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Banking

The Best Ways to Send Money Online

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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Sending money online is no longer exotic. It’s actually a simple and hassle-free way to send dollars to that friend who bought you lunch yesterday, pay a freelance artist for designing your small business logo or purchase that robot-themed necklace on Etsy. And today, consumers have more options when they want to send money online, from well-known services, such as a PayPal and Google Pay Send, to newer options, such as Venmo and Zelle.

These services let you send money to friends, family members, businesses, contractors and freelancers — basically anyone who’s waiting for a payment from you. By sending money online, you eliminate the need to provide recipients with your credit card information, you don’t have to worry about writing checks and you won’t have to scramble to find an ATM to withdraw cash.

The big question: Which service should you use to send money online?

Not surprisingly, the answer varies depending on whom you are paying and what you are buying. Here’s a quick look at some of the more popular ways to send money online and the pros of each service.

Best to send money online to friends and family

Venmo

Send money online via Venmo
Image source: iTunes

You can use Venmo on your mobile device to pay for items on your own, or split up payments among your friends and family members. You can also use Venmo to deposit money in your bank account, make purchases through several apps and pay for items in physical stores.

To use the service, you’ll need to create an account with Venmo first, either through the Venmo’s app or on its website. You can then link your Venmo account with your bank account, and debit or credit cards. This way, you won’t have to add any money to your Venmo account to make purchases.

Features: Venmo’s biggest advantage is its flexibility. You can send money to people through Venmo by using the recipient’s email address or phone number. If these people already have Venmo accounts, the money will be transferred automatically. If a recipient does not have an account, they’ll first need to create a Venmo account to accept your payment.

Downside: It’s usually free to send money through Venmo. But if you use your credit card to send money to a recipient, you will pay a fee equal to 3% of the amount you send.

There are limits to how much money you can send through the service, too. Before Venmo verifies your identity, you can spend and send as much as $299.99 per week. Once Venmo verifies your identity, you can send a maximum of $2,999.99 each week in payments to recipients.

Zelle

Image source: iTunes

Zelle works much like Venmo, allowing you to send money to anyone whose email or phone number you know. However, you don’t have to download a separate app to use Zelle. Instead, many of the biggest banks across the country embed Zelle within their online banking platforms as a service to their consumers.

Some of the banks that already use Zelle include Associated Bank, Chase, Citi, Fifth Third Bank, Bank of America and SunTrust. If you bank with Chase, for example, then you simply send money through your Chase app. But if your bank does not offer Zelle, you still can use the service by downloading the Zelle app.

Features: If your bank or credit union offers Zelle, you can use the service to send money to anyone who has a bank account in the United States. If your bank does not offer Zelle, and you are using the Zelle app on your own, then the people you send money to must have Zelle through their bank or credit union.

Fees are a positive feature. Zelle does not charge consumers anything to send money. Zelle, though, does recommend that users check with their personal bank or credit union to make sure that these institutions don’t charge any fees.

Zelle is fast, too. If you send money to someone who already has access to Zelle, the money should show up in that person’s bank account in minutes. If you send money to someone who is not yet enrolled in Zelle, it will take from one to three business days for the money to show up.

Downside: You might be limited with Zelle according to your bank’s policies. As Zelle says, to determine how much money you can send each week through the service, you’ll need to check with your bank or credit union. If your financial institution doesn’t offer Zelle, you can send a maximum of just $500 a week with the service.

Zelle also doesn’t let you use a credit card to send money. You will need to connect the service with a bank account or debit card.

Google Pay Send

Image source: Google App Store

 

Like its competitors, Google Pay lets you send money to people by using their name, email address or phone number. You might remember this service as Google Pay. Last year, though, Google added the “Send” part of the name to signify that the service now combines the features of Google Wallet and Android Pay.

To send money online, you’ll need to link Google Pay Send to your bank account or debit card. Then, when you make a payment, the money is taken from these linked accounts. To get started with the service, you can sign in to pay.google.com on your computer or you can download the mobile app.

Features: Google Pay Send is completely free to use. The service is fast, too. Google says that linking Google Pay to a debit card results in the fastest transactions, usually within minutes. However, linking to a bank account can result in slower transactions. Google says it can take as long as five business days for the funds to be withdrawn from your account.

Downside: You are somewhat limited in how you can send money with Google Pay Send. You can use your debit card and bank account to send money through the service. You cannot, however, use credit cards or PayPal to send money through Google Pay Send.

There are limits, too, on how much you can send with Google Pay Send. You can send a maximum of only $10,000 in a single transaction, and as much as $10,000 altogether in a seven-day period. In addition, if you want to send someone more than $2,500 in a single transaction, then the recipient must add a bank account in order to receive the funds.

Cash App

Image source: iTunes

The Cash App is offered through Square. To use it, download the app onto your phone. To send money through the service, you’ll have to link it to either a debit card, credit card or the funds already available in your Cash App.

When you send the money, you’ll enter the recipient’s name or mobile phone number. The recipients receive an email or text telling them that they’ve received cash.

Features: It’s easy to send money through this app at no charge. You just can’t use a credit card. Sending money with your debit card or Cash App balance is always free. Sending money through a credit card, though, costs 3% of the amount of money you are sending.

Downside: There are limits to how much you can send through Cash App. If you send more than $250 in one week, Cash App will ask you to verify your name, date of birth and Social Security number. If you provide this information, you can then send as much as $2,500 in a week.

Best for business transactions or purchasing items online

PayPal

Image source: iTunes

PayPal might be the best known of all the platforms to send money online. And it’s easy to use via your computer or phone. You create a free account and then link it to your bank account, credit card or debit card. To send money online, you enter your recipient’s email address or mobile phone number.

PayPal then notifies recipients that they have received money. This money is directly deposited into their own PayPal accounts. If recipients don’t have an account, they are prompted to open one.

Features: You won’t have to pay to send money with PayPal as long the money is coming from your PayPal balance or bank account. However, you will be charged if your payment is funded by a credit card or debit card. PayPal has a particularly far reach, too. You can use PayPal to send money to recipients across the globe.

