Reviews

BankPurely Review: Checking, Savings, CD and Money Market Accounts

Monday, July 1, 2019

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.

Emilia Benton

BankPurely’s checking account option

CheckingPurely account

An interest-bearing account with no minimum balance required to earn the rate.

APY	Minimum Balance to Earn APY
0.75%	None

Minimum opening deposit: $1
Monthly account maintenance fee: None
ATM fee: None on ATMs that are part of the Allpoint network; no charge from BankPurely on out-of-network ATMs, though the ATM owner may charge a fee
ATM fee refund: Only on surcharges from Allpoint machines
Overdraft fee: $30

This checking account is a great option for someone wanting to earn interest on their checking funds without having to worry about monthly fees and minimum balance and deposit requirements. While the account does not offer out-of-network ATM refunds, you shouldn’t have to worry about that, as you will have access to more than 55,000 Allpoint Network ATMs around the world. Other account benefits and features include a complimentary Mastercard iGodebitcard, online and mobile app access, free online bill pay and mobile check deposit. As an added bonus, to go along with its philanthropic support of human and eco-related causes, BankPurely will plant a tree in New York for every checking account opened.

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on BankPurely’s secure website

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How BankPurely’s checking account compares

With its lack of fees and balance requirements, and its ability to earn interest, BankPurely’s checking account is a definite contender for some of the best checking accounts out there. While its interest rate isn’t the highest available, it’s not on the low side, either. This account also has an easy-to-navigate mobile app and online user interface, which is key for any online bank. If you’re especially keen on going green and supporting environmental causes, this account’s paperless characteristics and planting trees bonus will likely appeal to you as well.

BankPurely’s savings account option

SavingPurely account

A savings account offering a high rate and minimal requirements.

APY	Minimum Balance to Earn APY
1.90%	None

Minimum opening deposit: None
Minimum balance to earn APY: None
Monthly account maintenance fee: None
ATM fee: None on ATMs that are part of the Allpoint network; no charge from BankPurely on out-of-network ATMs, though the ATM owner may charge a fee
ATM fee refund: Only on surcharges from Allpoint machines
Overdraft fee: $30

As with BankPurely’s checking account, the savings account is a hassle-free savings option with no monthly fees or balance requirements that also offers a decent interest rate. Other benefits include access to the surcharge-free Allpoint ATM network (which has more than 55,000 ATMs worldwide), a complimentary ATM card, easy-to-navigate online and mobile app access and mobile check deposit capabilities. Falling in line with its support of eco-friendly causes, BankPurely will also plant a tree for every savings account opened. Lastly, as with all savings accounts, this account is subject to Federal Reserve Regulation D, which limits certain transactions and withdrawals to six per month.

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on BankPurely’s secure website

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How BankPurely’s savings account compares

The perks that come with BankPurely’s savings account, such as its lack of fees and minimal requirements and its user-friendly online banking capabilities, definitely allow it to compete with some of the best available online savings accounts. Still, there are higher rates from other online banks out there, so if that’s a high priority, we encourage you to review our list. However, if you’re also particularly passionate about supporting environmental causes, then this account might be for you.

BankPurely’s CD rates

PurelyCDs

These CDs guarantee their rates for the duration of their terms and allow you to adjust the terms once they reach maturity.

Term	APY	Minimum deposit requirement
12 months	2.25%	$1,000
24 months	2.75%	$1,000
36 months	2.00%	$1,000
60 months	2.87%	$1,000

Minimum opening deposit: $1,000
Minimum balance amount to earn APY: $1,000
Early withdrawal penalty: 6 months’ worth of interest on amount withdrawn if original maturity is more than 1 and less than 3 years; 1 year’s worth of interest on the amount withdrawn if original maturity at least 3 years and less than 7 years.

BankPurely’s CDs rates are guaranteed for the term length you select, which can be for 1, 2, 3 or 5 years. Once your CD reaches maturity, you will have the option to adjust the term, add additional funds, open another CD with the bank, as well as withdraw your funds. These CDs also allow for easy online management, and as with its other products, the bank will plant a tree for every new CD that’s opened.

