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Status Money 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.

Would knowing what other people are doing with their money affect how you save, spend and invest your money? Status Money, a New York City-based fintech company, is betting you’ll make a change for the better if you can see exactly where you stand compared with your peers and millions of other people.

Status Money’s founders are data scientists who hope the information their platform provides — like how much the average person your age spends dining out — puts your finances in context. Ideally, you can then use those insights to make improvements.

What is Status Money?

Status Money is a free financial management and budgeting service, similar to Mint or Personal Capital but with the added benefit of being able to compare your financial standing with about 15 million other people in the U.S. Like other personal finance services, Status suggests financial products or services, based on its analysis of your accounts and other financial information you provide.

You can access it online at StatusMoney.com, and a mobile app is in the works, slated for Apple and Android devices by the end of 2018. The service launched in September 2017 and, as of this writing, Status is only available to users based in the U.S.

Here’s a breakdown of what Status Money offers, as well as my experiences with the service since using it in May 2018.

Peer comparisons

Status’ major standout feature is the anonymous peer comparisons it provides — something none of its competitors in the fintech space do. Status collects and sorts data from millions of public and private records — including the U.S. Census report, credit reporting bureaus and the like — and organizes it for you in easy-to-read charts and graphs so you quickly see how you stack up compared with millions of others.

Source: statusmoney.com

“The information itself should be available. There is no rhyme or reason in the world that the information isn’t available for free for everybody,” said Majd Maksad, Status Money co-founder. “It has to be useful and it just has to be out there.”

On Status, you can see in real time how every detail of your financial picture compares with your peers and either the national average, income range, your age group or a random sample.

Your peer group comprises of people in your age range (e.g. 18 to 29), your income range (e.g. $50,000 to $65,000), your area (e.g. the NY/NJ/PA area), the type of location you live in (urban versus rural), your credit score and whether you pay rent or own your home. All of those factors are taken into account for an accurate peer comparison.

Status provides analytics for just about every financial aspect from your spending habits broken down by category, to your net worth, credit score and the interest rate you pay on your debt.

Insights

Status provides algorithmically derived, real-time insights about how your data compares with your peers’ and lets you know about opportunities for improvement. For example, Status may recommend you consolidate your credit card debt with a personal loan at a lower rate if it notices you pay more interest on your debt compared with your peers.

Source: statusmoney.com

Status recently added an entirely separate “Opportunities” tab where you can not only see recommended financial opportunities, but also how well you match with the opportunity. Maksad told MagnifyMoney the match was developed with Netflix in mind. It’s based on your financial behavior and your peers. It takes into account things like your financial situation, the financial institutions you use, your previous interaction with similar opportunities and opportunities your peers may have taken advantage of.

Source: statusmoney.com

Spending tracker

You can use the monthly tracker feature in Status as a budgeting tool. You can set a spending limit by category for the month overall, and Status will send you an alert when you go over your intended spending limit. You’ll receive an email, for example, if you spend $110 on expenses in the transportation category for the month when your limit was $109.

You can also see your projected spending in the current month for that category, your historical spending habits broken down by category and how your spending compares to your peer group and a second group you have selected (either the national average, income range, your age group or a random sample).

Source: statusmoney.com

Is Status Money secure?

You might be wondering: With the ability to compare your financial stats with those of 15 million other people, is your information secure?

“Security and privacy have been our focus areas since the beginning,” said Maksad. “From day one we had to buckle down on privacy and security.”

Status says it encrypts and stores personal information using security technology independently rated by BitSight, a top security agency.

What about my data?

Status doesn’t sell your information to anyone but it may share your personal information with its partners that help it provide its service. That means Status won’t try to make money off your data, but it would share some of the information you provide with TransUnion in order to access your credit reporting data so you can use it with Status Money to help make financial decisions.

If Status is free and doesn’t sell data, how does it make money?

Status makes money through ads for products advertised to you based on your profile, as many of its competitors do.

What we like about Status Money

Peer pressure through information

Status money gives you information about the people most similar to you, and research has shown that knowing what your peers do may influence your behavior.

In a study released this year, researchers at the University of Chicago’s Booth School of Business and the University of Maryland Smith School of Business analyzed the spending habits of 6,000 Status Money users from September 2017 to April 2018.

The study found the average Status Money user reduced their spending as a percentage of monthly income by about 7% after joining. When people realized they were spending more than their peers, they reduced their spending by an average 23%, or $600 per month, regardless of income level. Those who realized they were underspending increased spending by an average 1%.