Downside: The biggest downside to using PayPal to send money online? It comes down to fees. If you fund your payment with a debit card or credit card, you’ll be charged a fee equal to 2.9% of the amount you are sending. You might also be charged a separate fixed fee depending on the currency of the transaction. If you are sending U.S. dollars, you’ll be charged an additional fee of $0.30.

The recipients of your funds also might need to pay fees. But, recipients won’t pay any fees when you send them money through PayPal’s friends or family option. However, if you send someone money for goods or services provided — which PayPal considers a commercial transaction — then that person must pay 3.4% plus $0.30 if you are making a domestic payment with PayPal’s standard rates. If you are sending an international payment, recipients from most countries must pay 3.9% plus $0.30 to receive the funds if you are sending in U.S. dollars.

Best for sending money abroad

TransferWise

TransferWise allows you to send international payments online, after you set up an account. To do this, you must first set up an actual payment through your account. When you do this, you enter how much you want to send and the recipient’s bank details. When it’s time to send your payment, you have the option of specifying how you want to pay.

Features: TransferWise allows you to pay in several ways. You can pay directly from your bank account, with a debit card or a credit card, or through an Automated Clearing House (ACH) service. Sending money internationally can get complicated when it comes to fees and exchange rates. But TransferWise will tell you the fees upfront when you set up your payment.

When it comes to exchange rates, TransferWise always charges the mid-market rate. It will also tell you the exchange rate it is charging when you set up your payment.

Downside: It’s not especially cheap to send money through TransferWise. TransferWise charges a fee of 0.6% of the amount you send plus $1.

Western Union

Western Union allows you to send money to more than 200 countries and territories. You can send this money online or by visiting a physical Western Union location. You can send money to recipients’ bank accounts directly online by using your credit card or debit card. You can also do this by transferring money from your bank account.

How long it takes for your money to arrive will vary according to your destination. Western Union says that you’ll be able to see these various arrival times as you enter your payment details.

Features: Western Union does make it easy to pay. You may download the Western Union app to start the payment process, or visit the company online to send payments. However, if you would like an agent to handle the transaction for you, then you can send money from more than 500,000 Western Union locations across the globe, and 43,000 in the U.S. alone.

Downside: You will have to pay to send money through Western Union. For instance, Western Union says it costs $5 to send a maximum of $500. You will, though, have to check what the fees might be for sending specific amounts to specific locations.

There are also limits on how much you can send through Western Union. When sending online, you can send a maximum of $2,999 per money transfer. If you are sending a transfer through Western Union’s mobile app, you can send as much as $500 per transfer.

MoneyGram

MoneyGram is another big player in the transfer business. This service also allows you to send money to overseas recipients either online or by visiting a MoneyGram location. With MoneyGram, you can send money directly to a recipient’s bank account or mobile wallet.

To send money online, you may pay with a credit card, debit card or directly from your bank account. You will need to tell MoneyGram to whom you are sending money and how this person wants to receive the funds.

Features: The biggest plus of MoneyGram is its flexibility. You can find in-person locations if you prefer to speak with a representative by visiting this page. MoneyGram offers you as many options to send money internationally as it does domestically.

Downside: You will have to pay fees to send funds through MoneyGram. How much depends on the amount you send and where you are sending it. For instance, if you want to send $1,000 to a recipient in Australia, it will cost you $32. If you want to send $500 directly to the bank account of someone in Great Britain, it will cost you $7.

You can estimate your fees before you send money here.

As with some of the other services, there are limits as to how much you can send online. MoneyGram says that you can send a maximum of $6,000 in most countries for every single online transfer. You can also send a maximum of $6,000 in most countries every 30 days.

How to send money online safely

Sending money online is convenient. But you do have to be careful. There are opportunities for scammers. The most common scams are when criminals try to trick you into sending them money online. Be sure to carefully read the fraud protection programs offered by these services. They do vary by provider.

MoneyGram provides a useful list of some of the most common scams criminals use to trick people into sending them money online. For example, scammers might call you, saying that they are from the Internal Revenue Service, and asking that you send them money to pay taxes that you owe. Others might say that they are from the Federal Trade Commission and they need you to send a payment so that they can refund you money from a legal settlement.

The bottom line? Don’t ever send money online to someone who calls you. And never send money online to someone you don’t know or trust adequately.

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Banking

List of Banks and Credit Unions Offering COVID-19 Relief

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Millions of Americans are struggling with changes to their work hours and incomes. In response, many banks and credit unions are offering relief packages, often waiving certain fees or granting expedited services. Although not listed below, community banks may offer an even stronger support system to those financially impacted.

We will continue to update this page regularly.

List of banks and credit unions offering relief to customers affected by COVID-19

Alliant Credit Union

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Alliant Credit Union does not currently have a COVID-related information page available on its website. However, according to an Alliant representative, the credit union is working with members on a case-by-case basis to remove deposit-related account fees.

Ally Bank

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Online-only Ally Bank currently has an expansive COVID-19 relief plan, especially in comparison to other banks. The bank has outlined measures to help customers, employees and communities.

Until July 18, 2020, Ally Bank deposits customers can benefit from waived overdraft fees; free expedited checks and debit cards; and refunded excessive transaction fees on your savings or money market accounts.

Transfers and online payments remain uninterrupted. Plus, Ally Bank has made it faster to deposit checks of $50,000 or less online with Ally eCheck deposit. You can still use mobile deposit via the Ally Mobile app.

American Express

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

American Express has not released any specific COVID-19 relief plans to help its Personal Savings banking customers at this time.

Customers of the online-only bank can continue to access their accounts online. They can also call customer service at 1-800-446-6307 — just beware that wait times may be longer than usual.

Bank of America

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Bank of America’s COVID-19 response is to urge customers who are facing financial hardship to contact a representative to request refunds for fees on overdrafts, non-sufficient funds and monthly maintenance. Customers may also use the bank’s virtual assistant, Erica, to get answers to any questions, including those that are coronavirus-related.

