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Reviews

INOVA Federal Credit Union Review: Checking, Savings, CD, Money Market and IRA Accounts

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1942
Total Assets$0.4B
LEARN MORE INOVA Federal Credit Union’s secure websiteNCUA Insured

INOVA Federal Credit Union was first established in 1942, initially serving employees of Miles Laboratories, a medical research company based in Elkhart, Indiana.

It has since grown to serve more than 34,000 members and employees from more than 500 companies. INOVA Federal Credit Union currently has seven branch locations (six in Indiana and one in California), as well as 5,000 service center locations and 30,000 free in-network ATMS across the United States. Membership requires paying a one-time $10 membership fee, in addition to opening a Membership Savings account before opening any other products.

INOVA offers customers a wide range of personal, business, loan and credit products. In this review, we will go over its checking, savings, certificate, money market and IRA accounts, and see how they stack up against the competition.

INOVA Federal Credit Union’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.01%

Savings

INOVA Federal Credit Union Membership Savings

2.10%

American Express National Bank High Yield Savings Account

on American Express National Bank’s secure website

Member FDIC

1.00%

CD Rates

INOVA Federal Credit Union 1 Year CD

2.75%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

1.90%

CD Rates

INOVA Federal Credit Union 3 Year CD

2.90%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

Member FDIC

3.40%

CD Rates

INOVA Federal Credit Union 5 Year CD

3.10%

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

INOVA Federal Credit Union checking account options

Shield Checking

An account that goes the extra mile on personal security and allows you to earn high dividends to boot.
APYMinimum Balance Amount to Earn APY
3.00%
$15,000
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: $5
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

This account is loaded with perks and is a great option to earn high interest if you’re able to maintain a balance of $15,000. If you’re able to do that with no problem, the $5 monthly maintenance fee is likely negligible.

As an added bonus, this account comes with IDProtect®, an identity theft monitoring service that includes up to $10,000 in identity theft reimbursement coverage in the event that your identity is stolen. There’s also a cell phone protection feature when you pay your monthly bill through this account.

Other perks include unlimited check writing with no fees, a free Visa debit card and online banking services. You’ll also receive a thank-you gift when you open this account. Finally, INOVA Federal Credit Union will buy back your unused checks and debit card from another bank for up to $10.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

Simply Free Checking

A basic, non-interest earning account with minimal requirements.
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: None
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

Although this account doesn’t have the ability to earn interest, it could be a good option for members who want a simple checking account without having to worry about hidden fees or balance requirements. Like the Shield Checking account, this free account also comes with a thank-you gift at opening, the opportunity to sell the credit union your old checks and debit cards for $10, as well as unlimited check writing, online banking services and a free Visa debit card.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

Performance Checking

A interest-earning checking account with minimal requirements.
APYMinimum Balance Amount to Earn APY
0.07%
$0.01
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: $0.01
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

If you can’t meet the high minimum balance requirement to earn the APY on the Shield Checking account, this checking account is the one to get. It doesn’t have a monthly service charge or a minimum balance requirement to earn interest; all you have to do is make sure you have one direct deposit or make one automatic payment each month.

In addition to online banking services and a free Visa debit card, this account also offers unlimited check writing capabilities with no fees, a free thank-you gift at opening and the option to sell the credit union your old checks and debit cards from your previous bank.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

Advantage 50 Checking

A checking account exclusively for credit union members age 50 or older.
APYMinimum Balance Amount to Earn APY
0.07%
$0.01
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: $0.01
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

Although this account is available exclusively to credit union members age 50 and over, its offerings, fees and other details are mostly the same as with the Performance Checking account, down to to the APY.

As with the Performance Checking account, you do have to make sure you have one direct deposit or make one automatic payment per month with this account. The only added perk with this account is that you can get 50 free personalized checks at any given time, while the Performance account has a fee for the checks.

This account also doesn’t have a monthly fee or minimum balance requirement. It comes with online banking services, a free Visa debit card, unlimited check writing with no fee, as well as a thank-you gift at opening and the option to sell the credit union your old checks and debit card from your previous bank.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

Elite Checking

Tiered dividend levels makes this checking account ideal for those able to maintain higher balances.
APYMinimum Balance Amount to Earn APY
0.07%
$0.01-$1,999.99
0.25%
$2,000
  • Minimum opening deposit: $10
  • Monthly account maintenance fee: $7.50 (can be waived with a maintained balance of $2,000 or more)
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

Like the Shield Checking account, this account is also more suited for those who can maintain higher account balances. However, its minimum balance requirement to earn a higher APY is much lower than the other account. This account does have a low monthly fee, but you have the ability to waive it if you maintain a balance of at least $2,000, the same balance you need to be able to earn that higher rate. It also comes with online banking capabilities, a free Visa debit card and free personalized checks, along with a thank you gift at its opening and the chance to sell the credit union your old checks and debit card from your previous bank.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

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How INOVA Federal Credit Union’s checking accounts compare

If you’re able to maintain the minimum balance requirements on INOVA Federal Credit Union’s Shield and Elite checking accounts, you’ll have the opportunity to earn a great APY rate. However, despite the lack of fees and requirements for the credit union’s more basic accounts, when you take a look at the rates, they just don’t compare to some of the best checking account options out there. The bonuses like thank-you gifts and check buyback are a nice touch, but don’t do much in the long term.