The university researchers approached Status to conduct the research and were not incentivized in any way.

Reviewer’s take: I was shocked to see I spent thousands less than my peers on average, and that made me feel good. So good, in fact, that I started paying more attention to my spending habits so I could stay ahead of the curve.

I was also surprised to see I have $10,000 more in debt on average than the 34 million others in my age group, but I was I was pleasantly surprised to know I have competitive rates on all my credit cards and student loans.

And seeing that I don’t have as much in assets as my peers do motivated me to rebalance my retirement funds, increase my retirement contribution and get serious about my emergency fund.

Actionable information

Status doesn’t simply tell you that you’re paying more in credit card interest than your peers do. It will show you opportunities to reduce your costs, like debt consolidation. Just keep in mind that the products Status shows you may not be your only options, and you should shop around before opening any new accounts to make sure you’re getting the best deal.

Reviewer’s take: I didn’t personally take advantage of the Opportunities tab, but I thought they were fairly accurate and I’m interested in moving forward with some of them when I’m ready.

I thought it was interesting that one Opportunity was saving on things to do in NYC with Groupon. I already use Groupon for self-care services like massages and facials, but didn’t really think to use it for entertainment, although I do spend a fair amount of money on live events. It made me feel the options were very personalized — more tailored to my tastes than recommendations from other budgeting apps.

Multiple levels of comparison

You can compare yourself in just about every way to your peers, and either the national average, income range or your age group on Status. Here are a few examples of what you can compare with Status:

  • Monthly income
  • Credit score
  • Debt as a whole
  • Debt, broken down by type
  • Interest rate on debt
  • Overall monthly spending
  • Monthly spending by category
  • Overall savings
  • Monthly savings
  • Overall net worth
  • Net worth, broken down by debt and assets
  • Overall assets
  • Assets, broken down by type
  • Historical home and car values

Maksad told MagnifyMoney the service aims to add comparison categories like marital status, household size, education level and gender in the future.

Important insights, all in one place

Like most of its competitors, Status allows you to see your net worth, track your spending and manage your budget, using a single platform. These are crucial components of any personal financial management system.

Reviewer’s take: The app was pretty good about categorizing my transactions, but I did have to routinely go in and recategorize some of them. This was a minor hassle since editing transactions is quick and easy. I’d spend a few minutes a week reviewing the transactions.

Free

You get all of the insights, comparisons, budgeting features and financial opportunities Status provides, for free. There is no paid version of Status Money and there might never be, Maksad told MagnifyMoney.

Downsides to Status Money

No mobile app

Status says it plans to release iOS and Android mobile apps in 2018. Maksad said the app will also be free once it’s released.

Reviewer’s take: This bothered me because it’s not my natural inclination to type a web address into a web browser when I’m on my phone. Also, I absolutely abhor having to manually enter my login information. If it doesn’t say “continue as Brittney” or use FaceID, I’m not logging in. I didn’t try creating a shortcut prior to writing this review, but I am considering the switch. Again, it’s putting in the effort. For now, I can’t wait for Status to roll out the app for iOS so I can log in more regularly.

No bill pay

As of this writing, Status doesn’t offer bill pay, but that’s on par with competitors.

No investing

As of this writing, Status doesn’t offer wealth management or investing features, which some competitors do (for a fee).

Who Status Money would be best for

Status may be a good tool for anyone who wants to see where they stand financially in reference to others, track their budget or monitor and build their wealth.

The service’s tech-savvy design and use of peer comparisons to influence spending behavior make it a better money-management app for the younger generations (millennials and Generation Zers).

Several studies have shown that peers are more influential to younger people. As we age, our peers have less and less influence on our beliefs and behaviors. On top of that, millennials and Gen Z are the first generations to grow up with social media. They are the demographics that have been conditioned to want to know what their peers are doing and care about keeping up with trends in the groups they identify with.

If you aren’t interested in what your peers are doing and would prefer to have access to bill management or investment features, you may want to try out a different budgeting and financial management service.

How to sign up for Status Money

To sign up for Status Money, you provide the usual personal information (name and email) and set a password to create an account.

Source: statusmoney.com

Then Status requires you to enter more detailed personal information that’s needed to track your finances, set your peer group and pull your credit information like your income, housing status, Social Security number and assets like your car or home. When all of that’s done, you can link your financial accounts and access Status Money’s services.

