open a savings account with another bank.
No debit card rewards. nbkc has no debit card rewards program. In other words, there’s no return on spending here, unlike at many competing business banks.
Few nonbanking features. nbkc Free Business Checking is a very basic bank account. It has few useful nonbanking features, such as built-in invoicing, tax management, or accounting (beyond basic expense categorization).
How nbkc Free Business Checking Stacks Up
nbkc Free Business Checking competes against dozens of other small-business checking accounts, each with its own unique mix of features and capabilities. One of its top competitors is the NorthOne Deposit Account, a more expensive and more capable option for growing businesses.
nbkc Free Business Checking
NorthOne Deposit Account
Monthly Fee
$0
$10
Minimum Balance
$0
$0
Subaccounts
No
No, but has a built-in envelope budgeting feature
Yield
None
None
ATM Access
About 40,000 free ATMs and $12 in monthly reimbursements
Unlimited (no ATM withdrawal fees anywhere)
With no monthly fee and a generous ATM reimbursement allowance, nbkc Free Business Checking is ideal for small, budget-conscious freelancers and business owners who don’t ask much more of their business accounts. NorthOne is a better fit for entrepreneurs who need more features and services.
Final Word
nbkc Free Business Checking is an easy-to-use business bank account that’s even easier to understand. If you’re a freelancer or self-employed individual with straightforward business finances and no need for bells and whistles, it’s a reasonable choice — though not quite the best in the category.
If your financial needs are more complicated or you’re planning to grow your business in the coming years, nbkc Free Business Checking probably isn’t powerful enough for you. Fortunately, other business bank accounts are.
The Verdict
Our rating
nbkc Free Business Checking
nbkc Free Business Checking is a basic business checking account designed for freelancers and owners of small businesses with simple finances. With no monthly fees or minimums, it delivers solid value for users who don’t ask much of their business banking partners. But it lacks the firepower for larger businesses and enterprises with more complicated accounting needs.
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.
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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.
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.
After the recent failures of Silicon Valley Bank and Signature Bank, you may wonder if your money is safe in a U.S. bank or credit union account. And while they’re reasonably rare (fewer than three per year), bank failures do happen.
Fortunately, the United States has systems in place to ensure failed banks don’t lead to the types of personal catastrophes we saw during the Great Depression, including regulatory oversight and a deposit insurance program.
But are those systems enough to protect your hard-earned cash, and can you choose a bank with the lowest risk and greatest odds of long-term success?
What Is Deposit Insurance, & How Does It Safeguard My Deposit?
Federal deposit insurance backed by the U.S. government protects the money in your covered accounts against a bank failure. If your money is in a protected financial institution, and that institution fails, the government covers that money. No depositor has ever lost their government-insured funds.
Its primary purpose is to promote confidence in the banking system, ensure financial stability, and prevent bank runs or mass withdrawals by depositors during times of economic uncertainty.
How Does Deposit Insurance Work?
Banks and credit unions must pay deposit insurance premiums each month just like you do for your car or health insurance. In return, the federal government, through federal agencies known as the Federal Deposit Insurance Company (for banks) and National Credit Union Administration (for federal credit unions), insures all eligible accounts for up to the federally mandated limit.
If a bank fails, the government steps in to ensure you don’t lose your money. Often, it sets up a bridge bank that allows depositors to access their money until someone purchases the defunct bank or customers have had adequate time to find a new bank.
When SVB failed, the government stepped in immediately to create a bridge bank (cleverly called Silicon Valley Bridge Bank) and make funds available to depositors. Sometimes, the FDIC or NCUA deposits funds into an insured bank and creates an account for each insured customer. Other times, depositors receive a check for the insured balance, typically within a few business days of the original institution’s closure. But you may have to file a claim to access your money or get coverage.
Coverage Limits
FDIC and NCUA insurance backs deposits of up to $250,000 per account holder per account type. If you have more than that amount, you must keep your money in different account types or at different banks to ensure full coverage. Or you can opt for a private bank that carries private insurance with higher limits.
Note that joint accounts are covered for up to double the amount an account with only one owner is, even if one of the account holders is a minor.
Also note that some cash-management accounts and neobanks offer coverage in excess of the FDIC limit through a sweep network. They deposit your funds across various insured banks to provide coverage of $2 million or more per depositor.
Eligibility
Both banks and federal credit unions must carry this insurance. Otherwise, they cannot make a claim of being a bank or federal credit union.
For example, neobanks don’t carry deposit insurance and technically aren’t banks. That’s why the fine print on some fintech websites reads, “Not a bank.” Usually, that fine print also shares the name of the bank backing the funds. But if the account isn’t backed by a bank or credit union, tread carefully.
Similarly, while not banks themselves, brokerages and investment apps like Robinhood, person-to-person payment platforms like Paypal or Venmo, and non-bank financial companies often hold deposits in the FDIC-insured accounts of partner banks.
For instance, funds held in Robinhood’s cash-management account are FDIC-insured by the partner bank. Likewise, money in your Paypal savings account is FDIC insured by Synchrony Bank.
Notably, some states require state-chartered credit unions to carry federal insurance. But others have no such requirements. Always look for the FDIC-insured or NCUA-insured logos to ensure your money is safe.
Types of Deposits Covered
Types of accounts insured by the FDIC or NCUA include but are not limited to:
Checking
Savings
Money market deposit accounts
Time deposits like CDs (certificates of deposit)
Negotiable order of withdrawal accounts
Cashier’s checks, money orders, and other official payment instruments issued by a bank
That means you can have up to the maximum insured amount in all those types of accounts, including double in any that are joint accounts with someone else, before another bank is your only option. That said, if you have that kind of money, diversifying your holdings into different banks isn’t a terrible idea.
Note that FDIC and NCUA insurance don’t protect against fraud. Check with your bank, credit union, or financial technology company to determine whether your account has protection against fraud or scams. Read the fine print on your financial institution’s website to see if it carries fraud insurance and the limits.
Other Factors Affecting Deposit Safety
You might still be wondering: Is my bank deposit really safe? While FDIC insurance can give you peace of mind, many factors influence deposit safety.
Diversification of Deposits
Now that you know FDIC and NCUA insurance only covers deposits up to $250,000 per depositor per account type, you may be wondering what you can do to prevent your account from exceeding that amount.
First, you can add a joint account holder to double your coverage. Also, diversifying your deposits across multiple financial institutions ensures coverage for all your money.
Some banks offer what they call “relationship banking” with special privileges for depositors that hold certain amounts in their bank. Typically, you can spread the total amount across deposit accounts. For example, you can have a money market, CD, savings account, and checking account, each with the maximum amount, to meet a steep minimum.
But even if you don’t have that much, you can still benefit from diversifying your funds across accounts. If a bank fails, it may take time to reclaim your deposits through FDIC insurance.
Keeping some emergency funds in a separate bank can help you in a pinch. Even if you’re living paycheck to paycheck, try to save some money in a savings account at a different bank to access in an emergency. Whether your bank fails or you’re a victim of fraud, you’ll be thankful to have a way to access some money.
Banking Regulations & Supervision
The Great Depression made it painfully apparent that banking regulations were necessary to protect regular joes from those whose money and decisions moved the economy.
During that period, the U.S. government introduced the Glass-Steagall Act to do just that. It separated investment activities from commercial banks. The act aimed to protect bank deposits from a crashing stock market and risky investments.