Bank of America also encourages its customers to turn to mobile and online banking first, both of which allow you to check your account status, pay bills and deposit checks.

Bank of America financial centers remain open. The bank’s locations are open Monday through Friday, 10 a.m. to 4 p.m. local time, while Saturdays maintain regular hours, which vary from branch to branch. Branches that remain open undergo “enhanced, daily cleanings” and “other measures to limit the risk of exposure, based on guidelines from the Centers for Disease Control and Prevention (CDC).”

BBVA

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

In response to COVID-19 difficulties, BBVA banking customers can request waived and refunded ATM fees, penalty-free CD withdrawals (for CDs opened before March 1) and overdraft fee refunds. You can make these requests by calling 1-844-228-1872.

BBVA locations have transitioned to primarily drive-thru service only. Branches that do not have a drive-thru are open on a limited basis. ATMs remain open 24/7 and banking center lobbies are open by appointment, which you can schedule by calling your banker or banking center. BBVA Online Banking and the BBVA Mobile Banking App are also available to you 24/7.

BMO Harris

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Under its financial relief program, BMO Harris asks deposit account customers with questions about account fees to send them a message. Customers can expect a response within 10 business days.

You can also call the bank’s Customer Contact Center at 1-888-340-2265, which operates seven days a week from 8 a.m. to 8 p.m. CST. If you need assistance with your credit card account — whether to report a lost or stolen debit card, activate a debit card or reset your BMO Digital Banking password — bankers are available 24/7.

All BMO branch lobbies are currently closed, while drive-up service remains available at most branches. Those located near the bank’s main Chicago branch at 111 West Monroe can visit the branch, open for limited access, Monday through Friday from 9:30 a.m. to 4 p.m. The branch is open exclusively to elderly and vulnerable customers between the hours of 9 a.m. and 9:30 a.m.

Capital One

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

In response to the coronavirus pandemic, Capital One is waiving its out-of-network ATM fee. It won’t reimburse you for a third-party surcharge, though.

If you are facing financial difficulties, you can contact Capital One and a representative can help to find a solution for you. Note that customer service wait times are likely longer than usual right now.

Capital One has temporarily closed select branches that do not have drive-thru tellers or protective glass at teller counters. Branches that do have those features will remain open via those outlets and are being disinfected per CDC guidelines. Tellers may still assist customers in the lobby in special circumstances. Capital One ATMs remain open 24/7. Capital One also strongly encourages its customers to use the Capital One mobile app or online banking to make payments, check balances and deposit checks.

Charles Schwab

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Charles Schwab has no specific measures in place to provide relief aid to its banking customers amid the coronavirus outbreak.

Schwab branches are temporarily closed and will remain so until local, state and federal government recommendations indicate it is safe to reopen. Still, you can contact a branch directly by phone to reach a representative. Schwab also encourages customers to go digital by completing tasks online or via its mobile app, which includes check-depositing capabilities.

Chase

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

In light of the pandemic, Chase Bank customers are encouraged to use the Chase Mobile app and online banking to complete their account-related tasks. Chase asks that those who need help because of COVID-19 reach out to a representative, though you may experience wait times that are longer than usual.

Several Chase branches are temporarily closed, while other branches’ hours and services have been adjusted. You can check the status of your branch on the Chase Mobile app or online. Chase branches and ATMs are being cleaned with EPA-approved disinfectants.

On a wider scale, JPMorgan Chase has pledged $50 million to nonprofit organizations to help support “healthcare, food and other humanitarian relief” efforts globally; community partners; and small businesses in the U.S., China and Europe.

Citibank

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Citibank is waiving monthly service fees and early withdrawal penalties through May 31, 2020. Fees are also temporarily waived on safe deposit boxes and non-Citi ATM usage.

Citibank also asks that those affected by COVID-19 contact the bank for assistance, although wait times may be longer than usual. If you already work with a personal banker or financial advisor through Citibank, you can contact them directly during their regular business hours. You can also text “App” to 692-484 to avoid call wait times and Citi will direct you to its digital tools or automated response system or send you a link to message a representative in the Citi Mobile App.

Select Citibank branches are closed and those that are open are operating under temporarily limited hours and undergoing “daily cleaning procedures … on high-touch surfaces,” providing hand sanitizer and practicing CDC recommendations like social distancing. You can also access your accounts and funds via the Citi Mobile app, the Citibank website and Citi ATMs on a 24/7 basis.

Citizens Access

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Citizens Access encourages customers to contact its Customer Care team through a a secure message through your online account or by calling a representative at 1-888-201-6505, available Monday through Friday from 8 a.m. to 10 p.m.; Saturday from 9 a.m. to 3 p.m.; and Sunday from 10 a.m. to 3 p.m. EST. You can expect a secure message response within one to three days; wait times on the phone will also be longer.

As Citizens Access has no physical branches, you can always access your account online, both on desktop and your mobile browser. The bank does not have a mobile app.

Citizens Bank

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Citizens Bank deposit account customers can expect overdraft fee waivers, service charge reversal and penalty-free early CD withdrawals, as part of the bank’s COVID-19 relief response. Customers with checking, savings and CD accounts can call customer service at 1-800-922-9999 Monday through Friday from 7:00 a.m. to 10:00 p.m. and Saturday and Sunday from 9:00 a.m. to 6:00 p.m. local time. If you want to open a new account over the phone, you can call 1-877-360-2472.

Citizens Bank branches remain open. Hours are reduced to Monday through Friday from 10 a.m. to 3 p.m. and on Saturday from 9 a.m. to 12 p.m. (unless the branch is typically closed). All drive-ups remain open, while branch lobbies are open by appointment only and limited to two customers at a time. Teller counters, also available by appointment only, now have plexiglass windows installed and serve one customer at a time “while adhering to social distancing protocols.” You can contact or check the status of a Citizens Bank branch here.