INOVA Federal Credit Union savings account options

Membership Savings

Anyone joining the credit union is required to opening this account.
APYMinimum Balance Amount to Earn APY
0.01%
$100
  • Minimum opening deposit: $5, plus a one-time $10 membership fee
  • Minimum balance to earn APY: $100
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: $29

Opening this savings account is a requirement to join INOVA Federal Credit Union and open any of its other products. That’s not really such a bad thing, though, as it only requires a $5 deposit to open and has no monthly fee. It doesn’t really come with any added perks, though, aside from online banking capabilities. And, like all savings accounts, this account is subject to Federal Reserve Regulation D, which limits certain withdrawals up to six per month.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

Special Savings

A simple savings account that allows you to save for a goal with no requirements.
APYMinimum Balance Amount to Earn APY
0.01%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

If you’ve got funds you want to stash aside for, say, a new car or vacation, this account is a great way to do it while earning interest. This account comes with no monthly fees or minimum balance requirements and has online banking capabilities. As with other savings accounts, it’s subject to Regulation D, which limits certain withdrawals up to six per month.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

Christmas Club

A savings account specifically for holiday-related expenses.
APYMinimum Balance Amount to Earn APY
0.01%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

This account is similar to the Special Savings account; the key difference is that it’s specifically intended for holiday-related expenses. This interest-earning account doesn’t have any monthly fees or minimum balance or deposit requirements. You can make deposits at any time up until Oct. 31 of a given year before funds are transferred to your Member Savings account.

Keep in mind that this account does have an early withdrawal fee of $10 if you dip into it before Nov. 1. And as with other savings accounts, this account is subject to Federal Reserve Regulation D, limiting certain withdrawals up to six per month.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

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How INOVA Federal Credit Union’s savings accounts compare

None of INOVA Federal Credit Union’s savings accounts offer spectacular rates, so we wouldn’t recommend joining the credit union for a savings account alone — though it is a requirement to open any other product. While we like the idea behind the Special Savings and Christmas Club accounts, they offer the same APY as the required Members Savings account, so it seems a little redundant to open both. If you’re simply in search of a savings account with great rates, we suggest looking elsewhere, as there are much better savings account options to be had out there.

INOVA Federal Credit Union certificate rates

Certificates

These offerings give you the opportunity to earn higher rates than with a savings account.
TermAPYMinimum Balance Requirement to Earn APY
30 day0.35%
$200
60 day0.35%
$200
91 day0.35%
$200
5 month0.75%
$200
6 month0.75%
$200
7 month2.15%
$200
14 month3.00%
$200
14 month3.00%
($50,000 or more of new money)
18 month1.50%
$200
30 month2.30%
$200
30 month3.25%
($50,000 or more of new money)
1 year1.00%
$200
2 year1.85%
$200
3 year1.90%
$200
4 year1.95%
$200
5 year3.40%
$200
6 year3.45%
$200
  • Minimum opening deposit: $200
  • Minimum balance amount to earn APY: Varies
  • Early withdrawal penalty: Terms of less than 90 days is 30 days’ dividends; terms of 90 days to one year is 90 days’ dividends; terms of longer than 1 year is 180 days’ dividends

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

Step Up Certificates

These certificates offer you a one-time chance to increase your rate.
TermAPYMinimum Balance Requirement to Earn APY
91 day0.35%
$200
6 month0.75%
$200
14 month3.00%
$200
18 month1.50%
$200
30 month2.30%
$200
1 year1.00%
$200
2 year1.85%
$200
3 year1.90%
$200
4 year1.95%
$200
5 year3.40%
$200
6 year3.45%
$200
  • Minimum opening deposit: $200
  • Minimum balance amount to earn APY: $200
  • Early withdrawal penalty: Early withdrawal penalty: Terms of less than 90 days is 30 days’ dividends; terms of 90 days to one year is 90 days’ dividends; terms of longer than 1 year is 180 days’ dividends

NOVA Federal Credit Union offers share certificates with fixed rates that are higher than its regular savings account products, and those rates get higher the longer the term you select (available terms range from 30 days to 6 years). These certificates require a minimum deposit of $200 to open, lower than many other offerings out there.

The credit union also offers flexible Step Up certificates that allow you to increase your rate once during the term if you see rates go up on its regular products. Lastly, there is a chance to earn a higher rate on the 14-month and 30-month certificates if you deposit at least $50,000 in “new money” that is not currently on deposit in any other INOVA Federal Credit Union accounts.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

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How INOVA Federal Credit Union’s certificate rates compare

When you compare INOVA Federal Credit Union’s certificate rates to the best CD rates out there, you’ll see that, for the most part, these rates don’t stack up. Still, if you prefer a much smaller minimum deposit than many other options out there, then these might be a good fit for you.

Generally speaking, though, we would suggest holding out for a better rate when you have more funds to deposit, or simply opening a CD with the same term length and a higher rate from an online-only bank.

INOVA Federal Credit Union’s money market account options

Gold Money Market

An account offering a decent rate and minimal requirements, other than a high minimum deposit.
APYMinimum Balance Amount to Earn APY
1.25%
$50,000
  • Minimum opening deposit: $50,000
  • Minimum balance to earn APY: $50,000
  • Monthly account maintenance fee: None
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

This account does offer a competitive rate in exchange for a high minimum deposit requirement of $50,000. On the plus side, it doesn’t come with a monthly service charge and does have online banking capabilities. Since this is a savings account, you are allowed to make up to six certain electronic transactions per month, as per Federal Reserve Regulation D.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

Platinum Money Market

The bank’s other money market account option, offering a higher rate and an even higher minimum balance requirement.
APY`Minimum Balance Amount to Earn APY
1.50%
$100,000
  • Minimum opening deposit: $100,000
  • Minimum balance to earn APY: $100,000
  • Monthly account maintenance fee: None
  • ATM fee: None from INOVA FCU ATM, Alliance One or CO-OP Network ATM; $2 for using any other ATMs.
  • ATM fee refund: None
  • Overdraft fee: $29

This is INOVA Federal Credit Union’s other money market account option, which also offers a high APY rate with a high minimum deposit and balance requirement. As with the Gold Money Market account, this account has no monthly fee, comes with online banking services, and limits you up to six certain transactions per month, as per Federal Reserve Regulation D.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

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How INOVA Federal Credit Union’s money market accounts compare

INOVA Federal Credit Union’s money market account rates are on par with some of the best money market accounts out there. The main difference is that most others don’t require such a high minimum opening deposit and minimum balance requirement, which can be a limiting factor for many people. If you don’t have that much cash saved up to put aside, you can easily find another option from another financial institution with just as good a rate (if not better) and more flexible requirements.