But in 1999, some provisions of the act were repealed to allow universal banking. Some say that led to mergers that created mega-banks while also leading to looser lending standards that eventually led to the 2008 mortgage crisis. The Dodd-Frank Act, introduced in 2010, sought to reintroduce some protections to consumers. Unfortunately, some provisions of the Dodd-Frank Act were repealed a few short years later, leaving us with the system we have today.
As of this writing, several regulatory agencies supervise the internal operations of banks, which (purportedly) help safeguard against bank failure. They are:
The Federal Reserve, which supervises member state-chartered banks and financial holding companies
The Office of the Comptroller of the Currency (OCC), the oldest bank regulatory agency in the U.S.
The Federal Deposit Insurance Company, organized in 1934, and National Credit Union Administration, organized in 1970 to protect deposits up to allowable federal limits
State banking agencies, which conduct bank examinations and construct and enforce regulations at the state level
But a handful of other agencies also help protect consumer rights when it comes to fair banking and credit practices. They are:
The Consumer Financial Protection Bureau, which ensures financial institutions like banks and credit unions treat you fairly
The Federal Trade Commission, which has no jurisdiction over banks or credit unions directly but has authority over companies that may hold your funds in banks, such as mortgage companies and mortgage brokers, and those who may try to get money from your bank account, such as creditors and debt collectors
The Department of Justice, which doesn’t directly enforce laws or oversee any institution but is ultimately responsible for the proper enforcement of those laws and may take banks or credit unions to court on behalf of wronged customers
Bank Stability & Financial Health
Banks don’t hold all your deposits in their vaults. Instead, banks invest the money, ideally in high-yield accounts so they can profit from your deposits while offering you and other customers adequate savings returns.
However, when Signature Valley Bank failed, it had sold off government bonds and taken a $2 billion loss. That’s on top of being overextended in risky tech ventures. Tech investors like Peter Thiel began advising companies to pull their money from SVB as protection, causing a bank run.
That should have been OK — or at least better than it was. At all times, banks should have enough capital to accommodate a certain number of withdrawals. When it failed, SVB did not.
In addition to not being able to field withdrawals, it was the largest of several banks to fail in close succession, sparking fears of a financial domino effect. Then, they announced their intention to raise capital to cover the bonds they just sold off, making matters far worse. It’s a Depression-era-worthy cautionary tale.
But it’s not like there weren’t warning signs. Fortunately, there are several things you can do to evaluate your bank’s safety.
Cybersecurity
We all know that these days, you have to keep your personal information safe — and that every business that has it is one more point of potential compromise.
Banks have more than just your bank account numbers and PINs. They also have information like your Social Security number, contact information (physical and email addresses, phone numbers), and date of birth. If you use online banking to pay bills or have a credit card through the bank, they even have your account numbers for those.
That much information being compromised is a terrifying proposition. Fortunately, there are loads of laws and regulations aimed at protecting that information and your identity in general. To find out if your bank is doing everything it can, compare their cybersecurity methods to the latest available and industry-standard protections.
Those change over time, so if it’s all a little above your head, ask to speak with your bank’s information security officer or a team member. They should be able to answer your questions. You can also look to industry blogs to find out what articles information security officers are reading. For example, RedTeam Security has some handy questions banks should be asking themselves.
Is My Bank Deposit Safe?
Consider a bank or credit union’s reputation, ratings and financial stability. If you choose a bank the government considers too big to fail, you can be assured the U.S. government will do everything in its power to keep the bank up and running. Don’t make assumptions about what size gets a bank on the list. When it failed, SVB was one of the largest banks in the U.S.
However, big banks often have high fees and low interest rates on savings. You may want to choose a smaller bank or credit union instead. That’s when it’s critical to do your research and evaluate the safety of your deposit.
Most banks and credit unions must follow specific standards stipulated by the Federal Reserve and FDIC or NCUA, for capital requirements and liquidity.
Check their financial statements to see if they’re involved in anything too risky or have too many spoons in the same pot. For example, SVB wasn’t terribly diversified. They had a lot of investments in tech. In fact, they were known for it. To make matters worse, those investments were too risky — way riskier than would have been allowed under Glass-Steagall, for example.
You can also use financial ratios to measure a bank’s financial stability. The key figure to judge a bank’s stability, the capital adequacy ratio, looks at the bank’s ability to cover liabilities and respond to credit or operational risks.
Look for a capital adequacy ratio of 8% to 12% (though that number changes over time). Regulators conduct stress tests for capital adequacy and market liquidity and have the authority to shut down financial institutions that don’t meet requirements.
The provision coverage ratio shows the bank’s ability to service its debt. You’re looking for a 70% or higher ratio here.
These numbers are important because they show the liquid assets a bank has available. One reason SVB failed is because it didn’t have enough assets to cover withdrawals.
You can also check a bank’s Standard & Poor’s credit rating, which runs from AAA to D. Avoid any financial institutions with a rating lower than BBB, and lean toward those with an A rating or higher.
Final Word
When you’re choosing a bank or credit union for your hard-earned money, you want to be sure your cash is safe, first and foremost. Once you find a financial institution that provides that peace of mind through its reputation, financial rating, and deposit insurance, you can consider other factors, such as interest rates, fees, and customer service.
In addition to deposit insurance, ensure the bank you choose also has fraud protection insurance. If cybercriminals hack into your account and steal your money, deposit insurance doesn’t cover those funds.
Read bank and credit union reviews to find an account that checks all your boxes for deposit safety, fraud protection and insurance, low fees, and good customer service.
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Dawn Allcot is a freelance writer and content marketing specialist who geeks out about finance, technology, and travel. Her lengthy list of publishing credits include TheStreet, Chase Bank, Forbes, and MSN. She is the founder and owner of Allcot Media Marketing and GeekTravelGuide, where she shares her love for roller coasters, family travel, healthy living and keto foods.
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 of the best bank accounts for freelancers and independent professionals aren’t just bank accounts. They boast expense-tracking and money management tools, integrate seamlessly with third-party payment and accounting apps, and have internal nonbanking tools like custom invoicing software and business formation assistance.
Novo Business Checking ticks all of those boxes, making it one of the better options on the market for solo entrepreneurs and people who own very small businesses. While not as useful for bigger enterprises, it can keep up with your growing business as you add employees and begin earning serious revenue.
If you think Novo Business Checking might be right for you, take a few minutes to understand its core features and capabilities, and see how they compare to the competition.
What Is Novo Business Checking?
Novo Business Checking is a business checking account with no monthly fee and unlimited ATM fee reimbursement. Through Novo’s banking partner Middlesex Federal Savings F.A., it comes with FDIC insurance up to $250,000.
Novo Business Checking has a relatively low required opening deposit and no ongoing balance requirements. Notable features include Novo Boost, which speeds up users’ access to Stripe payments by as much as 95%, and external integrations with popular accounting and payment software. Novo also has a free custom invoicing tool built into the interface.
What Sets Novo Business Checking Apart?
Novo Business Checking stands out from most other business checking accounts for:
No monthly fee. Novo Business Checking has no monthly fee, regardless of your balance or transaction volumes. Many similar accounts charge $10 or more per month.
Unlimited ATM fee reimbursements. Novo reimburses ATM fees without any dollar limits, which is excellent news for businesses that make cash payments at times.
Seamless external integrations. Novo integrates with about a dozen external software providers, including major payment processors, e-commerce platforms, and workplace productivity tools.