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on BankPurely’s secure website

Member FDIC

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How BankPurely’s CD rates compare

Although BankPurely’s minimum deposit is pretty average compared with come of the best CD options out there, most of its rates simply aren’t as high — in fact, the rate currently decreases from the 24 month to the 36 month options, but then goes back up for the 60 month option. Even if you are drawn to the bank’s ties to green causes, we still suggest doing your research while considering a product that’s a bit more competitive.

BankPurely’s money market account option

PurelyMoneyMarket account

A tiered account that allows you to earn interest on balances over $25,000.

APY	Minimum Balance to Earn APY
2.25%	$25,000-$74,999.99
2.25%	$75,000-$99,999.99
2.25%	$100,000

Minimum opening deposit: $25,000
Minimum balance to earn APY: $25,000
Monthly account maintenance fee: $15 if balance falls below $25,000
ATM fee: None on ATMs that are part of the Allpoint network; no charge from BankPurely on out-of-network ATMs, though the ATM owner may charge a fee
ATM fee refund: Only on surcharges from Allpoint machines
Overdraft fee: $30

BankPurely’s money market account allows users to earn interest on balances of $25,000 and up. If you open this account, you’ll want to make sure your balance never falls under that $25,000 mark (which happens to also be the minimum deposit amount) to avoid the monthly service charge, anyway. Although this account is separated into four separate tiers on the bank’s website, there are currently no differences between the tiers that earn interest, as they earn the same rate, assuming your account has the minimum balance of $25,000. Since this is a savings account, certain transactions are limited to six per month, per Federal Reserve Regulation D. Finally, as with BankPurely’s other accounts, this account comes with online and mobile banking capabilities, mobile check deposit and the planting of a tree.

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on BankPurely’s secure website

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How BankPurely’s money market account compares

With its competitive rate, BankPurely’s money market account is definitely up there with the best of the best — it’s even on our list of the best money market rates and accounts available. Its minimum balance to earn the rate is a bit higher than other accounts on the list, but its rate still beats others. Where BankPurely’s money market account does lose points, however, is the fact that it does incur a monthly fee if you withdraw money and fall below that minimum balance requirement.

How to get BankPurely’s banking products

You can easily open BankPurely’s checking, savings, money market and CD account products online. To do so, you’ll need your Social Security number, a government-issued ID such as a U.S. driver’s license, and a current bank account and routing number to fund your account. If you’re applying for a joint or beneficiary account, you’ll need the other party’s name, Social Security number and form of identification as well.

Overall review of BankPurely’s banking products

While none of BankPurely’s products offer the highest rates out there, they’re all still pretty good. Having already made our “best-of” list, we say the bank’s money market account is the standout product, which offers a high rate if you don’t let the balance dip below the minimum requirement. If environmental causes are near and dear to your heart, the many conveniences this online-only bank offers make these accounts worth your while.

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.

Emilia Benton |

Emilia Benton is a writer at MagnifyMoney. You can email Emilia here

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Reviews

Review of Edward Jones CD Rates

Friday, July 12, 2019

John Csiszar

What are brokered CDs?

Edward Jones offers brokered CDs, which are a bit different from the standard bank-issued CDs that most investors are familiar with. Bank-issued CDs, as the name implies, are issued by individual banks for their customers. Since Edward Jones is a broker and not a bank, it cannot issue its own CDs. Instead, the firm offers a range of CDs issued by other banks and thrifts but sold via Edward Jones.

For the casual investor, it can be hard at first glance to tell the difference between bank-issued and brokered CDs. However, there are some important distinctions:

No early withdrawal penalties: Brokered CDs don’t have early withdrawal penalties. If you need to get out of your CD, you can usually sell it back to another investor through a brokerage firm. This means that brokered CDs carry some additional risk, as the price of these CDs may fluctuate on the open market.
Higher APYs: You can often get higher yields on a brokered CD than with a bank-issued CD. Brokers are able to negotiate higher CD rates since they can guarantee a large pool of buyers to CD issuers. In the era of online banking, however, even brokered CDs do not always garner the absolute highest rates.
Longer-term options: Brokered CDs often have longer-term options than are available with traditional bank-issued CDs, which are generally short-term investments only.

