Chase is offering a three-prong combo bonus for their Freedom Unlimited card and Total Checking account:
Chase Freedom Unlimited Credit Card: Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target or Walmart purchases) on up to $12,000 spent in the first year.
Chase Total Checking: As a new Chase checking customer, get $225 when you open a new Chase Total Checking account from this page and set up direct deposit within 90 days.
Get $100 for both Chase Total Checking and Chase Freedom Unlimited Credit Card. To get an extra $100 bonus, open a Chase Total Checking account from this page and set up direct deposit. AND, open a Chase Freedom Unlimited credit card within the promotional timeframe.
The Fine Print
Offer expires 10/4/21
For more details on Chase checking bonuses and avoiding fees, see previous posts on those bonuses
The $225 bonus and the $100 bonus will be reported on a form 1099-INT
Our Verdict
The Freedom Unlimited bonus is the standard online offer (though some can do better by using a referral link which gives your friend a bonus or by going in branch for an extra $50). The checking offer is lower than the top offers we’ve seen, such as this checking/savings $600 combo offer.
The current $525 offer makes sense for someone who is planning on signing up for the Freedom Unlimited card with the standard online bonus and who isn’t interested in doing Chase savings account offers. In that case, this bonus actually gives you a bit better than typically possible. We also haven’t seen any of the big Chase checking/savings bonuses lately.
A crisis is no time to wonder if your car payment is due.
But whether it’s a medical emergency, a job loss, a natural disaster or… let’s face it, some crisis we haven’t even imagined yet, it’s easy enough to lose track of the other priorities in our life — and that can add to our financial woes.
Staying in control of your finances is essential, particularly during a crisis. An overdraft fee here, a late payment there and suddenly your initial problem is compounded by a financial hit that can haunt you for years.
If knowledge is power, then setting yourself up to have all your financial information on hand could be the difference between a one-time disaster and a lasting financial catastrophe.
One way to start protecting your money: Use the digital apps for your banks and lenders.
How to Use Phone Apps to Protect Your Finances
Downloading apps from your various financial institutions can help you during a crisis, but only if you have access to everything you need. Here’s how to make it happen in 15 minutes.
1. Create a Comprehensive List
Start by compiling a list of monthly, quarterly and annual bills — and the companies to which you send payments. Don’t trust your analog brain to remember all of them.
Instead, take a few minutes to review your budget or your bank and credit card statements from the previous year to jog your memory on regular but non-monthly expenses, like your vehicle registration renewal or credit card membership fees.
Also list your banks and all of your credit cards — even the ones you don’t regularly use. In a crisis, you may need access to a credit line you don’t typically tap, and you’ll want to have that account information handy.
2. Download the Official Apps
Whether it’s your student loan servicer or your mortgage lender, using the company’s official app offers the benefit of providing you more immediate access to your information and to assistance during a crisis.
Most lenders have added easy-access buttons that let you apply for relief plans if you’re struggling to pay your bills. That small convenience saves you the step of searching the company’s website for a customer service number.
Pro Tip
Create logins and new passwords when you download the apps, keeping the info in a secure place. And don’t reuse passwords to mitigate the damage if a thief gains access to one of your accounts.
By downloading the app, you’ll also have easy access to your account information. That can be helpful if a crisis puts you in the hospital unexpectedly or forces you to evacuate suddenly and you need to contact a lender.
Saving those few minutes of stress by keeping the information handy could mean the difference between connecting with financial hardship assistance and letting bills go unpaid. Doing the latter could wreck your finances for long after the disaster passes.
3. Use App Features to Protect Your Money
If you haven’t set up automatic payments for monthly expenses like your mortgage and cell phone bill, do it before the next catastrophe hits. During an emergency, you don’t want the electricity turned off just because you forgot what day it is.
Additionally, you can set up spending alerts and limits for your bank accounts and credit cards, helping you avoid those nasty overdraft fees.
Pro Tip
If you’re trying to maintain social distancing guidelines, use the check deposit feature available on most bank and credit union apps to avoid visiting a physical location.
Review the apps for other features that you may not have considered, like the ability to check your credit score. If you check your score on a regular basis and it suddenly drops unexpectedly, you can track down the problem quickly.
Most major credit card apps also allow you to lock the account and replace your card if it’s lost or stolen amid the chaos of your current situation.
You may not be able to prevent a crisis, but you can control how you prepare for one so you and your money can survive intact.
Tiffany Wendeln Connors is a staff writer/editor at The Penny Hoarder. Read her bio and other work here, then catch her on Twitter @TiffanyWendeln.
SoFi is the brainchild of a few Stanford Business students who initially wanted to tackle the student loan debt issue in this country by making it easier for borrowers to refinance student loans.
Eventually, they expanded the company’s focus to include several financial products and services, including online banking through SoFi Money. Today, SoFi offers a lot of banking services with some great benefits. This SoFi review gives you everything you need to know about those banking options.
Our in-depth and honest review of SoFi Money will look at the product’s checking and savings features, and SoFi Money compares with other online bank accounts to help you determine whether it’s right for you.
In this review:
What Is SoFi Money?
SoFi Money is an online-only cash management account that works like a checking and savings account in one.
It charges no typical account fees, and it lets you earn cash-back rewards and competitive interest rates on your balance.
Pros
Here’s what we like about SoFi Money:
No minimum opening deposit.
No maintenance or minimum balance fees.
No overdraft fees.
Network of fee-free ATMS, plus out-of-network ATM fee reimbursement.
Slick app with a lot of features.
High interest rate at 0.25%.
Cons
Here’s what we don’t like about SoFi Money:
No cash deposits.
Restricting transaction limitations.
No business checking or savings options.
No SoFi ATMs or branches.
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Banking With SoFi: How We Rate It
SoFi offers what it calls a “cash management account,” an all-in-one solution for checking and savings that you can access and manage online or through the SoFi app.
Checking: SoFi Money Account
Grade: B
SoFi Money isn’t a traditional checking account. It’s an FDIC-insured cash management account that offers the everyday spending capabilities of a checking account and the interest-bearing benefit of a savings account.
Interest rates fluctuate with the market, but SoFi currently offers 0.25% APY, which is five times the national average of 0.03% APY for checking accounts reported by the FDIC.
To earn that rate, you have to deposit at least $500 per month into your SoFi Money account via transfer or direct deposit.
Unlike most checking accounts, SoFi Money comes with these transaction limits that could make it tough to use as your primary spending account:
Withdrawal limits: $1,000 per day total, $150 over-the-counter cash withdrawal.
Peer-to-peer transfers: $3,000 per month.
Point-of-sale (cash register) transactions: 12 per day.
Point-of-sale spend limit: $6,000 per day.
Still, your account gives you access to a debit card and gives you the option to order checks. Individual and joint accounts are available, which is rare among online banking accounts.
To open a SoFi Money account:
Become a SoFi member by creating an account online or through the app with your email address.
Open a Money account through your dashboard. You’ll need to enter your mailing address, phone number, birth date and Social Security number.
You can open an account with no minimum opening deposit and pay no account maintenance fees.
Set up direct deposit or a recurring transfer of at least $500 to earn the highest interest rate in your account balance.
Savings: 0.25% APY
Grade: C
SoFi doesn’t offer a standalone savings account or certificates of deposit (CDs), but the SoFi Money account you use for checking offers perks similar to traditional savings accounts.
You’ll earn 0.02% APY on your balance for any month you add at least $500 through direct deposit or transfer into the account.
The downside to having your checking and savings in one account is that your savings are easily accessible, which can make it easy to dip into that account instead of letting it sit and grow.
With the combined checking and savings features, SoFi Money acts best as a short-term savings account, rather than a primary saving or spending vehicle. Move money into the account for short-term goals, such as:
Building an emergency fund.
Vacation savings.
Buying a car.
A home down payment.
Large investments.
Tax payments.
The checking account features make your money more accessible through SoFi Money than in a traditional savings account (which typically come with withdrawal limits of six per month), so you can build your savings knowing you can get to the money anytime if you need it.
Cash in SoFi Money is FDIC insured up to $1.5 million through a program of partner banks. FDIC insurance depends on the number of partner banks available (but hasn’t strayed from the $1.5 million mark according to any sources we’ve found).
Convenience: Online-Only Banking
Grade: B
SoFi offers online-only banking, so you won’t find a brick-and-mortar SoFi bank branch or even any SoFi ATMs.
Instead, you’ll do all your cash management through the app or website, plus nationwide ATMs.
Deposits: Set up direct deposit from your paycheck or recurring transfers from another bank account to automate your savings and build the account balance. You can’t make cash deposits.
Mobile check deposit: Still get a paper paycheck (or a birthday check from your aunt)? Deposit it from anywhere using the SoFi app on your smartphone or tablet with a camera.
