Advertiser Disclosure

News

Study: Intro Bonus Offers for Travel Rewards Cards Nearly Triple in 10 Years

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.

Travel rewards aren’t just for frequent fliers anymore, as credit card issuers ramp up intro bonus rewards on travel credit cards.

New research by MagnifyMoney found that the average introductory bonus on a travel rewards credit card in 2018 is now 40,556 points, more than double the average bonus in 2008 (16,050 points) and up from 34,327 points five years ago.

This comes as debit card rewards have nearly disappeared extinct following implementation of the Durbin Amendment, which capped the interchange fees banks could charge on debit transactions.

Just 18% of Americans with a debit card said their card offers rewards as of 2017, according a MagnifyMoney analysis of data from the Atlanta Fed’s annual survey of consumer payment choice.

 

Credit card companies have long used introductory bonus offers as a way to lure potential customers into getting their travel-related cards. And in an increasingly competitive space, those reward offerings have steadily increased.

“More and more cards are offering travel rewards without being tied to one airline,” said Brian Karimzad, vice president of research at LendingTree, the parent company of MagnifyMoney. “We wanted to see what that competition has done to intro bonuses.”

MagnifyMoney looked at more than 90 intro bonus point offers from each of the five largest credit card issuers for personal credit cards in five-year increments, February 2018, 2013 and 2008. Some issuers targeted offers to consumers via email, direct mail or site login but those weren’t included in this study.

Key findings:

  • These bonuses come at a steep cost to consumers. The average annual fee on a card with a bonus offer is $120, up 62% from $74 in 2008.
  • Airline miles offers more than doubled to 38,438 miles from 15,500 miles on average in 2008.
  • Cards with travel rewards you can use as cash on any airline have the highest growth rate – with bonuses tripling over the last 10 years, from 10,000 points to 30,455 points.
 

2008

2013

2018

10 year change

Average introductory bonus points

16,050

34,327

40,556

2.5x

Airline branded

15,500

30,556

37,059

2.4x

Hotel branded

21,250

48,000

60,000

2.8x

Transferable points

15,000

30,000

37,143

2.5x

Cash for travel

10,000

11,875

30,455

3.0x

Average annual fee

$74

$89

$120

62%

What’s driving these changes?

Competition among banks and airlines is heating up as miles have become bigger business over the last 10 years, which is likely feeding the rise in lucrative intro bonus offers. A tipping point may have been reached on Sept. 14, 2005, when Delta Air Lines filed for Chapter 11 bankruptcy protection. As part of its filing, American Express agreed to provide Delta with $350 million of secured financing. This was on top of a $100 million loan and the pre-payment of $500 million for SkyMiles executed on Oct. 25, 2004.

And in 2008, Delta signed a multi-year extension with American Express and sold $1 billion in SkyMiles to the card company in lieu of cash payments. These deal showed how miles could add to a carrier’s bottom line.

It’s hard to get firm numbers on revenue earned by airlines and hotels under their credit card deals, since they aren’t separated as line items in their financial reports. Delta showed a slide in its December 2014 investor relations presentation that valued its new multi-year contract with American Express at $2 billion. American Airlines announced new deals with Barclays and Citi on July 16, 2016, that it valued at $800 million by 2018.

So it’s clear that reward offerings are a key factor in drumming up new consumer interest and are adding to the bottom line of both airlines and card companies.

“Airlines are earning upwards of 50 percent of [income] from selling miles to a credit card company, which we believe is a great business to be in,” wrote Joseph DeNardi, a senior airline analyst with Baltimore-based Stifel Financial Corp., on March 20, 2017.

In turn, credit cards use these points and miles to lure new customers with intro bonus offers that allow them to cash in quickly for things like flights and hotel rooms. Here are just a few examples:

On Dec. 5, 2017, Marriott International announced it had inked new deals with JPMorgan Chase and American Express for Marriott Rewards and Ritz-Carlton Rewards Visa credit cards, and the Starwood Preferred Guest credit cards.

Marriott also announced new co-brand products coming later in 2018, including super-premium consumer and small business co-branded products from American Express, and mass consumer and premium consumer co-branded products from JPMorgan Chase.

In 2014, Delta Air Lines announced a multiyear extension of its co-branded credit cards with American Express, and a spokeswoman says that deal is still in place, although she declined to share further details. In its 2017 annual earnings release, American Express cited its strategic co-brand agreement with Marriott and its announcement of a suite of new co-brand cards with Hilton as a bright spot during the year.