INOVA Federal Credit Union IRA Certificate options

IRA Certificates

These offer the same terms and conditions as the credit union’s regular certificates, it’s just the rates that vary.
TermAPYMinimum Balance Requirement to Earn APY
91 day0.60%
$200
6 month1.00%
$200
7 month2.40%
$200
14 month3.25%
$200
14 month3.25%
$50,000 in new money
18 month1.75%
$200
30 month2.55%
$200
30 month3.50%
$50,000 in new money
1 year1.25%
$200
2 year2.10%
$200
3 year2.15%
$200
4 year2.20%
$200
5 year3.65%
$200
6 year3.70%
$200
  • Minimum opening deposit: $200
  • Minimum balance amount to earn APY: Varies
  • Early withdrawal penalty: Terms of less than 90 days is 30 days’ dividends; terms of 90 days to year is 90 days’ dividends; terms of longer than 1 year is 180 days’ dividends

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

Step Up IRA CDs

As with the regular Step Up certificates, these allow you to increase your rate once during the term.
TermAPYMinimum Balance Requirement to Earn APY
91 day0.60%
$200
6 month1.00%
$200
18 month1.75%
$200
30 month2.55%
$200
1 year1.25%
$200
2 year2.10%
$200
3 year2.15%
$200
4 year2.20%
$200
5 year3.65%
$200
6 year3.70%
$200
  • Minimum opening deposit: $200
  • Minimum balance amount to earn APY: $200
  • Early withdrawal penalty: Terms of less than 90 days is 30 days’ dividends; terms of 90 days to year is 90 days’ dividends; terms of longer than 1 year is 180 days’ dividends

Aside from the varying rates, INOVA Federal Credit Union’s IRA certificates don’t differ much from its regular certificate products. As with the regular certificates, these offer fixed rates and terms that range from 91 days to six years.

These certificates require a minimum deposit of $200 to open, which is lower than many other offerings out there. There is also the option to open flexible Step Up IRA certificates, which allow you increase your rate one time during the term if you see the rates go up on the regular certificates.

Lastly, you have the opportunity to earn a higher rate on the 14-month and 30-month IRA certificates if you deposit at least $50,000 in “new money,” or funds that are not currently on deposit in any other INOVA Federal Credit Union accounts.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

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How INOVA Federal Credit Union’s IRA CD rates compare

There’s no getting around it — compared to the best IRA CD rates out there, INOVA Federal Credit Union’s rates are pretty low. The wide range of term lengths and the minimum required deposit might appeal to some people, but, again, we say hold off until you have a bit more cash to deposit so you can take advantage of being able to earn a much higher rate.

INOVA Federal Credit Union IRA options

IRA Savings

This IRA offers a very low rate compared to the credit union’s other offerings.
APYMinimum Balance Amount to Earn APY
0.01%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

IRA Money Market Savings

A slightly better rate than the traditional IRA savings account, but still not the best out there.
APYMinimum Balance Amount to Earn APY
0.05%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

IRA Financial Management Account

This account allows you to earn higher dividends with higher balances.
APYMinimum Balance Amount
0.01%
$0.00 (up to $10,000)
0.10%
$10,000.01 to $25,000
0.20%
$25,000.01 to $50,000
0.35%
$50,000 to $100,000
0.40%
$100,000.01
  • Minimum opening deposit: $2,000
  • Minimum balance to earn APY: $0.00
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

INOVA Federal Credit Union’s regular IRA savings accounts currently offer the same rates as its regular savings account, with no opening, monthly or yearly fees to boot. Its IRA Money Market Savings and IRA Financial Management Accounts, meanwhile, offer higher rates, especially if you make a larger deposit into the latter account.

While there is no minimum deposit or balance requirement on any of these accounts, you can only contribute up to $5,500 per year, with an additional $1,000 “catch up” deposit allowed for account holders ages 50 and over. Some differences between the traditional and Roth IRAs are:
The traditional has no income limits to open, while the Roth does; and, the earnings on the Roth IRA are 100% tax-free at withdrawal, while the traditional account’s earnings are not. Both accounts allow withdrawals to begin at age 59½, although the traditional IRA requires you to begin making withdrawals by age 70½, while the Roth has no limits on making contributions as long as you’re still earning income.

Early withdrawals on all accounts are subject to a penalty and possible taxes, although certain instances such as healthcare expenses and buying a first home qualify as exceptions. Penalty amounts vary depending on how much you have in the account and how long it’s been open. All accounts are subject to Federal Reserve Regulation D, which limits certain transfers and transactions up to six per month.

How to get INOVA Federal Credit Union’s banking products

If you are over 18 years of age and meet one of the eligibility requirements, you can easily apply for membership at INOVA Federal Credit Union and open any of the above mentioned products online, once you agree to also open a Membership Savings account. You’ll need to provide personal information such as your name, address, Social Security number, government-issued ID number (e.g., drivers license or passport), as well as a debit or credit card or check from another financial institution to fund the account. You can also open an account at one of the credit union’s seven branch locations, or by calling 800-826-5465.

LEARN MORE Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

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How INOVA Federal Credit Union’s IRA rates compare

Of INOVA’s IRA three account options, it’s the IRA Financial Management Account that shines, even with its higher balance requirements to earn higher dividends. As with the credit union’s IRA CD rates, the wide range of term lengths and the minimum required deposit might appeal to some people.

