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Hanover Mortgages

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Posted on May 8, 2021

Cash Management Account – What It Is, Pros & Cons of Saving This Way

A cash management account is a type of financial account that combines many of the features of checking, savings, and investment accounts into one product.

You get the safety and interest-earning capability of a savings account, the flexibility of a checking account, and the ability to buy and sell securities with an investment account.

Cash management accounts are typically offered by nonbank financial companies, such as brokerage companies. Although each cash management account will differ in its specific terms and features, they share a number of characteristics.

How Do Cash Management Accounts Work?

Cash management accounts combine many of the features of different financial accounts, so it can be hard to understand exactly how they operate.

Store & Protect Large Amounts of Cash

Cash management accounts are designed for people who have a lot of cash to deposit. Like a savings account, they help you keep your money in one place and keep it safe.

The way that cash management accounts do this is through Federal Deposit Insurance Corporation (FDIC) insurance. The FDIC offers up to $250,000 per depositor, per account type, at covered banks. That means if your bank fails and is unable to return your money, the FDIC will reimburse you for up to $250,000 in lost money.

Cash management accounts often have much higher insurance limits. For example, SoFi Money cash management account offers coverage for up to $1.50 million. That’s because SoFi automatically splits your deposits between six different banks, handling all of the management of these accounts on your behalf. You only ever have to work with SoFi when you want to access your money or make a deposit.

Use Your Money When You Need It

Cash management accounts also give you the flexibility of a checking account. Most offer checkbooks or debit cards you can use to make payments or withdrawals from your cash management account.

Depending on the account provider you choose, you may be able to completely replace a checking account with a cash management account. If you get a debit card, checkbook, and the option to make bill payments using your account funds, you’re covered for all of your checking account needs.

Earn Interest

Cash management accounts are able to pay interest like savings accounts do. Most offer interest rates on par with the best savings accounts in the market.

Cash management accounts pay these high rates because they are mostly offered by online financial companies. By avoiding the need to operate physical locations, online companies save a lot of money on overhead costs. That lets them pass more interest on to their customers.

Low Fees

Another benefit of cash management accounts being offered by online financial companies is they have lower fees than traditional bank accounts do. Many have no monthly maintenance fees at all, leaving you free to worry about using your money instead of fees.

Invest Your Funds

Many cash management accounts are offered by investment companies or brokerages. Although they’re usually separate from your brokerage account, it’s easy to link the two accounts. In some cases, there is no separation.

You can submit purchase orders for investments and have the funds deducted from your cash management account. Similarly, proceeds from any sales you make get deposited directly to the account.

This makes your cash management account the hub of your financial life and keeps managing your money easy. You’ll have just one account to monitor with all of your income and expenses flowing through it.

How Does a Cash Management Account Differ From a Checking or Savings Account?

Cash management accounts are neither checking nor savings accounts. They work like a mix of the two, offering the interest of a savings account with the flexibility of a checking account. For day-to-day use, you won’t notice much difference between a cash management account and a traditional bank account.

The big difference is behind the scenes. The company that offers your cash management account opens checking or savings accounts on your behalf at its partner banks. It then handles the management of these accounts for you, moving money in and out of those accounts as needed.

Essential Features of a Cash Management Account

If you’re thinking about opening a cash management account, these are the factors you should compare when looking at your options.

Ease of Access

Cash management accounts are meant to give you the flexibility of a checking account. That means it should be easy to access your money when you need it.

Look for accounts that make it easy to use your money. That includes providing a checkbook, debit card, and online bill payment.

For accounts that offer a debit card, don’t forget to look at the restrictions. Some cash management accounts limit the amount you can withdraw in a day.

You’ll also want to make sure the debit card works on the ATM network you prefer. Some cash management accounts reimburse ATM fees, leaving you free to use any ATM you come across.

Fees

With any financial account, you should keep an eye on the fees you’ll have to pay. There’s no reason to pay a fee when you don’t have to.

Before opening a cash management account, check to see if it has any monthly maintenance fees or minimum balances. Also take a moment to look for other fees might wind up paying, such out-of-network ATM fees.

Interest Rates

Cash management accounts are able to pay interest rates on par with the best savings accounts on the market, but that doesn’t mean they all pay the same rate. Compare the interest rates each account offers. Some will vary with your account balance, while others will be the same regardless of how much you deposit.

If it doesn’t cost you anything and you won’t lose any features that you need, opt for the account with the higher interest rate.

FDIC Insurance Limits

Cash management accounts let you protect your money by splitting your balance among multiple banks. This gives you more than the standard $250,000 insurance offered by the FDIC.

If you have a large balance to deposit to your cash management account, check to see how much of it will be insured by the accounts you’re considering. Some cash management accounts offer more protection than others.

If you’re worried about keeping large sums of cash, look for an account that offers enough insurance to protect your full balance.

Pros of Cash Management Accounts

There are a few reasons you should consider opening a cash management account.

  1. They Make Money Management Simple. With a cash management account, you don’t need a checking or savings account. Many cash management accounts also link to your brokerage account. That makes it easy to keep all of your money in one place for easy management.
  2. They Provide Protection. Cash management accounts keep your money safe with FDIC insurance, which is something investment accounts and money market funds cannot do.
  3. They Have Higher Interest Rates Than Checking Accounts. You’ll earn more interest than you would from a checking account while maintaining the same level of flexibility with your funds.

Cons of Cash Management Accounts

Cash management accounts aren’t without their flaws, and you should be aware of them before opening one.

  1. They Don’t Offer the Best Returns. Many investments, such as stocks, bonds, and mutual funds. offer great returns. There are also certificates of deposit (CDs) and some savings accounts that offer better rates than cash management accounts.
  2. Face-to-Face Customer Service Might Not Be Available. Most cash management accounts are offered by online financial companies. If you need help, you have to call customer support or participate in an online chat. This can be difficult for people who prefer getting help in person or for complicated situations.
  3. You Might Not Get All of the Features You Need. Cash management accounts are meant to combine the features of checking and savings accounts, but some cannot fully replace those dedicated accounts. For example, you might not have the option to make online bill payments from a cash management account, even though that’s a standard feature of checking accounts.

Who Needs a Cash Management Account?

Cash management accounts are a good choice for a few different groups of people.

The first group is people who have a large amount of cash they want to keep liquid but protected. If you have a few hundred thousand dollars you need to have easy access to, you don’t want to tie it up in investments. You also don’t want it sitting in a checking account, slowly losing value to inflation.

And if you exceed the $250,000 FDIC insurance limit, you’ll have to split it between multiple banks if you want all of your money to be insured.

Cash management accounts let you earn a reasonable rate of interest on your cash while maintaining its FDIC protection. You also don’t have to worry about splitting your money between multiple banks.

Cash management accounts are also great for people who want simplicity. All your money is in one place. You don’t have to maintain a separate checking and savings account. If you get your cash management account from the same company you use for your brokerage account, you can keep all of your finances in one place.

Anyone who likes online banking can make good use of a cash management account. If you’re already accustomed to doing your banking through a computer or phone rather than in-person, you’re ready to start using a cash management account.

Where Can I Get a Cash Management Account?

You can get a cash management account from a number of companies.

The first place you should look is your brokerage company. Why not keep all of your money in one place? Many financial firms offer cash management accounts, and your brokerage may even offer perks for customers who maintain a large balance, so using your brokerage for your cash management needs can help you reach balance thresholds.

If your brokerage doesn’t offer a cash management account, you have plenty of alternatives. Many robo-advisors and online investing platforms offer cash management accounts.

For example, Robinhood offers a cash management account you can link to your brokerage account. SoFi Money and Betterment offer both cash management and checking account options.

Alternatives to a Cash Management Account

If you don’t think a cash management account is right for you, you have other options.

If you’re considering a cash management account because you want to combine the features of a checking and savings account, a money market account can help you do that.

Most banks offer money market accounts, which provide the interest rates of a savings account with the check-writing capabilities of a checking account.

The downside is your ability to make withdrawals from the account is limited to six transactions per month. Money market accounts also have higher fees and minimums than cash management accounts.

If you want a cash management account for the safety and returns they offer, you can open a CD. CDs pay more interest than savings accounts and are fully insured by the FDIC up to the $250,000 limit.

The only drawback is you have to commit your deposit to the account for a set period of time. If you make an early withdrawal, you have to pay a fee.

If returns are your primary concern, you should open an investment account instead. You won’t have the safety of FDIC insurance, but you can earn far more money by investing your cash in stocks, bonds, or mutual funds.

Final Word

Cash management accounts offer safety, simplicity, and a solid return on your cash. They’re a great choice for anyone who wants to make managing their money easier, but they don’t have all of the features of dedicated checking and savings accounts.

If you’re looking to store and protect a large sum of cash, whether in anticipation of putting a down payment on a home or keeping it as an emergency fund, a cash management account could be a great option that provides you with the best features of checking, savings, and investment accounts all in one place.

Source: moneycrashers.com

Posted on May 8, 2021

BBVA Bank Review | The Simple Dollar

With a full-suite of banking services online and an easy-to-use interface and mobile app, BBVA is best for those who want to handle all their banking needs online.

Savings APY

0.01%

1Y CD Rate

0.05%

J.D. Power Rating

N/A

SimpleScore

2.8 / 5.0

SimpleScore BBVA 2.8

Savings APY 2

1Y CD APY 2

Customer Satisfaction 2

Mobile App 3

Product Variety 5

BBVA bank, formerly BBVA Compass bank, was founded in 1964 and is based in Alabama. BBVA has quite a few branches spread across seven states — Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas — although around half of those locations are in Texas. BBVA is a full-service bank and has been around a long time, but it also has a strong online banking presence. Unlike many other banks that we would consider “online banks,” BBVA offers a full suite of services, from checking and savings to money market accounts, investing, CDs and even home and auto loans.

In this article

BBVA Bank

Min Savings Deposit Max Savings APY J.D. Power Survey Score Key Benefit
$25 0.01% APY N/A Full-service banking with many options

What we like about it

BBV bank has been around for quite a while and has a sizable presence in the states where it has branches. Unlike many other banks that offer accounts online, this one offers a full suite of banking services, meaning you can do all of your banking in one place. The website and app are where this bank shines. With an easy-to-use interface that also offers a lot of functionality, it’s easy to manage accounts, even if you don’t live near any branches. Their mobile app offers a wide range of features too, along with great digital security options.

Things to consider

Because BBVA is a more traditional, full-service bank, their interest rates are lower than most online bank offerings, and they do have some fees that are higher than other banks. For example, overdraft fees are $38 each and you can incur up to six per day. That means even simple mistakes can add up quickly. The rates on BBVA’s CDs and savings APY rates are also low, and there are options with higher rates and lower fees available elsewhere.

