APY GUY: Maximize Your Savings & Earnings

checking accounts

Top 11 Free Checking Accounts for 2021


The best things in life are free. Your checking account should be too!

In 2021, you shouldn’t have to pay for a great checking account. There are enough choices out there to pick from, and you can even be selective based on your priorities for a deposit account. We’ve rounded up 11 of the best free checking accounts of 2021 and covered their advantages and disadvantages here.

Best Overall – Capital One 360

You’ve heard of this one, no doubt, whether you’re a Capital One customer or not. The Capital One 360 Checking Account is our top pick for the best free checking account overall. This is a fee-free checking account with a solid mobile app, good cash access, and options for getting your money faster and protecting yourself from over drafting.

You can manage this account from a Capital One bank or cafe or manage it completely online from the mobile app, which scores in the high 4’s. Enroll in instant alerts to receive push notifications about your activity. There are no fees for monthly maintenance, low balance, or transfers. Access your money at more than 70,000 in-network ATMs across the country.

You can choose what happens when you overdraft to avoid paying fees. Coverage options include Auto-Decline (transactions declined), Free Savings Transfer (funds transferred from savings or MMA), and Next Day Grace (one full day to transfer the money into your account).

Best for Budgeting – One

For an account that will help you keep your spending in check and save money, check out the One Spend and Save Account. This checking account by One Finance is a unique multi-purpose account that lets you spend, save, and borrow in one place. This checking account is ideal for budgeting and building good habits.

You can organize your money into “Pockets” to allocate funds for different purposes and share these with other people in your household. To help yourself save money, you can enroll in Auto-Save to round up your purchases when using your One card or move a portion of your paychecks over to your savings. One offers an uncapped APY of 3% on Auto-Save balances and 1% on the rest of your savings balance.

Customers can also enroll in Credit Builder to add on-time payments to their credit history, no credit checks required. Customers create a Credit Builder Pocket, use the available money to make purchases or pay bills, and One Finance automatically pays the entire balance at the end of the month and reports the payment to the three major credit bureaus. 

Best for Earning Interest – Alliant High-Rate Checking

The Alliant High-Rate Checking Account has consistently ranked as one of the top free checking accounts for a couple of years now. It is best for people looking for a checking account that earns interest. Right now, the rate is 0.25%. Although that’s not knock-your-socks-off great, it is easy to earn and there are no caps. 

Rather than requiring you to maintain a minimum balance to qualify for this rate, Alliant lets you qualify by opting into eStatements and making at least one electronic deposit (via ATM, mobile deposit, direct deposit, etc.) per month. 

Other nice features include overdraft protection, a digital Visa debit card on top of your physical one, and Courtesy Pay to avoid decline fees when a payment or transfer doesn’t go through. You can access your money at more than 80,000 in-network ATMs and get reimbursed up to $20 per month when you incur fees from using out-of-network machines. The Alliant High-Rate Checking Account is an all-around smart choice.

Best Online-Only Account – Axos Bank Checking Account

If you want to be able to do 100% of your banking from your phone or computer, the Axos Bank Essential Checking Account is for you. This is a basic digital checking account that does everything right. First, there are none of your typical maintenance and account fees. Everything from incoming wire transfers to checks are free, and this account offers unlimited ATM reimbursement as well. 

Plus, you can get your direct deposits up to two days early and earn money when you refer friends. The Axos checking account can even be linked to other budgeting and payment apps like Venmo. Customers can reach customer support 24/7. Basically, we didn’t find anything not to like about this one.

Axos also offers a Rewards Checking account and Cashback Checking account. Though these don’t have handy features like early direct deposit and ATM reimbursements and require higher balances and more regular debit card use, they do pay up to 1.25% interest and 1% cashback, respectively.

Best for Business – Novo Business Checking

Business owners can do their banking for free too. The Novo Business Checking Account is best for small business owners, start-up owners, and entrepreneurs. 

This is an online-only checking account that doesn’t charge for transfers, checks, or wires and doesn’t have minimum daily balance requirements. Get all of your ATM fees reimbursed, too. Novo can connect to many common payment and management platforms including Stripe, Quickbooks, Shopify, Slack, and Zapier. The minimum opening balance is just $50 and anyone who owns a business, corporation, or non-profit is eligible to join.

For a free and convenient solution to your business banking needs, consider the Novo Business Checking Account.

Best for College Students – Chase College Checking

Students between the ages of 17 and 24 who are enrolled in a college or university full-time are eligible to open a Chase College checking account. This account is free until a student graduates (up to five years) and then costs $6 a month unless waived. There is no minimum balance required to avoid the monthly fee or open an account.

Users can transfer money instantly through Zelle and enroll in account alerts for upcoming payments, low balance, etc. The Chase mobile app is user-friendly and easy to navigate.

All new customers receive a $100 account bonus when they open an account and make 10 qualifying transactions within 60 days. This is a pretty basic checking account in terms of features and usage, but being a customer with Chase means access to a large network of branches and ATMs and decent customer service.

Best for Low Balance – GO2bank Checking Account

The online-only bank account by GO2bank is best for users who intend to maintain relatively low balances. This is because the GO2bank mobile account is eligible to earn an interest rate of 1% on your balance, capped at $5,000. Your balance may exceed this, but it won’t earn interest.

To start earning interest, you can open savings vaults within your checking account and save for different goals. Interest is calculated for each vault and distributed accordingly but you will not earn interest on more than $5,000 across all of your vaults. Refer friends to receive up to $1,500 annually at a bonus rate of $50 per friend you refer. There is a GO2bank secured credit card as well that does not require a credit check to open and needs a cash deposit of only $100.

Just note that this account is only free if you receive at least one direct deposit transfer per month. Otherwise, the monthly maintenance fee is $5. GO2bank also offers up to $200 in overdraft protection to users who qualify to have the monthly fee waived (must opt in).

Best for High Balance – Ally Bank Interest Checking Account

On the flip side, you may be searching for a checking account that rewards higher balances. If this is true for you, the Ally Bank Interest Checking Account may be a good fit. This account earns an APY of 0.10% on balances less than $15,000 and an APY of 0.25% on balances greater than $15,000. There are no minimum balance requirements, but those with high balances will get the most benefit out of this checking account.