Southwest Airlines Chief Revenue Officer Andrew Watterson said in a Skift interview that credit cards are “core to the airline business,” noting that his carrier’s planned service to Hawaii is partly driven by potential customers interested in using the carrier’s Rapid Rewards points for free flights to the island.

That’s a long way away from what the airline credit card space looked like in 2008. Ten years ago, an IdeaWorks study found that airlines were generating more than $4 billion a year in revenue. Back then, rewards were pretty basic, where miles and points were accumulated on appointed cards and revenue was generated from loyalty program customers.

But then Chase raised the bar when it introduced its Chase Sapphire Preferred® Card card in 2009 and the Chase Sapphire Reserve® in 2016, targeting more affluent customers who wanted more perks and benefits. That included access to its Chase Ultimate Rewards® website, where cardmembers use their points to book travel, transfer points to airline and hotel loyalty programs, buy gift cards and merchandise and get cash back. Chase Sapphire Reserve® members get 1.5 cents toward travel for every point, while it’s 1.25 cents per point for Chase Sapphire Preferred® Card.

This created more competition among card companies like American Express, Bank of America and Citi, which have unveiled new products and more intro bonus programs to keep up.

The information related to the Chase Sapphire Preferred® Card and the Chase Sapphire Reserve® has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

The bottom line

Not all points are created equally. You could earn the same number of miles on one card as points on another card but each can carry very different redemption values. For example, 50,000 United miles could get you two round-trip domestic coach tickets worth $700 or more if you’re flexible, while 50,000 Hilton points might not be enough to cover a full night at a $400 per night big city hotel. In general, hotel points tend to give you less reward value per point than airline miles, while cash for travel points tend to be worth at least one cent each, so 10,000 points gets you at least $100 in travel rewards.

Cards that offer cash for any travel purchase give people who don’t want to mess with miles — but want to save on travel — a way to get more value from their spending than many straight cashback cards.

With hotel-branded cards, you can use bonus points for travel or transfer them into airline miles with their respective partners, which helps boost miles in a loyalty program to use for things like free flights and seat upgrades. Some airline-branded credit cards not only offer intro bonus miles, but also the chance to earn qualifying miles that count toward that all-important elite status. And travel-branded cards offer websites where you can get bonus points to use toward travel.

Sometimes the chance to get higher bonus points may not be worth it, due to a high annual fee or higher spending needed to get them. Cards with high bonus points coupled with lower annual fees and/or spending could be a better fit.

 

The study is good news for frequent travelers who are finding it more difficult to earn rewards by racking up miles alone. Banks are realizing that some people are frustrated with their airline miles and the rules for using them, said Karimzad.

“The airlines have made it harder to earn miles by flying in recent years,” he said. “Many of them now award miles based on the price of your ticket, instead of how far you fly, making sticking with a single airline mile program less lucrative for people who aren’t heavy business travelers.”

Cards that offer cash for any travel purchase give people who don’t want to mess with miles — but want to save on travel — a way to get more value from their spending than many straight cashback cards, he added.

These days, 50,000 miles is the new 25,000, said Karimzad. “As offers and competition have increased, the bar for going through the trouble of applying for a card has gone up, and consumers should be looking for offers that get them more value than the 25,000 miles of years ago,” he said. “Transferable point cards are the most flexible because you can use the points like cash for travel, or convert the points into real airline miles, so a big bonus on a transferable point card is a great place to start.”

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.

Benét J. Wilson
Benét J. Wilson |

Benét J. Wilson is a writer at MagnifyMoney. You can email Benét J. at [email protected]

Advertiser Disclosure

News

Multi-Level Marketing and Military Families: How to Spot a Scam

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.

Being a military spouse isn’t an easy job. Non-enlisted spouses deal with difficult realities that many Americans don’t understand, from frequent relocation to defacto single parenting during deployment periods. That makes earning an income while caring for a family — especially one with young children — extremely difficult.

With challenges like these, it’s no wonder the unemployment rate among military spouses is 13%. That’s more than three times as high as the unemployment rate among civilian men and women.

Enter multilevel marketing businesses, or MLMs for short, that promote the opportunity to make money selling products directly to others. On the surface, their flexibility and built-in community may seem like a godsend to military spouses looking to bring in some extra cash. But are they all they’re cracked up to be?