BBVA checking accounts

BBVA bank offers the Free Checking account, which doesn’t have monthly Service Charge. This account includes free ATM withdrawals at not only BBVA ATMs, but the network of Allpoint ATMs as well, which means you have 44,000 options around the US. Fees for overseas withdrawals are small and reasonable. The bank also offers the Premium Checking account, which earns interest on your money. Like the other accounts, there is only a $35 minimum balance to open it, but if your balance is below $5,000 you’ll pay a hefty $26 monthly maintenance fee. If you’re going to keep that high of a balance, you may want to look at their money market account instead. We have more information on BBVA’s money market accounts below.

BBVA savings accounts

There are a few different types of savings accounts offered by BBVA. The first is the BBVA Build My Savings Account. You can earn a match bonus depending on the term you choose, your opening account balance and how much you add to the account regularly, up to $25 per term.

The BBVA Online Savings Account account also has a minimum opening balance of $25 and the same interest rate, but it does not have the same match options as the Build My Savings Option. It does offer easy access to your funds and a link to your checking account for overdraft protection, and there is no Service Charge for the account. The BBVA Savings Account offers similar benefits to the BBVA Online Savings Account and the same minimum opening balance, but there is a $15 quarterly Service Charge that can be waived if you meet certain criteria.

BBVA money market accounts

The BBVA Money Market account earns better interest than the Premium Checking account, but the APY varies by region. It can be set up as overdraft protection for your checking account, and you can access your money anytime you need it with ATM access or online and mobile banking. You’ll only need a minimum of $25 to open the account, and while there are higher-interest MMAs to be found elsewhere, most require a much more substantial minimum balance.

BBVA CDs

BBVA CDs require a minimum of $500 to open — certainly not the highest minimum around. Rates vary depending solely on term. These are certainly not the most spectacular rates out there if that’s what you’re looking for, but there are no maintenance fees associated with these accounts.

BBVA IRA accounts

As a full-service institution, BBVA offers SEP, ROTH and traditional IRAs with a variety of ways to invest, including mutual funds and ETFs. There are a wide variety of portfolios and funds to choose from based on your needs, how soon you want to retire and how risk-averse you may be. They also offer other ways to invest that can help you build your retirement income, including annuities and lifetime-income options.

BBVA credit cards

There are four credit card options with BBVA bank. All offer varying levels of rewards and interest rates that depend on your credit-worthiness and the type of perks you would like to earn.

The BBVA Rewards Card offers unlimited 1.5% rewards on all purchases and the ability to earn an additional unlimited 0.5% reward bonus with $1,000 in monthly direct deposits to a BBVA deposit account, among other perks like 0% balance transfer options.

The BBVA ClearPoints Credit Card is a rewards card that lets you choose how you earn up to 2x & 3x points in categories you select each quarter. It has no annual fee and offers a 0% introductory APR for 13 months on purchases, among other perks.

The Select Credit Card allows you to choose how you earn 3x the points in categories you select, and it offers access to Visa Signature travel and entertainment benefits, a 24/7 complimentary concierge, and no foreign transaction fees. The downside is the $125 annual fee, which BBVA waives for the first year.

The exception to this is the Optimizer Credit Card, a secured credit card that’s collateralized by a savings account. This card is designed for those who can’t qualify for a traditional credit card and will help rebuild their credit. It has a high interest rate, but the credit limit can be increased at any time with a matching deposit in the savings account.

Regardless of your credit history and your desire for rewards, BBVA probably has a credit card that will work for you.

BBVA investing

There are two investing options with BBVA. The first is self-directed investing, which is just what is sounds like. You control and direct your investments, and you can put your money in mutual funds, ETFs and other options. You can even establish a margin account through the bank.

If you want more options and someone to manage your investing for you, BBVA offers full-service investment accounts as well. This means your money is managed by a professional. BBVA also offers 529 plans and options that help you save to pay for your child’s college managed under this plan.

Compare top bank accounts

Too long, didn’t read?

Are you looking for a full-service bank online that offers plenty of options? If the answer is yes, then BBVA may be the right place for you. Many fees can be avoided  though they are steeper than many other banks, and the interest rates are respectable but not the highest around.

If you’re looking for the highest rates and lowest fees, or have very simple banking and financial services needs, BBVA may not be the best place for you. If you shop around, you will find higher interest rates, lower fees and simpler options from other online banks. From full-service investing to traditional banking and lending products, BBVA’s strength lies in its options. If you’re shopping around for a bank, they’re certainly worth a second look.

Source: thesimpledollar.com

Posted on May 7, 2021

Capital One 360 Review 2021 – The Simple Dollar

Capital One 360 is a particularly good choice if you’re looking for a strong all-round option ifn online banking. In fact, it’s The Simple Dollar’s pick for the best free checking account. This online arm of Capital One should appeal to anyone who wants to dip their toes into online banking with a convenient, trusted service that boasts several physical locations and a nationwide ATM network.

Savings APY

0.40%

J.D. Power Rating

854/1,000

1Y CD Rate

0.20%

SimpleScore

3.8 / 5.0

SimpleScore Capital One 3.8

Savings APY 4

1Y CD APY 3

Customer Satisfaction 4

Mobile App 4

Product Variety 4

Capital One 360 is a particularly good choice if you’re looking for a strong all-round option in online banking. In fact, it’s The Simple Dollar’s pick for the best free checking account. This online arm of Capital One should appeal to anyone who wants to dip their toes into online banking with a convenient, trusted service that boasts several physical locations and a nationwide ATM network.

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In this article

Capital One 360 Highlights

  • No hidden fees or minimums as you earn interest on your everyday money
  • 38,000 fee-free Allpoint® ATMs and 2,000 Capital One® ATMs
  • Free MasterCard® Debit Card for all purchases
  • Mobile check deposits with CheckMateSM & one checkbook’s free

Capital One 360 launched in 2013 after Capital One acquired ING Direct and rebranded the service. As a former ING Direct customer, I “inherited” a Capital One 360 savings account that I still use today, and I can personally attest to the convenience and ease of use it offers.

Capital One 360 at a Glance

When it comes to your banking needs, you’ll have access to just about everything you expect from a bank through Capital One 360, as well as some products that aren’t as common for online-only banks. Here are the key offerings:

  • Savings: Capital One 360 offers personal, business, and kid-focused savings accounts.
  • Checking: There’s a no-fee personal checking account and a teen-friendly checking account that links to a debit card and helps teach your child how to manage money.
  • CDs: Choose from nine terms ranging from six to 60 months when you want to amp up your personal or business savings.
  • Mortgages: Whether you need a fixed- or adjustable-rate mortgage, Capital One 360 has you covered at competitive interest rates.
  • Investment accounts: With the Capital One Investing platform, you can build a portfolio of stocks, ETFs, and mutual funds. You can also open an IRA.

In addition, parent company Capital One fills in the gaps with auto loans, credit cards, and more extensive business and commercial banking. However, there are no money market accounts or personal loans.

If you’re nervous about online banking, note that your deposits with Capital One 360 will be protected by the Federal Deposit Insurance Corporation, just like at any brick-and-mortar bank. In addition, your data is fully encrypted and protected by several layers of security such as firewalls, intrusion detection, and multi-factor authentication.

Capital One 360 Performance Savings

Capital One 360 Performance Savings has a lot of appeal, the interest rate, currently 0.40% APY, isn’t the highest you can find online, but it’s still pretty competitive — especially when you consider that the national average is .09%, according to Bankrate. Add that to this account’s other perks, including no fees and no account minimums, and you’ve got a compelling savings option. Here are the account features at a glance:

  • No maintenance fees: At other banks, you may have to pay a fee just to have an account.
  • No account minimums: You don’t have to have a certain amount of money to open an account or maintain any sort of minimum balance to avoid a fee.
  • A great rate: You’ll earn 0.40% APY, more than eight times the national average.
  • Open multiple accounts: You can have up to 25 different savings accounts for free.
  • 24/7 account access: Need to make a withdrawal at 2 a.m.? No problem.
  • Customer support any day of the week: You’re just a phone call away from a real person.
  • Easy account management: Schedule stress-free automatic deposits, and track your progress with the My Savings Goals feature.
  • Mobile check deposit: Depositing funds is as simple as snapping a picture with your phone using the CheckMate feature.

One of the nicest features on this list is the ability to open up to 25 savings accounts without ponying up account maintenance fees. This is a great way to stay organized if you have multiple savings goals.

Right now, I have a few separate savings accounts with Capital One 360, and have had several more in the past, including one dedicated to saving for a down payment on our house. You could also have one emergency-only account, one for a dream vacation, and so on.

I can also vouch for the convenience of the automatic savings plan, which let me funnel a certain amount of money into my savings account every other week without lifting a finger. You can also set up an automatic transfer to take place as often as every week or as little as once every few months depending on your savings goals. It’s a great way to force yourself to save and requires very little effort to set up.

The biggest downside here is the interest rate. I’ve watched my interest rate sink (and sink … and sink) over the past several years from a high of close to 5%, when I opened it with ING. Now, that’s not a situation that’s unique to Capital One 360 — rates have plummeted everywhere, and the current rate of 0.40% is definitely higher than brick-and-mortar banks offer.

However, some competing online-only banks are higher — you’ll find a few in our guide to the best savings accounts. That isn’t a lot in the grand scheme of things, but every bit helps.

Capital One 360 Checking

Capital One 360 Checking shares many of the benefits of the savings account, including no maintenance fees and mobile check deposits. Though I don’t personally use Capital One 360 for checking, The Simple Dollar has picked it as one of the best checking accounts for 2020. Why? Here are some of the main features:

  • No maintenance fees or minimums: You won’t need to keep a minimum balance or hook up direct deposit to avoid maintenance fees, like many other banks require.
  • No overdraft fees: At many banks, you’ll pay $30 or more every time your account is overdrawn.
  • Nationwide ATMs: You’ll get fee-free access to 38,000 Allpoint ATMs and 2,000 Capital One ATMs.
  • Free debit card: You’ll get a MasterCard debit card to make purchases. And as a bonus, there are no foreign transaction fees if you use it overseas.
  • Pay other individuals for free: You can easily send money directly to others’ bank accounts, even if they don’t also bank with Capital One 360.
  • Mobile check deposit: Depositing funds is as simple as snapping a picture with your phone using the CheckMate feature.
  • Free online bill pay: Use the bill pay center to keep up with bills online — no need to waste checks or stamps. If a bill ever arrives late because of Capital One 360, they will pay your penalty fees.
  • Earn interest on your balance: You’ll get 0.10% APY on all balances.

One of the biggest perks of Capital One 360 Checking is the lack of an overdraft fee. These fees top $30 at other banks and can add up fast. Instead, Capital One hooks up your checking account to an Overdraft Line of Credit of up to $1,000. You’ll simply pay interest on the amount you’re overdrawn only for as long as you’re overdrawn.

To get an idea of how much that can save you, here’s an example: If you slipped up and overdrew your account by $100 for just five days, you’d only pay about 15 cents in interest with Capital One 360 instead of a fee over $30 with another bank. That’s a big savings for anyone who has let their balance slip into the red from time to time.