Cash withdrawal: Use any ATM to take out cash when you need it with your SoFi debit card. You’ll pay no fees at Allpoint ATMs nationwide, and SoFi reimburses out-of-network ATM fees.
Digital payments: Link your SoFi Money account to PayPal or Venmo to receive payments.
Getty Images
Mobile Banking: SoFi App Review
Grade: A
As an online-only institution, SoFi’s suite of digital tools is optimized for user ease and stacked with features like easy account transfers, bill pay and even budgeting tools.
SoFi banking happens primarily through the SoFi app, which is free to download for smartphones and tablets. Customers give the app 4.8 out of five stars in the Apple App Store and 4.4 out of five stars on Google Play.
The app lets you sign up for and access all SoFi products, including your cash management account, and free budgeting and money tracking tools.
Through the app, you can:
See your Money account balance and transaction history.
Deposit money with mobile check deposit.
Transfer money to and from linked bank accounts.
Freeze and unfreeze your debit card.
Chat with customer support.
Monitor your TransUnion VantageScore credit score.
Connect other financial accounts to track your spending and savings in one place.
Access SoFi’s other financial products and services.
Small Business Banking Options
SoFi does not offer small business checking or savings accounts. Instead, consider these alternative banks for small businesses:
Wells Fargo Simple Business Checking Account and Business Market Rate Savings Account, loans up to $100,000 and a 1.5% cash-back credit card.
Chase Total Business Checking and Business Total Savings, SBA Express line of credit up to $350,000 and Ink Business credit cards.
Capital One Spark Business Checking and Savings, and 1.5% or 2% cash-back credit cards.
Axos Basic Business Checking or Business Interest Checking, Business Savings, and lines of credit or commercial loans starting at $250,000.
Navy Federal Credit Union for business owners who are veterans, active-duty military, employees of qualified government agencies and their immediate family.
Azlo for online-only, fee-free business checking.
You can search and compare small business financing offers through Lantern, SoFi’s marketplace for financial products.
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SoFi Money Account Fees
SoFi boasts no fees, and it’s pretty serious about that.
No ATM fees.
No account maintenance fees or minimum balance fees.
No overdraft fees.
No foreign transaction fees.
No fee for a replacement card.
No bill pay fees.
SoFi covers any foreign conversion charged.
Fee structures are subject to change and have over the years, but you can take some comfort knowing the lack of fees is one of the most attractive features of online-only banking.
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Getty Images
SoFi Student Loans
Before it got into banking, SoFi’s flagship product was student loan refinancing, and this is still a popular offering from the company.
Refinance your federal or private student loans to get a lower interest rate, lower monthly payment or both. SoFi also offers private student loans for undergrads, graduate students and parents.
You can get pre-qualified for a loan rate by creating a SoFi account online or through the app, then choose a rate and loan term and fill out the full application online. If approved, you’ll complete the whole process, including signing paperwork, online. Back to top ↑
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.
Other SoFi Products
The biggest benefit to signing up for SoFi banking is becoming a member and gaining access to SoFi’s suite of products and services.
SoFi members (anyone who uses a SoFi product, like Money), get exclusive benefits like member-only events and member rate discounts on SoFi loans.
Personal Loans: Apply for a personal loan for things like credit card consolidation or home improvement. Interest rates range from 4.99% to 19.63% fixed APR when you sign up for auto-pay. You can check rates you’d qualify for by creating a SoFi account and entering the amount you want to borrow. Checking your rate with SoFi won’t affect your credit score.
Mortgages: Take out a home loan or refinance an existing mortgage through SoFi with as little as 10% down. You’ll save $500 on mortgage processing fees for being a SoFi member. SoFi also facilitates home equity lines of credit through home equity lender SpringEQ.
Investing: SoFi Invest is a brokerage account that lets you invest in stocks, ETFs and cryptocurrency right through the app. You can set up automated investing and let SoFi experts choose your portfolio for you, or choose yourself what to invest in. SoFi also offers Roth and Traditional IRAs to help you save for retirement. You can fund your SoFi investment account using a SoFi Money account or external checking or savings account.
Insurance: Through SoFi Protect, the company has teamed up with insurance providers to match you with affordable life, auto, homeowners and renters insurance. In most cases, you can apply and sign up online without speaking to an agent or facing a medical exam.
Career Services: SoFi members get to work one-on-one with a career coach to pave a path toward career and financial success. Career coaches provide guidance on things like career transitions, networking, building your resume and LinkedIn profile, negotiating, personal branding and your personal questions.
Financial Planning Resources: Members can make an appointment with SoFi financial planners for free to get professional financial advice on anything from basic money management to retirement planning. SoFi also provides resources to educate you on debt, lending, money management, investing and more, plus calculators to help you plan for borrowing and repaying debt.
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SoFi Customer Service
SoFi customer support is available through email, Twitter or by phone with limited hours.
Phone number: (855) 456-7634, available Monday through Thursday 4 a.m. to 9 p.m. and Friday through Sunday 4 a.m. to 5 p.m. Pacific.
Email address: [email protected]
Twitter: @SoFiSupport
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Frequently Asked Questions (FAQs)
Is SoFi App Legit?
Social Finance, Inc. (SoFi for short) is based in San Francisco and has been operating in the personal finance space since 2011. It’s highly respected in the industry and loved by customers for its mobile-first and social approach to managing money.
The company maintains industry-standard security measures to protect users’ personal and financial information, including bank-level encryption and two-factor authentication.
Is SoFi Money FDIC Insured?
The money in your SoFi Money cash management account is FDIC insured up to $1.5 million through a network of partner banks.
Does SoFi Money Have Fees?
You’ll pay almost no fees with any SoFi products. SoFi takes its commitment to no fees seriously. With a SoFi Money account, you’ll pay no ATM fees, monthly maintenance fees, overdraft fees or foreign transaction fees. You won’t even pay to replace a stolen or lost debit card or to pay bills through the app, and SoFi covers any foreign conversion you’re charged.
How Long Does SoFi Take to Deposit Money?
When you sign up for direct deposit into your SoFi Money account, you’ll have access to your money up to two days before your normal payday. SoFi releases the funds into your account as soon as the payer initiates the deposit, rather than waiting for the scheduled payday.
Is SoFi a Bank?
SoFi is not a bank — yet. Like other financial technology companies that provide banking services, the company works with a partner bank network that includes bank partners around the country. These companies hold and insure your funds, while the SoFi app helps you manage them all in one place.
However, SoFi is on its way to obtaining a national bank charter and becoming SoFi Bank, N.A., a member of the Federal Deposit Insurance Corporation (FDIC). In 2020, it received preliminary approval for a bank charter from the U.S. Office of the Comptroller of the Currency. In March 2021, it acquired Golden Pacific Bancorp (GPB), which is expected to expedite its bid for a charter after the sale closes in late 2021.
Does SoFi Money Use Zelle?
SoFi Money is not compatible with Zelle. However, it offers its own peer-to-peer payments option that lets you send money to anyone in your address book. Recipients who also use SoFi Money will get the money instantly, and others will get it in one to two business days. Back to top ↑
Is SoFi Money Right for You?
SoFi Money might not be a perfect replacement for your primary checking or money market accounts, but it could be a good fit for short-term savings and managing money you want to invest through SoFi.
SoFi could be a fit for you if:
You’d benefit from access to other products, including loans, investing, career advice and free financial planning.
You have short-term savings goals, such as vacation savings, home down payment, buying a car or holiday shopping.
You receive a regular paycheck via direct deposit.
You prefer to do your banking online or through a mobile app.
SoFi might not be a fit for you if:
You prefer in-person service from local bank tellers or loan agents.
You have no need for additional products and services like mortgages, debt consolidation, student loan refinancing or financial planning.
You’re frequently or primarily paid in cash.
You have a high volume of daily transactions, like if you travel or shop a lot.
You need small business banking.
Your savings goals are mostly long term, like retirement or college savings.
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Our Bank Review Methodology
The Penny Hoarder’s editorial team considers several factors in bank account reviews, including fees, balance requirements, APY, convenience, customer service support and mobile features. To determine how to weigh each factor, The Penny Hoarder surveyed 1,500 people to find out which banking features matter most to you.
Dana Sitar is a contributor to The Penny Hoarder. Tyler Omoth contributed to this report.
When customers grew tired of high cable and satellite bills, streaming giants Netflix and Hulu entered the playing field.
When customers lamented their experiences with taxis, Uber and Lyft offered a new way to get around town.
And when customers saw that their financial institutions were not working with their best interests in mind, online bank accounts came onto the scene to offer more.