CD rates from Edward Jones

Edward Jones offers a fairly comprehensive range of CD maturities, ranging from three months to 10 years, although the firm doesn’t offer 6-year CDs, 8-year CDs or 9-year CDs. Rates and availability change frequently, oftentimes daily. The longer-duration CDs offered by the firm aren’t traditionally available at banks.

Edward Jones CD Rates
Term	Minimum deposit to earn APY	APY
3 months	$1,000	1.95%
6 months	$1,000	2.00%
9 months	$1,000	2.00%
1 year	$1,000	1.95%
18 months	$1,000	1.90%
2 years	$1,000	2.05%
3 years	$1,000	2.15%
5 years	$1,000	2.20%
7 years	$1,000	2.45%
10 years	$1,000	2.60%

For all maturities, Edward Jones requires a $1,000 opening deposit, which is the same minimum required to earn the stated APY. As these are brokered CDs, there is no early withdrawal penalty. However, investors are subject to current market prices if they need to get out of a CD prematurely. If interest rates have risen since the date of purchase, you’re likely to get less money back than you originally invested in the CD.

One important difference between Edward Jones CDs and standard bank-issued CDs is that interest does not compound with Edward Jones CDs. All interest is paid directly into a money market or insured bank deposit at Edward Jones, unless you request it to be distributed. Either way, you can’t reinvest your distributions into your existing CD.

Unlike some banks, Edward Jones doesn’t offer any type of hybrid or alternative CD, such as a step-up CD or an adjustable-rate CD. There are also no bonus APR CDs available at the current time, just standard rates. Edward Jones also does not offer special rates for jumbo CDs, which traditionally require a $100,000 deposit. However, you can use the firm’s wide range of CD maturities for certain CD strategies, such as building a CD ladder. You can also buy their brokered CDs in an IRA.

Unlike bank-issued CDs, the brokered CDs offered by Edwards Jones do not automatically roll over into new CDs. At maturity, the banks that issued the CDs pay the proceeds to Edward Jones, which then forwards the money to your account. At that point, you can either select a new brokered CD to purchase, or keep the funds in your Edward Jones money market or insured bank deposit account.

How to get CDs from Edward Jones

You’ll need to open a brokerage account at Edward Jones to buy any CDs. The account minimum to open is $0, but as Edward Jones is a full-service brokerage, you’ll need to go into a branch and visit a financial advisor to open an account. There is no facility to open an account online.

You can open your Edward Jones account as rapidly as you can fill out the paperwork and fund the account. As soon as your deposit clears, you are free to buy a CD through your Edward Jones broker. If you change your mind, you can generally withdraw your funds within 4-6 business days after deposit, although this hold period may extend to 11 business days for new clients. Once you buy a CD, you can sell it at any time on the open market. As noted above, the amount you receive may be less than the amount you originally paid.

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on Edward Jones’s secure website

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How do CD rates from Edward Jones compare?

Edward Jones CD rates are well above the national average, but they still fall considerably short when compared with the best available rates nationwide.

Unlike with many firms, Edward Jones doesn’t currently have any special-rate CDs, where certain maturities pay dramatically higher rates. Instead, rates at Edward Jones land along a traditional curve, gradually increasing in yield as maturities lengthen.

For example, as of July 3, 2019, the Edward Jones 2-year CD rate of 2.05% is far below the best available 2-year CD rates. Three-year CD rates top out nationally at 3.00%, but Edward Jones pays 2.15%. The pattern continues throughout the maturity curve, with the top 5-year CD rates nationally hitting 3.00% or more, while the 5-year at Edward Jones pays 2.20%.

As such, all rates at Edward Jones fall in the general area of being well-above national averages but still notably short of the best available rates.