Ally Bank is a fully-digital bank, but you’ll still have access to more than 43,000 ATMs. This debit card has excellent security features. For example, you can enable Card Controls to set spending limits for your card, restrict certain merchant categories, or even restrict card use to a certain distance from your phone’s location (all useful in the event that your card is stolen). 

This account is completely free except for fees charged for outgoing wires, expedited card delivery, and returned deposits. 

Best for Usage Flexibility and Cash Access – Varo

Another online account, the Varo Bank Online Checking Account offers convenience and a modern banking experience. This checking account is best for people who want easy access to their money when they need it, even in advance of when they get paid.

This account comes with a contactless Visa debit card that can be used at more than 55,000 ATMs. You can receive your direct deposits up to two days in advance with this account and may even qualify for a cash advance of up to $100. To be eligible, your account must be 30 days old or older, you must receive at least $1,000 in direct deposit transfers every month, and you must not have any unpaid advances.

This debit card is also eligible to receive up to 15% in cashback on select purchases, deposited into your checking account every time you earn $5. You can see which retailers have the best cashback offers from the app. Open a Varo Savings Account and link it with your checking account to save easily with round-ups and automatic transfers.

Best Mobile App – Chime

Chime has one of the best banking apps out there, making it our pick for the top checking account for people who want a positive mobile experience. The Chime Spending Account stands out for having first-rate customer service and a mobile app that sets the bar high. It has a sleek and simple design that makes it easy to see your activity and manage your account. 

There are almost no fees associated with this checking account, other than an out-of-network cash withdrawal fee. You can use your Chime debit card at more than 60,000 ATMs for free.

Users may be eligible to receive between $20 and $200 in overdraft protection if they have direct deposits totaling $200 or more every month. This account also offers advances of up to two days on direct deposits and a round-ups savings feature that will automatically round up your transactions to the nearest dollar and transfer the extra to your Chime Savings Account (if you have one).

Best for Cashback – Discover Cashback Debit

Discover is known for its cashback credit cards, but it also extends its cashback offers to checking account customers. The Discover Cashback Debit card is the card for you if you want to earn money every time you spend money but don’t want a credit card. Users can earn 1% cashback on up to $3,000 in transactions every month, or a total of $30 a month and $360 a year. ATM transactions, loan payments, and peer-to-peer transfers are not eligible to earn cashback.

There are no monthly maintenance fees, low balance fees, or transfers fees for this account. You can use your debit card to withdraw money at over 60,000 in-network ATMs and make instant online transfers through Zelle. 

This account is a good option if you want to earn a little extra money through spending rather than through maintaining a balance.

Final Thoughts

There’s a perfect free checking account out there for everyone, no matter how much money you have or how you plan to use your account. Find a checking account that will help you achieve your money goals and save you money. When opening a checking account, spend some time shopping around and comparing your options. Use this article to help you get started.

Aspiration: Up to 1.0% APY + 10% cash back on purchases!


image credit: aspiration.com

Aspiration is not a bank but rather a financial services company that has come up with quite the aspirational product – a hybrid checking/savings account with the goal of making the world a better place.

Aspiration has taken the best features of checking and savings accounts (ie cash back on debit purchases, unlimited ATM reimbursements and a solid APY on idle cash) and combined that with a streamlined way of investing in ethical companies.

The Aspiration Spend & Save account was named one of the best cash management accounts on the market for 2020 by NerdWallet— “it lets you invest sustainably and save while you do it.”

Today, the Spend & Save account by Aspiration comes with two plans to choose from:

  • Aspiration – free – 3 to 5% cash back on conscious coalition purchases.
  • Aspiration Plus – $7.99/mo or $5.99/mo if you pay annually. Earn up to 1.0% APY on savings plus up to 10% cash back on conscious coalition purchases AND Aspiration will offset your carbon footprint every time you drive.

If you’re in the market for a cash management account that is as personally fulfilling as it is financially rewarding, continue reading our review of both plans below.

Aspiration Spend and Save at a Glance

The Aspiration Spend and Save account is a cash management account that is divided up into two plans – Aspiration and Aspiration Plus.

As mentioned, the regular Aspiration plan is free and has several noteworthy benefits. These include:

  • An Aspiration Debit Card issued by Coastal Community Bank, based in Washington State.
  • A guarantee your deposits won’t fund fossil fuel exploration or production
  • 55,000 free in-network ATMs using Allpoint locations (found in Walgreens, CVS and Target)
  • 3-5% cash back on Conscience Coalition purchases
  • Personal impact score to help you shop to match your values
  • Option to plant a tree with every purchase roundup
  • FDIC insurance up to $2.46 million using bank sweep programs which “sweep” your funds up into member FDIC banks to leverage their FDIC insurance
  • pay whatever monthly fee you think is fair (even if it’s zero)

The fact that the Aspiration Spend and Save account will never be used to pay for fossil fuel exploration or production is taking direct aim at America’s largest banks. The four leading banks in the U.S. — Chase, Wells Fargo, Citi, and Bank of America — are responsible for the most fossil fuel production by any banks in the world.

If you opt for the Aspiration Plus plan at $7/mo or $69/annually you have the ability to unlock more features and rewards. On top of all the bulleted items listed above, the Aspiration Plus plan will also include:

  • 10% cash back on Conscience Coalition purchases
  • Up to 1.00% APY on your savings up to $10,000
  • Planet Protection which purchases carbon offsets to balance out your gas consumption. Drive all you want with a clear conscience!

Both the 10% cash back on Conscience Coalition purchases and the Planet Protection program are novel benefits and unique differentiators for Aspiration.

All Aspiration Spend and Save customers will be able to see their spending impact in the form of an impact score which not only gives you spending bonuses but also shows you how the companies you’ve supported use their profits to do social and environmental good.

Conscience Coalition Partners

Aspiration has teamed up with companies “that do right.”

Aspiration has teamed up with corporations that put morals and ethics at the heart of their business.

Every Conscience Coalition partner that Aspiration has is an impact leader. These companies achieve high scores on the Aspiration Impact Measurement (AIM) tool. These companies are made up of pioneers in giving, sustainability, workplace equality, or transparency.

Remember, when purchasing form these companies your cash back will vary based on your Aspiration plan. If you’re on the regular, free plan you’ll earn between 3 and 5 percent cash back and if you’re on the Aspiration Plus plan you’ll earn 10% cash back.