Digital Federal Credit Union (DCU)

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Digital Federal Credit Union offers an extensive financial relief program, which is available to its members in any financial rut, not just during this pandemic. Until further notice, DCU is offering unlimited ATM fee reimbursements and forgoing all overdraft and nonsufficient funds fees. Those who need to borrow money during this time may take out a personal loan from DCU, which won’t require payments for 60 days on loans opened after March 25, 2020.

All DCU branch lobbies are closed, though some branches remain open through their drive-up teller windows, which can help you with normal transactions. You can check your branch status here.

Otherwise, you can access your account 24/7 via online banking and the DCU mobile app. You can also send an email for non-urgent requests, which are typically answered in two business days, or you can call customer service, though it is currently experiencing extremely high call volumes that may result in much longer wait times.

Discover

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Discover has “support in place for qualified Discover customers who experience hardship” due to the coronavirus pandemic. Although it is unclear what qualifies customers to receive this support, a Discover representative adds that “Discover customers may receive assistance related to payments, fees and interest.”

Discover Online Banking customers can call 1-800-347-7000 (TTY/TDD 1-800-347-7454) any time to reach a Discover representative for assistance. You also can continue to access your accounts online or via the Discover mobile app.

Fifth and Third Bank

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Fifth Third Bank deposit account customers can benefit from fee waivers for up to 90 days on a range of consumer products and services. Customers can also call 1-800-972-3030 from 8 a.m. to 6 p.m. EST Monday through Friday and 10 a.m. to 4 p.m. EST Saturday (closed on Sundays) for assistance.

All Fifth Third Bank branches are available via drive-thru service or by appointment only. You can use the bank’s branch and ATM locator to check your local branch’s status or find the nearest ATM. For most other services, like checking balances or ACH transfers, you can use the bank’s website or mobile app.

Goldman Sachs Bank USA

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Customers of Marcus by Goldman Sachs can make penalty-free withdrawals from regular CDs at this time, as a direct response to COVID-19. You can do so by calling 1-855-730-7283. Marcus contact centers are operating virtually, with temporary hours of 9 a.m. to 6 p.m. ET Monday through Friday and 9 a.m. to 6 p.m. ET on Saturday and Sunday.

You can still access your Marcus accounts online. Apple device users can also benefit from the Marcus mobile app.

KeyBank

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Select KeyBank customers “may be eligible for immediate help,”which can include “waiving certain service charges on KeyBank checking and savings accounts.”

KeyBank has closed all branch lobbies and select branches altogether. Those that remain open are operating via their drive-thru services. If you need to meet with a banker for select services or to access your safe deposit box, you can schedule an appointment to do so. Of course, you can always access your accounts online and through KeyBank’s mobile app. You can also call KeyBank’s 24/7 customer service line at 1-800-539-2968, though be aware that there are currently longer hold times than usual.

The KeyBank Foundation has also made an initial $1 million commitment to “support vulnerable individuals, small businesses and neighborhoods.”

Navy Federal Credit Union

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

During this time, Navy Federal Credit Union members can withdraw from certificates before maturity without penalty; get free overnight shipping on cashier’s checks and debit cards; deposit up to $50,000 per day via mobile deposit; and withdraw up to $1,000 per day from non-Navy Federal ATMs (the $1,000 daily limit on Navy Federal ATMs remains).

Members can also take advantage of the credit union’s OOPS overdraft protection for all checking accounts, which offers no fee on overdraft transactions of less than $5 and caps overdraft charges at three per day. Members with OOPS can request a refund for the $20 overdraft fee charged and for non-sufficient fund (NSF) fees by sending a secure message through your account.

Several Navy Federal branches have temporarily closed, while others currently have reduced hours. You can check the status of your local branch here or on the Navy Federal Mobile app, where you can also find accessible ATMs.

PenFed Credit Union

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

PenFed Credit Union is not offering specific relief measures for its deposit account members in response to the COVID-19 crisis.

Select PenFed financial centers are temporarily closed, while others are operating on adjusted hours. Saturday drive-thru service at open financial centers only includes everyday financial transactions like cash withdrawals and loan payments.

PenFed encourages customers to contact their local branch for information about updated hours and services, which you can also check online on the bank’s locations page and COVID-19 information page. You also can access your accounts for several services online and on the PenFed mobile app.

PNC Bank

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

PNC Bankcustomers who are experiencing financial hardship as a result of COVID-19 should call 1-888-762-2265, which is available 7 a.m. to 5 p.m. ET Monday through Friday and 8 a.m. to 5 p.m. ET on Saturday and Sunday. Virtual Wallet customers may call 1-800-352-2255, available during the same hours.

If you are eligible for assistance, a PNC representative will discuss your options with you, which include waiving or refunding fees on deposit accounts (and other products). Qualified customers can also take out an emergency hardship loan “at a low rate.” PNC did not make it clear how it determines eligibility for assistance, but it stressed that customers should call for help.

Select PNC branches are closed, while others remain open with limited hours and access, with some are operating via drive-up window only. You can use PNC’s branch locator to check the status of a branch and to find a branch that offers essential appointments, made available for safe deposit box access, loan closings or other banking services that you cannot make otherwise. PNC is also still widely accessible via online, mobile and voice banking.

State Employees’ Credit Union

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

State Employees’ Credit Uniondoes not have specific relief plans in place for its deposit account customers, although its loan customers can seek assistance in light of the coronavirus pandemic. Members can contact a representative through a secure message when logged into their account, by calling your local branch or by calling 24/7 Member Services at 888-732-8562 to “discuss how they can help.” Note that Member Services is experiencing high call volumes between 10 a.m. and 8 p.m. every day.

SECU branches have pivoted to drive-thru service only for most banking services. You can call to schedule an in-person appointment if you need to access a safe deposit box, submit tax return information or discuss loans. Otherwise, you can use the credit union’s website, mobile app, CashPoints ATMs, automated voice response service and 24/7 Member Services Support Center.

TD Bank

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

TD Bank encourages customers affected by COVID-19 to call 1-888-751-9000 to see how the bank can support you as it says it “may be able to provide some financial relief.” Of course, wait times are uncharacteristically long at this time.