Built-in invoicing capabilities. Novo builds a free invoicing tool into the Business Checking account. You can use it to generate customized invoices and accept payments right in the app.
Key Features of Novo Business Checking
Novo Business Checking has all the core banking features you’d expect from a bank account designed for independent professionals and very small businesses. It also has some useful nonbanking features.
Account Fees & Minimums
This account has no monthly fee and very few other fees. There’s a $50 minimum balance to open the account but no ongoing balance requirement after that.
Debit Card & Virtual Cards
This account comes with a Mastercard debit card accepted at millions of points of sale worldwide. You can use the account’s virtual debit card as soon as it’s open.
ATM Access
Novo’s ATM access is functionally unlimited because it provides unlimited ATM fee reimbursement. This is good news if your business relies on cash to pay contractors or vendors.
Invoicing Software
Novo Business Checking comes with free invoicing software built into the app. You can customize your invoices with your business logo, shipping cost calculations, local taxes, and other information. You can also add an option to pay directly by card within the invoice, though this may trigger payment processing fees that Novo can’t control.
Partner Perks
Novo has a relatively small number of partner vendors that offer significant discounts or promotional pricing to Novo Business Checking users. Examples include Stripe (up to $5,000 in waived payment processing fees) and Keeper ($79 business tax filing, a big discount from list price).
External Integrations
Novo Business Checking integrates with about a dozen external business software providers in the e-commerce, accounting, payments, and productivity industries:
Stripe
Square
Shopify
Slack
Zapier
eBay
Amazon
Etsy
Not all integration partners participate in the Partner Perks program to offer discounted or promotional pricing to Novo users, but the fact that they integrate with Novo is convenient in and of itself.
Novo Boost
Novo Boost is a free feature that speeds up the availability of Stripe payments. Timing varies by customer and user, but Novo says it can reduce processing time by up to 95%.
Mobile Features
Novo Business Checking is a mobile-first bank account whose mobile web interface and app offer all the features and capabilities of the desktop version. The app is very highly rated by verified Google Play and Apple App Store users.
Notable mobile capabilities include:
Remote check deposit
Person-to-person transfers
Mobile single sign-on for integrated apps
Automatic expense tracking and categorization in the app
Easy access to your virtual debit card
Deposit Insurance
Thanks to Novo’s banking partner, Middlesex Federal Savings F.A., this account provides FDIC insurance on balances up to the current federal limit of $250,000.
Pros & Cons
Novo Business Checking has a lot of upsides, but it’s not quite perfect.
No monthly fee
Unlimited ATM fee reimbursement
No transaction limits
Free invoicing built into the app & external software integrations
No interest on balances
No debit card rewards program
No complimentary overdraft protection
Pros
Novo Business Checking is a low-cost, flexible banking solution for entrepreneurs with relatively straightforward finances.
No monthly fee. This account has no monthly fee, no matter how you use it. This is a big advantage over comparable business bank accounts that charge $10 or more per month.
Unlimited ATM fee reimbursement. There’s no limit to the dollar value of ATM fee reimbursements with Novo Business Checking, so it’s an excellent choice for cash-heavy businesses and contractors.
No transaction limits. Novo imposes no numeric or dollar value limits on transactions from the Novo Business Checking account. Some similar accounts charge fees for transactions above a certain number each month or simply decline transactions above that threshold.
Free invoicing built into the app. Novo Business Checking comes with a free invoicing tool that makes it easy to create and send customized invoices. You can even accept payments right in the app.
Potentially generous partner perks. Novo has a few partner vendors that offer very attractive discounts and promotional pricing. For example, you can get up to $5,000 in transaction fees waived with Stripe.
External business app integrations. Novo Business Checking integrates with about a dozen well-known business apps and platforms, including leading e-commerce, payments, and workplace productivity brands. If your business is relatively simple, Novo could easily serve as its sales, revenue, and productivity hub.
Cons
Novo Business Checking isn’t as rewarding as some otherwise similar business accounts and is missing some important features.
No interest on balances. Novo Business Checking pays no interest on balances. A growing number of otherwise similar business bank accounts pay at least some interest, so this is a notable downside.
No regular debit card rewards program. Aside from the small Partner Perks program, Novo Business Checking has no regular debit card rewards program. Most purchases earn no cash back or rewards points.
No complimentary overdraft protection. Novo Business Checking doesn’t waive overdraft fees and may simply decline negative-balance transactions outright. Some otherwise similar business bank accounts have more generous overdraft coverage.
How Novo Business Checking Stacks Up
Novo Business Checking shares the spotlight with several other high-quality business banking platforms. One of its closest competitors is the NorthOne Deposit Account. Before opening an account with either, see how they compare.
Novo Business Checking
NorthOne Deposit Account
Monthly Fee
$0
$10
Minimum Balance
$50 to open, $0 ongoing
$0
Integrations
Yes, about a dozen including Stripe, Amazon, and Shopify
Yes, about a dozen including Stripe, Amazon, and Shopify
Invoicing
Yes, built into the app
No
Budgeting Tools
No
Yes
Yield
None
None
ATM Access
Unlimited
Unlimited
With no monthly fee and built-in invoicing, Novo Business Checking is a better fit for cost-conscious users and those who need to generate and send invoices to clients. NorthOne is better for businesses with more complex finances, thanks to built-in budgeting tools and other capabilities.
Final Word
Novo Business Checking is a low-cost, easy-to-use business banking platform that’s built with independent professionals (including freelancers) and very small businesses in mind. Its built-in invoicing tools and seamless external integrations add real value to the experience and help reduce business costs by reducing reliance on expensive third-party service providers.
But Novo Business Checking isn’t perfect, especially for bigger companies with more complicated finances. Even if Novo might serve your needs for the next year or two, it’s worth asking whether your longer-term growth plans demand a more capable banking partner.
Novo is a fintech, not a bank. Banking services provided by Middlesex Federal Savings F.A.; Member FDIC.
The Verdict
Our rating
Novo Business Checking
Novo Business Checking is an excellent financial solution for freelancers, independent professionals, and owners of very small businesses. It has a lot of nonbanking value as well, including a dozen software integration partners and built-in invoicing capabilities. However, it’s not robust enough to handle the financial demands of larger businesses with lots of employees.
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.
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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.
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.
Many freelancers, self-employed folks, and independent professionals don’t think of themselves as business owners. But they are, even if they don’t have an officially incorporated business entity.
Foundis a financial technology platform built for self-employed people who want to (and should) treat their operations more like real business enterprises. It’s one of the better bank accounts for freelancers around, and its paid version is powerful enough for companies with multiple employees and more complex finances.
Found isn’t perfect for every freelancer. Most will balk at the paid version’s price tag too. But if you’re in the market for a new (or first) business bank account, it’s definitely worth a closer look.
What Is the Found App?
Found is a financial technology app that offers basic business banking services through Piermont Bank, its FDIC-insured banking partner.
Found’s free version has no monthly fee and very few fees for account activities. It comes with a Mastercard debit card, multiple virtual debit cards, early direct deposit for qualifying payers, basic bookkeeping capabilities, built-in client invoicing, and some other notable benefits.
Found’s paid version adds premium capabilities like custom expense tracking, automated expense and transaction importing, and in-app estimated tax payments. However, at $19.99 per month or $149.99 per year when paid upfront, it’s a bit pricey for budget-conscious freelancers.
What Sets the Found App Apart?