Planet Protection

Drive your car without hurting the planet!

It’s no secret that driving our cars is one of the biggest contributors to climate change. With the Aspiration Planet Protection program; however, you’ll be able to drive your car as much as you want with a clean and clear conscience.

The Aspiration Planet Protection program purchases carbon offsets based on every gallon of gas you purchase with your debit card. This means that regardless of what kind of car you drive, you can rest assured that Aspiration will be neutralizing your carbon output.

This feature is only available with the Aspiration Plus plan.

Spend and Save Rate (APY) + Details

For the Aspiration Plus plan members, you have the chance to earn one of the highest APYs on the market at 1.00% on balances up to $10,000.

The biggest “catch” with earning the exceptional APY is that the plan requires you to also spend $1000 or more, monthly, with your Aspiration debit card. If this requirement is not met your balance will earn a more modest 0.25% APY.

A minimum deposit of just $10 is required to open to open the account, but you must enroll in Aspiration Plus to earn the APY.

Aspiration Plus APY

BalanceAPY
$10 – $10,0001.0%
$10,001 +0.25%

To put these yields in perspective, the current national average for a savings account and an interest checking account are just 0.06% APY and 0.04% APY, respectively.

Aspiration APY

BalanceAPY
$10 – $10,0000%
$10,000 +0%

The regular Aspiration plan does not provide any yield on your balance.

FDIC Insurance up to $2.46 Million

Aspiration deposits are insured up to $2.46 million per depositor by the FDIC. This is just shy of 10x what a typical bank provides. This is possible through the use of the FDIC Deposit Sweep Program, which “sweeps” your funds into FDIC-insured bank accounts at day’s end to protect them.

Operating as your custodian and agent, Aspiration will select these banks for you from a long list of at least 10 participating Program Banks. They will post a Priority List of these selections for your viewing. This list will tell you which banks your funds will be put into and what the priority will look like (i.e. which bank will get the first tranche, second tranche, third and so on until all your money is safely parked).

As mentioned, at the end of each business day your cash balance is “swept up,” and distributed amongst, one or more of Aspiration’s partner banks up to $246,500 per bank.

Here is a current list of Aspiration’s current Program Bank members. All are members of the FDIC:

  • Coastal Community Bank
  • EagleBank
  • Ion Bank
  • Bremer Bank, NA
  • ProgressBank
  • Bank of New Hampshire
  • Manufacturers Bank
  • C3Bank, NA
  • The Freedom Bank of Virginia
  • Bridgewater Bank
  • Nano Banc

If the $2.46m is exceeded, you will have an excess bank for this additional amount. Deposits in the Excess Bank will not be insured. Contact Aspiration at (800) 683-8529 if you are over this limit in one or more of the banks on this list or if you would like to alter your Priority List.

Though your money won’t be held at Aspiration, it can still be accessed as usual through Aspiration. A Spend and Save account is not technically a deposit account, so deposits into it need to be distributed into other deposit accounts in order to still receive insurance coverage.

Accessing Your Funds

Accessing your funds is simple and straightforward and on par with many online bank savings accounts and money market accounts. The following methods are allowed.

Depositing funds can be down via:

  1. ACH Transfer
  2. Wire transfer
  3. Mailed check
  4. Mobile-deposited check

Withdrawing funds can be down via:

  1. ACH transfer
  2. Wire transfer
  3. Request a mailed check
  4. ATM withdrawal
  5. Point-of-sale withdrawal

Account Fees

Aspiration’s “Pay What is Fair” fee is certainly an interesting approach to fees. They simply state that you choose their fee.

They’re confident in their ability to bring you best in class digital financial products and in return they hope you will be kind enough to pay them something for the value you received. But you certainly don’t have to and the ball is entirely in your court. The fee you pay can be $0 for as long as you’re with them if you so choose.

Aspiration Spend and Save Fee Schedule

TypeFee
Monthly MaintenancePay what is fair
Minimum to Open$10
ATM Withdrawal$0
OverdraftNA. The account won’t allow it.
Stop Payment$0
Insufficient Funds$0
Domestic Wires (In and Out)$0.82 each
International Wire In$2.50
International Wire Out$15
Return Item Charges$1.15 per item under $5,000
$5.33 per item over $5,000
Foreign Item Collection$30 plus the foreign bank’s fees
Canadian Item Collection$5
Expedited Debit Card$35
Account ResearchFree

You may write checks with an Aspiration Spend and Save, but you will need to order paper checks. Aspiration tries to be as environmentally friendly as possible, so you’ll have to go out of your way to get paper.

Sustainable Investing

Invest in ethically and environmentally sound companies.

Aspiration also makes investing easy by offerings users professionally managed funds that are 100% free of any fossil fuel investment(s).

If you utilize this service your money is placed in the redwood fund (REDWX) which only invests in companies with sustainable environmental and employee practices. A $10,000 minimum is required.

Retirement

Aspiration also allows its users to open an IRA through Redwood IRA. The same investment principles apply in that they only invest in sustainable businesses and companies who care about their employees. A $10,000 minimum is required.

Aspiration Spend and Save Reviews + Customer Sentiment

Customer satisfaction with this financial firm is mixed and fairly average overall. This cash management product comes through for users with competitive rates, high FDIC-insurance and simplicity, but some users are frustrated with how often rewards, rates, and features change.

Customer service is said to be good and accessible and the online banking platform is generally thought to be more than sufficient—easy to use and complete.

To reach a customer support representative, call (800) 683-8529 during business hours of 6 AM – 6PM Pacific Time Monday through Friday and 8 AM – 4 PM Saturday and Sunday. You can also follow the corporation on Twitter, Facebook, and YouTube.

The mobile app for this firm is well-liked. The Aspiration app for Apple devices has a 4.8 star rating on the App Store and for Android devices has a 4.5 star rating on Google Play.

Final Thoughts

This account is a clear winner for anyone that wants to use their money to better the world.

The Spend and Save account (along with membership to Aspiration Plus) has everything a good cash management account should. They feature good rates of return, great perks, and the convenience of spending, saving, and investing all under the same umbrella.