Assistance options offered by TD Bank will depend on your situation and request but may include fee refunds, early, penalty-free access to CDs and payment extensions. The bank’s customer assistance offers continue to evolve as well, according to a bank representative.

Most TD Bank branches are temporarily closed or operating via drive-thru only. At TD Bank drive-thrus, you can make deposits, withdrawals and payments; cash checks; get a bank check or money order; and make business deposits or coin orders. Branches with open lobbies are available by appointment only. TD Bank branch reduced hours are 9:30 a.m. to 4 p.m. Monday through Friday via drive-thru, 9:30 a.m. to 1 p.m. Saturdays unless normally closed and closed on Sundays (all times are local). You can check the status of branches by state on TD Bank’s COVID-19 updates page.

TD Bank ATMs are still accessible, as is its website and banking app.

TIAA Bank

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

As part of the bank’s coronavirus relief response, TIAA Bank deposit account customers can benefit from waived fees for wire transfers, ATM transactions and insufficient funds through the month of May.TIAA has also increased debit and cash withdrawal limits.

TIAA Bank financial centers have all moved to drive-thru tellers only. Those that don’t have a drive-thru window will see clients through appointment only. You can set up an appointment by calling your local financial center.

You may also easily manage your TIAA Bank accounts online and through the TIAA mobile app. To speak with a representative, banking customers may call 1-888-882-3837 from 8 a.m. to 11 p.m. EST, although wait times are abnormally long.

Truist (formerly BB&T and SunTrust)

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Truist, the result of a recent merger between BB&T and SunTrust, does not offer any relief related to its deposit accounts.

For further assistance, Truist encourages heritage BB&T clients to call 1-800-226-5228 and heritage SunTrust clients to call 1-877-820-2103. Watch out for long wait times, however, which customers have reported on social media.

Local BB&T and SunTrust branch hours and services are temporarily moving to drive-thru teller services only, appointment-only in-person visits and select branch closures. Customers still have 24/7 access to ATMs as well as online, mobile and telephone banking.

Truist has also established a $25 million Truist Cares initiative, which will provide funding to the CDC Foundation and Johns Hopkins Medicine; local United Way organizations; and grants to Truist’s community partners.

U.S. Bank

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

U.S. Bank has suspended fees related to excessive withdrawals. Deposits customers who have been financially affected by COVID-19 should call the bank at 1-888-287-7817 for assistance.

U.S. Bank branch operations are temporarily reduced, and the bank encourages customers to use drive-up windows instead of going inside a branch. You can check your local branch’s hours and status online. Otherwise, you can still access your U.S. Bank accounts on the bank’s mobile app, by phone or on its website.

Wells Fargo

  • Waives ATM fees
  • Waives overdraft/NSF fees
  • Waives excessive transaction fees
  • Waives early CD withdrawal penalty

Wells Fargo has said it will offer fee waivers for customers who contact the company. On a larger scale, the Wells Fargo Foundation has pledged up to $6.25 million in donations “to support domestic and global response to the COVID-19 and to aid public health relief efforts.” This includes funding “at the local level,” as well as for the national CDC and the International Medical Corps.

Select Wells Fargo locations are temporarily closed, while the branches that remain open have temporarily reduced hours. You can check the status of a Wells Fargo branch here. If you need a service that can only be completed in a branch, you can make an appointment. Wells Fargo call centers still remain open, though they are experiencing higher-than-normal call volume and longer wait times.

You can also access your accounts online and on the Wells Fargo Mobile app, where you can deposit checks, move money and more. Wells Fargo also reminds customers that they can use contactless cards or digital wallets for payments.

Additional bank and federal advisories for customers

The Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Association (NCUA) have temporarily extended unlimited insurance. Thanks to the CARES Act, your bank and credit union deposits are wholly insured through Dec. 31, 2020. Typically, an individual is covered up to $250,000 per account type, with increased FDIC insurance for joint ownership or beneficiaries. This temporary extension means you don’t have to worry about losing any of your money in a checking, savings, CD or money market account in the event of a bank or credit union failure.

The Federal Reserve has temporarily amended Regulation D to allow for more than six withdrawals from savings accounts. One way that Regulation D differentiates savings accounts from checking accounts is by limiting savings accounts to six “convenient” transfers per month. This includes pre-authorized and automatic transfers; telephone transfers; and withdrawals and transfers made by check, debit card or a similar method. For now, you don’t have to worry about this limitation.

Less “convenient” transfers which are not included in that otherwise limited category are those made in person at the bank, by mail, at an ATM or over the phone when you receive the withdrawal via a check in the mail.

Typically, going over the “convenient” transfers limit would result in an excessive transaction fee charged by the bank. With the Fed’s latest change, your bank may also waive their excessive transaction fees as further COVID-19 relief.

Many institutions are warning customers about keeping their information and money safe from fraudsters. Unfortunately, scams and phishing attempts are cropping up to take advantage of this crisis. Be wary of phone calls, emails and texts from suspicious senders who ask for personal or account information, and avoid clicking on links in emails and texts. When in doubt, head to your institution’s official website to verify your bank’s contact information, or log into your account to access its secure messaging system.

Government relief and the Coronavirus Aid, Relief, and Economic Security (CARES) Act

American taxpayers and business owners may also get some relief from the U.S. government’s $2 trillion financial relief package, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law in late March.
Find out how you can benefit from the relief package below.

One-time stimulus checks

Taxpayers’ long-awaited direct payments, or recovery rebates, will be determined by their most recent tax return. For many, this will be your 2019 tax return, since we have yet to file taxes for 2020. If you have not yet filed your 2019 tax return, the government will turn to your 2018 return instead.

How much you’ll get: For individuals, the plan will provide one-time direct payments of $1,200 ($2,400 for joint returns) to those with an annual income of $75,000 or less. Payments will decrease incrementally for those who made more than $75,000 and will stop altogether for individuals who earned more than $99,000. Individuals will also receive an additional $500 per child. You can use our stimulus check calculator to determine your payment amount.