Overall review of INOVA Federal Credit Union banking products

Most of INOVA Federal Credit Union’s personal banking products offer rates far below similar products at other institutions. The more flexible minimum balance and deposit requirements on the certificates might appeal to some people, but we would still advise you to do your research and hold out for better offerings. Meanwhile, the rates on its money market accounts are definitely competitive, but the high deposit and balance requirements could be a limiting factor to many people.

All in all, we would say take the time to comparison shop to make sure you get the best rate out there while still reaping the benefits of minimal fees and flexible requirements.

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 |

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

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Reviews

The Columbia Bank Review: Checking, Savings, CD, Money Market and IRA Accounts

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1988
Total Assets$2.5B
LEARN MORE The Columbia Bank’s secure websiteMember FDIC

The Columbia Bank, headquartered in historic Ellicott City, Md., is part of the Fulton Financial Corporation, giving customers access to a network of 250 branch locations and almost 300 ATMs throughout Pennsylvania, New Jersey, Maryland, Delaware, and Virginia.

To help you find the best personal banking services for your needs, we researched all of The Columbia Bank’s account offerings and weighed them against the best accounts on the market. While The Columbia Bank’s rates ended up falling short when compared to the competition, they do offer some fee-free accounts that are worth considering if you live within this bank’s geographical footprint.

The Columbia Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.21%

Savings

The Columbia Bank Money Market Account

2.10%

American Express National Bank High Yield Savings Account

on American Express National Bank’s secure website

Member FDIC

0.20%

CD Rates

The Columbia Bank 12 Month CD

2.75%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

1.55%

CD Rates

The Columbia Bank 3 Year CD

2.90%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

Member FDIC

1.70%

CD Rates

The Columbia Bank 5 Year Promotional CD w/ Relationship

3.10%

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

The Columbia Bank’s checking account options

Simply Checking

This basic checking account doesn’t bear interest and has no monthly fee.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $0
  • ATM fee: Fulton Financial Corporation ATMs are free (also includes ATMs at FNB Bank, Fulton Bank, Fulton Bank of New Jersey, Lafayette Ambassador Bank and Swineford National Bank). Transactions at ATMs outside of the Fulton Financial Corporation network will be charged a fee of $2.50 each.
  • ATM fee refund: None
  • Overdraft fee: $39

While The Columbia Bank’s Simply Checking account does not earn interest, it also doesn’t charge a monthly maintenance fee, so you’ll never have to worry about maintaining a minimum balance amount. You’ll also get access to the full range of mobile and online banking services free of charge.

This account is a good option for anyone who wants to avoid monthly fees and isn’t concerned about earning interest on their checking balance. The only major downside are the ATM fees for out-of-network ATM use, which can add up and aren’t refunded.

LEARN MORE Secured

on The Columbia Bank’s secure website

Member FDIC

Interest Checking

You’ll earn interest with this account but it charges a waivable monthly fee.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $12, can be waived
  • ATM fee: Fulton Financial Corporation ATMs are free (also includes ATMs at FNB Bank, Fulton Bank, Fulton Bank of New Jersey, Lafayette Ambassador Bank and Swineford National Bank). Transactions at ATMs outside of the Fulton Financial Corporation network will be charged a fee of $2.50 each.
  • ATM fee refund: None
  • Overdraft fee: $39

The Interest Checking account is The Columbia Bank’s standard interest-earning checking account. Rates are not publicly available, but you can call the bank for the most current rates. You’ll need to maintain a sizeable minimum daily balance in order to earn interest.

This account’s monthly fee isn’t small, but as long as you maintain the $1,000 minimum daily balance (which is also the amount required to earn interest), the monthly fee can be avoided; it can also be waived with a monthly direct deposit. However, it’s best to opt for free checking accounts so you don’t have to worry about your balance falling below this requirement. Apart from earning interest, this checking account doesn’t come with any other perks that you can’t get with the bank’s free checking option, so it may not be the best option for most customers.

LEARN MORE Secured

on The Columbia Bank’s secure website

Member FDIC

Relationship Banking

A premium checking account with a monthly fee for customers with a higher balance.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $10, can be waived
  • ATM fee: This account comes with unlimited free ATM transactions at both in-network and out-of-network ATMs. However, be aware that other institutions may impose a charge at their ATMs.
  • ATM fee refund: None
  • Overdraft fee: $39

This checking account earns tiered interest and is designed for customers who maintain high balances; you can call the bank for the most recent rates. If you’re unable to maintain a minimum daily balance of at least $2,000, you’ll be charged a monthly service fee. You’ll also need to maintain a minimum daily balance of $1,000 in order to earn interest. Because of these requirements, the Relationship Banking account isn’t our favorite checking option at this bank for most customers.

Still, it is worth noting that you get free unlimited ATM transactions with this account, which can save you a good amount of money over time. If you’re able to maintain a minimum of $15,000 in total deposits or $20,000 in deposits and consumer loan balances combined, you’ll also get occasional bonus rates on the bank’s CDs, one free order of specialty checks per year, and a discount on safe deposit boxes.

LEARN MORE Secured

on The Columbia Bank’s secure website

Member FDIC

Student Checking

A non-interest-bearing checking account for students ages 16 to 22.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $0
  • ATM fee: Fulton Financial Corporation ATMs are free (also includes ATMs at FNB Bank, Fulton Bank, Fulton Bank of New Jersey, Lafayette Ambassador Bank and Swineford National Bank). and The Columbia Bank. Student Checking account holders get 5 no-fee transactions per statement cycle at ATMs outside the Fulton Financial Corporation network. Each additional transaction at out-of-network ATMs will be charged a $2.50 fee.
  • ATM fee refund: None
  • Overdraft fee: $39

This checking account is available to students ages 16 to 22 with a valid student ID. It comes with no minimum account balance requirement and no monthly maintenance fee. In addition, you’ll also get your first five ATM transactions at out-of-network ATMs free each month. Although this account doesn’t come with unlimited free ATM transactions, this is still a relatively generous policy.