Found stands out from other small-business and freelancer-friendly bank accounts for several reasons:
More sophisticated bookkeeping capabilities. Found’s bookkeeping capabilities are more sophisticated than most free business bank accounts. Even with the free version, you can stay on top of relatively complex financial needs, including contractor payments and running tax obligations.
Built-in business processes. Beyond expense and tax tracking, Found incorporates essential business processes like client invoicing and estimated tax payments. If you use it as your primary business financial account, it could potentially replace third-party invoicing and accounting apps.
Unlimited transactions. Unlike many business bank accounts, Found has no transaction limits. This makes it useful for growing businesses and businesses that conduct lots of small-dollar transactions.
Found Plans
Found has two plans: a free plan that has no monthly fee and a paid plan (Found Plus) that costs $19.99 per month or $149.99 per year when you pay for the full year upfront.
The free plan includes all of Found’s core features, but Found Plus comes with potentially valuable benefits like interest on eligible balances and more sophisticated expense tracking.
Found Free
Found Plus
Yield on Balances
None
1.5% APY up to $20,000
Cash Back on Purchases
None
None
Expense Tracking
Standard pre-filled categories
Custom categories
Auto-Imported Expenses
No
Yes, from uploaded receipts
Transaction Activity Imports
No
Yes, from bank, credit card, and PayPal/Venmo
In-App Estimated Tax Payments
No
Yes
Priority Support
No
Yes
Found Plus makes sense for solo professionals and business owners with more complicated business finances and those willing to pay for conveniences like transaction and expense importing. But for most freelancers and independent professionals, its value is questionable at best.
Key Features of Found
Found is more than a business bank account. It also comes with a menu of useful business capabilities, including basic bookkeeping, invoicing, and tax management.
Account Fees & Minimums
Found’s free version has no monthly fee. The paid version costs $19.99 per month or $149.99 per year when paid annually.
Neither version has any minimum deposit or ongoing balance requirements.
Account Yield
Found’s free version pays no interest on any balances. The paid version pays 1.5% APY on balances up to $20,000.
Debit Card & ATM Access
All Found accounts come with a Mastercard debit card that’s accepted at millions of locations worldwide and online.
You can use your Found debit card to withdraw cash at any ATM, but Found has no network of free ATMs, so variable withdrawal fees always apply.
Virtual Cards
You can create virtual debit cards with custom spending limits in the Found app and designate them for single or multiple uses. This capability is useful if you make lots of purchases with merchants you’d prefer not to give your actual card number to.
Early Direct Deposit
Found automatically sends direct deposits up to two days early when the payer qualifies. There’s no limit to the number of payers this feature applies to.
Bookkeeping & Invoicing Capabilities
Found has a bunch of built-in bookkeeping capabilities, most of which are available with the free version.
Seamless integration with third-party payment and bookkeeping apps like Stripe and QuickBooks
Automated expense tracking using Found’s pre-filled spending categories, like “restaurants” and “office supplies”
Receipt capture and storage
Unlimited custom invoices
Unlimited 1099 contractor management
Automatic expense importing from scanned receipts (Plus only)
Automatic transaction importing from linked bank accounts, credit cards, and PayPal/Venmo (Plus only)
Tax Management Capabilities
Found’s tax management capabilities include:
Automatic tax savings with custom amounts or percentages
Automatically generated tax forms
Real-time tax estimates
Writeoff tracking
In-app quarterly and annual federal tax payments (Plus only)
Mobile Features
Found is a mobile-first app with an excellent rating from thousands of verified users in the Apple App Store. The app can handle any demands you’d normally place on the desktop version. Notable capabilities include:
All expense tracking features
All tax management features
Custom invoicing
Remote check deposit
Person-to-person payments
Scheduled and one-off bill payments
Contractor payments
Deposit Insurance
Through banking partner Piermont Bank, Found balances carry FDIC insurance up to the current federal limit of up to $250,000.
Pros & Cons
The Found app has some clear advantages over standard business bank accounts. It has a few notable downsides as well.
No monthly fee on the free version
No minimum balance requirement
Lots of built-in business tools
Early direct deposit with qualifying payers
Limits on interest earnings
No rewards program
Paid version is expensive
Pros
Found offers a comprehensive range of business banking capabilities and some potentially useful built-in business processes.
No monthly fee with the free version. Found’s free version is totally free to use. A surprising number of business bank accounts charge monthly fees as high as $10 or $15 for a similar set of features.
No minimum balance requirements. Found has no minimum deposit or ongoing balance requirements, so it’s ideal for users without much of a cash cushion.
Virtual cards with custom limits. Found offers free virtual debit cards on demand. Even better, you can set custom limits for each card to ensure merchants can only charge up to your preset budget.
Early direct deposit with qualifying payers. Found processes most client payments up to two days before they’d normally hit your account. If you depend on prompt payments to keep your cash flow (and account balance) positive, this is a big advantage.
Built-in expense and tax management tools. Found has a comprehensive lineup of expense and tax management tools at no additional cost. Its expense tracking capabilities could potentially replace third-party accounting apps you’d normally have to pay for.
Built-in invoicing. Found’s invoicing tool allows unlimited custom invoices, which could be all you need to replace your paid invoicing software.
Cons
Found’s banking features fall short in a couple key areas, and its premium version could be too expensive for freelancers and independent professionals on tight budgets.
No interest with the free version. Found pays no interest on any balances held under the free plan. This is a downside next to free business bank accounts that pay interest on all or some balances.
Interest caps with the paid version. Found only pays interest on the first $20,000 in your account. This is a big downside for well-capitalized businesses that would prefer not to open a separate savings account.
No rewards program. Found has no debit card rewards program. A growing number of competing business bank accounts offer surprisingly generous returns on spending.
Paid version is pricey. Found Plus costs $19.99 per month or $149.99 per year. The annual rate is a much better deal, but it’s still expensive for budget-conscious users.
No free ATM network. If you use your Found debit card to withdraw cash at an ATM, expect to pay stiff transaction fees.
How Found Stacks Up
Found isn’t the only financial technology platform designed for freelancers and small-business owners. One of its top competitors is Bluevine Business Checking, which targets a similar set of users. Before signing up for either, see how they compare.
Found
Bluevine Business Checking
Monthly Fee
$0 to $19.99
$0
Minimum Balance
$0
$0
Subaccounts
No, but virtual cards and expense tracking
Yes, up to five
Yield
Up to 1.5% APY on the first $20,000
2.00% APY on eligible balances
Business Tools
Extensive
Limited
Free ATM Access
None
120,000+
Found has a broader range of business tools, including custom invoicing and expense tracking, which makes it more of an all-in-one solution for business users. But its paid version is expensive and it can’t match Bluevine on key banking metrics like free ATM access and subaccount availability.
Final Word
Found has a lot to recommend it, from no minimums or monthly fees (on the free version) to a bunch of built-in business tools that could save you money in the long run. If you’re a freelancer or independent professional, the free version is definitely worth serious consideration.
That said, Found isn’t perfect. Its banking side is stingy, with limited interest and no spending rewards. Its paid version is pricey and probably unnecessary for most sole proprietors. Especially if you’re running a growing business with multiple employees, see what else is out there before committing to Found.
The Verdict
Our rating
Found is a comprehensive banking and business management app for freelancers and owners of very small businesses. While the paid version is a bit pricey, the free version is more than adequate for most would-be users, and could even replace paid third-party apps like accounting and invoicing software. But Found has some important downsides, including no rewards on spending and no interest with the free version.