Status says it can connect to more than 12,000 financial institutions. If your institution isn’t available, you can email Status and request to have it added. It took me about 20 minutes to link all of my accounts, but it could have taken less than 10 minutes if I had all of my passwords on hand. For that reason, I recommend you gather all of your login information for all of your accounts ahead of time.

After that’s handled, you’re all set. You will see a dashboard with various options to see high-level and more detailed financial information and comparisons.

How Status Money compares with competitors

Status Money has something no other fintech service provides: anonymous peer comparisons. But the service also lacks features its peers offer like access to a human financial adviser, and Status doesn’t yet have a mobile app.

Here’s a breakdown of how Status Money fares against its main competitors: Mint and Personal Capital.

Status Money vs. Mint vs. Personal Capital

Feature

Status Money


Status Money

Mint


Mint Budgeting APP

Personal Capital


Personal Capital App

Peer comparisons

Yes

No

No

Budgeting/spending tracker

Yes

Yes

Yes

Credit score monitoring

Yes

Yes

Yes

Credit report information

Yes

Yes

Yes

Spending alerts

Yes

Yes

Yes

Bill pay

No

No

No

Bill management

No

Yes

No

Mobile app

No. iOS and Android apps to be released by the end of 2018

Yes. Apps for iOS and Android.

Yes, but only for budgeting features. Apps for iOS and Android.

Website/web app

Yes

Yes

Yes

View net worth

Yes

Yes

Yes

Paid version

No

Yes

Yes, 0.49%-0.89% of what you invest, if you want to use wealth management features

Investing/wealth management

No

No

Yes, charged as a percentage of invested funds

Retirement planning

No

No

Yes

Tax preparation assistance

No

Yes

No

Customer service

Email

Email

Phone 24/7 & Email

The bottom line

The lack of a mobile app is pretty annoying, but I’m hoping Status stays on track with its plan to release apps for iOS and Android soon. Overall, I feel having the comparison in front of me motivated me to become more mindful about how I use my money so that I could “win” in my financial life. I know that is technically impossible, but it feels like a competition and if you are competitive, you will be driven to do better than your peers, too.

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.

Brittney Laryea
Brittney Laryea |

Brittney Laryea is a writer at MagnifyMoney. You can email Brittney at [email protected]

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Reviews

Simple Bank Review — a Simple Way to Budget

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 Established1964
Total Assets$90.1B

LEARN MORE Simple’s secure website

Like most things in the world of “adulting,” managing your finances isn’t always as simple as it should be. This is where online bank Simple stepped in seven years ago, providing customers with a mobile bank account rolled into a budgeting app.

Acquired by Spanish bank BBVA in 2014, Simple was founded in Portland, Ore. in 2009 and launched commercial operations three years later. The money in a Simple account is held by BBVA Compass, the American subsidiary of Banco Bilbao Vizcaya Argentaria, S.A., and FDIC-insured up to $250,000.

Though Simple offers only one type of bank account — consumer checking — it promises a simple way to save and budget while offering features found at bigger banks, such as photo check deposit, plus additional features, including Goals, Expenses, and Safe-to-Spend(R). In an effort to attract new banking customers, Simple is offering a 2.02% APY return on balances of $2,000 or greater in a Protected Goals Account. Otherwise, the APY is the normal 0.01%.

We’ll review Simple’s bank account, its pros and cons and what else you need to know to determine if it’s a good fit for you.

Simple’s Most Popular Accounts

APY

Account Type

Account Name

2.02%

Checking

Simple Checking Account + Protected Goals Account*

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on Simple’s secure website

What is Simple?

The Simple bank account is a checking account that incorporates budgeting tools into a consumer’s everyday banking.

Simple banking is provided through both desktop and mobile applications, although you will need to download the app to deposit checks using a photo. The free mobile app is available for Android and iOS-powered devices. You can complete all other necessary banking tasks on both platforms.

The Simple account

Minimum deposit amount to open

$0

Annual percentage yield

0.01% ($0 - $2,000)
2.02% ($2,000+)

Overdraft fee

$0

Monthly service fee

$0

ACH transfer fee

$0

ATM fee

$0

Out of network ATM fee

$0

LEARN MORE Secured

on Simple’s secure website


Simple Visa debit
Simple customers are issued a Simple Visa debit card for daily purchases and to use at more than 40,000 ATMs in the Allpoint network. In-network ATMs won’t charge you a fee, and are easily found using the ATM finder both online and in the app. Simple doesn’t charge you a fee for using an out-of-network ATM, but you may be charged by other banks and ATM owners.