Overall review of CDs from Edward Jones

You won’t be wasting your time investing in CDs from Edward Jones, as you’ll be earning rates far above the national averages. You’ll also benefit from the ability to construct a CD or overall investment strategy with the assistance of a full-service advisor. However, if you’re looking for the absolute best CD rates for your money, there are plenty of online banks that can pay you a higher rate.

CD investors who like a wide range of products may be disappointed at Edward Jones, as popular options such as step-up or no-penalty CDs are not currently available. However, Edward Jones CDs do benefit from offering brokered CDs. This provides a range of flexibility that standard bank-issued CDs cannot offer, as you can liquidate your CD position at any time without paying an early withdrawal penalty.

The bottom line is that yield-hungry investors that enjoy managing their own portfolios may be better suited at any number of online competitors. Those looking to incorporate decent-yielding CDs into their overall investment portfolio with the help of a full-service broker might prefer working with Edward Jones.

John Csiszar |

John Csiszar is a writer at MagnifyMoney. You can email John here

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Reviews

Wealthfront Cash Account Review

Thursday, July 11, 2019

James Ellis

Fintech startups are challenging incumbents in every corner of the financial services industry. Robo-advisor Wealthfront is part of this trend, one of many new investing apps that also offer cash management accounts with high APYs and a mix of features offered by traditional bank accounts.

Cash management accounts combine features like easy access to your money and a decent interest rate, typically found separately in checking accounts and savings accounts, respectively. Wealthfront admits that its Cash Account won’t replace your checking account, instead touting it as a place to stash your emergency savings or achieve other savings goals and enjoy a high 2.57% APY, all with the FDIC protections of a traditional bank account.

Wealthfront Cash Account Pros	Wealthfront Cash Account Cons
Offers a high APY compared to other online savings accounts Charges zero fees, $1 minimum balance requirement Deposits are covered by FDIC insurance up to $1 million Ability transfer funds from Cash Account into Wealthfront's taxable investment account.	Takes 1-3 business days to access your funds You cannot make payments from the account

Let’s take a closer look at how Wealthfront’s Cash Account compares to both traditional bank savings accounts, and similar cash management offerings from other fintech startups, so you can determine whether it’s right for your savings.

Wealthfront Cash Account vs. online savings accounts

Wealthfront markets its Cash Account as a place to deposit savings you plan on spending in the next five years, or as a good place for an emergency fund. For longer-term returns on your money, Wealthfront advocates investing in the stock market using its core robo-advisor functionality. As an additional incentive to do so, Wealthfront allows you to transfer money from your Cash Account into one of the company’s taxable investment accounts. However, there is nothing in Wealthfront‘s terms of service that would discourage you from treating this account like any other online savings account.

Here’s how Wealthfront’s Cash Account stacks up against the highest-earning online savings accounts from our best online savings accounts review:

Financial Institution	APY	Minimum balance
Wealthfront	2.57%	$1 minimum, no monthly fee
Vio Bank	2.52%	$100 minimum, no monthly fee
Customers Bank	2.50%	$25,000 minimum, no monthly fee
Barclays	2.10%	None
Marcus by Goldman Sachs	2.15%	$1 minimum, no monthly fee
Ally	2.10%	None

Judged by APY alone, Wealthfront‘s Cash Account emerges as one of the strongest contenders out there, surpassed only by Vio Bank’s online savings account. Like many online savings accounts, there’s a limit to the liquidity of the money placed in Wealthfront‘s Cash Account.

However, there is no option to withdraw funds or make payments from the account via check or ATM card. Your only way to get money into and out of the account is via ACH transfers to and from a separate checking account that’s held in your name. Transfers take one to three business days, and Wealthfront permits an unlimited number of transfers into and out of your Cash Account (with a daily limit of $250,000).

Wealthfront is not a bank, so it has deals with a network of regional banks that are FDIC insured. After you deposit your money in a Cash Account, your funds are swept into multiple accounts with Wealthfront’s bank partners, giving you FDIC insurance coverage up to $1 million (or $2 million if you have a joint Cash Account). This a big advantage that makes the Cash Account an attractive choice for anyone who wants FDIC coverage beyond the $250,000 limit available with a single online savings account.