On the downside, you’ll have to have a pretty substantial balance to earn anything more than 0.10% APY on this account, and there are competitors that offer better yields on checking. For instance, Ally will bump you up to 0.10%–0.25% depending on your balance, and Bank5Connect offers 0.20% on any balance over $100. If you’re like most people, you aren’t going to park a huge amount of money in a checking account. Still, the interest is a nice bonus.

I also want to mention the fees that I did see: $25 to stop payment, $20 to overnight a check, and up to $40 for domestic wire transfers. The first two fees are in line with national averages, but $40 for wire transfers is high — so take note if you think you may use wire transfers often.

You will also have to pay for checks with Capital One 360. The first checkbook is free, but after that, it’s $5 per book of 50 checks. It’s a trade-off I’ll gladly make for no account maintenance fees and the lack of overdraft gouging, but it’s still worth noting.

Capital One 360 Accounts for Children and Teens

Online banks will probably be even more common once your kids are grown, so Capital One 360 could be the perfect way to teach them about money.

  • Kids Savings Account: A lot of banks offer savings accounts aimed at teaching kids the value of a dollar, but most earn the paltry interest rates typical at brick-and-mortar institutions. Kids will earn 0.00% APY, but they will have access to tools including the automatic savings plan and My Savings Goals tracker. They get their own log-in to check their balance, but adults will have to transfer money to and from the account.
  • MONEY (teen checking): This checking account aimed at teens help them learn how to use a checking account and fully featured debit card, but adults can easily keep tabs on account activity. Teens have access to all of Capital One’s ATMs as well, but only adults can initiate online money transfers.

Getting Started with Capital One 360

Capital One has a clean, easy-to-use website, and opening an account is a fairly effortless affair. To open a savings or checking account, you’ll need to enter standard personal information: name, address, date of birth, and Social Security number.

You’ll also need to link your new account to an existing checking account for funding purposes. You simply enter your account number and bank’s routing number, all found on the bottom of your current checks. You’ll be asked to verify ownership of your external account by confirming one or two small deposits from Capital One 360. You can link up to three personal checking accounts to a Capital One 360 checking or savings account.

After you open a savings account, your funds will be held for 10 business days for security purposes. After that, all new deposits are held for five business days before they’re available for withdrawal. Checking account deposits have a standard two-day hold; however, some types of deposits (such as direct deposit) are available sooner. You may have to wait up to five days to access all of a check deposit over $500, however.

Who Is Capital One 360 Best For?

You tend to rack up overdraft fees: If you’re in the habit of withdrawing more than you owe, you know that bank fees make that an expensive habit. Though you should still aim to better track your balance and avoid the situation entirely, Capital One 360’s Overdraft Line of Credit means you’re likely to pay just pennies in interest instead of over $30 in fees.

You’re looking for a lot of services in one spot: A lot of online-only banks focus only on checking and savings to the exclusion of other products, but you have a lot more to choose from with Capital One 360, like mortgages and investments. And 360’s parent bank, Capital One, provides easy access to other products such as auto loans and credit cards.

You’re not that tech-savvy but still wants to start banking online: Opening an account with Capital One 360 is very simple, and the online interface is very streamlined. Several cities now even have inviting brick-and-mortar Capital One 360 Cafes, where you can open an account or speak with an associate in person over a cup of Peet’s coffee.

You have a variety of savings goals and want an easy way to manage them: Capital One is great for savers with a lot of different goals. Because you can have up to 25 different accounts for free, it’s easy to keep your money in different buckets but still manage each account in one spot.

You like the idea of online banking, but lesser-known online banks make you nervous: Capital One 360 is an established brand with all the resources of a major bank, including its huge ATM network — that may mean peace of mind for some people.

Who Might Want to Skip Capital One 360?

While Capital One 360 should have a lot of appeal for the casual saver who wants a convenient venue for their online banking, there are still a few downsides. You may want to look elsewhere if:

You’re chasing the highest interest rate: While Capital One 360 offers solid interest rates that eclipse those offered by traditional brick-and-mortar banks, they aren’t the highest you’ll find online.

You need your money fast: This can be an issue with all online banks, but some online reviewers complain that Capital One 360’s hold times on check deposits are too long. Assuming you’re using mobile check deposit to put funds in your checking account, you’ll only get access to the first $200 of a check over $500 the next business day. You’ll have to wait five business days to access the remainder of the deposit. (Note that direct deposits, if available, are a good way around this, as you can get same-day access to those funds.) For savings accounts, you’ll wait five business days to access any deposit. Since I don’t expect to turn around and immediately access my savings, I’ve been OK with this delay, but I can understand why the checking holds would be frustrating.

You want 24/7 customer service: Disappointingly, Capital One 360 does not staff its call center around the clock. Many may not take issue with this, but it’s worth noting that several competitors do let you talk to a live person, even at 3 a.m.

Compare top bank accounts

Too long, didn’t read?

When it’s all said and done, Capital One 360 is a great option for anyone who wants the convenience of online banking, better-than-average interest rates, and no account maintenance fees. Capital One 360 has extended their current offer – sign up by 11/30 to earn up to $500 when you maintain a certain balance in your new account for 90 days.

If you’re not quite sold, you can check out more of The Simple Dollar’s banking recommendations in our guides to the best free checking accounts, best savings accounts, and best money market accounts to find the right home for your money.

Source: thesimpledollar.com

Posted on May 7, 2021

15 Best Bank Promotions of May 2021 (Get Up to $500 Cash)

So, you’re looking for a new bank account.

You’ve got several factors to consider — ATM access, interest rates, monthly fees, minimum balances, mobile app reviews, and more.

Another factor to consider: bank promotions. These are cash bonuses you can earn when opening a new checking or savings account with a bank or credit union during the promotion window, meeting any specific criteria and keeping the account open at least long enough to earn the extra cash.

While a savings or checking bonus shouldn’t be your top reason to choose a bank, don’t rule it out entirely. After all, wouldn’t it be nice to fund your shiny new account with some extra cash?

Many banks offer such sign-up bonuses, but often, these bonuses aren’t advertised, meaning finding the best bank account bonuses can be tricky. That’s why we did some digging for you and found some hefty cash offers.

Best Bank Promotions of May 2021

We’ve researched the best cash bonuses available this month so you don’t have to. Below, you’ll find our favorite checking and savings account bonuses.

Keep an eye on what it takes to qualify, as well as any limitations. Direct deposit and minimum balances are commonly factors in securing these bonuses. Also pay attention to any monthly fees the account might carry; over time, these could weigh out the actual cash bonus. Otherwise, happy bank bonus shopping!

1. Aspiration Account: $150

Bonus amount: $150

How to get the bonus: To earn your $150, here’s all you need to do: Open your Aspiration account and deposit at least $10. Aspiration will send you a debit card associated with the account. Use the Aspiration debit card to make at least $1,000 of cumulative transactions within the first 60 days of opening your account. There’s no need to spend extra money — just use your card to buy groceries and pay your utilities.

Where to sign up: Enter your email address here, and link your bank account.

When you’ll get the bonus: Allow up to 120 calendar days from account opening to receive the bonus; you must have completed the requirements within the first 60 days.

The fine print: With Aspiration, your money is FDIC insured and under a military-grade encryption. The account offers up to 1.00% APY on savings and allows fee-free withdrawals at more than 55,000 ATMs. There are no hidden fees with Aspiration (monthly fees are on a “Pay What is Fair” policy, and that can be zero every month!), and you’ll earn cash back when you spend at socially conscious businesses (up to 5%).

No offer expiration.

2. Aspiration Plus Account: $200

Bonus amount: $200

How to get the bonus: To earn your $200, here’s all you need to do: Open your Aspiration Plus account during signup or within the first 60 days of enrollment in the regular Aspiration Account. Deposit at least $10. Aspiration will send you a debit card associated with the account. Use the Aspiration debit card to make at least $1,000 of cumulative transactions within the first 60 days of opening your account. There’s no need to spend extra money — just use your card to buy groceries and pay your utilities.

Where to sign up: Enter your email address here, and link your bank account.

When you’ll get the bonus: Allow up to 120 calendar days from account opening to receive the bonus; you must have completed the requirements within the first 60 days.

The fine print: With Aspiration, your money is FDIC insured and under a military-grade encryption. The account offers up to 1.00% APY on savings and allows fee-free withdrawals at more than 55,000 ATMs. Unlike the typical Aspiration Account, there is a $15/month fee (or $12.50/month if you pay annually). However, you’ll earn more cash back when you spend at socially conscious businesses (up to 10%), get monthly out-of-network ATM reimbursement and receive carbon offsets for all gas purchases.

No offer expiration.

3. TD Bank Beyond Checking Account: $300

Bonus amount: $300

How to get the bonus: Open a new TD Beyond Checking account. You must receive a total of $2,500 or more via direct deposit within 60 days of opening your new account.

Where to sign up: Visit this TD Checking page. Click the orange “open account” button, and follow the instructions to open a TD Beyond Checking account.

When you’ll get the bonus: The $300 bonus will be deposited into your account within 140 days of opening.

The fine print: While this bonus offer sounds too good to be true, it is definitely attainable. However, only open the account if you regularly get sizable monthly deposits or can maintain a healthy minimum balance. That’s because the account charges a monthly maintenance fee, but TD will waive the fee if you receive monthly direct deposits of $5,000, keep a minimum daily balance of $2,500 or maintain a combined balance across all your TD bank accounts of a whopping $25,000.

TD fees—and the bank’s capacity for waiving them—extend to ATMs. You won’t face fees for making withdrawals at TD’s own ATMs, and it’ll reimburse all fees for withdrawing at non-TD ATMs as long as you keep your daily balance at $2,500 or more.

No offer expiration.

4. TD Bank Convenience Checking Account: $150

Bonus amount: $150

How to get the bonus: Open a new TD Convenience Checking account. You must receive a total of $500 or more via direct deposit within 60 days of opening your new account.

Where to sign up: Visit this TD Checking page. Click the orange “open account” button, and follow the instructions to open a TD Beyond Checking account.

When you’ll get the bonus: The $150 bonus will be deposited into your account within 140 days of opening.

The fine print: While this bonus offer sounds too good to be true, it is definitely attainable. Unlike the TD Bank Beyond Checking account, this checking account option is easier for financial beginners to manage. You only need to maintain a minimum balance of $100 to have the monthly maintenance fee waived. And if you are between the age of 17 and 23, there are no minimum balance requirements and no monthly maintenance fee.

However, the Convenience Checking account does not earn interest; the Beyond Checking account does.

No offer expiration.

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Carmen Mandato/ The Penny Hoarder

5. Bank of America Advantage Banking Account: $100

Bonus amount: $100

How to get the bonus: Open a new Bank of American Advantage Banking account online using the offer code DOC100CIS. You must then set up and receive two qualifying direct deposits, each totaling $250 or more, within 90 days of opening the new account. This offer is only available to new Bank of America personal checking account customers.

Where to sign up: Visit the offer page and use the offer code DOC100CIS when opening the account.