Fidelity Cash Management Review – A Checking/Savings Combo


image credit: fidelity.com
Full disclosure: We may receive financial compensation when you click on links and are approved for products from our advertising partners. Opinions and product recommendations on APYGUY are those of our writers and have not been influenced, reviewed or approved by any advertiser. Learn more about how we make money.

Fidelity Investments Inc. is a multinational investment management corporation offering a wide range of personal and professional investment products and advising options.

This financial services company was established in 1946 and is now the fifth largest asset management firm in the world controlling more than $2 trillion in assets.

Rated the #1 online broker of 2020 by both Barron’s and Investor’s Business Daily, Fidelity is also considered to be an overall sound choice for cash management accounts by review publications and customers alike.

If you’re not familiar, a cash management account is an all-in-one account that combines features of savings accounts, checking accounts and investment accounts in one place, with one institution.

Cash management accounts let you capitalize on convenience and security and this brokerage firm offers one with several notable perks. If you want a cash management account that can do more than the standard checking, savings, or investment account can, here’s what you’ll need to know about the cash management account offered through Fidelity.

What is the Fidelity Cash Management Account

Fidelity Cash Management accounts are brokerage accounts, not bank accounts. This makes managing your finances easier by allowing you to both save and invest under the same roof.

That said, you can also use this much like you would a checking account since it offers:

  1. ATM cash access,
  2. a debit card,
  3. the option for bill pay,
  4. and unlimited check writing capabilities. 

Your uninvested balance earns interest similar to an online savings account or you can choose to park your cash in other low-risk investment options like a money market account or CD.

Now let’s get under the hood and see how these accounts actually work.

Remember these are not deposit accounts nor bank accounts.

In fact, the cash you put in your Fidelity Cash Management account doesn’t actually stay with Fidelity at all (though it can be accessed through Fidelity).

Instead, Fidelity partners with other FDIC-insured banks, called Program Banks, and carries out what is known as “FDIC-Insured Deposit Sweep” or simply “Sweep” (a practice typical of cash management accounts).

Basically, Fidelity moves your money into different interest-bearing deposit accounts with other institutions so that it can leverage their FDIC insurance and maximize your coverage.

Your money will be swept into Program Banks chosen by Fidelity and you will be notified about which have been selected for you when you are presented with your Program Bank List. There are always going to be a minimum of five different banks available for Sweep, but exactly which ones are available to participate depends on demand and other factors. 

This practice of sweeping makes it possible for Fidelity Cash Management accounts to be FDIC insured up to $1.25 million. Most deposit products are only insured up to $250,000, but because your money will be distributed across multiple institutions and insured separately by the FDIC, coverage can extend well beyond this typical maximum. However, the coverage limit per bank is still $250,000, which is why you may have up to five different Program Banks. 

Fidelity will automatically sweep the first $245,000 of your cash management account balance into the first bank on your Program Bank List, reserving $5,000 for accrued interest, then the next $245,000 into your second bank, and so on. Just know that it is your responsibility to make sure that your cash is always within coverage limits at each Program Bank. If you do find that you’ve, for some reason, exceeded FDIC coverage limits or you wish to change one or more of your banks, call Fidelity at 800-931-9987 to update your Program Bank list as needed. 

Remember that you are not a customer with Program Banks but with Fidelity. If you are already a customer with a Program Bank beforehand, keep in mind that your aggregate balance will be used to assess coverage.

You will also need a Fidelity investment account in order to open a Cash Management account.

Fidelity Cash Management Account Rate + Features

The Fidelity Cash Management Account does not earn much interest currently, but has been competitive in the past.

Fidelity Cash Management Account Rates

BalanceAPY
$0 – $99,999.990.01%
$100,000 +0.01%

To put these offers in perspective, the current national average for a savings account is 0.05% APY and just 0.04% APY for interest-bearing checking accounts. However, there are still some online savings accounts paying above 0.60% APY. For example, the Axos High Yield Savings account still holds an APY of 0.61% APY!

Interest compounds daily and credits monthly.

You can use this account to invest in Fidelity CDs, mutual funds, fixed-income instruments, or MMAs as well, but the current rates won’t be too enticing.

According to Fidelity, the Fidelity Cash Management account is meant to supplement, not replace, your Fidelity brokerage account, which does not allow for spending but has many more investment options to choose from.

The Fidelity Debit Card, issued by PNC Bank, can be used at any Fidelity ATM or out-of-network ATM worldwide and all ATM charges made from your cash management account will be fully reimbursed. It can also be linked to Apple Pay.

You can use your Cash Management account to enroll in Fidelity BillPay, write as many checks as you want, deposit checks, and make transfers between this and external accounts, and more—all at no cost to you.

Unlike many cash management and money market accounts, the Fidelity Cash Management account does not have monthly maintenance or low balance fees.

How Does Fidelity Compare with Other Cash Management Accounts

There’s quite a few cash management accounts on the market to choose from and their feature sets and interest rates vary widely.

Below is our rundown of the most popular cash management accounts of 2021 benchmarked with Fidelity on top features and yield.

Institution/AccountFDIC insuranceDebit CardAPY
SoFi Money$1.5 millionYes0.25%
Wealthfront Cash Account$1 millionNo0.35%
Betterment Everyday Cash Reserve$1 million+Yes0.40%
Aspiration Spend & Save$2 millionYes1.0%
Affirm Savings$250kNo0.65%
Fidelity Cash Management$1.25 millionYes0.01%

Many of the cash management accounts that come with a debit card also feature ATM fee reimbursements worldwide. The Fidelity Cash management account offers an unlimited amount of these but every institution and account is different. You’ll have to check with the institution’s account details page for more information.

Reviews and Customer Sentiment

Overall customer satisfaction is at 4.4 out of 5 stars on the Fidelity site. Customers appreciate how comprehensive Fidelity’s product lineup and website are and the general consensus is that the online banking platform is easy-to-use and does the job.

In terms of the cash management account, the disadvantages are that the product isn’t as competitive as it could be in terms of rates and APY and Fidelity doesn’t have many branches. In addition, there have been reports of transactions into and out of cash management accounts taking longer to go through than what is typical. Some customers have also expressed frustration in getting support from Fidelity.

The Fidelity Cash Management was given a rating of 4.5 stars out of 5 on NerdWallet because it has good ATM coverage, ATM reimbursements, and no monthly fees, but the account is dinged for not earning a better rate of return.