Simple bank review
Simple

Safe-to-spend
Simple’s Safe-to-Spend(R) feature helps you resist the temptation to spend every dollar in your bank account when those funds should be reserved for more important and urgent things. The budgeting algorithm sets aside funds for spending categories in your budget and your savings goals. The app subtracts the amount of money you’ve set aside from your total account balance so you can easily see how much money you have left to spend — your safe-to-spend number.

Goals
The Simple bank account makes it easy to set aside money for long- and short-term goals. The feature also serves as a digital envelope budgeting system for your monthly budgeting needs.

A warning to chronic overspenders: Although the amount set aside for goals is subtracted from your total balance so you know what’s safe to spend, the goal money is kept in the same account as the rest of your funds, so you can spend the money if you really need to. We will address how to use goals to save and budget in the following section.

Simple bank review
Simple

Analytics
Simple provides spending reports to give you more insight on how you’re spending your money. You can use the graphs and breakdowns Simple creates to analyze trends in your spending. With that information, you can evaluate whether or not your budget is meeting your needs or if you need to make adjustments in your spending habits. You can also add hashtags, notes and images to each transaction.
You will need to go online to view reports as the feature isn’t yet available in the Simple app.

Protected Goals
You can set up separate savings goals and an emergency fund within the Protected Goals account. Unlike the money for your short-term goals, money in the “protected” account is separate from your main Simple bank account. If you need to use your money, you can make unlimited transfers from a Protected Goals account to your regular Simple checking account. That means there’s no need to worry about hitting the six withdrawals per month limit most other savings accounts have under Regulation D, and the common fees associated with making excessive withdrawals.

If you are looking for a high-yield account, the Simple bank account may be the one for you. Right now, you can earn up to 2.02% APY if you maintain a balance of $2,000 or more in the entire Protected Goals Account. If you choose to set up an Emergency Fund or Savings Goal under the Protected Goals Account and the amount combined is $2,000 or more, you’ll still qualify for the 2.02% APY. If you don’t, a Protected Goals account with Simple earns 0.01% APY, which is lower than the national average yield on checking accounts. So if you’re looking to earn a return on your savings and can’t make maintain a balance of $2,000 or more, you may want to look elsewhere.

Although they may lack the bells and whistles Simple incorporates, there are many alternative high-yield checking accounts that earn a much higher yield on your money with no minimum deposit. You can also compare rates and terms on the best savings options currently available here that also have higher rates than this account.

Simple Shared
Simple offers joint accounts it calls Simple Shared accounts. The Simple Shared account is a separate Simple bank account that you co-own with someone else. The joint Simple Shared account allows pairs to plan budgets and complete savings goals together. Couples can even save for an emergency under the Shared account. Emergency Funds are now available for Simple Shared accounts.

Both co-owners of a Simple Shared account must have individual Simple accounts, too, and they have to keep the individual accounts open in order to have a shared account. Your individual accounts stay private.

Simple Instant
Simple Instant is a peer-to-peer payments system exclusive to Simple users. It’s the quickest way to send money to other Simple account holders instantly, for free. After you add the Simple user to your Instant contacts, you can send money to them using an email address or phone number.

Simple bank accounts work with most third-party p2p payment services like Venmo and Square Cash, too, so you can still send money to your friends who don’t use Simple, although you may be required to pay for instant transfers.

Where Simple falls short

A 1% fee for foreign transactions
Simple doesn’t charge you any fees for making foreign transactions, but Visa does. Each time you swipe your Simple card overseas, you may be required to pay a 1% International Service Assessment fee to Visa. That fee may not be a deal breaker for some frequent travelers, but it’s a bummer to pay any more than you have to, ever.

Additionally. there is a $1,000 daily spending limit for international transactions, but you can have that temporarily raised to $6,000 if you let Simple know you’ll be traveling.

No checkbooks
Simple users are not issued checkbooks to write paper checks. If you find yourself in a situation where you need to send a personal check or pay a bill, you can use Simple’s free bill pay service to have Simple send a check on your behalf. The bill pay feature is found online and in the app. You may also request a treasurer’s check — similar to a cashier’s check — from Simple.

Simple mobile app

When you don’t know exactly how much you have to spend on the things you want but don’t need, you’re either constantly running out of time, money or both. When you’re running around living your life most of the time, keeping track of your money can become a chore.

The Simple mobile app incorporates features that help you keep track of how much money you have left to work with for the month while on the go. You can even get instant push notifications that will send you spending updates in real-time.

