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NexBank Review: Checking, Savings, CD and Money Market 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.

NexBank Checking account options

Platinum One Checking

This interest-bearing checking account has a monthly fee and high minimum balance requirement.

APY

Minimum Balance Amount to Earn APY

1.25%

$2,000

  • Minimum opening deposit: $2,000
  • Monthly account maintenance fee: $25
  • ATM fee: None
  • ATM fee refund: Up to $20 per statement cycle
  • Overdraft fee: $25

NexBank’s Platinum One checking account has a high minimum balance requirement compared to many checking accounts out there, so it would likely only appeal to people who want to earn more interest on those funds than they might with a basic checking account, and are able to deposit and maintain the $2,000 daily minimum. For these customers, the $25 monthly fee may be negligible. This account also offers customers online banking and bill pay capabilities, as well as custom checks and traveler and cashier’s checks. Its generous ATM refund policy is also a definite plus, as the bank only has two ATMs at its two Dallas locations.

How to get NexBank’s Platinum One Checking account

If you’re based in Texas and interested in opening this checking account, you’ll have to visit one of its two locations in person, which may not be worth the effort if you don’t live near Dallas. Its headquarters are located at 2515 McKinney Ave., Suite 1100, Dallas, TX 75201, and its lone branch location, Preston Center, is at 6121 Luther Lane, Dallas, TX 75225. You’ll need to bring a valid Texas driver’s license or ID card to be able to open the account.

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on NexBank’s secure website

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E-Free Checking

A non-interest-bearing checking account with no monthly fees or minimum balance requirements.
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: Up to $10 per statement cycle
  • Overdraft fee: $25

If you’re a Texas resident looking for a simple checking account to manage your funds without having to worry about any fees or balance requirements, this account could be a good option for you. This account doesn’t earn interest, however. While the lack of fees is definitely a plus, this no-frills account doesn’t really offer any perks outside of basic services like online banking and bill pay.

How to get NexBank’s E-Free Checking account

If you’re based in Texas and interested in opening a NexBank checking account, you’ll have to visit one of its two Dallas locations in person. Its headquarters are located at 2515 McKinney Ave., Suite 1100, Dallas, TX 75201, and its lone branch location, Preston Center, is at 6121 Luther Lane, Dallas, TX 75225. You’ll need to bring a valid Texas driver’s license or ID card to be able to open the account.

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on NexBank’s secure website

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How NexBank’s checking accounts compare

NexBank’s checking accounts don’t really offer customers anything when it comes to perks, outside of basic services. The absence of fees on its basic checking account is a plus, but the fact that you have to open the account in person (as with most of NexBank’s other products) is likely to be a huge drawback for any customers living outside of the Dallas area — especially considering that there are so many convenient online checking account options out there. The APY on its Platinum One Checking account, however, is higher than the national average, so that one is likely to appeal to Dallas-area residents who are able to maintain its $2,000 minimum balance requirement, which is higher than most offerings out there.

NexBank savings account

A traditional interest-bearing savings account with minimal restrictions.

APY

Minimum Balance Amount to Earn APY

0.15%

$200

  • Minimum opening deposit: $200
  • Minimum balance to earn APY: $200
  • Monthly account maintenance fee: $3 if balance falls below $200
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $25

NexBank’s savings account is suitable for Texas residents looking for an interest-bearing savings account with minimal fees and requirements. You can avoid its $3 monthly fee by maintaining a balance of at least $200, which isn’t hard to do if you’re putting money away with the intention of not touching it.

As with the bank’s checking accounts, you have to open this account in person. Since it does not offer any ATM fee refunds, this savings account likely won’t appeal to people who live outside of the Dallas area and aren’t able to regularly visit one of the bank’s two locations to make a withdrawal.

Once you open the account, however, you will have online banking capabilities and the ability to transfer funds with ease. While account holders get unlimited in-person and ATM transactions, this account is subject to Federal Reserve Regulation D, which limits account holders up to six certain types of fund transfers per month.

How to get NexBank’s savings account

As with NexBank’s other account options, you have to be a Texas resident and be able to visit the bank’s Dallas headquarters or branch location to open a savings account in person. Its headquarters are located at 2515 McKinney Ave., Suite 1100, Dallas, TX 75201, and its lone branch location, Preston Center, is at 6121 Luther Lane, Dallas, TX 75225. You’ll need to bring a valid Texas driver’s license or ID card to be able to open the account.

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on NexBank’s secure website

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How Nexbank’s savings account compares

While this savings account has a low minimum balance requirement and easily waivable monthly fee going for it, it doesn’t offer much else. It’s only available to Texas residents, and the fact that you have to open it in person at one of NexBank’s two locations lessens its appeal even more.