What to do to get your stimulus check: For most taxpayers, there’s no need to sign up. All you need is a valid Social Security number to receive these relief rebates. Depending on what you requested on your tax return, the IRS will send the payment either via direct deposit or a paper check.

  • If you receive Social Security retirement, Social Security Disability Insurance or Railroad Retirement benefits, the IRS will use the information on your 1099 Social Security forms (Form SSA-1099 or Form RRB-1099) to determine your payments. Individuals who qualify with these forms will only receive additional payments for dependents at this time if they registered their dependents via the IRS’ Non-Filers: Enter Payment Info tool by April 22, 2020. Otherwise, the additional $500 payment per eligible dependent will be paid in association with your tax filing for tax year 2020.
  • Other eligible U.S. citizens or permanent residents may use the IRS’ Non-Filers: Enter Payment Info tool. You can use this tool to submit your most recent banking information to the IRS for faster payment. You are eligible to use this tool if you had a gross income of $12,200 or less ($24,400 for married couples) for 2019 and were not required to file, nor planned to file, a federal income tax return for 2019. You will have to submit your current mailing address, an email address and valid Social Security number, in addition to other personal and identifying information.
  • Supplemental Security Income (SSI) recipients and veterans who receive veterans disability compensation, pension or survivor benefits from the Department of Veterans Affairs, and who did not file a tax return for either 2018 or 2019, may also use the Non-Filers: Enter Payment Info tool, as these groups are not yet automatically eligible for economic impact payments.

When the stimulus checks will arrive: The IRS began sending out payments the week of April 13, 2020. You can expect your payment to come sooner if you have direct deposit set up on your tax return or submitted your bank account information via the Non-Filers: Enter Payment Info tool.

You can track your payment with the IRS Get My Payment tool. This tool indicates the status of your payment, including the date your payment is scheduled to be direct deposited or mailed. Get My Payment will also provide eligible individuals a chance to submit their bank account information for direct deposit. If your check has already been scheduled for delivery, this feature will not work, so it’s best to take advantage of it as soon as possible

Fastest ways to get your stimulus check: The fastest way to get your stimulus check is via direct deposit to your bank account from the IRS. If your address or bank account information has changed since 2018, file your 2019 tax return as soon as possible, if you haven’t already.

Taxpayers with prepaid accounts can also receive the government COVID-19 stimulus checks, thanks to the Consumer Financial Protection Bureau (CFPB) relaxing rules around the Electronic Fund Transfer Act (EFTA), which typically prohibits individuals from opening new accounts to receive government benefits. So if you have a prepaid account, you may want to provide the IRS with your account information via the Non-Filers: Enter Payment Info tool as soon as possible so you can receive your stimulus payment faster.

What to know about taxes and stimulus checks: These recovery rebates are considered advanced tax credits for 2020 and should not be taxed for most. Since the payment amounts are determined based on your previous tax returns, however, the payments could be subject to adjustment if you earned more or less this year compared to prior years.

For example, if you received too large of a rebate proportionate to your most recent income, you could end up owing back the excess. However, it is so far expected that taxpayers will not have to return or pay tax on any portion of these rebates, regardless of income changes. If you receive a payment that is too low, you also may be able to receive a tax credit from your 2020 taxes to make up the difference.

Expanded unemployment benefits

For starters, individuals who have found themselves unable to work as a result of COVID-19, including those who are sick, quarantined or taking care of family members, will be able to collect unemployment, extending those benefits beyond those who were fired or laid off.

The CARES Act has also included self-employed individuals under this provision, meaning freelancers, gig workers and contractors may also collect unemployment during this time. Also included are people seeking part-time work; workers whose unemployment benefits have run out already; clergy and employees of religious organizations; and individuals whose work history would not typically be sufficient.

The stimulus bill will also add $600 on top of existing unemployment benefits (currently averaging about $300 a week) for four months and extend unemployment insurance by 13 weeks. The bill will also ensure that workers maintain their full salaries if they lose their job due to the coronavirus pandemic.

This additional funding will come from the federal government rather than from states and employers, who typically fund unemployment benefits. Unemployment benefits are still taxable under current law, which the stimulus bill does not account for. So if you are able, you may want to elect for tax withholding now, so you don’t get hit with a big bill at tax time.

How to file for unemployment: Unemployment insurance is done by state, so you will file for unemployment in the state where you last worked. If you worked in multiple states, you can apply in any one of those states. You can check your state’s benefits and eligibility requirements here.

The fastest and safest way to apply for unemployment at this time is via your state’s unemployment website or over the phone. However, given that millions of Americans have recently found themselves unemployed, you may face unusually long wait times when contacting unemployment offices. Perhaps visit your state’s website during off hours.

When you file for unemployment, you’ll have to provide your personal information, including your name, contact information, Social Security number and bank account information, if you have one, for direct deposits. You will also have to provide information about your last place of employment, including your past employer’s name and contact information, the last date you worked, the reason you’re not working anymore and your previous earnings.

Some states may require you to “certify for benefits” on a weekly or bi-weekly basis, which requires you to prove your continued eligibility for unemployment benefits. This often includes showing that you are willing and able to work and that you are actively looking for employment. Some states may waive this requirement during this time.

Eased penalties around retirement account withdrawals

The bill also allows those affected by COVID-19 to withdraw up to $100,000 from qualified retirement accounts, including your 401(k) and IRAs, without facing the 10% early withdrawal penalty that typically applies when you make withdrawals when you are under the age of 59 ½. You will still have to pay income taxes on your withdrawals, though these taxes will now be due over the course of three years instead of immediately. Additionally, the bill waives required minimum distributions (RMDs) for select retirement plans for this year.

Qualified individuals include those who are diagnosed with COVID-19 or have a spouse or dependent who has been diagnosed with COVID-19, as well as those who have been laid off, quarantined, furloughed or faced reduced hours due to the pandemic. This applies through Dec. 31, 2020.