Features that stand out

The goals feature is what sets the Simple app and account apart from other mobile-first fintech startups and online banks, which we will get into in detail below.

Using Goals to save money
When you create a goal in Simple — after naming it and adding an optional memo — you’ll set the amount and date by which you would like to complete it. You can fund the goal in two ways: (1) set aside money right away, or (2) elect to save over time.

When you save over time, an algorithm will calculate how much money to move over incrementally from your safe-to-spend amount to the savings goal so it’s fully funded by your preset completion date. You can move money each day, or set a custom funding schedule so the app only moves money on predetermined days.

Using Expenses to budget
You can use the Simple Expenses feature to mimic old-fashioned envelope budgeting. Envelope budgeting is a method in which you set aside cash in physical envelopes for each budgeting category. You set aside what you think you’d need to cover categories like gas, groceries or shopping for a period and if you run out of money for that category, you stop buying in that area. Simple offers a digital version.

You would create an expense and name them for each spending category in your budget for the month and determine how much to set aside for purchases made from that category. Here’s an example budget from Simple:

Simple bank review
Simple

Ideally, you would fund the expense immediately and not over time. That’s what Simple really focuses on doing. It’s a “set it and forget it” mentality. This feature runs off of “Funding Schedules”. So, once you create an expense through this feature, Simple will recreate the expense for you so that it’s paid off again the next month. You can set this up by creating an Expense and choosing the category you want the Expense to automatically come out of. You only need to set this up once. After you’ve set up all of your expenses, the funds will be automatically debited from the appropriate Expense each month.

What if I overspend?
As mentioned earlier, you can intentionally or accidentally spend money set aside for your goals if you go over your safe-to-spend amount. Of course, dipping into your goal money may cut into your progress. If you fall behind on saving or need to edit a goal, you can always edit the target date and/or amount, or delete the goal. On the flip side, if you complete a goal and want to save more money, you can choose to automatically save more over time.

Other features that deserve an honorable mention:

  • You can deposit checks — This is the only feature exclusive to the app and may be in found in the “Move Money” tab. Simple recommends submitting the deposit before 5 p.m. EST, as it allows the bank to process the deposit on the same day. However, if you submit the deposit after 5 p.m. EST, the deposit won’t be processed until the next business day. Keep in mind that “processing” is not the same as “funding”. For example, if you make a Photo Check Deposit before 5 p.m. EST on a Monday, the deposit will be processed the same day, but won’t be posted to your account until Tuesday at 3 a.m. EST. If you make the deposit after 5 p.m. EST on a Monday, the funds won’t post to your account until Wednesday at 3 a.m. EST.

The limit on how much money you can deposit using a photo check will depend on factors such as how long you’ve been with Simple and the number of checks you’ve recently deposited, so it varies by individual user. You can find out your current check limit under “Deposit a Check.” If the check is too large, you can deposit it by mail.

  • You can block and unblock your debit card — Blocking your card is useful if you lose your card or think it’s been stolen. Go to your profile and select “Your Simple Cards” then block the Simple Visa card. If you see any unauthorized transactions made on your account, you may be covered by Visa’s Zero Liability policy if you report it in time.

How to open a Simple Bank account

Opening a Simple bank account is a quick and easy process (see how I didn’t use the word “simple” there? I saved you from a very punny sentence). Signing up takes all of about five minutes. Simple requires applicants to be U.S. citizens and 18 years or older with a Social Security number.

The company also recommends you have access to a device that can run its mobile app. The device will need to be running on either Apple iOS 10.0 or higher or Android 5.0 (Lollipop) or higher.

You can open an account online or on the Simple mobile app. The application requires you to create a username and password for your Simple bank account, and indicate how you plan to use the account. Then, it asks for personally identifying information like your name and Social Security number.

Simple bank review
Simple

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on Simple’s secure website

Who could benefit from the Simple bank account?

The Simple bank account would be most beneficial to individuals and household budgeteers who want to be able to manage their budgeting and bank account in one place, in real time.

Most household money managers are well aware how much their bills will come up to each month and what their short- and long-term monetary goals are. However, it’s naturally difficult to keep the numbers you’re juggling on the top of your head when you are busy and often on the go. Other budgeting apps may keep you organized, but you have to make an effort to keep them on track with your actual spending.

Simple makes keeping up with bills and savings goals effortless.

Simple’s safe-to-spend feature allows even the busiest among us to easily keep track of how much money you actually have available to spend freely. You can use Simple from virtually anywhere, desktop or on your phone, so there are no excuses. Just checking your bank account balance and seeing the difference between the total balance and your safe-to-spend will remind you of your budget and savings goals.