Wealthfront Cash Account vs. robo-advisor cash management accounts

Many other robo-advisor firms offer cash management accounts. These accounts take varying forms: Some resemble a personal savings account, others have both savings and checking account features, while some are a type of investment account. Below we compare the Wealthfront Cash Account with cash management offerings from robo-advisors Betterment and SoFi.

Account name	Function	Fees	Yield
Wealthfront Cash Account	FDIC-insured savings account	None	2.57% APY
Betterment Smart Saver	Low-risk bond investments	0.25% annual fee	2.14% APY
SoFi Money	FDIC-insured checking/savings hybrid account	None	An average of 2.25% APY

Wealthfront Cash Account vs. Betterment Smart Saver

Betterment‘s Smart Saver account is a low-risk investment account, not a deposit account, so it plays by a different set of rules than Wealthfront‘s Cash Account. For one, as an investment it does not have FDIC coverage. Betterment‘s website claims you could earn returns of 2.14% (which factors in the standard 0.25% Betterment charges for its services) — notice the word “could.” Money placed in the Smart Saver account is invested in a mix of treasuries and corporate bonds—fairly safe investment vehicles—but it still can’t guarantee the 2.14% return in the same way a deposit account can guarantee an APY.

The Smart Saver account does have some bells and whistles that may make it an appealing choice for your savings. These include:

Smart Sweep: This feature aims to maximize your investing returns by only maintaining as much cash in your linked checking account as you need for day-to-day spending. It works like this: After giving access to your checking account, the app analyses how you spend money. Then it sweeps money above and beyond what you need to pay 35 days of expenses — up to $5,000 per sweep — into the Smart Saver investment account. Likewise, if the app thinks you’ll need more money to cover your expenses, it will sweep money from the Smart Saver investment account into your checking account. You can read more details here.
Tax relief: While you can’t avoid paying taxes entirely, the fact that 80% of the money placed in the Smart Saver investment account will be invested in U.S. Treasury bonds means that some of the earnings from the Smart Saver account won’t be subject to state and local taxes. You can read more details here.

Like Wealthfront’s account, there is an inconvenient waiting period to withdraw money from the account — four to five business days, which is longer than Wealthfront‘s one to three business days. This longer period accounts for the fact that your money is invested in bonds, making it less liquid than funds placed with Wealthfront in FDIC-insured deposit accounts.

Wealthfront Cash Account vs. SoFi Money

SoFi Money is a checking and savings hybrid account, meaning you earn both a high yield — 2.25% APY vs. Wealthfront‘s 2.57% APY — and enjoy instant access to your money with a debit card and paper checks.

Similarly to Wealthfront, SoFi Money spreads any funds you deposit across multiple FDIC-insured bank accounts — six in this case — providing up to $1.5 million in FDIC insurance vs. Wealthfront‘s $1 million.

SoFi Money may lag behind Wealthfront in terms of APY, but it makes up for this by providing the utility of both a savings and checking account. You can use your debit card to make purchases and withdraw money from ATMs (there is a daily limit of $610) just like you would with any other checking account. You can read more details on SoFi Money in our review.

Who should get a Wealthfront Cash Account?

If you’re looking for an FDIC insured account that provides one of the highest APY’s available, than the Wealthfront Cash Account may be right for you. However, you won’t have easy access to your funds like you would with a hybrid checking/savings account, such as SoFi Money. However the simplicity of the account, and the promise of additional features in the future such as a debit card and ATM withdrawals, could make it a compelling option for your savings.

James Ellis |

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

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Reviews

BankPurely Review: Checking, Savings, CD and Money Market Accounts

BankPurely’s checking account option

CheckingPurely account

How BankPurely’s checking account compares

BankPurely’s savings account option

SavingPurely account

How BankPurely’s savings account compares

BankPurely’s CD rates