Even though the bill allows it, withdrawing from your retirement accounts before you’ve actually hit retirement is generally not the best plan — especially if you’re already close to retiring. By doing so, you run the high risk of hurting the nest egg that you’ve worked hard to build for retirement. Still, this may be the only source of money available to many right now.

Small business relief

The stimulus plan includes $425 billion for the Federal Reserve to leverage for emergency loans to distressed companies and $75 billion for industry-specific loans. Despite previous claims from President Trump that he alone would choose which businesses received aid, this lending system will fall under oversight by an inspector general and a congressionally-appointed panel.

The spending package also provides $350 billion that will go toward lending programs for small businesses, but only those that keep their payrolls steady through the crisis. There is also a reward for small businesses that keep their workers in the form of federally-guaranteed loans that will be forgiven if the employer continues to pay its workers throughout this time of crisis.

Additionally, the plan allocates $130 billion for hospitals and $150 billion for state and local governments.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Banking

What Is a Cash Management Account?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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Actions have consequences. Staying up too late will turn you into a zombie at work the next morning, eating ice cream for breakfast will force you to buy new jeans — and placing your money in a conventional checking or savings account could yield a piddling amount of interest.

The internet hasn’t found a way to circumvent the biological necessities of sleep and a healthy diet — yet — but it can empower banks and financial institutions to offer accounts with APYs climbing well above 2.00% in some cases, all while providing the ease-of-access and convenience of a checking account. In the evolving world of online banking, these are usually called cash management accounts, and you need to know more about them.

You may have read about cash management accounts. They go by a variety of names: hybrid checking, hybrid accounts, cash management vehicles. Like many consumer financial products, readers may be a bit unclear about how these accounts actually work — and to start, note that they are very different than the “cash management accounts” offered by certain online stock brokerages.

“We’re trying not to think like traditional bankers, with the usual boundaries of how an account should be used,” said David Hijirida, CEO of Simple, which offers its own cash management account. “What we’ve found is that most customers use our accounts in a way that combines both checking and savings behaviors.”

Let’s get to the heart of the matter by defining what these new accounts are and whether they’re right for you and your money.

What is a cash management account?

Whatever the name, a cash management account combines the high interest rates of a savings account or certificate of deposit with the accessibility of a checking account.

With some of the accounts reviewed below — like Aspiration’s Spend and Save and Simple’s Checking and Protected Goals Accounts — the product actually consists of a checking account (which typically earns little to no interest) linked with a savings account (which earns a pretty decent APY) and features instantaneous, unlimited transactions between the two. Others — like Radius’ Hybrid Checking — comprise a single checking account earning a high APY, minus all the usual requirements typical of a traditional high-yield checking account.

While cash management accounts consisting of both a checking and savings account earn some of the highest APYs, you need to watch out that you don’t keep the majority of your funds in the checking or spending portion — where it earns minimal interest. Because transferring funds between the checking and saving portions happens instantly and doesn’t come with any limits, this is an easy mistake to avoid.

The boundary between “cash management account” and “high-yield checking” account can be hazy, but they share the following characteristics that place them in the “cash management” category.

  • Zero fees: One of the more attractive facets of cash management accounts is that most have no monthly maintenance fees (or only charge a small amount). This helps differentiate them from high-yield checking accounts, many of which require users to meet multiple specific requirements each month or pay maintenance fees in order to earn the high APY.
  • A higher APY than your typical checking account: According to DepositAccounts.com (like MagnifyMoney, it too is owned by LendingTree), the average APY a checking account earns is 0.147%. Traditionally that’s been seen as the trade off depositors make with banks in order to have easy, everyday access to their funds. The cash management accounts we review here represent true hybrid accounts that combine the liquidity of checking accounts with the high interest rates of savings accounts. All of them offer a much higher APY than the average checking account and, in many cases, higher than the interest earned in many savings accounts.
  • They’re online accounts, mostly: The institutions offering cash management accounts mostly exist as ones and zeros on the web. Some of these companies, like Aspiration, aren’t even banks themselves, but have partnered with traditional banks to provide customers with their services.

How do cash management accounts earn so much interest?

While the particulars vary from account to account, the principal underlying cash management account combines a traditional checking and savings account in one instrument — you deposit money with a bank or institution, where it earns interest. The financial institution then takes a cut of that interest in order to make money, and passes the rest on to you (which is reflected in the interest that particular account earns).

Because banks prefer customers to deposit as much money as possible for an extended period, they usually give accounts and products that limit customers’ ability to withdraw their cash higher interest rates in order to incentivize depositors into using those products.

Average Checking Account APYAverage Savings Account APYAverage 1 Year CD
APY
Average 5 Year CD
APY
0.147%0.214%0.734%1.237%

As you can see from the chart above — this data comes from DepositAccounts.com — the more liquid your account, the less interest it earns for you. Checking accounts, which provide almost unlimited access to your money, earn the lowest APY on average. Certificates of deposit with a five-year term, which usually come with a steep financial penalty if you withdraw the money before the term is up, provide the highest interest, on average.

So how do the companies offering cash management accounts bypass this norm to offer customers high interest rates on accounts with little to no restrictions on withdrawals? A big part of the answer is their low overhead, thanks to their online-only operations.

Megabanks like Chase employ thousands and maintain a sprawling network of physical locations, while an online-only institution like Aspiration, offering the Spend and Save cash management account, might have only a few dozen employees on its payroll.

“Because we’re online-only, it helps us pass on those kinds of savings to our customers,” said Andrei Cherny, CEO of Aspiration.

Where does my money go when I deposit it into a cash management account?

Since many of the institutions offering cash management accounts lack the extensive infrastructure of traditional banks, you may be wondering where your money is actually deposited with these accounts.

The answer is that they partner with a bank (or a series of banks) to manage your funds. At the end of the business day, the money in your cash management account is swept into one of these participating bank’s accounts, where it enjoys the normal protections provided by FDIC accounts.

This information should all be disclosed to you when you open a cash management account, and if it’s not you should hesitate before placing a large amount of money in the account.