The best online checking accounts offer members lower fees (or sometimes even no fees) and higher interest rates than their traditional bank and credit union competitors. They also have responsive websites and advanced mobile apps to provide the same convenience of in-person banking on the go.
And despite what you might think about an account that is entirely online, they are incredibly safe. (Lack of safety is just one of many myths about online banks.)
All this makes online bank accounts highly appealing to savvy Penny Hoarders — or, in the case of online checking accounts, savvy penny spenders.
The Best Online Checking Accounts of 2021, Ranked
If the pros of online banking far outweigh the cons for your personal needs, spend some time researching online checking accounts available in 2021. Remember: Not all online banks are created equal.
To determine my top 9 list, I researched 20 of the most popular online checking accounts and compared key elements, including APYs, minimum account balances, ATM fees, monthly service fees, foreign transaction fees and overdraft fees.
Based on these factors, I ranked them by best features overall. While the 12 other popular accounts I researched had merits, I couldn’t justify choosing any of them over the nine listed here.
My most crucial advice during your pursuit: Always read the fine print before signing up for an account.
Aileen Perilla/ The Penny Hoarder
1. nbkc bank
The National Bank of Kansas City, more popularly known as nbkc, isn’t just for Kansans — and with its high APY, lack of fees and easy ATM access, that’s a good thing for those of us living outside the state.
APY: 0.15%, no matter the balance.
Minimum balance requirement: You’ll need $5 to open the account, but no minimum balance is required.
ATM fees: Members get fee-free access to more than 37,000 MoneyPass ATMs. If you can’t find one near you, you can withdraw from other ATMs and receive up to $12 per month in ATM fee reimbursements.
Monthly fees: None.
Foreign transaction fees: None.
Overdraft fees: No overdraft fees. The only two conceivable fees you might incur with nkbc are for sending a domestic wire in the U.S. ($5) and sending or receiving an international wire ($45).
Details: National Bank of Kansas City
2. Axos Rewards Checking
Formerly known as Bank of Internet, Axos Bank offers a great online checking account with the potential to earn up to 1.25% APY.
APY: You have the potential to earn a 1.25% APY, assuming you fulfill three conditions each month (each worth 0.4166% APY):
Receive at least one direct deposit of $1,000 or more.
Use your debit card 10 times per month.
Use your debit card 15 times per month.
So if you receive one direct deposit from your employer each month and use your debit card 10 times, you will receive two-thirds of the available APY (0.8332%). Five more swipes of the debit card would earn you the full 1.25% APY. Note: Only transactions of $3 or more apply.
Minimum balance requirement: None.
ATM fees: Unlimited ATM fee reimbursements, none outside the U.S.
Monthly fees: None.
Foreign transaction fees: Yes, 1% of each transaction.
Overdraft fees: None.
Details: Axos Rewards checking account
Notes: Replacement debit cards cost $10 (or $50 for rush delivery), so hold on tight to your wallet.
3. Wealthfront Cash Account
The Wealthfront Cash Account is a new high-interest checking offering from Wealthfront, a popular banking service. It does everything that traditional checking accounts do — but it’ll pay you double the national average interest, and you can get paid up to two days early when you directly deposit your paycheck. Plus, Wealthfront insures your deposits up to $1 million.
APY: 0.10%
Minimum balance requirement: You only need $1 to open an account, and there are no account minimums.
ATM fees: You get a debit card that works at 19,000 fee-free ATMs across the U.S.
Monthly fees: Wealthfront won’t charge you any monthly or maintenance fees.
Foreign transaction fees: 2.75%
Overdraft fees: There is no overdraft option, so you don’t have to worry about overdraft fees.
Details: Wealthfront Cash Account
4. Charles Schwab High Yield Investor Checking
Travelers will love the Charles Schwab High Yield Investor Checking account, thanks to its universal ATM fee reimbursements.
APY: 0.03%.
Minimum balance requirement: When you open a checking account with Charles Schwab, you must also open a Schwab brokerage account, but don’t worry: It also has no minimum balance requirements.
ATM fees: Universal ATM fee reimbursements.
Monthly fees: None.
Foreign transaction fees: None.
Overdraft fees: You may want to keep something in the brokerage account, because Charles Schwab doesn’t charge overdraft fees if the funds are available in the linked account.
Details: Charles Schwab High Yield Investor Checking account
5. Ally Interest Checking Account
Ally Bank offers both checking and savings accounts that are worth your consideration, especially with easy ATM access and lack of monthly maintenance fees.
APY: This online checking account offers 0.25% APY on balances over $15,000. For balances less than $15,000, Ally offers 0.10% APY. The available linked savings account, however, pays out 0.60% APY, so it makes more sense to keep your money there.
Minimum balance requirement: None.
ATM fees: Offers U.S.-based ATM reimbursements up to $10 and all U.S. Allpoint ATMs are free. However, Ally’s checking account does fail travelers. There are no ATM fee reimbursements outside the U.S. and foreign transaction fees total 1% of the transaction.
Monthly fees: None.
Foreign transaction fees: Yes, 1% of each transaction.
Overdraft fees: None.
Details: Ally Interest checking account
6. Discover Bank Cashback Debit
The biggest reason I love this high-yield checking account: Your earnings are all about how you spend.
APY: Unlike other banks on this list, Discover does not pay out an APY. Instead, it rewards you for using the money in your checking account. Right now, Discover gives you 1% cash back on up to $3,000 in debit card purchases every month. That’s up to $30, just for spending as you normally would.
Minimum balance requirement: None.
ATM fees: Access to more than 60,000 fee-free ATMs, though you may incur fees for out-of-network ATMs.
Monthly fees: None.
Foreign transaction fees: It depends on the country. See which countries you can use your debit card in without incurring a foreign transaction fee.
Overdraft fees: None.
Details: Discover Cash checking account
7. Chime Spending Account
Chime is unique in that it earns very little interest but still has plenty of benefits to merit a spot on this list, including cool savings tools for young savers, easy access to ATMs and early access to paychecks.
APY: The checking account does not earn interest. But the associated savings account that comes with every Chime spending account earns 0.50% APY.
Minimum balance requirement: None.
ATM fees: 60,000 fee-free ATMs in the U.S. ATM withdrawals are limited to $500 per day, however, and cards come with a daily spending limit of $2,500.
Monthly fees: None.
Foreign transaction fees: None.
Overdraft fees: None.
Details: Chime Spending Account
Notes: What makes Chime unique is how it helps users build up their savings. Chime can automatically transfer 10% of any direct deposit into your savings. Even more helpful is the automatic rounding tool. If you buy an iced coffee for $3.14, Chime rounds the charge up to $4 and puts the extra $0.86 into your savings account. You can turn off both features at any time.
One final cool feature: Chime can get you access to your paycheck via direct deposit up to two days ahead of payday.
Check out our Chime Bank review for more details.
8. Consumers Credit Union Free Rewards Checking
If you have your sights set on the highest APY possible, go with Consumers Credit Union. Just be ready to meet some strict criteria first.
APY: This bank offers the best APY on this list. But you’ll have to meet a lot of conditions to earn the full 4.09%. First, you have to have a $5 minimum opening deposit.
To earn 3.09% APY on balances up to $10,000 and unlimited ATM fee reimbursement, you need to do four things:
Use the debit card at least 12 times per month (and run it as credit rather than debit).
Have one or more direct deposits or ACH debit to your account totaling $500 a month.
Spend at least $500 on your CCU Visa credit card.
Receive all your paperwork digitally (instead of by mail).
To bump the APY up to 4.09% on balances up to $10,000, you’ll have to spend at least $1,000 per month with the credit union’s Visa credit card.
In short, you need to be a power user to earn the fantastic APY. Otherwise, the APY is just 0.01%.
Minimum balance requirement: None.
ATM fees: None, with unlimited ATM fee reimbursement if you meet minimum Rewards Checking requirements. Consumers Credit Union has more than 30,000 fee-free ATMs nationwide.
Monthly fees: None.
Foreign transaction fees: Yes, 1% of each transaction.
Overdraft fees: $30 for every overdraft. You can link the account to a savings account and get overdraft protection, which will cost $10 per transfer.
Details: Consumers Credit Union Free Rewards checking account
Notes: One small highlight for the Consumers Credit Union: There are 10 physical locations in the Chicago area and 1,800 shared branches nationwide, should you have a need for in-person help.
9. Capital One 360
Capital One 360’s checking account is not the strongest, but its potentially high APY, its access to ATMs and its lack of foreign transaction fees are its saving grace.
APY: 0.10%
Minimum balance requirement: None.
ATM fees: 70,000 Capital One and Allpoint fee-free ATMs, but there is no fee reimbursement for out-of-network ATMs.
Monthly fees: None.
Foreign transaction fees: None.