Along with minimal fees, you’ll also get all the online and mobile banking features of a standard checking account free of charge, including online statements, online bill pay and mobile check deposits. This account does not earn interest.

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Prime Life Interest Checking

A fee-free, interest-bearing checking account for folks 50 years of age and older.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $0
  • ATM fee: This account comes with unlimited free ATM transactions at both in-network and out-of-network ATMs. Be aware that other institutions may impose a charge at their ATMs.
  • ATM fee refund: None
  • Overdraft fee: $39

This account is designed for customers age 50 and older. If you qualify for this account, it is one of the bank’s best checking options — it earns interest but doesn’t come with a monthly maintenance fee. Interest rates for this account are tiered, meaning rates differ depending on the balance you maintain; to qualify to earn interest, you must maintain a minimum balance of $1,000. You can call the bank for the most recent interest rates.

In addition to earning interest, you’ll also get free online and mobile banking services and a discount on safe deposit boxes. Finally, this account comes with unlimited free ATM transactions whether at in-network or out-of-network ATMs, which is a feature we like to look for in checking accounts.

How to get The Columbia Bank’s checking accounts

You can apply for any of this bank’s checking accounts online by providing your social security number, a government-issued ID, and your opening deposit. Your account can be funded online with a checking account, savings account, debit card or credit card.

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How The Columbia Bank’s checking accounts compare

Overall, The Columbia Bank has a few checking options worth considering. While a few of their accounts charge monthly fees that we don’t think are worth it for most customers, their Student Checking, Simply Checking and Prime Life Interest Checking are all free.

The Prime Life Interest Checking is The Columbia Bank’s most competitive offer because it earns interest, charges no fees, and offers unlimited free ATMs; the rest of the bank’s checking accounts are less competitive. The best online checking accounts are not only fee-free, but they also offer unlimited free ATMs, and many of them bear interest with no minimum balance amount required.

The Columbia Bank’s savings account options

Statement Savings

This interest-bearing savings account comes with a monthly fee that can be waived.
  • Minimum opening deposit: $25
  • Minimum balance to earn APY: $100
  • Monthly account maintenance fee: $6, can be waived
  • ATM fee: Fulton Financial Corporation ATMs are free (includes ATMs at FNB Bank, Fulton Bank, Fulton Bank of New Jersey, Lafayette Ambassador Bank and Swineford National Bank). Transactions at ATMs outside of the Fulton Financial Corporation network will be charged a fee of $2.50 each.
  • ATM fee refund: None
  • Overdraft fee: $39

The Columbia Bank’s standard savings account is open to all customers; it bears interest on balances of $100 or more, though you’ll have to call the bank for the most recent rates. This account does come with a monthly maintenance fee — but while it can be waived by maintaining a minimum daily balance of at least $100, we always prefer savings accounts with no monthly fees. The monthly fee is also waived if the account holder is less than 19 years old.

Remember that Federal Reserve Regulation D limits all savings accounts up to 6 certain electronic transfers or withdrawals per month.

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Student Statement Savings

A fee-free savings account for students up to 22 years of age.
  • Minimum opening deposit: $25
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $0
  • ATM fee: Fulton Financial Corporation ATMs are free (includes ATMs at FNB Bank, Fulton Bank, Fulton Bank of New Jersey, Lafayette Ambassador Bank and Swineford National Bank). Student Checking account holders get 5 no-fee transactions per statement cycle at Non-Fulton Financial Corporation ATMs. Transactions at ATMs outside of the Fulton Financial Corporation network will be charged a fee of $2.50 each.
  • ATM fee refund: None
  • Overdraft fee: $39

This interest-bearing savings account for students age 22 or younger has no monthly account maintenance fee, so you don’t have to worry about keeping a minimum balance. Interest rates vary, but you can call the bank for the latest rates. You’ll get access to all of The Columbia Bank’s mobile and online banking services with this account as well, including mobile check deposit, online statements, and 24/7 access to your accounts.

With a student account, you’ll also get your first 5 ATM transactions at non-Fulton Financial Corporation ATMs free each month. After that, a small fee will be charged by The Columbia Bank on out-of-network ATM transactions.

According to Federal Reserve Regulation D, because this is a savings account, you’re only allowed up to 6 certain electronic transfers or withdrawals each month.

How to get The Columbia Bank’s savings account

Applications are available online for both of The Columbia Bank’s two savings accounts. You’ll need to provide your social security number, a government-issued form of identification, and an opening deposit for your account. Your deposit can be funded online using a checking or savings account or a debit or credit card.

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How The Columbia Bank’s savings accounts compare

All of The Columbia Bank’s savings accounts earn interest, which is a plus. Keep in mind that the best online savings accounts tend to offer significantly higher APYs than traditional brick-and-mortar banks. You should call The Columbia Bank to obtain their current savings account rates and compare them to the competition.

The biggest advantage of the best online savings accounts is that many of them don’t charge any monthly fees, don’t have account minimums, and some even offer unlimited free ATMs. In comparison, The Columbia Bank’s Statement Savings account does come with a monthly fee and only earns interest if your balance stays above the minimum requirement, and they doesn’t waive ATM fees at out-of-network ATMs. If you qualify for it, the Student Statement Savings account offers a more generous ATM fee policy, but it does still charge a monthly fee.