When you’ll get the bonus: Bank of America promises to “attempt” to deposit the bonus into the account within 60 days of satisfying all requirements. Though the “attempt” disclosure seems a little suspect, we could not find traces of reviews citing unpaid bonuses.

The fine print: A qualifying direct deposit means the direct deposit must be regular monthly income, whether through salary, pension or Social Security benefits. Deposits through wire transfer, apps like Venmo or ATM transfers will not qualify.

Advantage Banking accounts come in three varieties: SafeBalance, Plus and Relationship. All three carry monthly maintenance fees that can be waived:

  • To waive the SafeBalance monthly maintenance fee of $4.95, enroll in Preferred Rewards.
  • To waive the Plus monthly maintenance fee of $12, receive a qualifying minimum direct deposit, maintain minimum daily balance requirements or enroll in Preferred Rewards.
  • To waive the Relationship monthly maintenance fee of $25, maintain the minimum combined balance in all linked accounts or enroll in Preferred Rewards.

Offer expires June 30, 2021.

6. Associated Bank Access Checking Account: Up to $500

Bonus amount: Up to $500

How to get the bonus: Open a new Associated Access Checking account with a minimum deposit of $25 and receive direct deposits totaling at least $500 within 90 days of opening your account. Bonus values will vary based on the sum of the average daily balance of all Associated Bank deposit accounts from days 61 to 90:

  • Average daily balances of $1,000 to $4,999.99 will earn a $200 bonus.
  • Average daily balances of $5,000 to $9,999.999 will earn a $300 bonus.
  • Average daily balances of $10,000 or more will earn a $500 bonus.

Where to sign up: Visit this Associated Bank account sign-up page and select the appropriate account.

When you’ll get the bonus: You will receive the bonus as a deposit to your account within 120 days of account opening.

The fine print: Must be a new Associated Access Checking customer. If easy access to a physical branch is important to you, note that the bank has locations in Illinois, Minnesota and Wisconsin, but members have free access to MoneyPass ATMs nationwide. Account must remain open for a minimum of 12 months; if you close it early, Associated Bank reserves the right to deduct the paid out bonus before account closure.

The account requires a minimum deposit of $25, charges $4 a month if you require paper statements and does not earn interest.

Offer expires May 31, 2021.

7. Associated Bank Balanced Checking Account: Up to $500

Bonus amount: Up to $500

How to get the bonus: Open a new Associated Balanced Checking account with a minimum deposit of $100 and receive direct deposits totaling at least $500 within 90 days of opening your account. Bonus values will vary based on the sum of the average daily balance of all Associated Bank deposit accounts from days 61 to 90:

  • Average daily balances of $1,000 to $4,999.99 will earn a $200 bonus.
  • Average daily balances of $5,000 to $9,999.999 will earn a $300 bonus.
  • Average daily balances of $10,000 or more will earn a $500 bonus.

Where to sign up: Visit this Associated Bank account sign-up page and select the appropriate account.

When you’ll get the bonus: You will receive the bonus as a deposit to your account within 120 days of account opening.

The fine print: Must be a new Associated Balanced Checking customer. If easy access to a physical branch is important to you, note that the bank has locations in Illinois, Minnesota and Wisconsin, but members have free access to MoneyPass ATMs nationwide. Account must remain open for a minimum of 12 months; if you close it early, Associated Bank reserves the right to deduct the paid out bonus before account closure.

The account requires a minimum deposit of $100 and does not earn interest.

Offer expires May 31, 2021.

8. Associated Bank Choice Checking Account: Up to $500

Bonus amount: Up to $500

How to get the bonus: Open a new Associated Choice Checking account with a minimum deposit of $100 and receive direct deposits totaling at least $500 within 90 days of opening your account. Bonus values will vary based on the sum of the average daily balance of all Associated Bank deposit accounts from days 61 to 90:

  • Average daily balances of $1,000 to $4,999.99 will earn a $200 bonus.
  • Average daily balances of $5,000 to $9,999.999 will earn a $300 bonus.
  • Average daily balances of $10,000 or more will earn a $500 bonus.

Where to sign up: Visit this Associated Bank account sign-up page and select the appropriate account.

When you’ll get the bonus: You will receive the bonus as a deposit to your account within 120 days of account opening.

The fine print: Must be a new Associated Choice Checking customer. If easy access to a physical branch is important to you, note that the bank has locations in Illinois, Minnesota and Wisconsin, but members have free access to MoneyPass ATMs nationwide. Account must remain open for a minimum of 12 months; if you close it early, Associated Bank reserves the right to deduct the paid out bonus before account closure.

The account requires a minimum deposit of $100. This account is the only Associated option that earns interest and offers complimentary checks.

Offer expires May 31, 2021.

9. Citizens Bank Student Checking Account: Up to $400

Bonus amount: Up to $400

How to get the bonus: Open a new Student Checking account with Citizens Bank. Receive a direct deposit of $500 or more within the first 60 days to earn a $300 bonus.

Earn an additional $2 for every debit card purchase you make within the first 60 days, up to $100 total rewards (50 purchases).

Where to sign up: Visit this promotional page for Citizens Bank and choose “Open Your Account” button for the Student Checking account. The promotion only applies when opening the account via this page.

When you’ll get the bonus: If you open the account this month (May 2021), your bonus will be paid by September 30, 2021.

The fine print: Cannot have had a Citizens Bank account in the six months prior. Qualifying debit card transactions must be in person, on an app or on a merchant site; online bill payments and ATM payments do not qualify. While the account advertises a $0 monthly maintenance fee, you must be under 25 for this to apply. This account does not offer an APY.

Offer expires May 13, 2021.

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10. Citizens Bank One Deposit Checking from Citizens: Up to $400

Bonus amount: Up to $400

How to get the bonus: Open a new One Deposit Checking from Citizens. Receive a direct deposit of $500 or more within the first 60 days to earn a $300 bonus.

Earn an additional $2 for every debit card purchase you make within the first 60 days, up to $100 total rewards (50 purchases).

Where to sign up: Visit this promotional page for Citizens Bank and choose “Open Your Account” button for One Deposit Checking from Citizens. The promotion only applies when opening the account via this page.

When you’ll get the bonus: If you open the account this month (May 2021), your bonus will be paid by September 30, 2021.

The fine print: Cannot have had a Citizens Bank account in the six months prior. Qualifying debit card transactions must be in person, on an app or on a merchant site; online bill payments and ATM payments do not qualify. There is a monthly maintenance fee of $9.99; to waive it, make one deposit each statement period. This account does not offer an APY.

Offer expires May 13, 2021.

11. Citizens Bank Platinum Checking: Up to $400

Bonus amount: Up to $400

How to get the bonus: Open a new Citizens Platinum Checking account. Receive a direct deposit of $500 or more within the first 60 days to earn a $300 bonus.

Earn an additional $2 for every debit card purchase you make within the first 60 days, up to $100 total rewards (50 purchases).

Where to sign up: Visit this promotional page for Citizens Bank and choose “Open Your Account” button for the Platinum Checking account. The promotion only applies when opening the account via this page.

When you’ll get the bonus: If you open the account this month (May 2021), your bonus will be paid by September 30, 2021.

The fine print: Cannot have had a Citizens Bank account in the six months prior. Qualifying debit card transactions must be in person, on an app or on a merchant site; online bill payments and ATM payments do not qualify. There is a monthly maintenance fee of $25; to waive it, you must have a combined monthly balance (across all Citizens deposit and investment accounts) of $25,000 or more. This account offers an APY with a variable rate, but it is quite low compared to typical online bank APYs.

Offer expires May 13, 2021.

12. Citizens Bank Platinum Plus Checking: Up to $400

Bonus amount: Up to $400

How to get the bonus: Open a new Citizens Platinum Plus Checking account. Receive a direct deposit of $500 or more within the first 60 days to earn a $300 bonus.

Earn an additional $2 for every debit card purchase you make within the first 60 days, up to $100 total rewards (50 purchases).

Where to sign up: Visit this promotional page for Citizens Bank and choose “Open Your Account” button for the Platinum Plus Checking account. The promotion only applies when opening the account via this page.

When you’ll get the bonus: If you open the account this month (May 2021), your bonus will be paid by September 30, 2021.

The fine print: Cannot have had a Citizens Bank account in the six months prior. Qualifying debit card transactions must be in person, on an app or on a merchant site; online bill payments and ATM payments do not qualify. There is a monthly maintenance fee of $25; to waive it, you must have a combined monthly balance (across all Citizens deposit and investment accounts) of $25,000 or more and make a deposit of at least $5,000 in your checking account each statement period OR maintain an average daily balance in the checking account of $10,000 or more. This account offers an APY with a variable rate, but it is quite low compared to typical online bank APYs.

Offer expires May 13, 2021.

13. PNC Virtual Wallet Account: $50

Bonus amount: $50

How to get the bonus: Open a new PNC Virtual Wallet account online or in a branch. Receive qualifying direct deposits of $500 within the first 60 days.

Where to sign up: Visit this promotional page for PNC and choose “Apply Now” for the Virtual Wallet account (either with Spend, Reserve and Growth or just Spend).

When you’ll get the bonus: After meeting the bonus criteria, you will receive the bonus (labeled “Cash Trans Promo Reward” on your monthly statement) within 60 to 90 days.

The fine print: Cannot have a current PNC account or have closed an account within the previous 90 days. Qualifying direct deposits include paychecks, Social Security, pension or other recurring monthly income that is electronically deposited by your employer or an outside agency into your account. The account carries a $7 monthly service charge that can be waived if 1) you have $500 or more in monthly direct deposits in the associated Spend account, 2) you maintain $500 or more between associated Spend and Reserve accounts, or 3) are 62 or older. This account does not earn interest.

Offer expires June 30, 2021.

14. PNC Virtual Wallet with Performance Spend Account: $200

Bonus amount: $200

How to get the bonus: Open a new PNC Virtual Wallet with a Performance Spend account online or in a branch. Receive qualifying direct deposits of $2,000 within the first 60 days.

Where to sign up: Visit this promotional page for PNC and choose “Apply Now” for the Virtual Wallet with Performance Spend account (either with Spend, Reserve and Growth or just Spend).

When you’ll get the bonus: After meeting the bonus criteria, you will receive the bonus (labeled “Cash Trans Promo Reward” on your monthly statement) within 60 to 90 days.

The fine print: Cannot have a current PNC account or have closed an account within the previous 90 days. Qualifying direct deposits include paychecks, Social Security, pension or other recurring monthly income that is electronically deposited by your employer or an outside agency into your account. The account carries a $15 monthly service charge that can be waived if 1) you have $2,000 or more in monthly direct deposits in the associated Spend account, 2) you maintain $2,000 or more between associated Spend and Reserve accounts, or 3) have at least $10,000 across all consumer PNC accounts.

Offer expires June 30, 2021.

15. PNC Virtual Wallet with Performance Select Account: $300

Bonus amount: $300

How to get the bonus: Open a new PNC Virtual Wallet with Performance Select account online or in a branch. Make qualifying direct deposits of $5,000 within the first 60 days.