“As with anything, read the fine print,” said Jonathan Chapman, CFP at WJ Interests based in Sugar Land, Texas. “Look under the hood to see what banks they partner with to ensure they are working with quality institutions.”

Customers should also keep an eye on the individual FDIC-insured accounts where your money is swept at the end of the day. Make sure none of the balances exceed the insurance’s limit ($250,000) — otherwise, the portion of your balance that’s greater than $250,000 is at risk of being uninsured.

The potential pitfalls of cash management accounts

The high interest rates offered by these accounts make them attractive to customers who want their money to grow at a decent rate while still remaining accessible, but they’re not for everyone. Because most of these hybrid accounts are offered by online-only banks or institutions, customers have to feel comfortable banking with a company that may lack decades of history — especially if they’re already accustomed to doing business with another bank.

“As an advisor, my most difficult work is to get people to follow through on my recommendations,” said Jayson Owens, CFP at Bright Road Wealth Management based out of Anchorage, Alaska. “To accomplish this, I rarely recommend changes to a primary checking account. The cost in time typically outweighs the benefit of the change.”

Another related concern customers may have about these cash management accounts is if the companies offering them will stick around for the long haul. “Clients may not lose money but the company may get acquired or shuts down which would cause unnecessary hardship,” said
Deva Panambur, CFA and CFP at Sarsi, a wealth management company based in West New York, N.J.

While you’re not going to be able to waltz into the CEO’s office and demand a look at his five-year plan, you should take into account your gut reaction to how a company offering a cash management account presents itself and whether it has a viable shot at longevity.

The best cash management accounts

Account nameAPY earnedMinimum balanceMonthly Maintenance Fee
Simple Account1.40%$0.01$0
Betterment Cash Reserve and Checking0.40%$0$0
Wealthfront Cash Account*0.35% APY on the entire balance$1$0
SoFi Money0.20% APY on the entire balance$1$0
Radius Rewards Checking Account0.15% APY on balances of $100,000 and greater; 0.10% APY on balances between $2,500 and $99,999.99$100,000 to earn the highest APY; $2,500 to earn 0.10% APY$0
Aspiration Spend and Save1.00% APY on the entire balance$1,000 monthly deposit to earn 1.00% APY or $10,000 Save account balance
$0

*These cash management accounts currently don’t have a way for you to spend money directly from the account (such as a debit card or check) and require you to transfer money from the cash account to a third-party account before spending.

Simple Account

Simple was created out of frustration with the banking industry. According to the founders, they were confounded by the complexities of certain bank accounts; their solution was to offer a no fee bank account that earns interest and helps you budget your money “in one simple app.”

What makes this bank account stand apart from other online checking accounts? Well, for starters, it’s a checking account that doesn’t have any fees, not even if you use an international ATM (however, a fee may still be charged by the ATM owner). With this cash management account, you can earn 1.40% APY on all balances in your Protected Goals account, which is basically a savings account that lives within your larger Simple account, where you can instantly transfer money in and out of as many times as you want without any penalty.

SEE DETAILS Secured

on Simple’s secure website

Betterment Cash Reserve and Checking

Betterment intends for its Cash Reserve and Checking accounts to work in tandem, and offers an APY of  0.40% on funds in the Cash Reserve account.

Because money in the Cash Reserve account is held by several program banks, customers enjoy FDIC protection up to $1 million. There’s no limit to the amount of times you can transfer money in and out of your Cash Reserve account (unlike a traditional savings account at a bank) but it does take 1-2 business days to for Betterment to process these transfers.

SEE DETAILS Secured

on Betterment’s secure website

FDIC Insured

Wealthfront Cash Account

This robo-advisor offers savers a cash management account that earns 0.35% APY and doesn’t require you to open an investment account. Because Wealthfront sweeps the money you deposit in the cash account into several partner bank accounts, your money is FDIC insured up to $1 million, a selling point for those wanting large balances to receive the maximum protection. Currently Wealthfront doesn’t offer a debit card to allow you to directly spend the money with a merchant (though the company promises its working on it), but you can transfer funds from the cash account to a third-party account or an internal Wealthfront investment account free of charge.

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on Wealthfront’s secure website

FDIC Insured

SoFi Money

Though it’s probably better known for its mortgages and student loans, this online-only investment firm has staked a claim in consumer banking by offering its Money account, which offers a generous APY.

SoFi doesn’t require depositors to maintain a minimum balance in this account in order to earn that high interest rate, one of the few accounts in the market that doesn’t place a barrier between the customer and the high APY. Account holders also get additional goodies like free paper checks upon request and unlimited reimbursement of ATM fees.

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on SoFi’s secure website

Radius Rewards Checking Account

Radius Bank is a community bank headquartered in Boston. The Radius Rewards Checking account is free, as long as you open the account with the required deposit of $100.

Because the Rewards account offers a much-higher than average interest rate for a checking account without saddling the customer with a laundry list of requirements — like a number of debit transactions required each month — Radius’s account joins the list of best cash management accounts.

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on Radius Bank’s secure website

Member FDIC

Aspiration Spend and Save Account

Aspiration aims to transform personal banking from a chore customers tolerate to an act of social responsibility — at least according to their marketing campaign, which heavily emphasizes the fact that customers only pay whatever they wish in fees, with 10 percent of that money going to charity. But even depositors who don’t buy into Aspiration’s brand ethos will likely find themselves intrigued by the company’s Spend and Save account, which promises a 1.00% APY on what is effectively a checking account.

Similar to Simple, Aspiration has packaged together a savings account and a checking account into a single consumer product allowing users to move their money between both portions instantly and as many times as they wish. Users should be careful not to leave the majority of their funds in the checking portion, which owns zero APY. Instead most of the money should live in the savings account, where it earns the 1.00% APY the company advertises so prominently.

You can move your money between both parts of the Spend and Save account instantly, so having most of it in the savings portion shouldn’t slow you down during a shopping spree; however, it’s important to note in case you get careless and leave a big chunk of change in the spending portion, where it earns no interest.

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on Aspiration’s secure website

 

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.