The Columbia Bank’s CD rates

Certificates of Deposit

Certificates come in a variety of options, from variable rate CDs to no penalty CDs.
TermAPY
  3 Month0.05%
  6 Month0.05%
  9 Month No Penalty0.05%
  9 Month No Penalty Promo Relationship Banking  0.30%
12 Month0.20%
  12 Month Variable Rate0.05%
  15 Month0.20%
  18 Month Promo Relationship Banking1.45%
  2 Year0.30%
  30 Month0.76%
  3 Year1.55%
  4 Year1.35%
  5 Year Promo Relationship Banking1.70%
  72 Month1.01%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: For terms of up to 6 months, the early withdrawal penalty is equal to 7 days of interest or all interest accrued, whichever is greater. For terms of 6 months to 36 months, the early withdrawal penalty is 182 days of interest. For terms of 36 months or more, the penalty is 12 months of interest.

The Columbia Bank builds a lot of flexibility into their CD offerings. Not only can you choose from terms as short as 3 months and as long as 72 months, but they also offer no penalty certificates, variable rate certificates, and promotional CD rates.

Their 9 Month No Penalty CD allows you to withdraw your money at any time without incurring a penalty as long as you wait at least 7 days after opening. The 12 Month Variable Rate CD comes with an APY that can change at any time after account opening, while the other CD options maintain the same APY throughout the full term of the CD. Finally, the 9 Month No Penalty Promo Relationship Banking CD, 18 Month Promo Relationship Banking CD, and 5 Year Promo Relationship Banking CD offers higher promotional rates for Relationship Banking account holders who maintain a minimum at least $15,000 in total deposits or $20,000 in deposits and consumer loan balances combined.

The bank also offers promotional CD rates at times on certain certificates that offer higher rates than listed above. You can call the bank or visit their website for current promotions.

How to get The Columbia Bank’s Certificates

You can open a Certificate of Deposit by visiting any of The Columbia Bank’s branch locations and applying in person.

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How The Columbia Bank’s Certificate rates compare

You’ll find a wide range of CD options at The Columbia Bank. Their No Penalty CDs and Promo Relationship Banking CDs are unique offerings worth looking into, and you should also consider any promotional CD rates that are currently on offer. Their minimum opening deposit and minimum balance to earn APY requirements are reasonable and on par with other banks.

When compared to best CD rates, though, most of The Columbia Bank’s CDs lag behind. Some of their CDs, such as the 3 Month CD, 6 Month CD, and 9 Month No Penalty CD, have APYs so low you likely won’t even notice as interest accumulates. That being said, if you’re a Relationship Banking customer and meet the account requirements to earn Promo Relationship Banking rates, they are much higher. Keep in mind that several banks offering the best CD rates outearn even The Columbia Bank’s promotional rates, and with minimum balance requirements that are easier to meet.

The Columbia Bank’s money market account options

Money Market Account

Earn interest while maintaining easy access to your funds.
APYMinimum Balance to Earn APY
0.21%
$1,000
  • Minimum opening deposit: $1,000
  • Minimum balance to earn APY: $1,000
  • Monthly account maintenance fee: $10, can be waived
  • ATM fee: Fulton Financial Corporation ATMs are free (includes ATMs at FNB Bank, Fulton Bank, Fulton Bank of New Jersey, Lafayette Ambassador Bank and Swineford National Bank). Transactions at ATMs outside of the Fulton Financial Corporation network will be charged a fee of $2.50 each.
  • ATM fee refund: None
  • Overdraft fee: $39

This money market account charges a monthly maintenance fee, although it can be waived as long as you maintain a minimum daily balance of $1,000 or more. You’ll need to maintain this balance in order to earn interest anyway.

This account gives you the opportunity to earn a small amount of interest and build your savings while still maintaining easy access to your money. But while you can access your funds immediately, money market and savings accounts are still limited to 6 certain electronic withdrawals each month according to Federal Reserve Regulation D.

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Platinum Money Market

Earn tiered interest rates with a higher minimum daily balance.
APYMinimum Balance to Earn APY
0.23%
$10,000 - $24,999
0.26%
$24,999.01 - $49,999
0.27%
$49,999.01 - $74,999
0.28%
$74,999.01 - $99,999
0.28%
$99,999.01 - $249,999
0.28%
$249,999.01 - $999,999
0.28%
$999,999.01 - $1,999,999
0.28%
$1,999,999.01 or more
  • Minimum opening deposit: $10,000
  • Minimum balance to earn APY: $10,000
  • Monthly account maintenance fee: $25, can be waived
  • ATM fee: Fulton Financial Corporation ATMs are free (includes ATMs at FNB Bank, Fulton Bank, Fulton Bank of New Jersey, Lafayette Ambassador Bank and Swineford National Bank). Transactions at ATMs outside of the Fulton Financial Corporation network will be charged a fee of $2.50 each.
  • ATM fee refund: None
  • Overdraft fee: $39

If you’re able to commit to maintaining a large balance in your account, the Platinum Money Market account will help you earn slightly higher rates than those offered by their regular money market account. You will need to maintain a minimum daily balance of at least $10,000, or else you’ll be charged a pretty steep monthly maintenance fee. Balances below that amount won’t earn interest either.

This money market account gives you easy access to your funds, although you won’t get any ATM fee waivers if you’re withdrawing money from out-of-network ATMs. Keep in mind that you’re limited to 6 certain electronic transfers or withdrawals per month according to Federal Reserve Regulation D.

How to get The Columbia Bank’s Money Market accounts

You can open The Columbia Bank’s Money Market accounts online by filling out their online application form. It will require that you submit your social security number and a government-issued form of identification, and you can fund the account using funds from a checking or savings account or a debit or credit card.

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How The Columbia Bank’s money market accounts compare

The monthly maintenance fees charged by The Columbia Bank’s money market accounts are rather high, and although they can be waived, it’s often best to go with accounts that have low or no fees.

In terms of rates, even the Platinum Money Market account earns an APY that’s far lower than the best money market rates. Some of the best money market rates are roughly ten times higher than those offered by The Columbia Bank, and there are even a few online banks that offer higher rates with no minimum balance requirement and no monthly fees.