Overdraft fees: Choose what happens when you overdraw. You can set up auto-decline, free savings transfer, or next day grace (a day to replace the amount before you are charged $35).
Details: Capital One 360 checking account
Comparing the Best Online Checking Accounts of 2021
Online Checking Account
APY
Minimum Account Balance
ATM Fees
Monthly Fees
Foreign Transaction Fees
Overdraft Fees
Notes
nbkc bank
0.15%
None
None at 32,000 Moneypass fee-free ATMs; reimburses up to $12/month in ATM fees
None
None
None
Costs $5 to open account
Axos Rewards Checking
Up to 1.25%
None
None; unlimited ATM fee reimbursement
None
1% of each transaction
None
Must meet qualifications to earn APY; ATM fee reimbursement only applies to U.S. ATM locations
Wealthfront Cash Account
0.10%
None
None for 19,000 ATMs in U.S.
None
2.75%
None
Get paid up to two days early with direct deposit
Charles Schwab High Yield Checking
0.03%
None
None; unlimited ATM fee reimbursement
None
None
None
Linked with Schwab brokerage account
Ally Interest Checking Account
0.25% or none
None
None; reimburses up to $10/month in ATM fees in U.S.
None
Yes, 1% of transaction
None; free overdraft protection
Can link savings account (which pays 0.6% APY)
Discover Bank Cashback Debit
1% cash back on debit card purchases up to $3,000 each month
None
None at 60,000 fee-free ATMs; no ATM fee reimbursement
It depends on the country
Yes, 1% of transaction
Getting cash back on debit card purchases could earn you up to $30 a month
APY requires $0.01 in Protected Goals Account
Chime
None
None
None at 60,000 fee-free locations in U.S.
None
None
None
Earn 0.50% APY in the connected savings account; account also offers savings features
Consumers Credit Union Free Rewards Checking
Up to 4.09%
$5
None; unlimited ATM fee reimbursement if you meet requirements
None
Yes, 1% of transaction
Yes, $30 per overdraft
APY and ATM reimbursement are linked to a lot of conditions that must be met
Capital One 360
0.1%
None
None at 70,000 Capital One and Allpoint ATMs; no ATM fee reimbursement
None
None
$35, but you can opt for auto-decline, free savings transfer, or next day grace
Link this account with a high-yield savings account or money market account
Pro Tip
Visit our list of bank promotions to learn about how you could gain a bonus when signing up for a new bank account.
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What to Look for in an Online Checking Account
If you keep your cash in a traditional bank or credit union but are drawn to the convenience and higher returns of an online checking account, consider several important factors:
Annual percentage yield (APY): An annual percentage yield, according to Investopedia, is “the effective annual rate of return taking into account the effect of compounding interest.” If you are intrigued by complex math formulas, Investopedia even explains the calculation. But for those who, like me, shudder at the thought of high school math, here’s the easier thing to remember: The higher the APY, the more money you earn. An alternative to consider to APY is cash back. Some accounts, like Discover, offer cash back in place of interest. Depending on how much you spend in debit card purchases, cash back could be the better option.
Minimum balance: The best online checking accounts typically require no minimum balance — or a reasonably low balance. Some banks may require minimum balances to achieve certain benefits, like a higher APY or ATM fee reimbursements.
ATM fees: Speaking of ATMs, look for a mobile-based checking account with a large network of fee-free ATMs nationally, or even globally. A truly good checking account should even reimburse you for fees other ATMs outside of the network may charge you.
Monthly fees: Make free checking accounts a top criterion when selecting an online bank account; this is often a key differentiator from checking accounts at traditional banks. If an online bank includes “monthly maintenance fee” in its fine print, take your money elsewhere.
Foreign transaction fees: If you travel out of the country frequently, find a checking account with a debit card that does not charge you a fee to use an ATM or make a transaction abroad. However, this may not be the most important criterion, as many savvy online bank members also have travel rewards credit cards that are fee-free globally.
Overdraft fees: Everybody makes mistakes. Don’t let your online bank punish you for it. Find a checking account that will not charge you an overdraft fee if you accidentally overspend.
Downsides of Online Checking Accounts
Even the best free online checking accounts have their disadvantages.
The biggest downside: Many online financial institutions do not contract with ATMs, so depositing cash can be difficult. Even those of us who live by the plastic in our wallets may sometimes need to deposit cash, like if Grandma gives you $100 for your birthday or you wait tables and amass a fair amount in cash tips each week.
Pro Tip
If you don’t want to carry a lot of cash, purchase a money order for as little as $1 and then deposit the money order electronically. Or give it to a friend who can Venmo you the equivalent.
Other drawbacks include a lack of cashier’s checks (you may have to order one and wait a few days for it to arrive) and a lack of in-person service. When I am stressed about my finances or troubled by activity I see in my account, I find it satisfying to go into one of my credit union’s physical branch locations to get assistance. But if you think you can keep your cool while getting help over the phone or online, this shouldn’t be a problem.
Frequently Asked Questions (FAQs)
If you are making the move from a checking account at a traditional bank to an online account, you likely have some questions. Here, we’ll tackle some of the most frequently asked questions about online checking accounts:
What Other Banks are Like Chime?
Chime is certainly one of the more interesting online banking accounts out there, but its app-based approach is not wholly unique. Some of Chime’s competitors—and thus alternatives for you to consider—include Current Bank, Varo, and Acorns.
Current Bank allows you to set up Savings Pods, little sub savings accounts to work toward a goal. You can also get your paycheck two days early.
Varo Bank has checking and savings accounts, the latter with an automatic savings tool. Varo also has early direct deposits.
Finally, Acorns allows you to get involved in micro-investing, rounding up your purchases and investing the remaining amount. There is a monthly service fee for this account, however.
A bank account with any of these institutions could be worthwhile, but in general, Chime tends to be the most popular option.
Who Has the Best Free Checking Account?
This is a good question, but a challenging one to answer. It really comes down to your specific needs. Accounts are often advertised as “fee-free,” but that could just mean no monthly fees, which are kind of “catch-all” service fees. They still might charge foreign transaction fees, overdraft fees and even lost debit card fees.
Think about your lifestyle. Do you travel abroad regularly? Look for an account with no foreign transaction fees. Have you paid one too many overdraft fees? Avoid accounts that overcharge you for those mistakes.
But there’s more to a checking account than being fee-free. Do you want a high interest checking account? Are you interested in a free checking account with a highly rated mobile app? Do you want to be able to link your checking account to a savings account? How important is easy ATM access to you? Would you benefit from early direct deposits?
There are so many factors to consider. Our rankings include the best of the best, but you’ll want to use the table above to zero in on the checking account that is right for you.
Can I Open a Checking Account With No Money?
Many banks require a minimum deposit amount when opening a new account, and others still have minimum balance requirements. That said, you can find banks with no minimum deposit at opening and no minimum balance. So yes, some banks do allow you to open a checking account with no money.
How Do I Deposit and Withdraw Money With an Online Checking Account?
Depositing checks at online banks is easy. Any account worth considering will have a mobile check deposit feature that allows you to take pictures of the front and back of the check. Funds will not be immediately available when you use this option, so hold onto the paper check until the money has cleared.
If you have another savings or checking account with a physical bank, most online banking accounts will allow you to connect the two accounts so that you can transfer funds. Having an online account with good rewards that is connected with a brick-and-mortar bank that is close to your home makes depositing funds easy.
To deposit cash, just go to an ATM within your online bank’s network. You can also buy a money order, which will carry some level of fee, albeit a minimal one.
Withdrawing money from your online bank account works similarly. You can go to an ATM that is in network for free withdrawals. You can also transfer money to a connected account and withdraw in person. Finally, online checking accounts should come with debit cards, which you can use to spend your money.
Are Online Checking Accounts Safe?
Yes, online banks are safe. Choose a bank that is insured by the Federal Deposit Insurance Corporation (FDIC) or a credit union that is insured by the National Credit Union Administration (NCUA). Not sure whether you should go with a bank or credit union? Check out the pros and cons of banks and credit unions before making a decision.
Secure online banks will also offer account security features like multi-factor authentication and biometrics.
Tips for Choosing the Best Online Checking Account
Still not sure which online checking account to choose? Here are a few tips that might help.
Think About Your Needs
Most online checking accounts — especially the ones on my top nine list — offer some combination of good perks, though they might be missing out on others. Ultimately, you have to decide which benefits are more important to you.
Are you looking at your checking account as a small but smart investment strategy? Go with an account with a higher APY. Do you regularly rely on cash when traveling? Look for an online bank without ATM surcharges and that reimburses you out of network.
You should also consider whether banks or credit unions are the right option for you.