It also doesn’t offer ATM refunds; if its two ATM locations aren’t convenient, this account has even less going for it. Lastly, with an APY below the national average, it’s significantly lower than some of the best online savings account options out there, many of which don’t even have a minimum balance requirement.

NexBank CD rates

NexBank CDs

Various term lengths to choose from, with many offering competitive and higher-than-average rates.

Term

APY

1 month

0.10%

2 months

0.10%

3 months

2.10%

6 months

2.35%

12 months

2.70%

18 months

2.70%

24 months

2.70%

36 months

2.70%

48 months

2.70%

60 months

2.70%

  • Minimum opening deposit: $10,000
  • Minimum balance amount to earn APY: $10,000
  • Early withdrawal penalty: 6 months’ worth of interest if the CD hasn’t reached maturity.

NexBank offers a wide range of CD term lengths for customers looking for an efficient way to put away funds for an extended period of time while earning interest. However, its shorter term offerings have rates below the national average. If you go for one at least 12 months in length, though, rates are more competitive, going up to twice as high as the national average. While you can deposit as much as $240,000 into NexBank’s CDs, its $10,000 minimum opening deposit is higher than some of the other top CD options out there, many of which also offer much higher rates.

How to get NexBank’s CDs

Unlike with NexBank’s checking and savings account options, its CDs are available to out-of-state customers and you are able to open them online, as well as in person at one of its two Dallas locations. To do so, you will need several pieces of information, including your Social Security number, driver’s license or government-issued ID, checking or savings routing and account number (if linking a non-NexBank account to your application), your employment status, an address and a phone number. You must be a U.S. citizen or permanent U.S. resident to apply for a NexBank CD.

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on NexBank’s secure website

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How NexBank’s CD rates compare

While many of NexBank’s CD rates are competitive and higher than the national average, there are still better CD options out there, with both higher rates and lower minimum balance requirements. If you’re not based in Texas, you can’t even apply for any of NexBank’s other products anyway, so there’s really no reason to seek these CDs out over a bank that offers all of its services online.

NexBank Money Market account

High-Yield Money Market account

A high-yield account with higher-than-average rates.

APY

Minimum Balance Amount to Earn APY

1.40%

$0-$99,999

2.05%

$100,000

  • Minimum opening deposit: $10,000
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: $25 if balance falls below $10,000
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $25

Just like its checking and traditional savings accounts, NexBank’s High-Yield Money Market account is only available to Texas-based customers who are able to open it in person. It does, however, offer high interest rates and the ability to waive the monthly fee if the account balance stays above the $10,000 minimum deposit required to open it. While account holders get unlimited in-person and ATM transactions, this account is subject to Federal Reserve Regulation D, which limits account holders up to six certain types of fund transfers per month.

How to get NexBank’s money market account

If you want to open NexBank’s money market account, you are required to be a Texas resident and be able to visit one of the bank’s two Dallas locations to open it in person. Its headquarters are located at 2515 McKinney Ave., Suite 1100, Dallas, TX 75201, and its sole branch location, Preston Center, is at 6121 Luther Lane, Dallas, TX 75225. You’ll need to bring a valid Texas driver’s license or ID card to be able to open the account.

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on NexBank’s secure website

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How NexBank’s money market account compares

While NexBank’s money market account offers competitive rates, they’re simply not the best out there. With other banks offering both higher rates on money market accounts and the ability to open an account online, there’s really no reason to choose this one over something more convenient, even if you do live near Dallas.

Overall review of NexBank’s banking products

While NexBank’s accounts are available to customers across the state of Texas, they really aren’t the most worthwhile or convenient option for people that don’t live close to Dallas. The fact that you have to visit a branch in person to open an account (with the exception of its CDs) or use a fee-free ATM is a huge disadvantage, so we don’t know why you wouldn’t choose a more convenient option like an online bank.

Additionally, none of its products offer customers any real rewards or benefits outside of basic services you would expect to get with virtually any bank, such as mobile and online banking. Lastly, while its CD rates are competitive and available to out-of-state customers, there are still better options out there, so we say look elsewhere, especially since you can’t take advantage of any of NexBank’s other offerings and services.

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

Review of Edward Jones CD Rates

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.

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
TermMinimum deposit to earn APYAPY
3 months$1,0001.95%
6 months$1,0002.00%
9 months$1,0002.00%
1 year$1,0001.95%
18 months$1,0001.90%
2 years$1,0002.05%
3 years$1,0002.15%
5 years$1,0002.20%
7 years$1,0002.45%
10 years$1,0002.60%

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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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.

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.

John Csiszar
John Csiszar |

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

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Reviews

Wealthfront Cash Account Review

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.

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 InstitutionAPYMinimum 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 nameFunctionFeesYield
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.

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