There are less than 200 Fidelity Investor Centers or branches across the country. This limited in-person branch access might not be what you want from a bank, but Fidelity makes up for this in other ways. For one, customer support can be reached 24/7 and the Fidelity app is very highly rated on the App Store—4.8 stars—and Google Play—4.5 stars. Call (800) 343-3548 to reach a representative at any time or day of the week or reach out via the site’s convenient live chat feature. 

Final Thoughts

As far as cash management accounts go, this one is solid but there are better options available elsewhere.

The best parts of this account lean towards the checking account features rather than the savings account features as current rates are grim. Therefore this account isn’t going to grow idle cash to the extent that a strong online savings account could, but it’s great for keeping large sums of money ready to deploy and invest.

PNC Bank High Yield Savings 0.50% APY + Virtual Wallet Checking Bonuses!


$50, $200 and $300 bonuses available by region through December 31, 2020!

PNC Bank is the 7th largest bank in the United States by assets with nearly $381 billion in total and the 5th largest bank in the US by branch network with 2,459 branches across 21 states and the District of Columbia.

They offer a full suite of banking services for personal, small business, corporate and institutional clients that cover everything from loans and borrowing to savings and wealth management.

For the purpose of this review we will focus on the personal High Yields Savings account and the Virtual Wallet Checking Pro with Spend account. These are PNC Bank’s online savings account and online checking account, respectively.

The Virtual Wallet Pro with Spend account, which functions as the online checking account, can also come packaged with the High Yield Savings, so that your reserve funds can grow with a solid APY. PNC Bank calls this packaged product the Virtual Wallet Pro with Spend, Reserve and Growth (a bit of a mouthful, we know).

If you open any of the Virtual Wallet accounts you can currently earn a bonus of $50, $200 or $300 depending on where you live and which account you open.

We ran several scenarios and detailed them below, but in general, the western states and cities are only eligible for the $200 bonus with the Virtual Wallet Pro with Spend account and the Midwest and Eastern states have that same $200 offer plus the option of either a $50 or $300 bonuses based on the type of account set up and the associated qualifying actions.

PNC Bank High Yield Savings Overview – 0.50% APY

PNC Bank is member FDIC and all deposits held at the institution are federally insured up to $250,000 per depositor.

PNC Bank High Yield Savings

AccountMin BalanceAPY
High Yield Savings$10.50%

To give this yield some context, the current national average for a savings account sits at just 0.07% APY and the top rates online are just touching 0.50% APY. That said, there are still a handful of specialty savings accounts like Sallie Mae’s SmartyPig or the Fitness Bank savings account that feature APYs around 0.70%.

Setting up, funding and managing your High Yield Saving account is fairly simple and straightforward.

To get started you will need the following:

  • Driver’s License or State ID
  • Social Security Number

On top of this, they will also request several pieces of information about yourself such as your full legal name, residing address, telephone number, e-mail address, etc.

Funding the account can be done in three ways:

  • Wire transfer from existing external bank account
  • Check deposit via the PNC mobile app. This can only be done after you’ve enrolled in PNC online banking or mobile banking.
  • A PNC checking account

The easiest and fastest way to get going is via a wire transfer. For this you will need the routing number and account number of your existing bank and bank account.

One your account is all set up, you can manage it from a mobile phone, tablet or desktop computer using PNC online banking or one of their native apps. You can download their IOS app or Android app using the links provided.

PNC Virtual Wallet Checking Pro with Spend

The Virtual Wallet Checking Pro with Spend account is an online checking account in your virtual wallet. Like the high yield saving account, this account has no minimum deposit requirements and no fees.

It comes with a debit card and access to over 18,000 ATMs nationwide (locate them here). It also comes with ATM reimbursements of up to $20 per statement cycle. This is a generous out of network ATM reimbursement amount per statement cycle – especially given the coverage of PNC Bank and its own ATM network.

Virtual Wallet Checking Pro with Spend Features

ItemFeature
Minimum deposit$0
Minimum balance$0
Monthly service fees$0
Debit CardFree
ChecksUnlimited
ATMs18,000 in network
ATM reimbursement$20 per statement cycle
Sign Up Bonus$200 – with qualifying direct deposit(s)

$50, $200 and $300 Bonus Details

As mentioned only the Midwest and Eastern states have the option for the $50 and $300 bonus. They also have the $200 bonus option that all the Western states have with the Virtual Wallet Checking Pro with Spend account mentioned above.

We ran this scenario in six major cities across the country:

  • Seattle 98109
  • San Francisco 94016
  • Dallas 75001
  • Chicago 60007
  • New York City 10001
  • Miami 33101

In Seattle, San Francisco and Dallas we found that only the $200 bonus offer was available.

In Chicago, New York, and Miami we found that same $200 offer available plus a $50 offer and a $300 offer. Details on each offer are listed below.

$50 Bonus for Virtual Wallet

Perhaps the easiest bonus to nab for those in eligible regions is PNC Bank’s $50 bonus is by opening the virtual wallet and establishing $500 in qualifying direct deposit(s) to the Spend account.

To qualify for this offer you must open the account between 12/1/20 to 12/31/20, and a qualifying Direct Deposit(s) must be received within the first 60 days. Your checking account must remain open in order for you to receive the reward, which will be credited to the eligible account within 60-90 days after all conditions have been met and will be identified as “Cash Trans Promo Reward” on your monthly statement.

$200 Bonus Offer

For the $200 bonus that is available everywhere. You will need to set up the Virtual Wallet Checking Pro with Spend account AND set up qualifying direct deposit(s) of $2,000 or more.

To qualify for this offer you must open the account between 12/1/20 to 12/31/20, and a qualifying Direct Deposit(s) must be received within the first 60 days. Your checking account must remain open in order for you to receive the reward, which will be credited to the eligible account within 60-90 days after all conditions have been met and will be identified as “Cash Trans Promo Reward” on your monthly statement.

$300 Bonus Offer

The $300 bonus that is available in Midwestern and Eastern States can be received by opening the Virtual Wallet with Performance Select account and

  1. setting up $5,000 or more in qualifying direct deposits OR
  2. $5,000 in average monthly balance in Spend and Reserve OR
  3. $25,000 in combined average monthly balance in PNC consumer deposits or investments.