With Simple, you can create and automatically contribute to an emergency fund account, one separate from your other financial goals, so that it actually gets done this time around. The amount you want to save in your Emergency Fund is based on how much money you want to save in a certain period of time. Based on those two things, Simple will put together a daily contribution amount.

Simple’s Goals system can help you stay organized, compartmentalize your budget and keep your financial priorities straight. If you don’t immediately fund a goal, the app has your back. It calculates and makes small transfers to get you closer to your goal for you.

Alternatives

Simple is one of many fintech companies that have recently released a mobile-first or mobile-only banking option. Next, we take a look at how Simple compares with its peers: the Aspiration Summit account, Chime, Beam and Finn by Chase. Rates are as of  the date of publication.

Simple vs. Aspiration Summit account
 SimpleAspiration Summit

Overdraft fee

$0

$25

APY on Checking

Up to 2.02% APY

2.00% APY

APY on Savings

n/a

n/a

The Aspiration Summit account is the mobile-only banking option for those trying to be a bit more socially conscious. Aspiration’s standout feature is its Aspiration Impact Measurement (AIM), which measures your social impact based on where you spend your money.

You get a personal AIM score, calculated based on the businesses you choose to support, which also each get an AIM score. For businesses, the AIM score is split in two: a “people score” based on factors like employee pay and access to health care, and a “planet score” based on things like the company’s greenhouse gas emissions.

In addition to knowing how the money you spend affects the world around you, you can feel confident knowing Aspiration donates $0.10 of every dollar it makes to financially-focused charities.

Like the Simple bank account, the Aspiration Summit account is a checking account. While the Simple bank account earns up to 2.02% APY, the Aspiration Summit account earns a slightly lower 2.00% APY on all balances. But, Aspiration doesn’t give you the opportunity to open a separate account to set aside savings like Simple does. Aspiration also doesn’t provide any budgeting and goal-setting features on its account, while Simple does. Aspiration requires a $10 minimum deposit to open an account, but no minimum balance to maintain the account.

Aspiration charges is a $25 overdraft fee and a $5 daily fee for each day your balance remains negative. Meanwhile, Simple charges no fees but won’t allow a transaction if it will overdraft your Simple bank account. Like Simple, Aspiration doesn’t charge its users a fee to access ATMs anywhere in the world but goes a step further by fully reimbursing you (on the 10th of each month) if you’re charged a fee by an out-of-network ATM. If you’re traveling overseas, you’ll be charged a fee equal to 1.1% of the transaction using the Aspiration Mastercard debit card.

Simple vs. Chime Bank
 SimpleChime Bank

Overdraft fee

$0

$0

APY on Checking

Up to 2.02% APY

n/a

APY on Savings

n/a

0.01% APY

Chims is a fee-free, mobile-first banking option that features automated savings, but doesn’t come with the analytics and goal-setting features that Simple has.

With Chime, you can automatically save 10% of each paycheck in a savings account and, if you’re enrolled in direct deposit, you can get access to your paycheck up to two days earlier than the money would become available with most other standard checking accounts. Once enrolled in Chime’s automatic savings program, Chime will automatically round up each purchase made with your Chime Visa Debit Card to the nearest dollar and save the difference in your savings account.

If you ever need to split a bill, Chime does the math for you and lets you send a text to a friend with a link to pay you back using Venmo, or Chime’s in-app peer to peer payments feature (Pay Friends) if the friend is a Chime Member. Money sent between two Chime members is received instantly. Simple doesn’t do the math for you, but you can send money instantly to other Simple users using its built-in p2p system, Simple Instant.

Chime offers both a checking account and a designated savings account, unlike Simple, which offers a checking account and the option to save emergency funds in a “protected goals” account.

If your savings are in a Chime savings account, you won’t be granted more than a 0.01% yield on your funds. On the other hand, if you place your savings in Simple’s Protected Goals Account, you earn up to 2.02% APY on balances of $2,000 or more. Neither Chime nor Simple charge overdraft fees. While Simple doesn’t charge you for using out-of-network ATMs, Chime charges $2.50. You can find more than 38,000 in-network ATMs using the ATM map in the Chime app.