Where to sign up: Visit this promotional page for PNC and choose “Apply Now” for the Virtual Wallet with Performance Select account (either with Spend, Reserve and Growth or just Spend).

When you’ll get the bonus: After meeting the bonus criteria, you will receive the bonus (labeled “Cash Trans Promo Reward” on your monthly statement) within 60 to 90 days.

The fine print: Cannot have a current PNC account or have closed an account within the previous 90 days. Qualifying direct deposits include paychecks, Social Security, pension or other recurring monthly income that is electronically deposited by your employer or an outside agency into your account. The account carries a $25 monthly service charge that can be waived if 1) you have $5,000 or more in monthly direct deposits in the associated Spend account, 2) you maintain $5,000 or more between associated Spend and Reserve accounts, or 3) have at least $25,000 across all consumer PNC accounts.

Offer expires June 30, 2021.

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How to Search for Bank Bonuses on Your Own

In the spirit of not listing approximately 193 bank promotions, we kept this list short and sweet — only highlighting the best bank promotions for checking and savings accounts.

But maybe you’re interested in banking with your local credit union, opening up a small business checking account or finding the perfect investment account? There are often bonus offers attached to these account openings, too.

The banks don’t always make finding these promotions easy, so here are a few tips to help you get your hands on that cash bonus.

  • Check the bank’s website first. Sometimes it’ll advertise its promotions right there. This is rare, but it’s worth a quick check — it could save you a ton of time.
  • If you don’t have any luck, reach out to the bank’s customer service team through phone, email or chat. Let them know you’re shopping for a new account, and you’d like to know if it’s running any promotions. More often than not, the nice representative will send you a special link.
  • If this doesn’t work, turn to your trusty friend Google. Look for the best bank account bonuses. Because you’ll likely dig up some offers from third-party sites, you’ll want to take a few minutes to make sure the offer:
  • Hasn’t expired.
  • Is legitimate. Make sure the bank is FDIC-insured and has a positive Better Business Bureau rating. You can even read some online reviews.
  • Doesn’t require outrageous qualifying activities. For example, it might not be realistic for you to maintain an average daily balance of $50,000 and carry out 60 qualifying debit card purchases or receive five direct deposits before the end of your first 30-day statement cycle.
  • You can also reach out to your family, friends and social network to crowdsource bank recommendations. Sometimes banks have impressive referral programs, so both you and your friend could benefit from you signing up.

Overall, be smart. Don’t let that promise of an account bonus blind you. Also, read the fine print so you don’t get stuck paying high monthly fees, interest rates or closing penalties.

Will Opening a Bank Account Hurt Your Credit Score?

If you’re worried that opening a new bank account or closing an old one will hurt your credit score, don’t be. Your bank accounts are not included in your credit report and therefore have no effect on your credit score, unless you have an outstanding negative balance that the bank turns over to a collection agency.

Sometimes when you go to open a new bank account, banks will do a soft credit check. However, that won’t affect your credit score.

Now, go enjoy your fresh new bank account and that nice cash bonus you’re about to pocket. Add it to your savings account, put it toward student loan payments or, heck, treat yourself!

Editorial Disclosure: This content is not provided by the bank advertiser. Opinions expressed here are the author’s alone, not those of the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.

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Posted on May 7, 2021

Ally Bank Review | The Simple Dollar

As traditional banks struggle with customer frustration over hidden fees and insultingly low interest rates, Ally Bank has positioned itself as the antidote to these problems.

Savings APY

0.50%

1Y CD Rate

0.55%

J.D. Power Rating

853/1,000

SimpleScore

4.2 / 5.0

SimpleScore Ally Bank 4.2

Savings APY 5

1Y CD APY 5

Customer Satisfaction 4

Mobile App 3

Products 4

By and large, it has succeeded, becoming one of the best all-around options for online banking today and The Simple Dollar’s pick for the best all-around savings account for 2018.

Ally, previously known as GMAC Bank, launched in 2009. It was rebranded after parent company GMAC — the financial arm of General Motors — received billions in bailout money from the U.S. government during the subprime mortgage crisis.

Despite its rocky beginnings, Ally Bank has grown and flourished. It now has more than a million customers, likely due to its appealing blend of competitive interest rates and low, clearly disclosed fees.

In this article

Ally Bank at a Glance

If you’re just looking for basic checking or savings products, Ally has a particularly strong lineup. Here are the products and services you’ll find:

  • Savings: Ally offers two main options: an online savings account and a money market account.
  • Checking: There’s just one checking option, but it’s a good one: no-fee interest checking.
  • CDs: Choose from three account options: the High-Yield CD, with seven terms ranging from three months to five years; the Raise Your Rate CD, with a two- or four-year term; or the 11-month No Penalty CD.
  • IRA savings and CDs: Ally offers an IRA online savings account, or you can choose an IRA High-Yield CD or an IRA Raise Your Rate CD.
  • IRA plans: Traditional, Roth, and SEP IRAs are available, too.

Ally also has a sizeable auto loans business, but you can’t apply for financing online — it’s only available at select dealers, including GM, Chrysler, and Maserati. It also has a business financing division, but only for sizeable transactions of more than $15 million. There are no mortgages, personal loans, business checking or savings accounts, credit cards, or non-IRA investment accounts.

Just like any reputable bank, your deposits with Ally are insured up to Federal Deposit Insurance Corporation limits. Firewalls, SSL data encryption, and multi-factor authentication are among the security measures that keep your data safe while banking online. Ally also offers free Webroot anti-virus software to its customers — a nice touch.

Ally Online Savings

Ally’s Online Savings account is one of the best options in the industry when you consider the high interest rate and lack of fees. In fact, it’s such a strong option that The Simple Dollar named it the best all-around savings account for 2018. Here are the main account features:

  • No minimum deposit: You don’t need any certain amount to open your account, unlike some other banks that will require an initial deposit of $250, $500, or even $1,000 or more.
  • No account maintenance fees: You also won’t pay a monthly fee to keep your account open, regardless of your balance.
  • A very high interest rate: Your deposits will earn 0.50% APY currently.
  • Mobile check deposit: It’s as simple as snapping a photo of a check with your smartphone using Ally eCheck Deposit.
  • 24/7 account access and customer service: Get the convenience of online banking or connect with a customer service agent regardless of the time.
  • Simple transfers: Move your money easily by scheduling transfers up to a year in advance, and link up to 20 external accounts to your Ally account.

The major benefit with Ally’s Online Savings is the interest rate, which is compounded daily. At 0.50% APY, it’s one of the most competitive rates in online banking. While this kind of interest certainly isn’t going to make you rich, it’s a lot better than the 0.01% (effective as of 10/14/2019. Interest rates are variable and subject to change) APY you might receive with Chase Savings℠, Bank of America, or another major brick-and-mortar bank.

Another big benefit is the generous number of external accounts you’re allowed to link up: 20. It’s common for other banks to limit you to three linked accounts, so this could be a big advantage for anyone who wants to move money between several accounts. You can also open, nickname, and link multiple savings accounts all in one go if you want to maintain separate accounts for separate savings goals.

Ally is also impressively clear about its fees. As I mentioned above, you won’t pay for monthly account maintenance. You also won’t pay for unlimited deposits, transfers to non-Ally accounts, incoming wires, online statements, postage-paid deposit envelopes, or cashier’s checks. (There are still some fees to note, but they are reasonable — they include $9 for overdrafts, $10 for excessive transactions, and $20 for outgoing wires.)

As for cons, there aren’t many. But if you’re used to depositing cash, that won’t be an option for you with Ally.

Ally Money Market Account

Ally also offers an outstanding money market account with a lot of the same features as its online savings account. For instance, there is no minimum deposit, there are no monthly maintenance fees, and you still have the option of mobile check deposits.

The major difference is that you’ll be getting a slightly lower interest rate, currently 0.50%, in exchange for a couple of nice conveniences. With the money market account, you’ll get a debit card and checks. And you can use your debit card at any ATM nationwide without paying steep fees: Ally won’t charge you, and it will reimburse any fees that other banks charge for using their ATMs.

Ally Interest Checking

Ally’s Interest Checking account is also a great all-around option, and ranks among The Simple Dollar’s best free checking accounts. Here are the highlights:

  • No maintenance fees or minimums: Some banks charge monthly maintenance fees or require you to have a certain balance to avoid them. Not so with Ally.
  • No ATM fees: Ally doesn’t charge you for ATM withdrawals, and it will reimburse you at the end of the month for any fees that other banks charge.
  • Mobile check deposit: It’s as simple as snapping a photo of a check with your smartphone using Ally eCheck Deposit.
  • Easy to pay other individuals: With the Popmoney feature, you can easily send money to anyone else who has a bank account as long as you know their email address or cell phone number.
  • Earn interest on your balance: Ally’s Interest Checking earns 0.10%–0.25%.

One of the biggest benefits of Ally’s Interest Checking is the lack of ATM fees. Considering you can expect to pay an average of $4.35 every time you get money from an out-of-network ATM, not having to plan ahead to avoid fees is a nice convenience.

Of course, the absence of monthly maintenance fees and minimums is also appreciated — my own bank requires me to keep a pretty substantial balance to avoid shelling out $11 each month. Checks are free with Ally, too.

There are still other fees, including 1% for foreign transactions, $9 for overdrafts, $15 to stop payment, and $20 for outgoing wires. These fees are a good bit lower than industry averages, but note that if you travel abroad frequently or are concerned about overdraft fees, Capital One 360 doesn’t charge either one. (Note that you can protect yourself from overdraft fees by linking an Ally savings or money market account to your checking. Ally will pull money from the linked accounts in $100 increments to cover the overdraft, but you obviously have to have the funds in the linked account to avoid fees.)

There are also some better options out there if you’re looking for the best interest rate in a checking account. For instance, Bank5Connect offers 0.20% APY on any balance over $100, and FNBO Direct offers 0.25% with no minimum balance. However, since it doesn’t make much sense to think of a checking account as a long-term place to grow your money, I don’t consider this a major con.

Ally Certificates of Deposit

None of Ally’s CDs require a minimum deposit to open, which is a rare benefit. Interest is compounded daily. Ally also offers a 10-day Best Rate Guarantee on its CDs, which ensures you can snag the best rate Ally has within 10 days of opening or renewing your account. Here’s a rundown of your CD choices with Ally:

  • High-Yield CD: This type of CD gives you the most flexibility on term: Go as short as three months or as long as five years. Of course, the shorter the term, the lower your interest rate, but a 12-month CD currently earns 0.55% APY. This CD is available for Ally IRAs.
  • Raise Your Rate CD: You’ll only be able to choose a two- or four-year term with this option. However, you get the chance to bump up your rate (once for a two-year CD, twice for a four-year CD) if Ally’s rates go up after you’ve funded your CD. This is also available for Ally IRAs.
  • No Penalty CD: If the prospect of early-withdrawal fees is keeping you from opening a CD, Ally’s No Penalty CD lets you skip them entirely. The convenience means you’ll be getting a lower rate, and there is only one term available (11 months).