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.
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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.
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.
As online banks grow in number and become more sophisticated, more and more small-business owners are asking themselves whether a traditional bank or credit union account makes sense anymore. Unless you just can’t live without the peace of mind that comes with being able to walk into a physical bank branch, the value is less and less clear.
Axos Business Interest Checking certainly gets this. It’s a full-service small-business bank account that puts Axos Bank’s considerable banking know-how at your disposal without ever asking you to visit a physical branch. It pays interest at competitive rates too.
That said, Axos Business Interest Checking has some significant downsides, starting with a monthly maintenance fee that requires a hefty ongoing balance to waive. Before you open an account, make sure you understand the good and the bad.
What Is Axos Business Interest Checking?
Axos Business Interest Checking is a small-business checking account with a $10 monthly maintenance fee. Axos Bank waives the fee in any statement cycle where you maintain a daily balance of at least $5,000.
Axos Business Interest Checking pays up to 1.01% APY on balances up to $20,000. Amounts above this threshold earn interest at far lower rates, but all balances have at least some yield.
Axos Business Interest Checking has some other notable features, including unlimited domestic ATM fee reimbursements, 50 free paper checks when you open your account, and external integration with QuickBooks accounting software. However, there’s a limit of 50 free transactions per month, so it can quickly get expensive for high-volume users.
What Sets Axos Business Interest Checking Apart?
Axos Business Interest Checking stands out for several reasons:
Competitive yield on eligible balances. This account yields 1.01% APY on balances up to $20,000. Balances above this amount pay less interest, but every dollar earns something. That’s unusual for a business checking account.
Free paper checks. This account comes with 50 free paper checks, which should be plenty for most business owners these days.
Unlimited ATM fee reimbursements. There’s no limit to the number or dollar value of ATM fees Axos reimburses with this account. If your business does lots of cash transactions, this is a critical benefit.
50 free transactions per month. You can only complete 50 transactions (including debits, credits, and deposits) each month before incurring a $0.50 fee per transaction. There’s a separate limit of 60 free remote check deposits per month, but that doesn’t solve the fundamental problem of being able to use your debit card less than twice per day on average before paying a surcharge.
Key Features of Axos Business Interest Checking
Axos Business Interest Checking has some important limitations and restrictions, along with some potentially useful features.
Account Fees & Waiver Requirements
This account has a $10 monthly maintenance fee. It’s waived in any statement cycle where you maintain a daily balance of at least $5,000.
Minimum Deposit & Balance Requirements
You need to deposit at least $100 when you open your account. There’s no ongoing minimum balance requirement, but the monthly fee is $10 unless you keep at least $5,000 in the account at the close of business each day.
Account Yield
Axos Business Interest Checking earns 1.01% APY on balances up to $20,000. Amounts above this threshold earn between 0.10% and 0.20% APY, but there’s no maximum balance to earn interest.
ATM Access
Axos Bank reimburses domestic ATM fees without any limits. You may still pay a surcharge if you use your debit card at an ATM outside the United States.
Transaction Limits
You’re entitled to 50 free transactions (debits, credits, and deposits) per month. After that, there’s a $0.50-per-transaction surcharge. Remote check deposits don’t count toward this limit; you get 60 of those free each month.
Paper Checks
You get 50 free paper checks when you open your account. Check reorders may incur fees, depending on the number and type of checks.
External Integrations
Axos Business Interest Checking integrates with the QuickBooks accounting platform. You can import your checking account activity into QuickBooks whenever you need to.
Business Services
As a full-service business bank, Axos offers a range of services for small and midsize companies, such as treasury management (for more complicated financial needs), payment processing assistance and other merchant services, SBA lending, and relationship manager access during extended business hours. Everything is available online; no need to walk into a branch.
Mobile Features
Axos Bank has a powerful mobile app that’s well-reviewed by verified users. For Business Interest Checking customers, it can do anything the desktop interface can, and it’s a useful hub for your Axos experience if you have more than one account with the bank. Notable capabilities include:
Mobile check deposit
Person-to-person payments
Scheduled and recurring bill payments
Secure messaging with relationship managers
Deposit Insurance
Axos Business Interest Checking comes with FDIC insurance up to the current limit of $250,000. If Axos Bank fails, the federal government protects balances up to this amount.
Pros & Cons
Axos Business Interest Checking has some clear upsides and some just-as-obvious downsides.
Competitive interest rate on eligible balances
Unlimited domestic ATM fee reimbursements
Full suite of business banking services
$10 monthly fee without waiver
No rewards program
Tight monthly transaction limits
Pros
Axos Business Interest Checking is an interest-bearing checking account with some potentially valuable perks.
Competitive interest rate. Axos Business Interest Checking has one of the better interest rates of any business checking account. It’s right up there with the top consumer high-yield checking accounts.
Unlimited domestic ATM fee reimbursements. Axos Bank reimburses U.S. ATM fees without any dollar value or transaction caps. This is a big advantage over business bank accounts that limit reimbursements or don’t offer them at all.
Free paper checks when you open your account. You get 50 free paper checks when you open your account, which should be enough to see you through weeks if not months of regular business.
Full suite of business services without an in-person appointment. Unlike many online business banks, Axos Bank is a full-service financial institution with loan officers, treasury management specialists, and other human banking experts.
Cons
Axos Business Interest Checking is missing some important features and isn’t particularly friendly to budget-conscious entrepreneurs.
No rewards program. This account has no debit card rewards program and no real purchase perks. In other words, there’s no way to earn a return on everyday business spending.
Tight limits on free monthly transactions. You get just 50 free transaction per month with this account. After that, each transaction costs $0.50. The one exception is remote check deposits, which come with their own limit of 60 per month. But any transaction limits at all are unwelcome in a small-business account (and increasingly uncommon in the space).
$10 monthly maintenance fee without waiver. This account has a $10 monthly maintenance fee. To get it waived, you need to maintain a minimum daily balance of $5,000, which could be tough for very small businesses.
Limits on external integrations. This account has just one external integration of note: QuickBooks. Many otherwise similar accounts integrate with a dozen apps or more, spanning e-commerce, workplace productivity, payments, and other important business processes.
How Axos Business Interest Checking Stacks Up
Before you apply for an Axos Business Interest Checking account, see how it compares to similar small-business checking accounts. Novo Business Checking offers an illuminating head-to-head.
Axos Business Interest Checking
Novo Business Checking
Monthly Fee
$10
$0
Monthly Fee Waiver
$5,000 minimum daily balance
Not needed
Minimum Balance
$100 to open, $0 ongoing
$50 to open, $0 ongoing
Integrations
Yes, QuickBooks only
Yes, about a dozen including Stripe, Amazon, and Shopify
Invoicing
No
Yes, built into the app
Budgeting Tools
No
No
Yield
Up to 1.01% APY
None
ATM Access
Unlimited in the U.S.
Unlimited worldwide
Axos Business Interest Checking’s biggest advantage is its yield on all balances (and its very competitive yield on balances up to $20,000). Elsewhere, Novo Business Checking offers better value thanks to built-in invoicing tools, a dozen third-party integrations, and no monthly fee.
Final Word
There’s more to Axos Business Interest Checking than the typical online small-business checking account. That’s mainly down to Axos Bank’s full spectrum of business banking services rather than anything special about this account itself.