Simple vs. Beam
 SimpleBeam

Overdraft fee

$0

n/a

APY on Checking

Up to 2.02% APY

n/a

APY on Savings

n/a

2.00% APY; up to 4.00% APY

Beam is a fee-free, mobile-only high-interest deposit account. You can earn a much higher yield on your savings than you would with Simple. Beam accounts promise a minimum 2.00% APY compared with Simple’s 0.01% APY. Beam also gives its customers the opportunity to claim rewards that can earn them up to 4.00% APY on their funds daily. Beam calls its rewards “billies” and they can be earned by engaging with the app and doing things like referring a friend to Beam. The “billies” are awarded daily between 6 p.m. and 7 p.m. local time. Neither service requires a minimum balance to earn interest on funds.

Beam doesn’t issue users a debit card or give users ATM access like Simple does. Beam is intended for use alongside a primary checking account as a supplementary bank account, while Simple is intended to be used as a primary checking account. If you want to use your money in a Beam account, you must first transfer it out to a primary checking account, which can take up to two days. Beam also doesn’t have any special saving or budgeting features and doesn’t show you spending analytics like Simple does.

As of this writing, Beam is not yet available for widespread use, but Simple is. Beam is still in a “private beta” stage, so it can only accommodate a limited number of customers. If you want to use Beam, you’ll have to sign up on the waiting list, which currently has more than 126,000 names.

Simple vs. Finn by Chase
 SimpleFinn by Chase

Overdraft fee

$0

$0

APY on Checking

Up to 2.02% APY

n/a

APY on Savings

n/a

0.01% APY; up to 0.04% APY

Finn by Chase is a free mobile-first banking option from Chase Bank. Finn by Chase offers checking and savings accounts, and you are required to have both types. For comparison, Simple only offers a checking account. Simple and Finn by Chase users earn the same 0.01% APY on balances below $10,000. For balances that are $10,000-$25,000, Finn users earn 3%, then 0.04% APY on higher amounts. Simple doesn’t offer increased interest on larger balances. Finn does not offer joint accounts, but Simple does.

Both banks issue users Visa debit cards for daily purchases and to use at the ATM. Finn charges $2.50 if you use an out-of-network ATM, while Simple doesn’t charge a fee at all. Finn says its users have access to more than 29,000 in-network ATMs while Simple advertises more than 38,000 in-network ATMs.

The banks both show users’ spending analytics and offer automatic saving features but differ in how their features work.

Finn lets users rate each transaction as a “want” or “need” and how it makes the user feel. Users can choose happy, sad or indifferent faces. Finn also provides users analytics via charts and graphs that summarize their spending habits.

Finally, Simple lets you send money instantly to other users using Simple Instant, but Finn by Chase lets you send money to anyone in the Zelle network, even if they are with a different bank, instantly for free. Both services let users send money with third-party platforms like Venmo, Google Wallet and PayPal.

The bottom line

The Simple bank account is a solid one-stop shop for hassle-free banking and budgeting. Simple, the company, doesn’t charge any fees, but BBVA Compass may charge fees. Make sure you to read the Simple Deposit Account Agreement. Fortunately, it won’t cost you to use their budgeting and analytics system if budgeting and saving is what you’re really after. Additionally, the 2.02% APY on balances of $2,000 or more is a huge perk if you can meet and maintain that balance requirement.

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.

Brittney Laryea
Brittney Laryea |

Brittney Laryea is a writer at MagnifyMoney. You can email Brittney at [email protected]

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Earning Interest, Reviews

Discover Bank CD Rates 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.

Discover Bank
Most people know Discover as a credit card company, but it also operates an online bank and offers some of the best rates and terms on checking and savings accounts and certificates of deposit (CDs).

Savings account bonus offer: Earn up to $200 on your first Discover savings account

As a bank, Discover offers some of the best products on the market. Currently, they’re offering a major deal on their online savings account, which currently earns 2.10% APY. If you apply for their savings account for the very first time by 06/03/19 and deposit a balance of at least $15,000 by 06/17/19, you can earn a $150 bonus. If you deposit a balance of at least $25,000 by the same date, you can earn a $200 bonus. Applying for the account is easy as you don’t need to go to a branch. The bonus will be credited to your account by 07/01/19. You can apply online or over the phone. Just be sure to enter or mention the promo code MM519 when you apply.

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If you’re looking for CDs in particular, Discover is currently considered to have some of the best CDs due to their customer service and digital tools.

Discover Bank CD rates

CD term

Annual Percentage Yield (APY)

3 months

0.35%

6 months

0.65%

9 months

0.70%

12 months

2.65%

18 months

2.65%

24 months

2.70%

30 months

2.70%

3 years

2.75%

4 years

2.80%

5 years

3.00%

7 years

3.05%

10 years

3.10%

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How do Discover Bank CD rates compare?