Getting Started with Ally

Ally has a streamlined, easy-to-understand website, and opening an account is easy. In fact, you can open multiple account types at once, even linking a newly opened checking and savings account for overdraft transfer service right away.

If you prefer, you can also open an account over the phone or by mailing in an application. Online chat is available if you have any quick questions during account opening.

Online, all you’ll need to enter is your name, date of birth, Social Security number, email address, mailing address, and phone number. You’ll be able to fund your new account right away if you link a non-Ally account and transfer money electronically (you will have to verify ownership of the account). You can also mail a check, use mobile deposit to submit a check, or set up a wire transfer.

For savings and checking accounts, direct deposits are available the same day. You’ll wait up to three business days for transfers you request from linked non-Ally accounts. For most check deposits, you’ll have access to $200 within one business day and $4,800 in two business days. Any amounts over $5,000 won’t be available until the fifth business day. Ally may apply five-day holds for customers who’ve had a history of overdrafts.

Who is Ally Best For?

Ally is going to be one of your strongest overall options for online banking, but there are a few scenarios where it should definitely be your first choice:

  • You want the best combination of high interest rates, low fees, and no minimums: Ally is very near the top of the heap on interest rates across the board. Of course, nothing is stopping you from chasing the very highest rate you can find, but the trade-off for that rate is often higher fees and high account minimums. If you’ve got a lot of money to stash, that might not be a concern, but for the average Joe, it’s a good compromise.
  • You prize transparency: Ally is by far the clearest about fees of any of the banks I’ve researched, whether online or brick and mortar. Each product has a “Straight Talk Product Guide” that lays out everything you need to know about fees as well as important details such as when your money will be available.
  • You want to bank online, but you don’t want to skimp on customer service: Ally has 24/7 customer service, and the time you’ll wait to speak to a representative is disclosed at the top of the website (it was never more than a few minutes each time I visited). If phone calls aren’t your thing, you can still email a representative, search a comprehensive set of FAQs, or start an online chat session.

Who Might Want to Skip Ally?

Of course, there are also a couple of situations where Ally might fall short:

  • You want a one-stop shop: If you prefer to keep most or all of your financial dealings with one bank, Ally might not be the best option for you. It lacks several relatively common products, including mortgages, small-business accounts, and brokerage accounts. If this kind of variety is important to you, you’ll probably need a brick-and-mortar bank; if you want to stay with an online bank, Capital One 360 would be worth a look.
  • You want to build a personal relationship with a bank: For all of its plusses, there is one thing Ally (and all online-only banks) can’t offer: the chance for you to be more than a number. While its customer service availability is as good as it gets for an online bank, some customers may find comfort in the facetime they can get at their community bank branch. These relationships may come in handy when you’re in a bind, and one common customer complaint about online banks is that problems can take a long time to get resolved.
  • You need your money fast: Funds availability may be the Achilles heel of all online banks. While Ally isn’t the slowest online bank when it comes to transferring your money and making deposits available, it still generates plenty of complaints from customers who say holds were extended beyond what was promised, sometimes without explanation.

Ready to Bank With Ally?

Ally’s well-rounded personal account offerings should satisfy most of your everyday needs. The savings and checking options are particularly strong, or you can nab some of the benefits of both with a money market account.

If you want to read up on your other options, take a look at The Simple Dollar’s other banking recommendations in our guides to the best free checking accounts, best savings accounts, and best money market accounts.

Compare top bank accounts

Source: thesimpledollar.com

Posted on May 6, 2021

The 6 Best High-Interest Checking Accounts for May 2021

You’ve probably always thought that if you want to earn interest on your money, you move it to a savings account. Your checking account is just for paying bills and the like, right? Not anymore.

With the rise of online banks that don’t have the overhead of brick-and-mortar locations, the competition for your checking dollars has gotten fierce. One of the big benefits of this battle is that many banks are now offering interest-yielding checking accounts. And while you may not rake in giant interest rates, you can definitely earn a little something on that money — and why wouldn’t you?

How We Picked the 6 Best Checking Accounts That Pay Interest

Our methodology for this list is simple: According to the FDIC, the average interest rate for interest-bearing checking accounts is currently 0.03%. So, we looked for accounts that came in around that range or higher. (Note: APR fluctuates over time, so a lower rate now could rise in the future.)Beyond the interest rate, we looked at what else the account brings to the table. We gave preference to those accounts that don’t have maintenance fees or high minimum balances and that offer ATM fee reimbursement.

The 6 Best High-Interest Checking Accounts for May 2021

Here are the six best high-interest checking accounts where you can use your money and make a little money at the same time.

1. SoFi

One of the highest interest rates we’ve found for an online checking account is from SoFi Money. That checking account earns you 0.25% APY, or annual percentage yield, which is percent in interest (including compound interest) you’ll earn on your money in a year.

SoFi Money takes a number of steps to make the transition to online banking easy:

  • ATMs: With automatic reimbursement of ATM fees, you can use just about any ATM anywhere for free.
  • Overdraft Protection: This feature is new. SoFi Money members who meet certain criteria and accidentally spend more than they have in their account will be covered up to $50 with no fees.
  • Website: SoFi’s website and mobile apps have detailed FAQs, and they make it simple and easy for you to find any information you want.

Read our full Sofi Money review.

2. NBKC Personal Checking

The NBKC Personal Checking Account offers 0.25% interest on all balances and has no minimum balance requirement. It also features $0 overdraft and non-sufficient funds charges, so if you tend to overextend your money, you won’t get dinged.

Do you use ATMs? NBKC Personal Checking also offers up to $12 monthly to refund those pesky ATM fees.

3. Memory Bank

You may not have heard of Memory Bank. Or maybe you did and you just forgot. (Get it?) Anyhoo, Memory Bank’s EarnMore Checking Account is another option for a high-interest checking account with 0.02% APY.

Memory Bank is a great choice for those of us who like the perks of online banking, but also want to know that we can get personal service when we need it. They offer live support by phone, email or online chat. That can be a great benefit when you just need to ask a quick question, but don’t want to get stuck on an automated phone system for an hour.

4. Capital One 360

The real beauty of the Capital One 360 Checking Account is the pure ease of its online banking setup. Both the website and the app are remarkably intuitive. Plus, you won’t have any minimum balance or fees to deal with.

The base APY right now for the Capital One 360 is 0.1%, which is a respectable three times the national average.

5. Charles Schwab

OK, when you think Charles Schwab, you probably don’t think about checking accounts. That could change. Its High Yield Investor Checking is a free account that earns 0.03% APY on your balance.

It also features unlimited ATM fee rebates worldwide. That’s pretty cool if you travel a lot.

This account has no minimum balance, no minimum opening deposit and no maintenance fees.

There is one catch: You need to have a Schwab One brokerage account linked to your checking to avoid maintenance fees. It may not be for everybody, but if you already invest, why not take advantage of it?

6. Ally Interest Checking Account

As the name suggests, you’ll earn interest with the Ally Interest Checking Account. For balances under $15,000, you’ll earn 0.1%, which isn’t all that remarkable.

But, if you tend to have $15,000 or more on hand, you can earn 0.25%. While 0.25% may not seem like much, that’s about eight times the national average for checking accounts that pay interest.

Ally’s Interest Checking really makes its mark with the other perks. The account has:

  • No maintenance fees.
  • No minimum balance requirement.
  • No minimum opening deposit.
  • Easy online access.

Another nice perk is that Ally will reimburse you for up to $10 worth of ATM fees charged by other banks per statement cycle.

Pro Tip

Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.

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How to Choose a High-Interest Checking Account

If you’re thinking about moving to a high-interest checking account, take a few things into consideration.

  • Look for accounts that won’t negate those interest earnings by charging you fees. However, if you will carry a high balance, it may be worth paying a small fee to get a better interest rate. Do the math.
  • Keep an eye on minimum balance requirements. We focused on accounts that don’t require a minimum balance, but if you know that you’ll consistently have at least $1,000 in your account at all times, you may want to shop around a bit more. There may be a great deal out there.
  • Look at the requirements. Maybe you don’t use your debit card that much or you don’t want to have direct deposit. Choose an account that fits with the way you like to use your account.
  • Keep ATMs in mind if you use them. It’s 2021, and you shouldn’t have to pay those fees. There are too many banks that are willing to cover those for you.
  • The app. If you do a lot of banking on your phone, make sure the bank you choose has a solid banking app. Once you find the checking account that checks all the right boxes for you and how you like to use your account, sign up and start earning money on your money already.

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Source: thepennyhoarder.com

Posted on May 6, 2021

Capital One 360 Review: Savings, Checking, and CDs

Many people like the idea of online banking but are nervous about banking with a lender they’ve never heard of. If this sounds like you, then Capital One 360 could be the right option for you.

Capital One 360 logo

Capital One 360 is the online arm of Capital One, a bank that is popular for its credit card options and auto loans. But, it’s also a good choice for anyone looking for solid online banking options. The bank offers free checking, savings, and CDS as well as a number of helpful online tools.

Plus, when you bank with Capital One you gain access to thousands of convenient, no-fee ATM locations. This guide will review the bank’s checking accounts, savings accounts, and CDs as well as how to get started.

Capital One 360 Checking

According to the FDIC, the average national interest rate for a checking account is 0.06%. Here is a breakdown of how Capital One pays out interest on its checking accounts:

  • $0 – $49,999.99 = 0.20%
  • $50,0000 – $99,999.99 = 0.75%
  • Over $100,000 = 1.00%

Not only are the interest rates competitive but Capital One 360 offers a variety of perks just for opening the account. There is no minimum deposit or minimum balance required to open the account and you receive free online and mobile checking. You will also receive a 360 Checking MasterCard® Debit Card which will arrive in 1-3 business days after you sign up for an account.

And unlike some online banks, a Capital One 360 checking account gives customers free access to over 39,000 Capital One and Allpoint ATMs. That means you get all the benefits of online banking but still have in-person access to your funds.

Plus, you can deposit checks and pay bills right from your phone. And Capital One has several overdraft protection plans to choose from.

Apply for Capital One 360 Checking

Savings Accounts

Capital One 360 offers a variety of savings products including a general savings account, money market account, IRA savings, and more. All of these accounts come with competitive interest rates, zero monthly fees, and flexible terms.

Savings

It’s hard to find a general savings account that offers anything better than average returns but Capital One 360 savings does just that. The rate is 1.90% APY, which is much better than the national average of 0.09%.

Similar to the checking account, you’ll receive online banking and can deposit checks right from your phone. And the bank account is FDIC-insured so you’ll have peace of mind knowing your money is secure.

You’ll also receive free account transfers, a goal-setting feature that will help you save and manage your money, and an automatic savings plan.