To qualify for this offer you must open the account between 12/1/20 to 12/31/20, and a qualifying Direct Deposit(s) must be received within the first 60 days.

Final Thoughts

These are extremely noteworthy accounts and generous bonuses offered by PNC Bank.

The high yield savings account comes with an APY that is only beat by a handful of institutions and the Virtual Wallet with Spend account comes with a lucrative signing bonus of $200 plus the same ability to earn 0.50% APY on reserve cash.

For Midwestern and Eastern states only, we love the ability to earn $50 and $300 bonuses for the Virtual Wallet accounts, but the $300 bonus comes with much steeper direct deposit and/or average monthly balance requirements.

Popmoney Review – How it Works and How it Compares


Popmoney is a payment service that allows people to send, request and receive money directly from their bank account. The service makes peer-to-peer transfers as simple as sending an email or text.

As a background, Peer-to-peer transfers are electronic money payments made from one person to another through an intermediary payment application.

These came on the scene in a major way with the birth of eCommerce and the need to facilitate payments between customers and sellers – most notably with online retailer eBay.

PayPal, which was later acquired by eBay in 2002, was the first mover in the space and certainly not the last. This acquisition and the growth of eCommerce in general spurred a boom in both online P2P transactions and competing applications facilitating them.

Today, there are dozens of peer-to-peer (P2P) payment apps out there to choose from.

And although Popmoney is not a first-mover nor a flashy up-and-comer, they are one of the largest in terms of institutional banking partners and wide-spread usage.

Developed by CashEdge in 2010 and now owned by Fiserv, Popmoney has gone through a series of changes in the past decade.

Let’s start with CashEdge. The brand name was absorbed when they were acquired by Fiserv, but I personally still have nightmares about using their data aggregation software back in my financial advisor days. Even their primary partner, Albridge, abandoned them in the end. 

That’s not to say that Popmoney provides a bad experience because they were developed by CashEdge, but I went into this review with a bit of a bias just as a matter of full disclosure.

A History of Partnerships and Integrations

Fintech applications are built to be sold. It’s the reason that financial software companies exist. They build a product, market it for a while to grow a client base, then sell for as high a valuation as possible. That has happened several times over with Popmoney.

The first acquisition is the most obvious and it has nothing to do with P2P applications. Fiserv bought CashEdge in 2011 to compete with data aggregation rival ByAllAccounts, which has since been sold to Morningstar. This gave them Popmoney, but that was not their target.

The move did prove beneficial, though. Popmoney was connected to a number of larger banking institutions, so they melded it with their existing P2P provider, called Zashpay, which already connected to 1,400 banks. The combined entity stayed under the Popmoney brand.

If you’re wondering about the name, it stands for “Pay other people money.” That’s pretty direct and could have benefitted from the services of a clever marketing firm, but that never really developed. Fiserv has always treated P2P as secondary to their aggregation services.

On April 17, 2013, Fiserv announced the launch of a new “Instant Payments” feature in their Popmoney application, placing them in a space that had been dominated by Paypal for decades. Venmo was still in their formative years and Zelle had not been launched yet.  

The Basics – How Popmoney and Other Electronic Transfers Fundamentally Work

To understand how Popmoney works, the first step is to go over what an electronic funds transfer (EFT) is. The concept goes back to 1870, when Wells Fargo first started sending money using their telegraph lines. The Federal Reserve Bank adopted the practice in 1910. 

In 1972, the need for batch transactions led to the development of the automated clearing house (ACH), which is how most commercial bank wire transfers are done today. This is how P2P applications like Popmoney move cash. 

Unlike Paypal or Venmo, the money moved through Popmoney has to be in the sender’s bank account before the ACH can be initiated. The payment can then be made by sending to the recipient’s email address or mobile phone number. 

The application is designed for person-to-person transfers, but Popmoney also offers commercial accounts. The commercial account is advertised as a “full featured” electronic invoicing platform but it’s debatable as to whether or not they live up to that name.

Essentially, it’s a stripped-down basic service that doesn’t even provide any type of reporting or accounting. You can set recurring invoices, but you have to export them to Excel to run transaction reports.

As for the personal P2P app, I downloaded it from the App Store for my iPhone and found it to be pretty bare bones as far as features go. That’s not necessarily a bad thing, since all you really want to do is send and receive money, but I was expecting more from a ten-year-old app.

Processing Time for Sending and Receiving Payments

Having run small businesses for nearly three decades, my experience has been that an ACH should take no more than forty-eight hours to show up in your bank account. Popmoney takes up to three business days.

For the quickest transfer of funds, the sender must submit a payment via his/her debit card by 5:00pm PST and the recipient must accept it by 10:00pm that same night. In this instance, funds will take just 1 business day to transfer.

If you need to transfer money instantly, you might want to try another application.

A deeper dive into customer reviews show a number of complaints on the wait time as well, and even several instances where funds seemed to have been “frozen” after transfer, getting lost in limbo for a period of time before they could be sorted out.

The app itself scores just 1.5 stars out of 5 on the IOS App Store and just 2.3 stars out of 5 on Google Play with a significant portion of the 1 star ratings citing the slow transfer time. As of the time of this writing 484 individuals have reviewed the app for IOS and 1,328 for Android.

Of course, Popmoney is not alone in this. I’ve seen similar issues with Zelle and even worse with Paypal, who regularly freezes money for “security” checks. Venmo, which is owned by Paypal, does not appear to have this problem according to publicly available, consumer reviews.

Cost breakdown

Here’s an area where Popmoney performs better.

They charge a flat 95 cents per money transfer, unlike Venmo and Paypal, both of which charge a percentage. Zelle, on the other hand, charges nothing, so they win this battle.

Your bank may charge a fee for ACH transfers, so check into that before using Popmoney. Banks and credit unions within the Popmoney network could have better rates or may not charge you extra at all. I searched through Popmoney’s website for more on this, but it’s not there. 

That said, 95 cents is not a bad price, particularly since there doesn’t seem to be a limit on how much you can send.

Popmoney Fees vs Other P2P Apps

AppFee
Cash AppFree, 1.5% or 3% of the sum*
Facebook MessengerFree
Google Pay SendFree
PayPalFree or 2.9% + $0.30 fixed**
Popmoney$0.95 per transfer
Venmo3% of sum but can be waived***
ZelleFree

*The Cashapp charges the sender a 3% fee to send a payment using a credit card and 1.5% for an instant deposit to a bank account.