How MLMs work

Besides selling your own products, MLMs involve recruiting others to join your team and sell products to the people in their circles as well. With most MLMs, you get a portion of your team member’s profits when someone joins your sales network. As the process repeats itself and your team members recruit sales networks of their own, you may continue to get a piece of the profit from everyone who signs up underneath you.

You can probably name several MLMs, also called network marketing companies, off the top of your head. There are the classics, like Tupperware, Amway, Avon and Mary Kay, along with newcomers like Beachbody, LuLaRoe and Rodan + Fields.

Yet although MLMs have been around for decades (or centuries — Avon was founded in 1886), they’re often a poor investment of your time and money. An AARP Foundation study reveals that 74% of people reported making no money or losing money as a result of their involvement with an MLM. (Investing your cash in a high-yield online savings account would actually be a safer bet, statistically.)

Why MLMs are so popular with military families

Military families in particular are often targeted by direct-selling consultants. Sometimes, this comes from a genuine desire to help military families that are looking for an additional source of income, suggested Anthony Kirlew, financial coach at Fiscally Sound.

Yet others believe the intentions of MLM recruiters may be more sinister. “Military wives are an easy target [for MLMs],” said Melissa Blevins, founder of Perfection Hangover, a small business website geared toward women, “because they’re seeking community, purpose and ways to stay busy and make money while their husbands are deployed.”

MLM recruiters often approach women (military wives or otherwise) with promises to solve the problems they’re facing. For example, a recruiter may show you a flexible way to earn extra cash (often lots of it) with a work schedule that fits your busy life. Plus, if you move, you don’t have to start over. You can take your direct-selling business with you.

The targeting of military families has a lot to do with the transient nature of military service, said Peter Marinello, vice president of the Direct Selling Self-Regulatory Council for Better Business Bureau (BBB) National Programs. “I think the military community is very vulnerable to direct-selling opportunities and a lot of different kinds of scams.”

This frequent relocation can also lead to loneliness among military spouses, and MLMs offer to help those who are seeking new friendships. But Blevins, who had her own negative experience selling for Beachbody, warned the friendships you make when you join an MLM may not last once you stop participating, and you run the risk of losing your existing friends if you start bombarding them with sales pitches.

The difference between a legitimate opportunity and a scam

You’ll find people who are superfans of multilevel marketing programs and others who despise MLMs as a whole. Perhaps the truth lies somewhere between these two extremes.

Marinello confirmed, “There are a lot of good MLM opportunities out there. They are not all scams.” But they require due diligence before signing up. To properly vet an MLM, Marinello suggests reading income disclosures to “see who’s making money [and] at what level.” You should also review compensation plans and rely on outside resources to help shape your decision.

If you want to learn more about a specific direct selling organization, the following ideas may help:

  • Check with your state attorney general for complaints before signing up for any networking marketing opportunity.
  • Search online to see if any lawsuits have been filed against an MLM before joining — such as the FTC’s settlement with Herbalife or the more recent lawsuit brought against LuLaRoe by the Washington state attorney general.
  • Talk to former consultants or search online for the opinions of people who once joined a particular MLM but ultimately left.
  • The BBB Institute for Marketplace Trust sponsors the Military & Veterans Initiative — a program designed to help veterans, servicemembers and their families avoid scams.
  • The Direct Selling Self-Regulatory Council (DSSRC), a collaboration between the BBB and the Direct Selling Association (DSA), is another solid resource to use when vetting MLMs.

How to spot a pyramid scheme

Some MLMs are pyramid schemes in disguise. A pyramid scheme may look like a legitimate network marketing opportunity on the outside. But there are key distinctions that could waste both your time and your money if you fall for it.

  • You don’t earn money by selling a legitimate product or service.
  • You’re trained to focus primarily on recruiting new team members underneath you.
  • Financial statements from the company either (a) are not available or (b) show that the MLM earns most of its money from recruitment instead of sales.
  • The commissions you earn come primarily from money paid by new team members themselves, not outside sales.

Working for an MLM is not a quick fix to your financial struggles

The reality doesn’t always live up to the hype where MLMs are concerned. Some MLM participants are quick to over-promise your chances of success in an effort to add a new team member to their network.

In reality, most people who join MLMs don’t earn the enormous sums of money often advertised by salespeople. AARP’s study found that nearly 21 million Americans have participated in an MLM. Yet only 7% earned over $10,000. Fewer than 1% earned more than $100,000.