You don’t need every feature, so think about your needs before choosing an account. Opening accounts with multiple institutions could help you secure the best features.
Maintain More Than One Account
You don’t have to have all your accounts through the same financial institution. You can start a savings account at a local credit union, sign up for an online checking account for the high APY and easy access to ATMs and utilize a national brick-and-mortar bank for your car loan.
Many of those traditional banks and credit unions also offer their own online bank accounts for a “hybrid solution” that gives you in-person access to assistance and that still offers the benefits of an online account.
Know What You’re Signing
Before signing with an online checking account — or any account with any financial institution — read the fine print. Closely.
APYs that sound too good to be true may only apply for a set amount of time or under set conditions; ordering checks in the mail or wiring money may cost an unexpected fee; and foreign transactions may be free, but foreign ATMs may include a fee.
Reading the fine print may also help you discover other benefits (like no wire fees) that may be important to you but that are not commonly advertised.
Timothy Moore is a market research editor and freelance writer covering topics on personal finance, careers, education, pet care and automotive. He has worked in the field since 2012 and has been featured on sites like The Penny Hoarder, Debt.com, Ladders, Glassdoor and The News Wheel.
Before we dive into our Alliant Credit Union review, check out this quick refresher on what differentiates a credit union from a traditional bank — and why you should consider going this alternate route for your banking needs.
In this review:
Alliant is also a frontrunner for best online savings account thanks to its high APY and dividend rates (0.55%), which is roughly 7 times higher than the industry average. You’d be hard-pressed to find an APY that high at an Alliant Credit Union also offers a teen account to help teens learn smart money management. Only members between ages 13 and 17 are eligible, and the parent (who must be a member) acts as a joint owner of the account.
Alliant Credit Union operates as a mostly online institution. That means its website is wicked fast and easy to navigate, and, more importantly in 2020, its app is responsive, free and easy to learn. You can download the app for Android and Apple devices. (Right now, there is no support for Windows devices; Windows users who want a mobile app for their bank of choice should instead consider the highly rated Ally Bank.)
What Is Alliant Credit Union?
Like with the associated checking account, you’ll have access to 80,000 fee-free ATMs with the high-yield savings account, and you’ll also qualify for up to in ATM fee reimbursements, should you need to bank at an out-of-network location. Also like the checking, the savings account includes mobile check deposit and easy 24/7 access.
What are the benefits? The earnings are taxed at the child’s rate, rather than your own, and the account earns the same 0.90% APY that the High-Rate Savings option does.
While this review focuses on savings and checking options at Alliant, you can find information on additional products from the online credit union below. Check out the Alliant website for more details.
Pros
Easier to meet eligibility requirements than it is at other credit unions
No monthly maintenance fees
No minimum balance fee for checking accounts
High APYs for checking and savings accounts
Access to 80,000 ATMs and a $20/month refund for out-of-network ATMs
Supplemental savings accounts for easy money organization
A highly rated mobile app and easy-to-use website
Cons
High fees for overdrafts with no daily limit
Minimum balance requirement for savings account to earn high APY
No shared branching with other credit unions and only two physical locations (both in Chicago)
Looking for a lender? Getting a loan from the institution with which you do your standard checking and savings banking can be convenient. Alliant offers competitive rates for its vehicle (auto and RV) loans, mortgages (and home equity line of credit) and personal loans.
Banking with Alliant: How We Rate It
Looking for a lender? Getting a loan from the institution with which you do your standard checking and savings banking can be convenient. Alliant offers competitive rates for its vehicle (auto and RV) loans, mortgages (and home equity line of credit) and personal loans.
Alliant Credit Union Account Fees
Looking for a lender? Getting a loan from the institution with which you do your standard checking and savings banking can be convenient. Alliant offers competitive rates for its vehicle (auto and RV) loans, mortgages (and home equity line of credit) and personal loans.
Other Alliant Credit Union Products
Carmen Mandato/The Penny Hoarder
Looking for a lender? Getting a loan from the institution with which you do your standard checking and savings banking can be convenient. Alliant offers competitive rates for its vehicle (auto and RV) loans, mortgages (and home equity line of credit) and personal loans.
Alliant Credit Union Customer Service
Getty Images
Looking for a lender? Getting a loan from the institution with which you do your standard checking and savings banking can be convenient. Alliant offers competitive rates for its vehicle (auto and RV) loans, mortgages (and home equity line of credit) and personal loans.
Is Alliant Credit Union Right for You?
Looking for a lender? Getting a loan from the institution with which you do your standard checking and savings banking can be convenient. Alliant offers competitive rates for its vehicle (auto and RV) loans, mortgages (and home equity line of credit) and personal loans.
Frequently Asked Questions (FAQ)
Looking for a lender? Getting a loan from the institution with which you do your standard checking and savings banking can be convenient. Alliant offers competitive rates for its vehicle (auto and RV) loans, mortgages (and home equity line of credit) and personal loans.
Our Bank Review Methodology
When researching Alliant as a potential credit union, customers commonly ask these questions:
That said, the app is top-notch when run on iOS and Android operating systems. The app allows you to view your balance (before you even log in!), log in with your fingerprint or face ID, deposit checks, reorder accounts, transfer money, set up external accounts, pay monthly bills (and establish new payees), set travel notifications, find surcharge-free ATMs and track your finances using the personal financial management tool. <!–
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The account offers the same APY and has the same perks and drawbacks as the regular High-Rate Checking account. The account makes it easy to transfer money to your teen, and it also includes a personal financial management app so your teen can review their spending patterns and improve their financial acumen. You can also open a Uniform Transfer to Minors Act (UTMA) account at Alliant; these are colloquially known as custodial accounts. These accounts are a great way to jump-start your child’s savings; you’ll manage the account in its entirety until your child reaches adulthood. Grade: B+
Dear Penny,
As difficult as it may be, tell your adult children that you’re not in a position to help them out right now. But do tell them what’s going on, because you need emotional support. You may also want to make arrangements to stay with one of them for a few days after you eventually confront your husband.
But for now, I think you need to prepare for the worst. Meet with an attorney to start making a plan. And most importantly, trust your instincts. Secret bank accounts are a big red flag that you can’t afford to ignore.
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The fact that you have so little control over your finances is troubling by itself. Your husband may pay for most of your expenses, but do you really know where that ,100 a month goes? It sounds like he has carte blanche, while you get a small allowance.
I don’t know if I should get a lawyer, but my husband has been taking money out of our joint bank account. He’s been transferring it to a new bank account in his name that I don’t have any information about.
If this marriage is salvageable, I hope that you’ll revisit the way you handle your finances. You and your husband should have regular check-ins to go over account statements and bills. You need to feel comfortable asking questions about any major transactions.
Unless you think there could be an innocent explanation, like your husband is planning a surprise for you, there’s clearly something going on that your husband doesn’t want you to know about. You should definitely be concerned.
Dear Worried, He used to keep half of my total pay, but I told him I needed to pay my credit cards. I also help my four adult children; he is their stepfather. Should I be worried?
Ready to stop worrying about money?
Related Posts
I’m assuming your husband isn’t aware that you’ve discovered his secret bank account. If you discovered the transfers while going through bank statements and you’re able to talk openly about money, you could simply mention it in a non-confrontational way. Say that you noticed that he opened another bank account and see what information he offers. Privacy Policy
While you’ve discovered one secret bank account, I worry that there may be other things you don’t know about. Get a free copy of each of your three credit reports at AnnualCreditReport.com to make sure there aren’t any accounts you don’t recognize and verify that any joint credit accounts are current.
But I have a feeling that this is a relationship where open discussions about money aren’t happening. In that case, avoid confronting him about it for now. It’s essential that you open a separate account that’s in your name only.
But you need to be prepared for the worst-case scenario. Sometimes people attempt to hide money before they file for divorce. Or there’s the possibility that you’ll want to end this marriage because of the secrets your husband is keeping. We are both on Social Security and pensions. I take a total of ,400 every month, but he gets ,100 total every month. He pays for the mortgage, water, electric bill, food and house maintenance. I pay for my own car, gas, the tolls for both of us, and for my personal things.
Try to syphon off whatever you can into your separate account so that you have a couple months’ worth of expenses saved. If you’re still paying off your credit cards, just make minimum payments to save extra cash for now. If you can come up with an excuse for why you need to withdraw extra money, go ahead and fib.
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I do think you should consult with an attorney. Unfortunately, with a joint account, either party can withdraw the entire balance in most circumstances, so it doesn’t sound like your husband has done anything illegal. -Worried WifeRobin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. Send your tricky money questions to [email protected].
Details are yet unknown, but Bank of America’s Preferred Rewards client relationship program is adding two new tiers to their program for those with $1,000,000 or more in assets (source). They are being transferred over from another Wealth Management program to be part of an upgraded tier in the Preferred Rewards program.