Apply for Capital One 360 Savings

Savings Accounts for Kids

If you’re looking for a way for your child to start saving money, the Capital One savings account for kids is a good choice. This online savings account comes with zero fees, a rate of 1.00% APY, and savings goals they can track.

You can link their savings account to yours and set up automatic transfers to their account. This is a great way to give kids some guided independence so they can learn how to start saving their money.

Apply for Capital One 360 Savings Account for Children

Certificates of Deposit (CDs)

Capital One knows that not everyone can leave their money on a CD for five years. That’s why the bank offers a variety of CD options with terms lengths starting at six months and ending at 60 months.

Here is an overview of the bank’s CD terms and rates:

  • 6 months = 0.60% APY
  • 9 months = 0.80% APY
  • 12 months = 2.40% APY
  • 18 months = 2.55% APY
  • 24 months = 2.20% APY
  • 30 months = 2.20% APY
  • 36 months = 2.25% APY
  • 48 months = 2.25% APY
  • 60 months = 2.30% APY

With general interest rates and zero market risk, a 360 CD is a good option for anyone that wants a hands-off option for saving money. But like most CDs, you will be penalized if you withdraw your money early. So if you think this is a possibility, you’re probably better off opening a 360 savings account.

Apply for a Capital One 360 CD

How to Get Started With Capital One 360

Capital One’s website is fairly easy to navigate and setting up a new account is just as easy. You will need to be able to provide standard information like your name, address, birth date, and Social Security Number.

You’ll also need to provide an existing checking account to link your Capital One account to. And if you open your new account, your funds may not be immediately available.

Summary

Capital One offers a variety of online checking accounts, savings accounts, and CDs for its customers. Capital One is a great option for anyone that wants to work with an established online bank that provides great customer service and convenient online banking.

The interest rates are much higher than what you’ll find with a traditional brick-and-mortar bank. And best of all, there are no account maintenance fees like you’ll find with traditional banks. You can apply online or contact Capital One to open a new account today.

Source: crediful.com

Posted on May 6, 2021

Chime Reviews for 2021 | Fee-Free Mobile Banking

If you’re looking for a way to eliminate needless monthly expenses, banking fees are a great place to start. They may seem harmless, but these small, monthly charges add up over time to a lot of wasted money.

Chime

In the past, consumers were pretty much at the mercy of their brick-and-mortar banks and didn’t have a lot of say when it comes to fees. But increasingly, mobile banking has become an attractive option for many consumers.

If you’re looking for a way to eliminate fees and switch to mobile/online banking, Chime could be a great option for you. In this Chime review, we will provide an overview of Chime so you can decide if it’s the best choice for you.

What is Chime and how does it work?

Chime is a financial technology company that works with FDIC-insured banking partners to offer checking and savings accounts. Chime often appeals to millennial consumers thanks to its simplified approach to banking.

When you sign up with Chime, you receive access to a free checking account, debit card, and savings account. When you add money to your account, it will initially be deposited into your checking account. You will likely use this account most often for daily expenses. You can transfer money to savings as needed.

You can also deposit cash into your Chime Spending Account at over 60,000 retail locations where Green Dot is available. Your deposits are FDIC insured up to $250,000 through Bancorp Bank.

Users have multiple ways to save their money with Chime. You have the option to set up automatic transfers to savings. Every time you get paid, Chime will automatically transfer a percentage of your paycheck over to your savings account. This can be a good option for individuals that have a hard time saving on their own.

What are Chime’s key features and services?

Before you sign up for a Chime account, it’s a good idea to know some of the account features and services you’ll be receiving. Here is an overview of Chime’s services, as well as the advantages and disadvantages of each.

Chime Checking

There is no minimum balance required to open an account with Chime, which is called a spending account. When you sign up, you’ll automatically receive access to a Visa debit card, which is tied to your Chime account.

They don’t offer paper checks, so if you need to write someone a check, you can do this through the Chime app. The check will be processed within three to nine business days. However, you can pay bills with their online bill pay feature.

Chime Savings Account

Chime also offers a high-yield savings account that you can apply for separately from the checking account. However, the interest rate is only 0.50% APY, which is very competitive right now.

Automatic Savings Program

Once you’re signed up for a savings account, you’ll receive instant access to their automatic savings feature. Every time you make a purchase with your debit card, Chime will round up the purchase amount to the nearest dollar. This money will automatically be added to your savings account.

Small numbers add up to big numbers over time, so this is a great way to slowly start building your savings account. And best of all, it will happen without you even having to think about it.

Early Direct Deposit

When you set up direct deposit, you’ll automatically be able to receive your funds up to two days early. As soon as Chime receives the direct deposit from your employer, it will post to your account. 

Mobile Support

Some people get nervous at the thought of not having a physical bank they can visit with questions and concerns. But Chime provides quite a bit of support through its mobile app, which is available on iOS and Android devices.

You can keep track of your spending, deposits, and withdrawals entirely through the mobile app. With the mobile app, you can quickly check your statement balance even when you’re on the go. You can also deposit paper checks by snapping a photo using mobile check deposit.

Customer Service

Chime’s simplified approach to banking can be a detriment when it comes to customer service. They offer customer service support, but it won’t be as extensive as what you’re used to with a brick-and-mortar bank.

If you think this might be an issue for you, you should probably consider going with a more traditional bank.

ATM Access

There will be times when you need to withdraw cash, which is why Chime provides access to over 38,000 fee-free ATMs nationwide. There is a $2.50 fee if you need to use an out-of-network ATM, which is the only fee Chime charges.

Does Chime charge any fees?

One of the most frustrating aspects of traditional banks is the multitude of fees they seem to stick you with. Chime offers a truly fee-free banking experience:

  • No overdraft fees or overdraft protection fees
  • No monthly account service fees
  • No ACH bank transfer fees
  • No card replacement fees
  • No foreign transaction fees
  • No ATM fees (in-network)

These fees may seem small, but they add up over time. If you pay monthly fees of $9.95 for a year, you’re spending over $119 a year just to do business with that bank. And if you regularly pay overdraft fees, the charges get even more ridiculous.

That’s why one of the biggest advantages of banking through Chime is that there are no fees. Chime doesn’t charge monthly maintenance fees, and you don’t have to worry about overdraft fees either. If a charge is submitted that would overdraw your account, Chime will simply reject the transaction.

Who is Chime best for?

Chime is a great option for anyone looking for an online-only checking account. If you’re looking for a fee-free banking option and ready to get rid of the hassle of brick-and-mortar banks, then this could be the right choice for you.

Also, Chime is on our list of top banks that don’t use ChexSystems, so if you have a troubled banking history, no worries, you can still get an account.

However, there are a few things you should keep in mind before signing up for a Chime bank account. The first thing you should consider is that you won’t have access to in-person support.

For some people, that may not seem like a big deal. But if there’s a problem with your account, you’re going to have to wait until you can get ahold of a customer service representative. And you’ll have to hope that person can take care of the issue over the phone.

And while direct deposits are simple and straightforward, depositing cash can be more tedious since there isn’t a physical location you can visit.

Chime Reviews

One of the best ways to find a great bank is by reading third-party reviews. You can discover what actual customers are saying about them before you choose to do business with them. The Better Business Bureau (BBB) currently gives Chime an ‘A+’.

You’ll be relieved to know that if you do some research, you will find many 4- and 5-star Chime reviews at several other customer review sites as well.

Summary

When it comes to managing your money, consumers have more options than ever. If you’re looking for an online-only banking solution, Chime might be an excellent option for you. It’s important to do your research first and figure out what features are non-negotiable for you.

While you will save a lot of money on fees, Chime doesn’t offer a great interest rate on its savings account. If you’re looking for a more robust APY, check out the Best High-Yield Savings Accounts Online.

Source: crediful.com

Posted on May 6, 2021

Ally Bank Savings Account | The Simple Dollar

Ally Bank offers a high yield online savings account with interest rates considerably higher compared to traditional banks.

Savings APY

0.50%

Min. Deposit

$0

J.D. Power Rating

5/5

SimpleScore

4.6 / 5.0

SimpleScore Ally Bank 4.6

Savings APY 3

Customer Satisfaction 5

Product Variety 5

Ally Bank is known for its Ally high yield savings options, with Ally savings account interest rates much higher than most physical banks. Ally Bank’s history dates back to 1919, when the company debuted as GMAC, a financing division of GM. In 2009, GMAC Bank transformed into Ally Bank, an online bank without physical branch locations. Its headquarters are in Sandy, Utah.

Ally Bank is a completely online bank with interest rates considerably higher compared to brick and mortar banks. While the Ally Bank savings rate is attractive, if you like having the option to meet with someone face to face with your bank, you won’t get that here.

Since Ally Bank doesn’t the overhead of physical locations, it puts those savings in bankers’ hands, making it one of the best savings accounts around. While the Ally savings rate is one of the highest available, people who want the option to go into their bank might not be completely sold on Ally Bank high yield savings accounts.

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Ally Bank at a glance

Bank Min Deposit Interest APY J.D. Power Survey Score Key Benefit
Ally Bank $0 1.00% 5/5 Comparatively higher interest rates

What we like about it

First, the high-yield savings rate is one of the best features of an Ally savings account. Compared to minimal savings interest rates of 0.01% to 0.04% at traditional banks, Ally savings interest rates are up to 10 times higher than that — which means 10 times the return on savings.

Ally Bank is digital-focused, so its online dashboards and mobile app are elegant, intuitive and easy to use. Customers can use nifty features like recurring transfers and buckets. The buckets feature allows users to add 10 “buckets” to their savings account, which are categories like emergencies, home, vacations and education. Users can then distribute a portion of their savings to each bucket, so they can visualize and work towards their savings goals for specific items.

Things to consider

Ally Bank savings rate amounts, like most banks’, will fluctuate depending on the market. Even though Ally Bank rates were at 1.7% in December 2019, for example, the rates experienced several drops because of the COVID-19 pandemic and fell 0.6% in just seven months. High rates now aren’t guaranteed in the future.

Furthermore, there are also no physical locations. Ally Bank customers are limited to interacting with bank representatives online or over the phone. For people who like their bank to have a place visit for help, Ally Bank doesn’t have that option.

What you need to know

You can open an Ally Bank savings account online or through the mobile app. When you designate an account to move money from into your Ally savings account, Ally Bank will do some refundable test withdrawals before transferring your money from your old account into the Ally Bank savings account.

There’s no minimum deposit to make, no monthly maintenance fees and no minimum balance requirements. Your money earns money with interest compounded daily. Interest savings are deposited into your savings account each month.

Once your Ally Bank savings account is open, you can set up buckets to organize your savings and deposit certain amounts towards items like home improvements and vet bills. You can also set up recurring transfers from another account.

You can also link a checking account to your Ally Bank savings account for “Surprise Savings,” which are small amounts moved from your checking account to your savings account so you amplify your savings. Ally Bank’s technology analyzes your spending patterns and will make transfers on your behalf based on what you wouldn’t normally spend from your checking account.

Ally Bank provides 24/7 customer support by phone, chat and email, both online and through the app.