In fact, Axos Business Interest Checking has some important downsides that should give you pause. The monthly fee and transaction limits are problematic for cash-strapped and high-volume businesses, respectively, and this account lacks some potentially useful features (like extensive third-party software integrations) found elsewhere. Axos Business Interest Checking could be the best business banking option for you, but be sure to see what else is out there before deciding for sure.
The Verdict
Our rating
Axos Bank Business Interest Checking
Axos Bank Business Interest Checking is an excellent choice for business owners looking to earn interest on day-to-day balances while benefiting from direct access to human banking professionals. Unlimited domestic ATM withdrawals and 50 free paper checks don’t hurt either. But this account has some glaring downsides, like tight transaction limits and no debit card rewards, so it’s worth seeing what else is out there before applying.
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.
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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
4 Different Types of Bank Accounts Explained
Choosing your first bank account isn’t always simple. There are loads of new bank account offers to choose from, each promising different features and perks. How can you tell which one is right for you? Learn about the different types of bank accounts and the key benefits and drawbacks of each.
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.
As online banks grow in number and become more sophisticated, more and more small-business owners are asking themselves whether a traditional bank or credit union account makes sense anymore. Unless you just can’t live without the peace of mind that comes with being able to walk into a physical bank branch, the value is less and less clear.
Axos Business Interest Checking certainly gets this. It’s a full-service small-business bank account that puts Axos Bank’s considerable banking know-how at your disposal without ever asking you to visit a physical branch. It pays interest at competitive rates too.
That said, Axos Business Interest Checking has some significant downsides, starting with a monthly maintenance fee that requires a hefty ongoing balance to waive. Before you open an account, make sure you understand the good and the bad.
What Is Axos Business Interest Checking?
Axos Business Interest Checking is a small-business checking account with a $10 monthly maintenance fee. Axos Bank waives the fee in any statement cycle where you maintain a daily balance of at least $5,000.
Axos Business Interest Checking pays up to 1.01% APY on balances up to $20,000. Amounts above this threshold earn interest at far lower rates, but all balances have at least some yield.
Axos Business Interest Checking has some other notable features, including unlimited domestic ATM fee reimbursements, 50 free paper checks when you open your account, and external integration with QuickBooks accounting software. However, there’s a limit of 50 free transactions per month, so it can quickly get expensive for high-volume users.
What Sets Axos Business Interest Checking Apart?
Axos Business Interest Checking stands out for several reasons:
Competitive yield on eligible balances. This account yields 1.01% APY on balances up to $20,000. Balances above this amount pay less interest, but every dollar earns something. That’s unusual for a business checking account.
Free paper checks. This account comes with 50 free paper checks, which should be plenty for most business owners these days.
Unlimited ATM fee reimbursements. There’s no limit to the number or dollar value of ATM fees Axos reimburses with this account. If your business does lots of cash transactions, this is a critical benefit.
50 free transactions per month. You can only complete 50 transactions (including debits, credits, and deposits) each month before incurring a $0.50 fee per transaction. There’s a separate limit of 60 free remote check deposits per month, but that doesn’t solve the fundamental problem of being able to use your debit card less than twice per day on average before paying a surcharge.
Key Features of Axos Business Interest Checking
Axos Business Interest Checking has some important limitations and restrictions, along with some potentially useful features.
Account Fees & Waiver Requirements
This account has a $10 monthly maintenance fee. It’s waived in any statement cycle where you maintain a daily balance of at least $5,000.
Minimum Deposit & Balance Requirements
You need to deposit at least $100 when you open your account. There’s no ongoing minimum balance requirement, but the monthly fee is $10 unless you keep at least $5,000 in the account at the close of business each day.
Account Yield
Axos Business Interest Checking earns 1.01% APY on balances up to $20,000. Amounts above this threshold earn between 0.10% and 0.20% APY, but there’s no maximum balance to earn interest.
ATM Access
Axos Bank reimburses domestic ATM fees without any limits. You may still pay a surcharge if you use your debit card at an ATM outside the United States.
Transaction Limits
You’re entitled to 50 free transactions (debits, credits, and deposits) per month. After that, there’s a $0.50-per-transaction surcharge. Remote check deposits don’t count toward this limit; you get 60 of those free each month.
Paper Checks
You get 50 free paper checks when you open your account. Check reorders may incur fees, depending on the number and type of checks.
External Integrations
Axos Business Interest Checking integrates with the QuickBooks accounting platform. You can import your checking account activity into QuickBooks whenever you need to.
Business Services
As a full-service business bank, Axos offers a range of services for small and midsize companies, such as treasury management (for more complicated financial needs), payment processing assistance and other merchant services, SBA lending, and relationship manager access during extended business hours. Everything is available online; no need to walk into a branch.
Mobile Features
Axos Bank has a powerful mobile app that’s well-reviewed by verified users. For Business Interest Checking customers, it can do anything the desktop interface can, and it’s a useful hub for your Axos experience if you have more than one account with the bank. Notable capabilities include:
Mobile check deposit
Person-to-person payments
Scheduled and recurring bill payments
Secure messaging with relationship managers
Deposit Insurance
Axos Business Interest Checking comes with FDIC insurance up to the current limit of $250,000. If Axos Bank fails, the federal government protects balances up to this amount.
Pros & Cons
Axos Business Interest Checking has some clear upsides and some just-as-obvious downsides.
Competitive interest rate on eligible balances
Unlimited domestic ATM fee reimbursements
Full suite of business banking services
$10 monthly fee without waiver
No rewards program
Tight monthly transaction limits
Pros
Axos Business Interest Checking is an interest-bearing checking account with some potentially valuable perks.
Competitive interest rate. Axos Business Interest Checking has one of the better interest rates of any business checking account. It’s right up there with the top consumer high-yield checking accounts.
Unlimited domestic ATM fee reimbursements. Axos Bank reimburses U.S. ATM fees without any dollar value or transaction caps. This is a big advantage over business bank accounts that limit reimbursements or don’t offer them at all.
Free paper checks when you open your account. You get 50 free paper checks when you open your account, which should be enough to see you through weeks if not months of regular business.
Full suite of business services without an in-person appointment. Unlike many online business banks, Axos Bank is a full-service financial institution with loan officers, treasury management specialists, and other human banking experts.
Cons
Axos Business Interest Checking is missing some important features and isn’t particularly friendly to budget-conscious entrepreneurs.
No rewards program. This account has no debit card rewards program and no real purchase perks. In other words, there’s no way to earn a return on everyday business spending.
Tight limits on free monthly transactions. You get just 50 free transaction per month with this account. After that, each transaction costs $0.50. The one exception is remote check deposits, which come with their own limit of 60 per month. But any transaction limits at all are unwelcome in a small-business account (and increasingly uncommon in the space).
$10 monthly maintenance fee without waiver. This account has a $10 monthly maintenance fee. To get it waived, you need to maintain a minimum daily balance of $5,000, which could be tough for very small businesses.
Limits on external integrations. This account has just one external integration of note: QuickBooks. Many otherwise similar accounts integrate with a dozen apps or more, spanning e-commerce, workplace productivity, payments, and other important business processes.
How Axos Business Interest Checking Stacks Up
Before you apply for an Axos Business Interest Checking account, see how it compares to similar small-business checking accounts. Novo Business Checking offers an illuminating head-to-head.