We have no information on any of the existing Preferred Rewards tiers changing, and hopefully those with $100,000 in assets will continue to enjoy their 75% credit card rewards boost, as prior.
As of November 12, 2021, or such later date as we may provide you notice of, the Preferred Rewards for Wealth Management program will be discontinued. If you are enrolled in the program on that day, your enrollment will be automatically transferred to the new Bank of America Preferred Rewards program. The new program will be expanded by adding two new tiers for clients with a qualifying balance of $1,000,000 or more. If your three month combined average daily balance is below $1,000,000 on the third business day of the month in which Preferred Rewards for Wealth Management discontinues, you will transition to the Preferred Rewards Platinum Honors tier.
Much like cursive, fewer people are learning the ins and outs of check writing, thanks to advances in direct deposit, online autopay for bills and payment apps like Venmo and PayPal.
Please note: Canceling a check is different from voiding a check and is typically accompanied by some urgency.
Why would you ever void a check? There are quite a few reasons.
Keep your voided check or take a picture and/or scan it and save it so you can use it in the future. That way, you don’t have to waste a clean check each time someone asks for a one.
Direct deposit: Often, employers will request a voided check to set up direct deposit for your paycheck, meaning the money will go straight into your bank account. In fact, 93% of Americans receive their paychecks this way. The voided check allows your employer to see your account information, including your bank account number and routing number, and ensure they’ve been accurately entered into your employer’s payroll system. This can be a blank check.
Automatic bill payments or general money withdrawals: Similarly, companies that automatically withdraw money from your checking account, like your mortgage company, will want to ensure they have your correct bank account information. They’ll use an actual, legal check to set up bill payments from your account. You may also need to provide a voided check for other bill pay scenarios, though this is not as common. You should use a blank check for this purpose as well.
Mistakes: You can also cancel a check if you make a mistake while writing it. For example, if you are writing a $100 check but accidentally tack on an extra zero (making it $1,000), it’s safer to cancel the entire check so that no one accidentally withdraws $1,000 from your account before you can stop them.
Write “VOID” big across the check. Don’t cover up the routing and account numbers at the bottom. Chris Zuppa/The Penny Hoarder
How to Void a Check
So what happens if you don’t have checks and you need to void one? You have a few options:
Ready to stop worrying about money?
You should have a carbon copy of the check in your checkbook that you can reference. You can also review your check register to get this information.
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Pro Tip
Voiding a check is easy. Grab a pen with blue or black ink (that’s important) and then simply write the word “VOID” in large letters across the front of the check.
Again, once you’ve voided the check, you can no longer use it, so be certain you’re ready to void that specific check before doing so. There’s no going back.
Don’t write “VOID” over the routing number and bank account number at the bottom, as these are what will be used to set up your bank account for direct deposit or withdrawals.
Pro Tip
So what do you do if you need to cancel a check that you’ve already handed over to someone else? Are you out of luck? Not entirely.
What to Do If You Don’t Have Checks
But that doesn’t mean checks are going the way of the dodo (not yet, at least).
If you have received a check and the payer has asked you to void it, first ensure that you will receive all money owed to you in some other form (cash, Venmo, a new check that will clear, etc.). Once you are sure you will still receive proper payment, you can void another person’s check made out to you; simply write “VOID” in large letters across the check. For good measure, you should shred or burn the check.
You can order checks. Many financial institutions give you your first set of checks for free, and still others give you a number of checks a year free of charge. These typically take seven to 10 business days to ship, so if you need to void a check quickly, this isn’t an ideal solution, though it still might make sense to do this now for the next time you need a voided check.
You can request a starter check. If your bank charges for checks or will take a week or more to send them, you can see if your local branch can print you a starter check to void. They should be able to print this in-house for a much faster turnaround. These are also called counter checks, and they sometimes may be offered for a fee.
You can get a deposit slip. The point of voiding a check for direct deposits or autopay is to give an institution a verifiable copy of your account and routing numbers. A deposit slip contains this same information, and most banks offer these to members.
You can request other documentation. If all else fails and you’re in a hurry to provide someone with your account number and routing number on something official from your bank, request other documentation, like a note on your bank’s letterhead. This may suffice when setting up direct deposit or ACH information.
You can set up details online. Voiding a check isn’t the only way to get set up with a new account. Many utility companies and other recipients of your monthly payments don’t request voided checks when you sign up online. Some will make inconsequential withdrawals (and almost immediately return the funds) just to verify that you’ve set up the bank account correctly, so make sure your checking account is adequately funded before trying this out to avoid overdraft fees.
How to Cancel a Check
Nowadays, people depend on a mixture of mobile wallets, payment apps, debit cards, direct deposit and autopay to handle their finances, rendering checks useless for many. As such, there are people out there with bank accounts who simply do not have a checkbook. Timothy Moore is a managing editor for WDW Magazine, and a freelance writer and editor covering topics on personal finance, travel, careers, education, pet care and automotive. He has worked in the field since 2012 with publications like The Penny Hoarder, Debt.com, Ladders, Glassdoor, Aol and The News Wheel.
Alternatively, you can write “VOID” in capital letters on the date line, payee line, amount line and signature line and in the amount box. Because this requires more effort and it is easy to miss one of the lines or boxes, most people opt for simply writing the word “VOID” across the check in large letters.
The check number
The amount the check was made for
The date of the check
The check recipient’s name or business name
The reason for the stop payment
After you void the check, make a note of the check number and the reason for voiding in your check register. (This is the record of all your payments from and deposits into your bank account. While most banks provide this for you nowadays via an app and/or online banking site, it’s smart to record checks manually as well and compare that against the digital bookkeeping your bank offers. Remember: Honest mistakes happen.)
A stop payment typically comes with a fee. You should also warn the payee that you have issued a stop payment.
In fact, to set up automatic payments from your bank account for bills, set up direct deposits to your bank account from your employer and complete automated clearing house (ACH) transfers, you’ll need to reach for your handy checkbook because you’ll probably need to void a check.
Frequently Asked Questions (FAQs)
If the recipient of the check has already cashed or deposited it, do not try the stop payment online. Visit the bank in person or give them a call.
How Do You Void a Check Sent to You?
Voided checks are real checks that can no longer be used as legal tender because, well, they’ve been voided. The moment you void a check, you’ve rendered that check useless for actual payment purposes.
Can You Void a Check That’s Been Mailed?
Here are some commonly asked questions about voiding checks. See if these answer any of your questions:
If you have already signed a check and then want to void it, you still can by writing “VOID” across the front of the check. However, you do not need to sign a void check to cancel it. The large “VOID” will suffice in voiding the check, no signature needed.
Do You Sign a Void Check?
Source: thepennyhoarder.com When voiding a check, you should not sign your name on the signature line. You also do not need to date it. <!–
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Don’t know how to void a check? No problem. If you have accidentally mailed a check to the wrong person or in the wrong amount, you can attempt to cancel it before it is cashed or deposited. Some banks allow you to do this online or via their mobile apps, but you can also call your bank or visit a branch in person to issue a stop payment order. Let’s say you have sent a check and realized afterward that you have made an error, such as overpayment. You must contact your bank quickly to cancel it. You will need the following information:
Some banks will allow you to do this via app or online banking, but you can also visit your bank in person or call to cancel the check. Tell them you need a stop payment order, but be prepared to pay a fee for this service.
8/4/21: A number of updates: 1) the annual fee on the Platinum card is now $695; likewise, the Engagement Bonus is now $695 as well. 2) The signup bonus is now 100,000 points, at the time of this writing. 3) The Platinum CashPlus cash management account has increased to $55/mo. 4) They no longer offer the $695 during the first year for Access Investing accounts (ht nonozone). 5) The note about the $550 not being taxable with $1,000 is gone too, so might be taxable now (ht Jake).
Original Post:
You can get a $550 Engagement Bonus to offset the annual fee on the American Express Platinum Morgan Stanley card if you have open a Morgan Stanley Platinum CashPlus deposit account and maintain $25,000 average balance and have $5,000 deposited to the account each month.
The Morgan Stanley Amex Platinum card is almost identical to the ordinary Amex Platinum card, and comes with a bonus of 60,000 points after $5,000 spend. (You can get the bonus on each Platinum card separately.) One benefit it has over the ordinary Platinum is the ability to cash out points at 1 cent per point (sorry, not 1.25 like Schwab). Another benefit is that you get one free authorized user who gets many of the Amex Platinum benefits; no other version of the Platinum offers that.