Mobile app

You can access the mobile app via passcode or touch ID. You’re immediately greeted with a look at your total balance for all your Ally Bank accounts. In the app, you can organize buckets, set up recurring transactions and track a checking account for Surprise Savings.

You can also pay bills from the app, use the app to find ATMs and send or request money using the Zelle money transfer feature. The app also features a message center for Ally Bank messages and a customer service dashboard where you can call, chat or message Ally Bank directly from the app.

Fees and penalties

Ally Bank doesn’t charge for monthly maintenance, but it does have other fees. The returned deposit item fee is $7.50. There’s a $25 fee for an overdraft item paid or overdraft item returned. Excessive transactions that go over the six withdrawals a month limit cost $10 per transaction. There’s also an expedited delivery fee of $15, an outgoing domestic wires fee of $20 and an account research fee of $25 per hour.

Ally Bank vs. Vio Bank

Vio Bank is another online bank with a high yield savings account. As of June 12, 2020, the online savings account rate was 1.35% on all balances, which is considerably higher than Ally Bank’s. There’s no monthly maintenance fee with Vio Bank, but there is a $100 minimum requirement to open a Vio Bank savings account. Vio Bank also offers a free mobile app.

The excessive transaction fee with Vio Bank, like Ally Bank, is also $10 for going over six monthly transactions. The outgoing domestic wire transfer fee is higher than Ally Bank’s, at $30, and the returned deposit item is slightly lower at $7.

If you want to bank with an online savings account and can make the $100 minimum, Vio Bank’s higher APY might make more sense than going with Ally Bank’s.

Compare top bank accounts

Too long, didn’t read?

Whether you’re opening a new savings account or you already have a savings account, moving your money to a trusted savings account that has a high yield rate makes sense. Ally Bank is flexible, with no minimum deposit. The Ally savings rate is one of the highest available, but online bank options like Vio Bank could help you earn even more interest on your savings.

Source: thesimpledollar.com

Posted on May 5, 2021

Digit Review – A Great Tool to Automate Your Savings

I’m in favor of anything that makes it easier to add to my savings account balance, and Digit definitely fits that bill. It’s a free-to-join, automatic savings tool that ties into your checking account, uses a sophisticated algorithm to analyze your income and spending habits, and then makes regular transfers to your FDIC-insured Digit savings account and Digit investment accounts, typically every week or every few days.

What Is Digit?

You don’t have to direct or schedule your Digit transfers in any way. In fact, you don’t even know in advance how much Digit will transfer. With its automated, hands-off saving algorithm, pretty much all you have to do is sit back and watch your savings account balance grow over time. If you’re unsatisfied with the pace of Digit’s automatic withdrawals, you can tell it to save more or less with each withdrawal.

Digit isn’t the first online tool designed to simplify and incentivize savings. There are plenty of bank-run programs, such as Bank of America’s Keep the Change, which both allow for recurring checking-to-savings transfers and small, automatic savings deposits when you make a debit card purchase. And, of course, you can set up recurring checking-to-savings transfers at banks — including online banks such as Ally Bank and Capital One Bank — without formal savings incentive programs.

The difference is that Digit is the first completely automated savings app for iOS and Android. When it first launched, the Digit app was functionally unique, although it has since spawned imitators. Digit has added features over the years, including a handy new tool that analyzes your cash flow and tells you exactly how much you can safely spend every day, and now boasts taxable and tax-advantaged investment account options too.

Digit is free to join and use for 30 days. After that, it carries a $5 monthly fee. A 0.10% annualized yield — or “Savings Bonus,” in Digit’s parlance — offsets this monthly charge, although Digit only pays out once every three months. There’s no minimum balance required at any time and no minimums required to earn the interest rate.

All told, this savings app has some useful advantages over any other program, account, or service on the market, plus a few drawbacks that may hamper your experience.

How It Works

Here’s how Digit works. Below, we cover the sign-up process, basic account management practices, and procedures for transfers and withdrawals.

Sign-Up for New Users

To get started with Digit, you need to provide some basic personal information and contact details. You’ll then be asked to securely link your bank account with your new Digit account. You won’t need to provide your account number or routing number, and the link usually happens near-instantaneously.

Account Management and Automated Savings

Once you’re set up with your FDIC-insured Digit savings account, the app goes to work. It uses its proprietary algorithm to get a sense of your spending (debit transactions and ATM withdrawals), income (paychecks), and recurring obligations (monthly bills).

To get the most out of Digit, you should make sure that all important bills are included in your checking account’s bill pay system — or otherwise paid out of the tied checking account — so Digit’s algorithm can see them. The same goes for paychecks and other income sources. Digit doesn’t know what goes on outside the tied checking account, so you need to make sure it has as much information as possible.

Inbound Transfers

Based on your income, spending patterns, and obligations, Digit begins making transfers from your checking account to your savings account, the first typically coming within a week of sign-up. These transfers are entirely automated; you never have to set an amount or frequency. Digit’s algorithm only allows for transfers it thinks you can afford, so there’s little chance of an overdraft or cash crunch. After the first one, transfers usually happen every two or three days in relatively small amounts.

Bear in mind that you may not receive a notification of each withdrawal. However, if Digit determines at any point that you really don’t have the funds to save money right then, it simply stops making withdrawals until you can afford them again. In the meantime, Digit keeps a rolling tally of your discretionary income and tells you exactly how much you can safely spend on any given day.

Withdrawals

You can withdraw funds held in your Digit account whenever you wish, with no daily or monthly limit, and have the money in your checking account the following business day. You can also manually override Digit’s automatic transfer algorithm and make manual deposits into your Digit account at any point, provided you have enough money in your linked account to support the transfer.

Key Features

Here’s a closer look at some of Digit’s key features, including Digit’s investing and retirement platforms, Digit’s savings goals feature, and the Digit Pay bill payment feature.

Digit Investing

Digit’s investing feature allows you to put your money to work in the stock market without assuming unwise levels of risk or setting aside more than you can afford to lose. Like Digit’s savings tool, this feature automatically transfers funds that you can safely invest into a diversified portfolio that can grow over time. Digit takes the long view, looking for sustainable, long-term opportunities rather than short-term gains.

Digit Retirement

Digit’s retirement feature matches you with the right tax-advantaged investment account for your income level and automatically reserves a portion of your savings for your retirement goals. Once per month, Digit invests those savings in a diversified portfolio. With no account minimums or deposit requirements, it’s easy to kick-start your retirement planning with Digit.

Savings Goals

Digit lets you set savings goals for just about anything, from your next date night to a down payment on a house to an emergency fund for unexpected expenses or financial setbacks. Simply follow the prompts in the app.

Digit Pay

Digit Pay is a free bill pay service designed specifically to help you pay down credit card debt. You can activate it when you set a “credit card debt” savings goal in the app.

No Overdraft Guarantee

Because Digit’s algorithms are designed only to withdraw what you can afford, the likelihood of a checking overdraft due to a Digit withdrawal is low. However, should Digit ever cause an overdraft, the company guarantees reimbursement of any applicable fees.

Customer Support

You can contact Digit directly using the onsite ticketing system. Queries typically produce responses within one to two business days.

Advantages

Digit has some key advantages, including next-business-day transfers, set-it-and-forget-it automation, and unlimited savings withdrawals.

1. Next-Business-Day Transfers

If you need to withdraw from your Digit savings balance, you can have the funds in your checking account on the next business day. By comparison, transfers from savings accounts — especially from online banks such as Ally — to external accounts can take two or three business days. If you need funds fast, that can be an inconvenient time frame.

2. Set It and Forget It

Digit is unique among savings tools in that it’s completely automated. It measures your spending and income daily and uses a sophisticated algorithm to determine how much you can save without affecting your lifestyle. If you earn more and spend less, Digit automatically increases your savings. If you earn less and spend more, Digit automatically saves less.

As long as you’re satisfied with the amount you’re saving, you never have to manually transfer funds to your savings account, although you do have that option to fall back on. This setup is superior both to recurring bank transfers (which need to be manually adjusted to account for changes in income and spending) and budgeting tools such as Mint (which aren’t truly automated).

3. Unlimited Savings Withdrawals

You can make unlimited withdrawals from your Digit savings account — one per day if you like, or even multiple times per day. Savings accounts at traditional banks and credit unions, including those tied to a recurring savings plan, typically limit withdrawals to six per month. Tax-advantages savings accounts (IRAs) can be even more restrictive.

4. No Overdraft Fees

In the unlikely event that a Digit transfer results in an overdraft from your checking account, the company promises to pay any associated fees and charges. However, it doesn’t specify if there’s a limit to what it pays in this case. If your balance remains negative for many days on end, you could stretch the limits of this guarantee.

Regardless, you get no such protection from banks such as Capital One Bank, Ally, or brick-and-mortar institutions such as U.S. Bank. These charge daily or interest-based overdraft fees that can amount to $10, $20, $30, or more per day.

5. No Balance Requirements

Digit savings accounts don’t have balance requirements, allowing you to start off saving small amounts of money. That isn’t always true of comparable services offered by big banks such as U.S. Bank and Bank of America.

6. Earn a 0.10% Quarterly Savings Bonus

Digit savings accounts don’t accrue interest in the traditional sense, but they do have de facto yields: 0.10% APY, paid quarterly as a Savings Bonus. To qualify for each quarter’s Savings Bonus, you must maintain your Digit savings account for the entire three months prior. The bonus is annualized, meaning you earn 0.025% of the balance in your account at the end of each quarter.

Disadvantages

Digit’s downsides include a monthly maintenance fee and no transaction-based withdrawals.

1. $5 Monthly Maintenance Fee

Digit has a 30-day fee-free introductory period. Eventually, however, the bill comes due. After the intro period ends, you’re automatically charged $5 per month. When you’re just starting out and your balance is low, this charge is likely to swamp your Savings Bonus.

2. You Need to Give Your Bank Account Information to a Third Party

To work properly, Digit requires your external checking account number. That’s a problem if you’re bothered by the thought of providing sensitive financial information to yet another third party and thus increasing your risk of exposure to a data breach. Safer options include bank-run savings incentive programs with checking and savings accounts under the same roof.

3. No Option for Transaction-Based Withdrawals

Digit doesn’t let you tie automatic checking-savings transfers to a debit card transaction, which is another way to make easy savings deposits — sometimes multiple deposits per day — without dramatically reducing your checking account balance. Bank of America’s Keep the Change program lets you round up debit card purchases to the next dollar and deposit the difference in your savings account.

Final Word

According to CareerBuilder, nearly 80% of Americans live paycheck to paycheck. That means about 4 in 5 of us don’t save money at all. In that light, Digit’s couldn’t-be-easier savings automation tool is welcome news.

However, Digit isn’t a panacea. It only squirrels away funds on your behalf if you consistently demonstrate that you spend less than you earn. It can’t force you to rein in your spending habits or live within your means. For that, a strict personal budget and lifetime savings plan are still your best options.

Source: moneycrashers.com

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