**Sending funds via a PayPal balance or linked bank account is free. Sending funds via a credit card, debit card or PayPal credit will cost you 2.9% of the amount plus a fixed fee of $0.30.

***Venmo waves this fee if transfer is funded via a Venmo balance, a bank account, or a debit card.

Availability – Which Institutions Use It?

There’s a search function on the website where you can look up your bank to see if they do business with Popmoney. Zashpay already connected to 1,400 institutions before they merged with Popmoney so these institutions remain on the list. The major ones include the following:

  • Ally Bank
  • TD Bank
  • Fifth Third Bank
  • Regions Bank
  • US Bank
  • Bank of America
  • Citibank
  • PNC Bank, NA
  • SunTrust Bank
  • Wells Fargo Bank

Is it Safe?

Popmoney is legitimate, so there are security safeguards in place.

Popmoney sends a one-time verification code (usually six digits) to the mobile number or email address of the payment sender to thwart unauthorized payments and theft. The user then needs to confirm that code to verify they own that cell number or email address to continue.

Unfortunately, any time you use an email to send or receive money there’s always the possibility of fraud. That email message from a “friend” could be someone looking to steal your money so whenever you receive a request for money be sure to verify the sender’s email or phone number.

Another drawback to Popmoney is there’s no buyer protection if you use it for a purchase. That’s not really what it’s intended for, but there are scenarios where the seller may not want to take credit cards. Be careful in those situations. It could be a scam.

Don’t use Popmoney for online auctions. Whenever you’re buying something “as is” you have very little recourse to begin with. Add in the lack of buyer protection and you’re just asking for your money to be stolen. Use a regular credit card, not a debit card, instead.

What Personal Information is Shared with the Service?

You do have to share your bank tracking and routing numbers with Popmoney, but the recipient of any payments you make has no access to that information. This gives you a level of privacy that writing a check does not.

If you send money to someone who doesn’t have a bank account at a Popmoney affiliated financial institution, they will need to provide their tracking and routing numbers to retrieve the funds. Make that clear to anyone you’re planning on sending a payment to. 

Make sure that you’re using the real Popmoney website or mobile app when you enter bank account information. There are a few fraudulent sites out there that disguise themselves as being the legitimate website. Double check the URL at the top of the page to confirm.

PopMoney vs. Competitors

Zelle is the main competitor to Popmoney and lately they’ve been winning the battle. Venmo is considered more of an app for young people making smaller cash transfers, but their subscriber numbers are higher due to affiliations with Paypal and eBay.

Other competitors include Paypal, Google Pay Send, and Facebook Messenger. I’ve compared fees, network size, payment types, speed, and safety features below. 

Popmoney vs Zelle

Zelle doesn’t charge a fee to send money. That’s great, but their network (100+ banks) is significantly smaller than Popmoney (over 2500). Like Popmoney, you can send money via email or mobile number, but they also have the option of using your credit card. 

Zelle is faster. You don’t have to wait several business days for the transaction to complete. It happens in minutes for in-network users. Recipients outside the network receive their funds within 72 hours. From a security perspective, the two apps are roughly the same. 

Popmoney vs Paypal

The fees for Paypal are a little more complex. It’s free to send money using your bank account, but instant transfers are 25 cents. Credit card transfers are 2.9% plus 30 cents per transaction. The upside is that Paypal’s network is the largest in the world.

Regular Paypal money transfers take roughly the same amount of time that Popmoney transfers do. Instant transfers are available within thirty minutes. Security is much better, with buyer and fraud protection available for all accounts. 

Popmoney vs Venmo

Venmo is owned by Paypal, but for users it’s a very different experience. It’s easy to set up and you can transfer money with a bank account or debit card for free. Credit card transfers will cost you 3%. Instant transfers are 25 cents and money is available within 30 minutes. 

Venmo is only available for users with a US bank account. Regular transfers take one to three business days. They do not offer buyer or seller protection, so if you’re buying merchandise or bidding at an auction, use a credit card or Paypal.  

Popmoney vs Google Pay Send

Formerly known as Google Wallet, Google Pay Send charges no fees to send money and you can use it anywhere that Google Pay is accepted. You can link a debit or credit card and instant transfers happen in a matter of minutes. Bank account transfers take three days.

Google Pay Send has the best security on this list. They offer 100% fraud protection for unauthorized transactions, but if you send money voluntarily to someone who’s scamming you it may not be covered, so make sure you know who the recipient is. 

Popmoney vs Facebook Messenger

Did you know that you can send and receive money using Facebook Messenger? If you add a credit or debit card to your account, you can conceivably send money to any of the more than one billion people who use Facebook every day. There are no fees to do it. 

The drawbacks to Facebook Messenger are speed and network limitations. Payments can take up to five days to show up and Facebook has a policy that you’re only allowed to transfer money between family and friends. If you use it for business, they will shut you down. 

Final Thoughts

Depending on how you use Popmoney and what your expectations are with the application, you may come away satisfied or dissatisfied with your experience. The user interface is fairly lackluster and unimpressive for an app that has had more than a decade to evolve and the time it takes to send and receive funds is quite slow compared to other available options.

That said, the flat fee structure and widespread adoption among major financial institutions allow it to satisfy many customers’ needs.

Varo Money – Earn up to 2.80% APY!


image credit: Varomoney.com

Varo Bank is a trendy, one-hundred percent digital bank based out of San Francisco that offers its entire product suite through its mobile apps on IOS and Android.

Varo has two main accounts. An online checking account that comes with a Varo Debit card, and an online savings account.

The checking account is about as hassle-free as they come and provides many services for free that typical brick and mortar institutions generally do not. These include:

  • no monthly maintenance fees of any kind,
  • no transfer fees or debit card replacement fees and
  • no foreign transaction fees.

There is also no minimum balance requirement to keep the account open and you can activate it with a minimum deposit of just $0.01.

The online savings account features one of the top yields on the market for FDIC-insured accounts and has the ability to earn even more if you open and use the online checking account and its debit card.

With the savings account, you’ll immediately earn one of the top APY (annual percentage yields) on the market at 0.81% APY.