Background
Back in 2016 we wrote about how to get the – then – $450 annual fee waived on the MS Platinum card, and it involved having at least $1,000,000 in investments to be eligible. Then, in 2019, we learned that it’s actually possible to have a Morgan Stanley relationship without the big bucks: the bank offers an investing platform called Access Investing which requires just $5,000 deposit and comes with a .35% fee ($17.50 per year). Many people began using that relationship to become eligible for the Amex MS Platinum card, one of the many flavors of the American Express Platinum card.
$550 Fee Waiver
Earlier this year, they tweaked the program to waive the $550 on the Amex MS Platinum card: Going forward, a customer with the MS Platinum CashPlus cash management/bank account who is also an Amex MS Platinum cardholder gets an annual $550 engagement bonus. The cash management account is similar to the cash management accounts at other brokerage firms (e.g. many of us have a Fidelity cash management account), and it seems to be a bit safer than others since they sweep the funds into FDIC insured accounts.
The big thing to be aware of is the Platinum CashPlus cash management account has a $45 monthly fee; paying that fee for a year will cost $540, leaving you with just $10 savings on the card annual fee. You can have the fee waived, but it requires $25,000 tied up and $5,000 deposited monthly. Here are the four requirements to have the fee waived:
$5000 in total monthly deposits. This includes things like Zelle, check deposits, and more. (Also worth noting that those who get Social Security can have those deposits go to their Platinum CashPlus account and that counts for the deposit requirement, regardless of the amount of your Social Security benefit.)
$25,000 in Average Daily Cash Balance (in the Bank Deposit Program)
Additional eligible Morgan Stanley investment account (Access Investing will work for this)
Morgan Stanley Online enrollment
The $550 credit is not just for renewals – you’ll even get the $550 credit for the first year you signup.
8 $550 Annual Engagement Bonus for Platinum CashPlus accounts may be received if 1) you are the Basic Card Member of the Platinum Card from American Express Exclusively for Morgan Stanley (the Basic Card Member is defined as the primary account holder); or 2) if you spend at least $100,000 during the calendar year across Morgan Stanley Debit Cards associated with Platinum CashPlus Accounts in your ALG. Each ALG is eligible for one bonus per calendar year. Each client is eligible for one bonus per calendar year. For more information, please refer to the CashPlus Account Disclosure Statement.
Order of Business
Important caveat: Dealspoints reports that you’ll have to first open the Platinum CashPlus bank account BEFORE applying for the Amex Morgan Stanley Platinum card; those who already have the MS Amex Platinum card will not be eligible for the $550 credit. Also, in order to open the Platinum CashPlus account you need to first have an investing relationship. So here’s the order of how to go about this:
Open Morgan Stanley Access Investing with $5,000 investment
(You might need to wait 30 days now before opening the Platinum CashPlus account)
Open Morgan Stanley Platinum CashPlus cash management account (and register the account for online access)
Open Amex Morgan Stanley Platinum card
I think it’s quite plausible that you can get the $550 Engagement Bonus if you have a banker manually connect your existing Amex MS Platinum card to your Morgan Stanley Platinum CashPlus profile, but this is unconfirmed. See this discussion in the comments.
Our Verdict
Is this a good deal? Well, it ties up $25,000, so not a great deal. It’s still not bad, at least in current environment, to get $550 back on the year for $25,000 tied up since the $550 will amount to a return of 2.20% APY. Personally, I don’t think I’d find it worthwhile to deal with the monthly $5,000 deposits just for the incremental benefit over an ordinary high-yield account (especially being that over time those accounts will likely begin offering better rates), but it’s interesting to hear about this option nonetheless.
After writing this, I see Reddit users note that this $550 annual credit is not be taxable provided you spend $1,000 on your Platinum card throughout the year (pdf link). Hence, you’re actually getting 2.20% return on your $25,000 AND not paying tax on that money. Certainly makes it more interesting.
Reader Daniel sent us the details of the new fee-waiver program back in January, and I added an update to our original post at the time, but I didn’t quite wrap my head around it until seeing this discussion today on Reddit. As the details have changed a lot, I figured it was worth a new post here. Hat tip to dealspoints for their clear write-up on this as well.
It’s tough to make any meaningful return on your savings right now.
But you probably already knew that.
Interest rates for bank savings accounts — you do have a savings account, right? — have been notoriously low for years. Don’t expect these low rates to change anytime soon, either: In a recent statement, the Federal Reserve announced plans to keep interest rates low until certain economic conditions have been reached.
At this moment, the average interest rates paid on checking and savings accounts are 0.15% and 0.73%, according to BankAround. And the biggest banks often offer worse rates. In fact, if you put $5,000 in a regular Bank of America savings account (0.01%), in a year, you’ll only have collected 50 cents in interest.
So, what are your options for making more money on your money?
Check Out High-Yield Savings Accounts
High-yield or high-interest savings accounts are a vehicle for you to save money you don’t use for everyday expenses. For example, you might open this type of account to build an emergency fund. In exchange for not using this account often — and typically saving a good amount in it — you’re rewarded with a higher interest rate.
This isn’t your regular ol’ savings account that earns pennies on the dollar. While the average savings account has a 0.06% interest rate, per the FDIC, you can expect to earn more with a high-yield savings account. Sometimes up to 25x more.
Now, rates aren’t bonkers-good like they were just a couple years ago. In 2019, an account with My Savings Direct, an online banking division of Emigrant Bank, earned a cool 1.25% annual percentage yield (APY). That rate is now 0.25%.
But hey, more money is more money.
What to Consider When Looking for a High-Yield Savings Accounts
While you’ll bring in more than you would in a traditional account, you’ll often need to adhere to strict guidelines. So keep that in mind before you sign up.
For instance, you may experience the following:
A required opening deposit.
A minimum required balance at all times.
A cap on how often you can move money out of the account.
Monthly maintenance fees.
Fees for going over the allotted amount of withdrawals a month.
A high interest rate — but only for X months or Y years for a certain amount of money AND if you follow all the rules. A particular rate may only be available for new account holders, too.
With that said, these accounts are a great way to earn more on money you don’t plan on touching for sometime — just read the fine print (and maybe brush up on your organizational skills) first.
How to Open a High-Yield Savings Account
Typically, the same rules will apply as for opening any other type of bank account. You’ll likely need to be at least 18 years old and need identification, for example. Pretty standard stuff.
You have options on where to open a high-yield savings account, too. They can be found at traditional brick-and-mortar institutions, credit unions and online-only banks. In fact, the latter may offer you higher interest rates since there’s less overhead (i.e. no physical location to pay bills for, so the savings get passed on to you). The interest rate may vary depending on where you live.
Bonus: Many companies offer various banking products (loans, checking, etc.), too. So if you want additional services on top of a high-yield savings account, you’re in luck.
Our Criteria for Finding the Top High-Yield Savings Accounts for You
We looked at accounts that offered a high APY by today’s standards — that means around the 0.50% interest-rate-mark — and low (or no) fees. We included a variety of online-only and big-name accounts to choose from as well.
You don’t have to transfer all your banking needs to an institution that offers a high-interest account. You can hang on to your primary bank and have a separate, high-earning savings account elsewhere. But note: Some accounts may require you to open other products with them, so keep that in mind.
The 5 Best High-Yield Savings Accounts
Of course, “the best account” will be determined by your individual wants and needs. If you’re highly organized, a stricter but high-paying account could be a good option. And if you’re more of a “set it and forget it” type of person, another one on the list might better suit you.
Here are some of our favorite accounts right now.
1. Axos Bank: A High, High-Interest Account
Axos Bank offers an FDIC-insured, high-yield online savings account. You can earn up to 0.61% APY on your money. Here’s the lowdown:
You need $250 to open an account.
You can live anywhere in the U.S. (another bonus — you’re not tied to any one location).
You can earn up to 0.61% APY on accounts with $0 to $24,999.99 in it (and then it dips to 0.25%)
You can get a free ATM card upon request.
A big one: No monthly balance requirements or maintenance fees.
Axos offers other banking products, such as rewards checking (with a 1.25% APY!), business CDs, small business banking services,commercial lending and more.
Axos is a digital-only bank, so if you prefer a physical branch, see what’s available at the big banks and your local credit union.
2. CIT Bank: Low Opening Deposit to Get Started and No Monthly Fees
CIT Bank is another online financial institution. It offers an FDIC-insured Savings Builder account where you can earn up to 0.40% APY. Here’s what you need to know:
You only need a $100 minimum opening deposit.
It’s a digital bank you can access anywhere online.
You can earn up to 0.40% APY by maintaining a balance of $25,000 or more — or, by making a monthly deposit of $100.
No maintenance fees.
CIT also offers CDs, money market accounts and more.
You can also make six money moves in this account per statement cycle, which is the industry standard.