The Columbia Bank’s IRA account options

IRA Certificate rates

The IRA CDs earn interest and offer promotional rates for Relationship Banking customers.
TermAPY
3 Month0.05%
6 Month0.05%
12 Month0.20%
15 Month0.20%
18 Month Promo Relationship Banking1.45%
2 Year0.30%
30 Month0.76%
3 Year1.55%
4 Year1.35%
5 Year Promo Relationship Banking1.70%
72 Month1.01%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: For terms of up to 6 months, the early withdrawal penalty is equal to 7 days of interest or all interest accrued, whichever is greater. For terms of 6 months to 36 months, the early withdrawal penalty is 182 days of interest. For terms of 36 months or more, the penalty is 12 months of interest.

The Columbia Bank’s IRA CDs all have reasonable minimum opening deposit and minimum balance amount to earn APY requirements. There are no penalty free CDs available as IRA accounts, but you can access promotional APYs if you qualify for their 18 Month Promo Relationship Banking IRA CD or their 5 Year Promo Relationship Banking IRA CD. You’ll need to be a Relationship Banking customer in order to access these rates, and you’ll also have to have a minimum balance of at least $15,000 across all deposits or $20,000 across deposits and consumer loans.

How to get The Columbia Bank’s IRA CDs

You can open an IRA CD with The Columbia Bank by visiting them in person at one of their branch locations.

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How The Columbia Bank’s IRA CD rates compare

When compared to the best IRA CD rates, most of The Columbia Bank’s IRA CD rates are notably lower. The bank’s most competitive IRA CDs are those that offer promotional rates for Relationship Banking customers, but those are only available in 18-month and 5-year terms, and you have to keep a fairly high balance in your The Columbia Bank accounts in order to qualify for these rates.

IRA money market account

Earn interest with a low minimum deposit.
APYMinimum Balance to Earn APY
0.08%
$10
  • Minimum opening deposit: $10
  • Minimum balance to earn APY: $10
  • Monthly account maintenance fee: $0
  • ATM fee: ATM cards are not available to IRA money market account holders.
  • ATM fee refund: None
  • Overdraft fee: $39

If you’re looking for a tax-advantaged retirement savings account, The Columbia Bank offers free IRA money market accounts that give you the opportunity to take advantage of changes in interest rates. Interest is compounded daily on these accounts.

Keep in mind that withdrawal options from your IRA money market account might be limited, given that it is a retirement account. Typically, any money withdrawn before you hit age 59 ½ is considered premature, and you may have to pay an early withdrawal penalty on those amounts.

How to get The Columbia Bank’s IRA accounts

Head into your local The Columbia Bank branch to talk about getting an IRA account. It’s recommended that you consult a tax professional before opening an IRA.

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Overall review of The Columbia Bank’s banking products

The Columbia Bank offers a handful of personal banking products that come with low fees, and a few of their checking accounts charge no monthly fees at all. That being said, many of the best online banks offer checking and savings accounts that are completely fee-free, regardless of the balance you maintain. You’ll also find that The Columbia Bank’s rates on all of their accounts are relatively low when compared to the competition.

This bank’s best products are those designed specifically for students and seniors, including Prime Life Interest Checking, and their Student Checking and Student Statement Savings accounts. They also offer CDs and money market accounts with premium rates for certain customers, but those rates are less than impressive when you consider the minimum account balances required to earn them.

On the whole, this bank might be worth banking with if you’re looking to build a relationship with them or prefer brick-and-mortar banks and live near one of their branches, but they’re not the best option if you’re seeking high interest rates and want to avoid fees.

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.

Elizabeth Aldrich |

Elizabeth Aldrich is a writer at MagnifyMoney. You can email Elizabeth here

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Reviews, Small Business

OnDeck Small Business Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

OnDeck business loans
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OnDeck is an online lender that has been providing funding to small businesses since 2007 but has recently rolled out partnerships with brick-and-mortar banks, combining OnDeck’s technology with the banks’ deep balance sheets and credit expertise. OnDeck offers term loans and lines of credit to business owners looking to grow their operations. Approval for financing is based on overall business performance, not just credit score. OnDeck has issued more than $8 billion in loans to 80,000 small businesses in more than 700 industries throughout the U.S. OnDeck is based in New York and has been a public company since 2014.

OnDeck small business loan details

Term loans: OnDeck offers up to $500,000 in both short-term and long-term loans.

Short-term loans span three to 12 months and could come with a simple interest rate as low as 9%. OnDeck calculates simple interest as the total amount of interest you would pay as a percentage of your total loan amount. The weighted average rate as of June 30, 2018 was 25.3% simple interest.

Long-term loans have 15- to 36-month terms and could come with an annual interest rate as low as 9.99%. OnDeck determines AIR as the yearly interest percentage you would pay based on your average loan balance, minus fees. To pay back your loan, you would make fixed daily or weekly payments that OnDeck would automatically deduct from your business bank account. The weighted average AIR as of June 30, 2018 was 48.7%.

No matter if you choose a short-term or long-term loan, it’s a good idea to consider the annual percentage rate as well since APR includes the cost of interest plus fees. In 2017, On Deck’s term loan APRs ranged as high as 99.7% with an average APR of 45.2%, according to the company’s annual report.

 Loan amountLoan termAPR rangeFeesTime to funding
Short-term loan$5,000 up to $500,0003 to 12 monthsVaries, with an average rate of 45.2%Origination fee of 2.50% - 4.00%, lower for subsequent loansAs soon as 24 hours
Long-term loan$5,000 up to $500,00015 to 36 monthsVaries, with an average rate of 45.2%Origination fee of 2.50% - 4.00%, lower for subsequent loansAs soon as 24 hours

Lines of credit: Businesses could qualify for a line of credit up to $100,000 with an APR as low as 13.99% though, like term loans, your APR could be higher. The weighted average APR was 32.6% as of June 30, 2018. The credit line amount and your interest rate would be based on your business and personal credit, as well as an assessment of your business as a whole. OnDeck would automatically deduct fixed weekly payments from your business bank account as you pay back the debt.