Axos Business Interest Checking
Novo Business Checking
Monthly Fee
$10
$0
Monthly Fee Waiver
$5,000 minimum daily balance
Not needed
Minimum Balance
$100 to open, $0 ongoing
$50 to open, $0 ongoing
Integrations
Yes, QuickBooks only
Yes, about a dozen including Stripe, Amazon, and Shopify
Invoicing
No
Yes, built into the app
Budgeting Tools
No
No
Yield
Up to 1.01% APY
None
ATM Access
Unlimited in the U.S.
Unlimited worldwide
Axos Business Interest Checking’s biggest advantage is its yield on all balances (and its very competitive yield on balances up to $20,000). Elsewhere, Novo Business Checking offers better value thanks to built-in invoicing tools, a dozen third-party integrations, and no monthly fee.
Final Word
There’s more to Axos Business Interest Checking than the typical online small-business checking account. That’s mainly down to Axos Bank’s full spectrum of business banking services rather than anything special about this account itself.
In fact, Axos Business Interest Checking has some important downsides that should give you pause. The monthly fee and transaction limits are problematic for cash-strapped and high-volume businesses, respectively, and this account lacks some potentially useful features (like extensive third-party software integrations) found elsewhere. Axos Business Interest Checking could be the best business banking option for you, but be sure to see what else is out there before deciding for sure.
The Verdict
Our rating
Axos Bank Business Interest Checking
Axos Bank Business Interest Checking is an excellent choice for business owners looking to earn interest on day-to-day balances while benefiting from direct access to human banking professionals. Unlimited domestic ATM withdrawals and 50 free paper checks don’t hurt either. But this account has some glaring downsides, like tight transaction limits and no debit card rewards, so it’s worth seeing what else is out there before applying.
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.
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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
4 Different Types of Bank Accounts Explained
Choosing your first bank account isn’t always simple. There are loads of new bank account offers to choose from, each promising different features and perks. How can you tell which one is right for you? Learn about the different types of bank accounts and the key benefits and drawbacks of each.
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.
Highlights
Private banks provide personalized financial services for affluent individuals.
These bankers work in teams of lending, financial planning, and wealth management professionals and sometimes outside specialists.
Clients typically enjoy benefits you can’t get at retail banks, such as discounted loan rates and access to alternative investments.
Private banking also has some downsides, including limited choice in potentially higher costs.
In the era of online banking and mobile financial technology apps that all but replace traditional bank accounts, the idea of a human banker feels downright quaint.
Yet human bankers still play an important role in the banking ecosystem. They’re especially important for affluent people with extensive assets and complex financial needs. Many of these folks use human-led private banking services that come with bespoke wealth management, tax planning, trust and estate planning, lending, and access to financial products and investment opportunities unavailable to the rest of us.
Private banking isn’t for everyone. But you don’t have to be a multimillionaire to take advantage of it, either.
What Is Private Banking?
Private banks provide customized financial products and services for wealthy people. Private banking encompasses multiple aspects of clients’ financial lives, including traditional bank accounts, investment accounts, insurance, tax management, and estate planning.
Some banks’ wealth management divisions provide the same scope of services as others’ private banking divisions. However, wealth management more often refers to a narrower set of services focused on managing clients’ investments. That said, financial institutions sometimes use the terms “private banking” and “wealth management” interchangeably.
How Private Banking Works
Private bankers work individually or in teams, usually within much larger financial institutions that also operate retail banks and investment management firms. Private banking teams can include lending specialists, investment managers, alternative investment specialists, and bankers who specialize in managing complex financial situations.
Many private banking teams or the wealth management teams housed within them operate as fiduciaries. That means they’re legally obligated to act in their clients’ best interests, which extends to recommending investments they believe are the best fit for their clients (rather than the most profitable for the institution). Before signing with a private bank, ask if its team acts in a fiduciary capacity, and reconsider if the answer is no.
Even if the client has access to multiple financial professionals on a private banking team, one banker typically serves as the main point of contact for all financial matters covered by the private banking agreement. This person is often referred to as the client’s relationship manager.
For help with more specialized client needs, such as tax and estate planning, the relationship manager or others on the team may coordinate with outside lawyers or accountants.
Private banking clients may get discounted pricing on loans and lines of credit, bank accounts, safe deposit boxes, investment products, and possibly other financial products and services. They may also get higher interest rates on interest-bearing checking accounts, savings accounts, and CDs.
To cover ongoing services like investment and cash account management, private banking clients typically pay a percentage of the assets the bank is managing, aka assets under management. If the bank charges it in place of all other fees, it’s known as a wrap fee.
Private banks’ asset management fees typically range from 0.5% to 1.5% of assets under management and often decline as total investable assets increase. Wrap fees may be a bit higher because they encompass the institution’s entire range of services.
Private Banking Services
Private banks cater to high-net-worth people. Some also cater to a broader group of clients known as “emerging affluents,” who are typically younger, high-income people poised to build significant wealth.
Depending on the institution and the mix of clients they serve, private banking teams provide some or all of these services:
Core banking services. Private banks always fill core banking functions. Like retail banks, they offer checking and savings accounts, CDs, money market accounts, and other types of deposit accounts. Often, they pay higher interest rates than retail banks, though typically not on par with the best online banks.
Higher FDIC insurance limits. Retail banks’ FDIC coverage is typically limited to the FDIC’s minimum of $250,000. That’s inconvenient if it would cause you to open multiple accounts to have all your money insured. So private banks often (though not always) provide deposit insurance above the standard.
Budget and expense management. Particularly when working with very wealthy clients and those with complex financial situations, private bankers help with daily tasks like paying bills and managing household budgets.
General lending. Lending specialists help clients secure common loans and lines of credit like mortgages, auto loans, and unsecured personal loans with lower rates than retail banking clients have access to. That’s important because on a million- or multimillion-dollar mortgage, shaving even a few hundredths of a point off the interest rate can save you tens of thousands of dollars over the life of the loan.
Specialized lending. Private banking teams also help clients secure less common types of credit retail banking clients can’t access, like jumbo mortgages and lines of credit secured by business assets.
Financial planning. Private banking teams may include or work with certified financial planners who draw up long-range plans covering major life events.
High-value insurance. They may also coordinate with outside insurance brokers to procure high-value life, property, and liability insurance coverage.
Investment management. Private banking teams either directly manage clients’ investment accounts or coordinate with wealth management teams employed by the same financial institution. Wealthier private banking clients may have access to alternative or specialized investments unavailable to the general public, such as syndicated real estate deals that can return well above historical stock market averages, though not without considerable risk.
Tax planning. Private banking teams may refer clients to outside or in-house tax professionals who can help them reduce their tax liability within the bounds of the law.
Estate planning. Private banking clients may get access to estate planning attorneys who can draw up customized wills and trusts to reduce probate costs and ensure smooth asset transfers from one generation to the next.
Each financial institution has its own unique approach to private banking and may offer different mixes of services. And some peripheral services, like tax and estate planning, may involve out-of-pocket fees. Before opening accounts with a private banking team and moving your life savings, ask exactly what it can do for you and how much it costs.
Eligibility for Private Banking
Every financial institution sets a minimum asset threshold it requires to qualify for its private banking services. Some institutions make exceptions to their asset requirements on a case-by-case basis, but the easiest way to qualify for private banking is to exceed the threshold.
Private banking asset thresholds can range from as little as $50,000 or $100,000 to more than $2 million. Many private banks set the threshold at $1 million in investable assets, including cash held in deposit accounts and cash or securities held in investment accounts. Funds held in tax-advantaged retirement accounts typically count toward the asset threshold but less liquid assets like real estate don’t.