While Discover Bank CD rates aren’t always the highest available, they are consistently among the top offers across all terms. However, you may be able to find a similar or even better rate with a CD that has a lower minimum deposit than Discover’s $2,500 requirement. Currently, several nationwide banks offered a 12-month CD at a rate higher than Discover’s 12-month CD APY, while requiring a lower minimum deposit. For example, at the same time the above rates were available at Discover, there were 12-month CDs with rates as high as 2.70% APY with a lower minimum balance amount to earn the APY.

It’s always great to go for the highest interest rates possible, but keep your CD investing strategy in mind. If you’re investing in CDs using the ladder strategy, it might be easier to keep everything in one bank since you’ll be switching in and out of CDs frequently.

Discover also stands out from its competition in the CD space with its mobile app and 24/7 U.S.-based customer service. If you value such features, keep those particulars in mind when weighing Discover CD rates against others’.

What you need to know about Discover Bank’s CDs

Discover Bank is very transparent in terms of fine print. It’s not difficult to understand what’ll happen with your money after you invest it. We’ll cover the basics here about what you need to know to invest in Discover Bank’s CDs.

How to open a CD

It’s very simple to open up a CD with Discover Bank. Go to their CD webpage and click on the orange “Open an Account” button near the top right of the page. You can then choose which accounts you’d like to open. Select “CD,” choose a CD term and enter how much you’d like to deposit.

You’ll then need to complete the application by providing your name, address, date of birth, phone number, Social Security number, employment status and possibly even your driver’s license. Once your application is complete and accepted, you’ll need to fund the account.

How to fund the CD

You’ll need to fund it within 45 days of submitting your application, which you can do in one of three ways:

  • Transfer funds from another bank account over the phone. (You can only do this when you first fund your account.)
  • Transfer funds from another bank via online transfer.
  • Write a check to yourself and send it to the following address:Discover Bank
    P.O. Box 30417
    Salt Lake City, UT 84130

The minimum deposit amount for each of Discover Bank’s CDs is $2,500. Once you open a CD, you can’t deposit more money later, so it’s a good idea to make sure you have all the cash you want to invest before you open the account.

Withdrawing funds from the CD

When you want to withdraw money from your CD, the biggest thing to consider is whether that CD has matured yet, or finished its term.

If your CD has not matured, you’ve got options: You can take the interest out penalty-free at any time, or you can withdraw the principal (or the money you deposited) at any time as long as you pay an early-withdrawal penalty. This penalty varies depending on the original term of your CD:

  • less than one year: three months’ worth of simple interest
  • one year to less than four years: six months’ worth of simple interest
  • four years: nine months’ worth of simple interest
  • five years to less than seven years: 18 months’ worth of simple interest
  • seven years or longer: 24 months’ worth of simple interest

If your CD has finished its term, you can withdraw your money penalty-free, allow the CD to renew or roll it into a CD of a different term length. (More on that in a bit).

Earning interest on a Discover CD

Your CD will start earning interest on the same business day that you fund the account. The interest will be added to your account once each month, however.

When it comes to what to do with your interest, you have two options: The default option is to allow it to compound within the CD (meaning you’ll earn interest on that interest), or you can have it automatically deposited each month into another Discover bank account.

What happens once the CD matures?

You’ll get a heads-up notice about a month before your CD matures so you can decide what to do with the money. You have two main options: Either reinvest it into another CD (of the same term length or a different term length), or withdraw the money from the CD and put it into another account (such as a checking or savings account, or perhaps a CD at a different institution).

If you don’t let Discover know what you want to do with the maturing CD, the CD will automatically renew into another one of the same term length. You have a nine-day grace period after your CD automatically rolls over to make any changes or withdrawals penalty-free.

The bottom line

As far as big-name banks go, Discover offers great CD products. Wells Fargo, for example, only offers interest rates as high as 1.55% APY on a $5,000 deposit for a 58-month CD. Chase Bank offers even lower maximum rates — an abysmal 1.05% APY, and only if you can commit a minimum of $100,000 for 10 years.

If you’re the kind of person who likes to keep your finances in one place, Discover also has great credit cards, as well as competitive online savings and checking accounts. No matter how long you’re considering putting money in a CD, Discover is worth a look. Even if it doesn’t have the best available rate, it’s usually within several basis points of the top offerings and well above the average APY.

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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.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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