Even those who do manage to make some money through MLMs may have to work much harder to earn that income when compared with other jobs. A MagnifyMoney survey finds that the vast majority of multilevel marketing participants earn less than 70 cents an hour.

Kirlew also advised approaching MLMs with the right mindset. “While MLM’s are pitched as a great way to earn extra income, people should know it’s not like a part-time job, but rather a part-time business.”

“If someone has a need for immediate income,” he continued, “I would recommend a part-time job and not an MLM.”

Most businesses don’t succeed — including MLMs — Kirlew pointed out. “The extra added pressure of trying to meet short-term financial goals is usually not a good combination with starting a new business.”

If you’re already in debt because of an MLM investment or other financial missteps, there are a number of tools you can use to improve your situation. This guide detailing financial resources for veterans in debt is a great place to start.

Seven red flags to look for before joining a multilevel marketing team

  1. Beware of MLMs that require a hefty buy-in. If you’re asked to put up a large upfront amount to join, Kirlew said it could be a sign of a scam.
  2. An aggressive sign-up pitch is cause for concern. Kirlew advised looking out for “high-pressure sales tactics to get you to sign up” when you’re considering an MLM. If someone tells you to “act now” or lose out on an opportunity, you should probably walk away.
  3. Proceed with caution if a company won’t buy back unused products. If you purchase product to stock your inventory and don’t sell it all, some MLMs offer to buy your unused product back. Mary Kay, for example, will repurchase product at 90% of the original cost for up to one year after purchase. MLMs that won’t rebuy your unused products should be avoided.
  4. Watch out for companies that require you to continue purchasing inventory after your sign up. The Federal Trade Commission (FTC) warns if you have to buy more products than you can sell in order to stay active in an MLM, you should hang on to your money.
  5. When an MLM focuses on recruitment, not sales, it could be a sign of trouble. Marinello said, “Anytime you hear a sales pitch that’s recruitment heavy and not focused on selling the product, I’d be very wary.”
  6. If a company promises a huge return on your investment, be on guard. Extravagant income claims made by a salesperson, particularly in the social media space, may be a warning sign, Marinello advised.
  7. You should also be on guard if an MLM company promises “miracle cures” for buyers. The FTC recommends avoiding any companies that make claims of “miracle ingredients” or “guaranteed results” where health products are concerned.

The bottom line

While some MLMs may offer the flexibility and community military spouses crave, don’t make any rash decisions and do your homework. Kirlew also advised that you trust your gut instincts before signing up.

“If something doesn’t feel right,” Kirlew said, “it is either not right or not right for you.”

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.

Michelle Black
Michelle Black |

Michelle Black is a writer at MagnifyMoney. You can email Michelle here

Advertiser Disclosure

News

10 Great Free Checking Accounts

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.

The humble checking account may not offer rewards, cash back or many of the other perks offered by ritzy credit cards, but it remains the cornerstone of your financial life. Nobody likes paying monthly maintenance fees, so why not pick a free checking account that does away with them altogether?

Below, we’ve selected nine of the best free checking accounts by scouring our database for products meeting the following criteria:

  • No monthly maintenance fee
  • A low initial deposit amount (between $0-$50) needed to open the account
  • No minimum balance requirement
  • Minimal third-party ATM fees
  • Available nationwide

10 bests free checking accounts of November 2019

Account Name

Minimum needed to open

APY

Consumers Credit Union (IL) Free Rewards Checking$05.09% (applies to balances up to $10,000)
TAB Bank Free Kasasa Cash Checking$04.00% (applies to balances up to $50,000)
Orion FCU Premium Checking$25 deposit in Primary Share Account4.00% (applies to balances up to $30,000)
T-Mobile Money$04.00%(applies to balances up to $3,000)
One American Bank Kasasa Cash Account$503.50%(applies to balances up to $10,000)
Evansville Teachers FCU Vertical Checking$30 ($25 if you're already a member of this credit union)3.30% (applies to balances up to $20,000)
Lake Michigan Credit Union Max Checking$03.00%(applies to balances up to $15,000)
Andigo Credit Union High-Yield Checking$03.00% (applies to balances up to $10,000)
All America Bank Ultimate Rewards Checking$50, in-person2.75% (applies to balances up to $10,000)
Simple Account$02.02% to 2.15% on balances in Protected Goals

Consumers Credit Union (IL) Free Rewards Checking

The Consumers Credit Union provides an online-only Free Rewards Checking account to anyone in the nation who becomes a member. You can qualify for membership with a one-time $5 payment to Consumers Cooperative Association. Perks of the account, which charges no monthly maintenance fees and requires no minimum balance, include unlimited third-party ATM fee refunds.