Some private banks have multiple service tiers that also depend on investable assets. For example, clients with less than $1 million in investable assets might qualify for a relatively basic set of private banking services without a dedicated relationship manager. Clients with between $1 million and $5 million might get a higher level of service and personalization along with a dedicated relationship manager. And clients with more than $5 million might qualify for the bank’s highest level of service and personalization.
Pros & Cons of Private Banking
Private banking has some clear upsides it’s difficult to argue with. But it has some hidden downsides as well and definitely isn’t right for everyone who qualifies.
Personalized financial services
Access to alternative investments
Dedicated teams
Wide breadth of financial and legal expertise
Preferential loan and account pricing
Choice can be limited
Pricing isn’t always the best
May put their interests ahead of yours
Can be surprisingly expensive
Potential for staff turnover
Relationship managers aren’t experts
Pros
Private banking offers a level of personalization and access that retail banks and DIY brokerages can’t match. It’s an excellent fit for affluent (or downright wealthy) individuals and families who don’t have the time or interest to directly manage every aspect of their complex financial lives.
Personalized financial services. Private banking clients enjoy personalized financial plans and customized financial services not available to retail banking or DIY brokerage clients.
Access to alternative investments. Some private banks offer alternative investments, such as direct exposure to specific real estate developments, that aren’t available to the general public.
Dedicated teams. Private banking clients have on-demand access to a dedicated relationship manager, possibly along with other members of their private banking team.
Access to multiple financial and legal experts under one roof. Private banking teams typically have or work closely with financial planners, wealth managers, tax professionals, estate planners, and other experts. It’s much more convenient than seeking out each professional individually.
Better pricing on loans and deposit accounts. Private banking clients usually get preferential rates on loans and interest-bearing deposit accounts. These rates aren’t guaranteed to be the best on the market but are generally better than what the institution’s retail banking clients get.
Cons
Private banking clients are captive to a single financial institution, reducing their ability to shop around for better deals and potentially increasing their all-in costs. And though private banks hold team members to basic professional standards, they’re not always world-class.
Potentially limited choice of products and services. At many private banks, you have access to a financial product and service menu that’s a mile wide and an inch deep. You can’t shop around for the best home loan rates or the highest savings yield; you’re limited to whatever your financial institution offers.
Preferential pricing could still be worse than the alternatives. Preferential pricing doesn’t mean the best available pricing. As with your menu of available products and services, you’re at the institution’s mercy.
Private banks may not be fiduciaries. Every private bank pays lip service to putting their clients’ interests before their own, but that’s meaningless unless the bank’s investment management division follows the fiduciary standard. If not, they may recommend investments and other financial products with an eye to maximizing their own profits rather than growing clients’ wealth.
Can be surprisingly expensive. Compared with commission-free online brokerages and free checking accounts, private banks can be expensive. If your private bank offers wealth management, expect to pay at least 1% of assets under management each year. Robo-advisors are cheaper and typically offer comparable returns, so they make more sense if you’re comfortable using them.
Private banking staff comes and goes. Like anywhere else, staff turnover is a thing at private banks. It’s often surprisingly brisk, as private banking teams often employ relatively junior employees who see the role as a stepping-stone to bigger and better things. This is the case at retail banks as well, but private banking clients tend to have more complex financial needs and expect a higher level of service, so turnover can be more disruptive.
Relationship managers aren’t experts. Private bank relationship managers are generalists, not experts. They serve as gatekeepers for legitimate experts, but you may find that they can’t give detailed advice or answer complicated questions to your satisfaction.
Do You Need a Private Bank?
You don’t need a private bank just because you have $1 million or more in liquid assets. If you’re a seasoned DIY investor and have the time to manage your money on your own, you might not need help from any financial professionals at all.
On the other hand, if you’re not a confident investor or financial manager and don’t have the time or interest to learn, private banking could make sense for you. Specifically, it could be a good fit if:
You have an existing positive banking relationship. If your current financial institution has a private division and you already have most of your money there, moving to its private side is clearly the most convenient option. But you should always look at other options.
You’re uncomfortable managing your own investments. One of the biggest benefits of private banking is access to an investment manager who can build a diversified, risk-appropriate portfolio for you.
You don’t trust a robo-advisor. Robo-advisors can make quality investment decisions — even tax-loss harvesting. But they don’t consider the full picture of wealth management or your taxes like a human investment manager can, which is more important (and complex) the more money you have.
You have or anticipate complex borrowing needs. If you’re planning to buy a million-dollar home or borrow against business assets, you may need customized solutions your retail bank can’t offer.
You need to get your affairs in order. If you’re ready to put together a long-term financial plan, set up an estate plan, and get serious about reducing your tax liability, a private banker can handle the details more efficiently than you can on your own.
Private Banking FAQs
The idea of private banking is simple enough, but novices can get bogged down in the details. These are answers to some of the most frequently asked questions about it.
Is Private Banking Only for Rich People?
It depends on your definition of “rich,” but the short answer is no. Some private banks accept clients with as little as $50,000 in liquid assets. Chase Private Client, which offers a full range of financial services, requires $150,000 in liquid assets.
That said, many private banks set the asset floor at $1 million, which meets any reasonable definition of “rich.” And some banks have multiple relationship tiers that reserve the highest levels of service and choicest financial benefits for clients with more than $5 million or even $10 million.
How Do You Qualify for a Private Banking Relationship?
The easiest way to qualify is to meet the bank’s asset minimum. An entry-level private banking relationship could be yours for as little as $50,000 to $100,000, though many banks require much more.
Some private banks make exceptions to their asset thresholds for young, high-income “emerging affluents” expected to amass considerable wealth in the near future.
What Is Private Banking vs. Wealth Management?
Private banking and wealth management are often used interchangeably and can mean different things to different people.
Some define private banking narrowly, as only core deposit and lending services, but the more common definition is broader and encompasses investment management, financial planning, tax and estate planning, and risk management.
Wealth management is narrower but still quite broad, encompassing wealth management and long-range planning. The difference is that wealth management excludes the deposit and lending services at the heart of private banking.
How Should You Choose a Private Bank?
If you think you’re ready for a private banking relationship, you should shop around. As you would if you were in the market for a new independent financial advisor, investigate several private banks that operate in your area. For each, consider:
Whether its wealth management team is sworn to act in clients’ best interests (called a “fiduciary duty”)
What financial services it offers and how those services change depending on assets under management
How much you pay for those services
The minimum assets required to qualify for a relationship
Whether you have a dedicated relationship manager
How much access you have to your relationship manager and others on the private banking team
It’s especially important to understand how much you can expect to pay your private bank and whether the team members have a fiduciary duty to you. Be very cautious about working with non-fiduciaries or with private banks that are significantly more expensive than the competition, even if they claim to offer more or better service.
Final Word
Most Americans don’t have $1 million sitting in the bank waiting for white-glove management. Most don’t have $150,000, for that matter. And not everyone who does is a good fit for private banking, anyway. Some are perfectly capable of managing complex financial situations on their own — they might even prefer to.
But while private banking isn’t exactly mainstream — which would defeat the purpose — it’s an important component of the broader financial system.
For better or worse, a disproportionate amount of American wealth is controlled by individuals and families who easily qualify for private banking relationships, and many of those folks take full advantage. It’s helpful to understand how they stand to benefit and the tradeoffs they accept in return.
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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.