3. Citi: A Familiar Name with a Top Rate
Citi or Citibank (not to be confused with CIT Bank) is prominent in major cities such as New York City and Chicago. The over 200-year-old financial services group offers an Accelerate High-Yield Savings account. Here’s the lowdown:
There’s no minimum to open the account.
This account is available in most states and in select markets.
You can earn 0.50% APY on your money with no limit on how much you can earn.
You’ll pay a monthly fee of $4.50 unless certain requirements are met.
Citi also offers basic checking and savings accounts, CDs, home lending, IRAs and more.
There are several accounts listed under the Accelerate High-Yield Savings umbrella — from the Citi Elevate Account Package to the Citibank Account package — with slightly different fees and requirements. However, they all share a 0.50% APY.
Worth pointing out: You can only open this high-yield account within an “account package.” This means you can’t have it as a standalone and will need to open another Citi account.
4. PenFed Credit Union: Membership With Benefits
If you prefer to bank with credit unions, PenFed’s Premium Online Savings account could be a good choice for you. This account is federally insured up to $250K by the National Credit Union Administration, or NCUA (basically the FDIC for credit unions). Here’s what else you need to know:
You only need $5 to open the account.
There aren’t branches in all 50 states, but there are over 85,000 ATMs and anyone in the U.S. can apply for membership (which you need in order to get this account) and access it online.
You can earn 0.45% APY.
No monthly maintenance fee.
PenFed also offers auto loans, credit cards and more.
Contrary to some information online, you do not need to be a member of the military to join.
If you’re comfortable banking largely online and want to take advantage of other member benefits from discounts on home security to flower delivery, check out PenFed Credit Union.
5. Marcus by Goldman Sachs: Best for Those Who Don’t Want to Touch Their Money and Watch it Grow
Goldman Sachs is a well-known name in financial services. And the bank also offers a solid high-yield savings account known as Marcus (fun fact: Marcus Goldman founded the company). Here’s the deal:
You don’t need a minimum opening deposit.
The account is open to U.S. residents and easily accessible online or via the Marcus mobile app on the Apple and Google Play stores.
You can earn a competitive rate of 0.50%.
No monthly fees.
Marcus also offers debt consolidation and home improvement loans, the opportunity to manage investment portfolios and more.
With this service, you’ll need to fund it with an external account, mail a check, set up a wire or establish direct deposit. Marcus by Goldman Sachs is a solid account if you’re looking for a recognized leader that won’t ding you with extraneous fees.
Here’s a breakdown of these high-yield savings accounts.
Bank or Financial Institution
Minimum to Open Account
APY
Other Fees
Axos Bank
$250
0.61%
No monthly balance requirements or maintenance fees.
CIT Bank
$100
Up to 0.40%
No monthly maintenance fee. You must have a minimum balance of $25K or a $100 monthly deposit to earn the 0.40% APY.
Citi Bank
None
0.50%
You’ll pay a monthly fee of $4.50 (and up, depending on the account type) unless certain qualifications are met.
PenFed Credit Union
$5
0.45%
No monthly maintenance fee.
Marcus by Goldman Sachs
None
0.50%
No monthly maintenance fee.
Overall, while these types of accounts don’t pull in the rates like they used to, they’re still a worthwhile avenue to store and safely grow your money.
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Additional High-Interest-Earning Accounts That Can Help You Make More Money
On top of high-yield savings accounts, we found two other types of accounts that will help you bring in more money: rewards checking and debit-card-linked savings accounts.
You’ll need to meet a few requirements to qualify for these rates as well, but they’ll still give you more bang for your buck.
Rewards Checking Accounts
Rewards checking accounts pay higher interest rates (usually between 1.5%-4%) on your money up to a certain amount. For example, a bank or credit union might offer a 2% APY on accounts capped at $15,000.
Even though they pay higher interest rates, you usually won’t find rewards checking accounts on a typical list of the best checking accounts. They’re in a category of their own, and you can’t simply deposit your money and forget about it; these accounts require a little work and organization.
To take advantage of rewards checking accounts, you might be required to do any of the following:
Have a minimum deposit to open the account.
Keep a required minimum balance at all times.
Pay a monthly maintenance fee.
Hit a certain number of regular deposits or ACH transactions.
Make a fixed number of debit card purchases per month.
Opt into e-statements (paperless statements) or other agreements.
Your interest rates may fluctuate or plateau depending on the amount in your account, as well. But the maximum APY can be pretty significant — more than the current 0.03% average rate for checking accounts in 2021, anyway — so these accounts may be worth it.
For example, Solvay Bank in upstate New York offers 4% APY for its high-interest checking account. Here’s the deal:
You must be a new customer.
You must live in specified counties in the State of New York.
You earn this rate for only 12 months.
This rate is available on balances up to $15,000.
You must also follow certain guidelines during each monthly statement cycle:
Enroll in and receive e-statements.
Have at least one direct deposit or ACH transaction.
Make at least 12 debit card purchases.
A minimum deposit of $15 is required, and there’s a $5 monthly maintenance fee for the account, though it can be waived.
It’s easy enough to click the button to enroll in e-statements, and once you set up direct deposit for your paycheck, it’s automatic. If you follow the rules, you can earn a cool $200 a year on a $5,000 balance.
Another example is Guardian Credit Union in Alabama, which offers 4% APY — on balances up to $30K. To qualify for the Guardian Ultimate Checking account, you’ll need to:
Live, worship, go to school in or be retired or active Alabama Army or Air National Guard personnel in specified counties in Alabama.
Have 15 posted “swipes” (purchases) a month.
Enroll in e-statements.
Have a minimum payroll deposit of $500 a month.
If you don’t meet the requirements (check the website for all of them), you won’t receive the perk — and you’ll also be hit with a $10 fee.
You can find a list of rewards checking accounts in your state along with current interest rates here.
Savings Accounts Linked to Prepaid Debit Cards
A prepaid debit card allows you to load money onto a card without needing a bank account. It can be a helpful budgeting or learning tool (some parents get them for their kids). Others may prefer using this financial service over a traditional bank account. However, these cards typically come with their own set of rules and fees.
Some prepaid debit cards come with savings accounts. Mango Financial is one such example — and you can earn up to 6.00% APY with Mango Savings.
Here’s an overview of how it works:
First, you need to activate and load your Mango debit card.
Then, you can open a savings account with $25.
To qualify for the 6.00% APY, you’ll need signature purchases of $1,500 or more and a minimum balance of $25 at the end of the month.
Cardholders are entitled to up to six transfers each month. Also, you can only have one savings account with Mango. You can view a list of fees (for balance inquiries and ATM withdrawals, etc.) here.
Netspend is another prepaid debit card with a savings account option. You’ll have to load the card account and then transfer the money to the savings account. From there:
You can earn up to 5.00% APY on $1,000 or less (the APY drops to 0.50% on any higher amount).
You can set up an auto-save function to transfer money every time you load your Netspend card account with funds.
You can transfer money from your savings account to your card up to six times per month.
Again, you want to be mindful of associated fees.
Frequently Asked Questions about High-Yield Savings Accounts
1. Can You Lose Money in a High-Yield Savings Account?
No. As long as your money is in an FDIC-insured high-yield savings account, it’s safe.
2. Are High-Yield Savings Accounts Worth It?
If you’re looking to save money and have semi-flexible access to it, all while earning a little more interest on it, then yes, a high-yield savings account is worth it. These accounts are ideal places to store an emergency fund, for example — a place where you can safely grow your money, yet access it (typically, via a debit card or transfer it to another bank account) relatively quickly when needed.
3. Where Can I Get 5% Interest on My Money?
High interest rates are harder to come by these days. Rates tend to fall between 0.10% and 1.00% APY. Your mileage — depending on where you live and how much you can put in a high-yield savings account — may vary. If you have a lot of money saved and are open to online-only high-yield savings accounts, then you might get more bang for your buck.
If you’re looking to make more on your money regardless of the account type, check out rewards checking accounts and savings accounts linked to prepaid debit cards for more options.
4. Which Bank Has the Highest Yield Savings Account?
Axos Bank, an online-only institution, offers a solid 0.61% APY. Another online bank, CIT Bank, has a 0.40% APY. If you’re looking for a more traditional, big-name bank, Citi offers 0.50% APY on your money.
Rates can change, so look around every now and then to see the latest, highest offers.
Earn More Interest on Your Accounts
Of course, it can be tricky to keep track of numerous accounts and their requirements (and to avoid fees). But, that’s just the way it is in this low-interest-rate environment.
Pro Tip
Start with the accounts that have simple requirements and options for avoiding all fees.
You have to exercise your organizational skills to make some extra money on your high-yield savings accounts. But the end results can be worth it.
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Steve Gillman and Kathleen Garvin are contributors to The Penny Hoarder.