However you do have to meet some requirements in order to get all of the benefits of the account (including the high APY). The APY for this account is divided into three tiers, with the lowest earning 3.09%, the middle 4.09% and the highest tier 5.09%. The requirements for each of these tiers are:

To earn 3.09%

  • Receive eStatements
  • Make at least 12 debit card purchases a month
  • Post direct deposits or ACH payments of at least $500 each month

To earn 4.09%

  • Meet all the requirements of the previous tier
  • Have a Consumers Credit Union Visa credit card and spend at least $500 a month on it

To earn 5.09%

  • Meet all the requirements of the previous tier
  • Spend at least $1,000 a month on your Consumers Credit Union Visa credit card

Keep in mind these high APYs only apply to balances up to $10,000. The portion of any balance between $10,000.01 and $25,000 earn 0.20% APY, and balances greater than $25,000 earn an APY of 0.10%.

LEARN MORE Secured

on Consumers Credit Union (IL)’s secure website

NCUA Insured

TAB Bank Free Kasasa Cash Checking

Headquartered in Ogden, Utah, TAB Bank offers a great rate on its Free Kasasa Cash Checking account. Developed by the Kasasa Corporation, a Texas-based financial services and marketing organization, Kasasa accounts help smaller banks compete against larger rivals by providing higher rates.

TAB’s account charges no fees for using third-party ATMs, and reimburses up to $15 in third-party ATM fees per month. There are no fees and no minimum balance requirement for this account, but to earn 4.00% APY reward rate, every month you must:

  • Deposit at least one ACH payment or direct deposit, or make one bill pay transaction
  • Make at least 15 signature-based debit card purchases

If you don’t qualify in any given month, your balance earns 0.05% APY, and third-party ATM fees are not refunded. You can earn the reward rate APY on balances up to $50,000, which is well above the other maximum balances on this roundup. Balances greater than $50,000 earn an APY of 0.25%.

LEARN MORE Secured

on TAB Bank’s secure website

Member FDIC

Orion Federal Credit Union Premium Checking

Orion Federal Credit Union has served the community in Memphis, Tenn. since 1957 — and now it offers its outstanding Premium Checking product online to anyone who becomes a member. This involves opening a Primary Share Account savings account with a $25 deposit, and donating $10 to one of five local charities.

This account charges no fees for using third-party ATMs, and reimburses fees charged to you by owners of third-party ATMs, making it free to access your cash from anywhere. To earn the 4.00% APY interest rate, and also get ATM fee reimbursements and waive the $5 monthly fee for the account, you must:

  • Deposit at least $500 a month in the account, either by direct deposit or other mobile electronic deposit
  • Perform at least eight signature-based debit card transactions

Orion lets you earn their high APY on balances up to $30,000. Balances greater than $30,000 earn an APY of 0.05%.

LEARN MORE Secured

on Orion Federal Credit Union’s secure website

NCUA Insured

T-Mobile Money

Wireless carrier T-Mobile is venturing out into new territory with a financial product – a competitive one, too. T-Mobile Money is a new checking account that pays a 4.00% APY on balances up to $3,000. Balances over $3,000 earn an APY of 1.00%. There are no monthly fees, overdraft fees, transfer fees, ATM fees or minimum balance requirements.

In order to receive the 4.00% APY, though, T-Mobile Money does require the following:

  • Enroll in a qualifying T-Mobile wireless plan
  • Register for Perks with your T-Mobile ID
  • Make at least $200 in qualifying deposits to your checking account in the calendar month

Balances that do not meet these requirements, or balances over $3,000, will earn 1.00% APY.

LEARN MORE Secured

on T-Mobile Money’s secure website

Member FDIC

One American Bank Kasasa Cash Account

This small community bank, based in Sioux Falls, SD, offers a nationally available Kasasa Cash checking account that earns a decent 3.50% APY on balances up to $10,000. You need a minimum of $50 to open the account, but after that all you need to do to earn the very competitive APY of 3.50% is:

  • Make at least 12 debit card purchase transactions a month of at least $5.00 each
  • Receive electronic bank statements, account notices and disclosures
  • Log in to online banking at least one time a month

If you meet these qualifications, One American Bank also refunds up $25 in third-party ATM funds per month.