If you open it with a checking account, you’ll have the ability to earn up to 2.80% APY on balances under $10,000. You’ll have to meet a couple monthly requirements to earn the APY. The details are listed further below.

Like the checking account, the savings account has no fees or minimum deposit requirements and you can start earning the exceptional APY once you place your first deposit into the account.

Full details on both accounts and Varo Bank continue reading our review below.

Varo Money Online Savings Account Details + APY

Like other online banks, Varo is member FDIC and accounts are insured up to $250,000 combined.

Varo Bank’s online savings account offers tiered yields. You immediately start earning an APY of 0.81% but can earn up to 2.80% APY on balances of $10,000 and below if two specific conditions are met each month.

These are:

  1. You must receive a minimum of $1,000 in qualifying direct deposits, AND
  2. make at least 5 Varo debit card purchases between the first of the month and the last business day.

We should also note that along with the two conditions stated above, you will also be required to keep your account balance above $0.00 and below $10,000.

Varo Bank Online Savings Account Rate Tiers

Min BalanceAPYConditions Met?
$0 – $10,0002.80%Yes
$0 – $10,0000.81%No

To give the yields above some context, the current national average for a savings account sits at just 0.07% APY. That said, there are still a handful of online banks paying 0.50% – 0.60% APY on all balances, but they are growing slimmer by the day.

Outside of the exceptional yield, Varo’s savings account has some helpful tools that allow you to automate your savings (more in the features section below). Plus, package your savings and checking account together for better insights into your spending habits and how much you’re able to save each month.

Opening a Varo Checking Account

Getting your Varo Money checking account set-up is a fairly quick and straightforward process that can be done online in minutes.

To get started, navigate to the Varo checking account page and either submit your email, or click on the black “Get Started” button in the upper right. If you choose to submit your email, they will email you a link to navigate to the same sign-up page, but your email field will be filled out already.

When filling out your basic information you will want to have the following pieces of information handy:

  • email address (if you haven’t submitted it already)
  • full name
  • date of birth
  • address
  • social security number

After you complete the application process, you will be directed to download the app from the Apple or Google Play store to begin funding and managing your account(s). Remember, the entirety of this digital bank’s products and services are accessed and managed solely through their native apps.

Once you’ve downloaded the app and opened the checking account, you’ll be ready for your first deposit. If you have any questions or get stuck during this process you can email – help@varomoney.com – and you should receive a prompt response.

Varo Money Checking Account Features

Three noteworthy features of Varo’s online checking account.

The Varo Money checking account has several noteworthy features and very little drawbacks.

For starters, the nature of Varo Bank and its digital product suite allow for Varo to save on costs and pass these savings along to consumers in the form of no-fee accounts with above average interest rates. Without an expensive branch network, staff, rent and utilities, Varo is able to simplify its product offerings and make them extremely low cost.

Second, Varo Checking account consumers are provided a debit card that can be used for free at 55,000+ AllPoint ATMs around the country. These ATMs are generally found in places like Walgreens, CVS, and target.

If you have cash to deposit into the account, you can do this at any of the 90,000+ retail locations using Green Dot Reload. We should note that fees and cash deposit limitations will apply. You can see a complete breakdown of these fees by retailers in our table further below.

On top of this, you can easily transfer money freely between Varo accounts and even connect a popular payment app like Apple Pay™, Google Pay™, PayPal, Cash App, or Venmo to pay for everyday purchases.

No credit checks of any kind will be run by Varo to open their checking account. In some instances they may request identity documentation, but your credit report, history, or FICO score will not be checked.

If you set up direct deposits with Varo checking, you’ll also be provided access to your funds up to two days in advance.

If you choose to open the savings account along with the checking account, Varo has some great tools available that allow for automatic transfer from your checking to savings to allow idle cash to grow with a lucrative APY.

The two noteworthy automated savings features are:

  • Save Your Pay lets you choose and set up the automatic transfer of a certain percentage of your direct deposits to your savings account. This is similar to Wells Fargo’s Way2Save product, except in Varo’s case you get to select the percentage.
  • Save Your Change rounds up every transaction from your checking account to the nearest dollar and automatically transfers these funds to your savings.

ACH Transfers

As mentioned, Varo Money stands out from the pack with its lack of fees – especially when it comes to moving money around.

The average domestic wire charge in the US sits at a hefty $25. With Varo Money, you have the ability to move money around via ACH transfers for free.

There are two kinds of ACH transfers, both of which can be set up by Varo Money. These are:

  1. ACH debit transactions “pull” the money from your account, like for an automatic bill payment.
  2. ACH credit transactions “push” money into your account, like a direct deposit of your paycheck or tax refund.

To set up either of these kinds of ACH transfers, you will need your Varo Bank account number and the routing number of the other party’s financial institution.

The time frame in which the money is received is generally between 1 – 4 days. Here a more specific breakdown:

  • If you initiate the ACH transfer in your Varo app to or from an external bank account you own, it will take 2–4 business days.
  • If you initiate the ACH transfer from an external bank account to Varo, it will generally take 1–2 business days.

Potential Fees to Look Out For

Depending on where you use your debit card and how you add funds to your account, you may encounter fees from time to time.

If you plan on making cash deposits, you will encounter a fee each time. These fees will vary by retailer. Below is a list of fees and limitations when depositing cash into your Varo account. You can read more about the fees and limits listed below on Varo’s support page here.

Varo Cash Deposit Fees & Limits by Retailer

RetailerLimitPrice
7-Eleven$500$4.95
Albertsons$500$4.95
ACE Cash Express$1,500$4.50
CVS$500$4.95
Dollar General$500$3.95
Dollar Tree$500$4.95
Family Dollar$500$3.95
Rite Aid$500$4.95
Safeway$500$4.95
Vons$500$4.95
Walgreens$500$4.95
Walmart$1,000$3.74

The other potential fee to look out for is usage of non-Allpoint ATMs. Varo imposes a $2.50 fee per transaction and bank or ATM owner may charge an additional fee on top of that.

Final Thoughts

The powerful checking/savings combo by Varo Money is hard to beat. On the checking side the lack of any and all fees make this product stand out from its peers.

On the savings side, Varo boasts one of the top APYs of any FDIC-insured institution, and also features no minimums or monthly fees of any kind.

That said, make sure you are perfectly comfortable going 100% digital as Varo Money provides no access to in-person banking or branches.