 Loan amountTermsAPR rangeFeesTime to funding
Line of credit$6,000 to $100,000Fixed weekly paymentsAs low as 13.99% with an average APR of 32.3% $20 monthly maintenance fee, waived if you withdraw $5,000 or more in the first 5 days.As soon as 24 hours

What businesses are eligible for an OnDeck loan?

OnDeck’s minimum qualifications are not as strict as banks’ requirements. OnDeck asks for at least one year in business and at least $100,000 in annual revenue. Business owners must also have a personal credit score of 500 or higher.

In 2017, borrowers had a median annual revenue of about $631,000 with 90% of customers having between $162,106 and $3.8 million in annual revenue.

There are several industries OnDeck does not work with, including the following:

  • Adult entertainment/materials
  • Drug dispensaries
  • Firearms vendors
  • Government and nonprofits
  • Public administration
  • Horoscope or fortune telling
  • Lotteries, casinos, raffles, gaming and gambling
  • Money services businesses
  • Religious or civic organizations
  • Rooming and boarding houses

OnDeck has the ability to change the list of restricted businesses at any time. Additionally, all businesses are individually subject to OnDeck’s approval, regardless of industry.

OnDeck

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The pros and cons of an OnDeck small business loan

Pros

  • Credit score isn’t the deciding factor. OnDeck considers your business’s cash flow in addition to your credit score when reviewing your loan application. You wouldn’t be automatically turned down if you have poor credit.
  • Simple application. You may be able to complete OnDeck’s online application in minutes and you could be approved for financing in as little as 24 hours. OnDeck loan specialists are also available if you need assistance.
  • Potential to improve your business credit score. OnDeck reports your term loan payment information to three business credit bureaus, Experian, Equifax and Paynet, each month and reports line of credit information to Experian. Making payments on time and maintaining good credit history with OnDeck would improve your overall business credit profile.

Cons

  • Lowest interest rates are uncommon. The lowest advertised interest rates are usually reserved for borrowers with the strongest creditworthiness and cash flow and those that have previous payment history with OnDeck. The average rate for term loans is 25.3% simple interest and 48.7% AIR.
  • A personal guarantee is required. OnDeck places a general lien on the assets of your business and requires a personal guarantee to secure a loan. Signing a personal guarantee puts you on the hook to pay the debt even if your business defaults.

Application process and requirements

You can apply for an OnDeck loan online or by phone and the process could take a little as 10 minutes. There’s no obligation to accept a loan offer, which is valid for 30 days after you’re approved.

In addition to basic information about your business, OnDeck may ask you to submit the following documents with your application:

  • Business tax ID
  • Bank statements from the past 1-3 months
  • Your Social Security number
  • Your driver’s license and state of issue

If you’re approved, you could receive funding in your business bank account as soon as the next day. OnDeck disperses loans through the Automated Clearing House network or a wire transfer. Customers with a line of credit would receive a debit card connected to the business bank account that OnDeck has on file.

Small business owners could also take advantage of OnDeck’s technology through their existing banks. Chase’s Business Quick Capital allows certain clients to apply for a business loan online and receive funding as soon as the same day. PNC Bank is set to roll out a similar program in 2019 for customers to apply online for loans up to $100,000.

The fine print

Fees. OnDeck charges an origination fee on your first loan that ranges from 2.50% - 4.00%. Each subsequent loan that you get from OnDeck would have a lower origination fee. If you take out a line of credit, you would owe a $20 monthly maintenance fee. That fee can be waived if you withdraw more than $5,000 within one week of opening your line of credit.

No collateral. Although OnDeck puts a general lien on your business assets when you borrow money, you wouldn’t have to offer a specific business asset as collateral. That means you wouldn’t be denied funding solely because you don’t have valuable business assets to use as collateral. Without having to appraise and value particular assets, OnDeck can award funding faster than a traditional bank.

Fixed payments. To collect payments, OnDeck deducts a fixed amount from borrower’s business bank accounts on a daily or weekly basis, depending on the type of loan. These payments could impact your cash flow, but they should be easy to manage because they are predictable and unchanging.

Other alternative small business lenders

LendingClub

Online lender LendingClub offers business loans up to $300,000 and terms of one to five years. Like OnDeck, LendingClub collects fixed monthly payments as you pay back your loan. There are no prepayment penalties and your interest rate could be as low as 5.99%. To qualify for a LendingClub business loan, you would need at least one year in business, at least $50,000 in annual sales and no recent bankruptcies or tax liens. You would also need to own at least 20% of the business and have fair credit or better.

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Kabbage

Kabbage is an online lender that provides both secured and unsecured loans to small business owners. Kabbage offers term loans, lines of credit and working capital loans, among other financing options. Six-month and 12-month term loans are available, and interest rates range from 8.00% to 24.00%. You could be approved for up to $250,000.

Kabbage

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The bottom line

Business owners applying for financing from OnDeck have a chance to secure funding without relying on their credit score or collateral. Compared with a traditional bank, OnDeck’s application process is simple and time to funding is fast. However, your interest rate could be higher than what OnDeck advertises if your credit isn’t in great shape. OnDeck collects fixed payments, which could cut into your daily cash flow. If you’re approved for a loan, make sure it has an interest rate and terms that your business could handle. If you feel comfortable with the offering, an OnDeck loan could be a quick solution to meet your funding needs.

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.

Melissa Wylie
Melissa Wylie |

Melissa Wylie is a writer at MagnifyMoney. You can email Melissa at melissa@magnifymoney.com

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