LEARN MORE Secured

on One American Bank’s secure website

Member FDIC

Evansville Teachers Federal Credit Union Vertical Checking

Don’t let the name of this credit union fool you—anyone can become a member if they open a $5 savings account, which then allows you to open a Vertical Checking account with a minimum balance of $25.

This free checking account doesn’t charge a monthly service fee or require you to maintain a minimum balance, and in return gives you an APY of as high as 3.30% on balances up to $20,000, provided you fulfill the below requirements:

  • Make at least 15 debit purchases each month
  • Make at least one direct deposit into the account each month
  • Login to your mobile or online banking at least once each month
  • Opt in to receive eStatements
  • In addition to the high APY, meeting these requirements entitles you to $15 a month for reimbursing third-party ATM fees.

In addition to the high APY, meeting these requirements entitles you to $15 a month for reimbursing third-party ATM fees.

LEARN MORE Secured

on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

Lake Michigan Credit Union Max Checking

Despite its name, the Lake Michigan Credit Union is open to anyone who makes a $5 donation to the ALS Foundation. That small donation can pay off tenfold with the credit union’s Max Checking account, which features a 3.00% APY on balances up to $15,000. The account also has no minimum balance requirements and no monthly fees.

In order to receive the 3.00% APY, you must:

  • Direct deposit into any LMCU account
  • Make a minimum of 10 debit or credit card transactions per month
  • Make 4 logins to home banking per month
  • Sign up for e-statements

The Lake Michigan Credit Union’s Max Checking account also offers up to $10 in monthly reimbursements for non-LMCU ATM fees.

LEARN MORE Secured

on Lake Michigan Credit Union’s secure website

NCUA Insured

Andigo Credit Union High Yield Checking

Another credit union with a competitive checking account is the Andigo Credit Union High Yield Checking account. With a handful of physical branches in Illinois and mobile banking services, Andigo Credit Union is open to anyone who makes a $15 donation to ConnectVETS.

Andigo’s High Yield Checking account features a 3.00% APY on balances up to $10,000, has no monthly fees, no minimum balance requirements and $12 a month in ATM surcharge rebates. However, to take advantage of the 3.00% APY, you must:

  • Have $500 or more in total direct deposit
  • Make 15 or more debit card purchases per month

Accounts that do not meet those qualifications earn a 0.06% APY. Balances above $10,000 earn 0.10% APY.

LEARN MORE Secured

on Andigo’s secure website

NCUA Insured

All America Bank Ultimate Rewards Checking

All America Bank’s Ultimate Rewards Checking is a standout account that features a 2.75% APY, no monthly service charge, no minimum balance requirements and free ATM transactions.

It’s worth noting, however, that to open an account you must make a $50 minimum deposit in-person – All America Bank has physical branches in Oklahoma. If you cannot make the deposit in-person, there is a hefty minimum balance of $500 required to open an account online.

To receive the 2.75% APY on this account, you must meet the following requirements:

  • Make 10 All America Bank Visa debit card transactions per month
  • Receive statements electronically

If those requirements aren’t met, you’ll earn an APY of 0.25%. Balances over $10,000 will earn 0.50% APY.

LEARN MORE Secured

on All America Bank’s secure website

Member FDIC

Simple Account

Another online-only account, Simple is owned and backed by regional bank BBVA Compass and offers customers a checking account that’s intertwined with the app’s Protected Goals savings account, and additional budgeting tools. Simple doesn’t charge any fees, meaning users enjoy:

  • No monthly maintenance fee
  • No minimum balance needed
  • No account closing fee
  • No stop payment fees
  • No debit card replacement fee
  • No ATM fee if using Simple’s network, but users can be charged a fee by other banks if using a non-network ATM

One fee you do have to pay is a foreign transaction fee when using your Simple card internationally, which can be up to 1% of the transaction.

As a cash management product, the Simple Account automatically comes with a savings account feature. While the checking balance in a Simple Account earns a token 0.01% APY, Simple’s Protected Goals savings balances earn an APY of 2.15%.

LEARN MORE Secured

on Simple’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.

James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here