Rob Berger

NEW: Chase Freedom Flex Credit Card Review

September 15, 2020 by Rob Berger

Chase has just launched a new credit card, called Freedom Flex. The card is replacing the original Chase Freedom credit card which, along with Freedom Unlimited, represent Chase’s new lineup of Freedom cards. We dig into the details of Freedom Flex card in this review.

Table of Contents

History of Chase Freedom Credit Cards

To best understand where the Chase Freedom Flex fits in, some history helps. Chase first launched the Chase Freedom card in 2006. It was a first in that rewards could take the form of either cash back or rewards points. While there were changes over the years to the card, it was best known as offering 5% cash back on up to $1,500 in purchases in select categories that changed every quarter.

In 2016, Chase launched the Freedom Unlimited card. This card was ideal for those who didn’t want to fuss with rotating categories. It simply paid 1.5% on all purchases. As part of the launch of Freedom Flex, Chase is making major updates to Freedom Unlimited, which you can read about here.

With the introduction of Chase Freedom Flex, the bank is discontinuing the original Chase Freedom card. For those who love rotating categories, however, you won’t be disappointed. Chase has combined the 5% cash back quarterly rewards and elevated rewards in a number of purchase categories, all in one card–Freedom Flex.

Chase Freedom Flex Snapshot

Chase Freedom Flex

$200 Bonus after you spend $500 on purchases with the card in the first 3 months.
5% cash back at the grocery store (excluding Target and Walmart) on up to $12,000 in purchases the first year.
5% on travel purchases through Chase Ultimate Rewards
3% on dining at restaurants, including takeout or eligible delivery services.
3% on drugstore purchases
5% on up to $1,500 in combined purchases in bonus categories every quarter (activation required)
1% on all other purchases
5% cash back on Lyft rides through March 2022
Free access to your credit score
0% APR introductory rate for 15 months on purchases.
No annual fee

Rewards

The Chase Freedom Flex has a long list of cash back rewards. We’ll list the rewards, then we’ll look at just how much they could be worth.

New cardmembers will earn a $200 bonus after spending $500 in purchases in the first 3 months of account opening. Note that the bonus is available to new cardmembers if they have not received a cardmember bonus from Chase in the last 24 months.

5% Cash Back

The card pays 5% cash back on the following categories of purchases:

Grocery store purchases on up to $12,000 spent in the first year (Walmart and Target not included)
Travel purchased through Chase Ultimate Rewards
Up to $1,500 in combined purchases in rotating categories that change every quarter (you must activate these rewards on the Chase website)

Note that for October to December, 2020, the 5% rotating categories are purchases at Walmart and via PayPal. You must activate these in your Chase account by December 14, 2020.

3% Cash Back

The card pays 3% cash back on the following categories of purchases:

Dining at restaurants, including takeout and eligible delivery services
Drugstore purchases

1% Cash Back

All other purchases earn 1% cash back.

Value of Rewards

The Chase Freedom Flex actually earns points. The value of the points depends on how they are redeemed. And there are several ways to redeem rewards. And it’s here that we can unlock some incredible value. First, here’s a table of the redemption options and their respective point values.

Redemption Method	Point Value
Cash	1 cent
Gift Cards	1 cent
Travel	1 cent
Chase Pay	0.8 cents
Pay with Points	Varies

We’ll first assume you’ll redeem for cash. Then we’ll look at transferring the points to another Chase card and redeeming the points for travel (which is the highest possible value, as you’ll see).

To determine the potential value of the Chase Freedom Flex, we have to make some assumptions. We also have to distinguish between the first year, which offers extra rewards. With that, here is the potential value to a hypothetical family of four.

Category	Annual Amount Spent	Reward Rate	Value
Groceries	$12,000	5%	$600
Travel	$5,000	5%	$250
Restaurants	$3,000	3%	$90
Drugstores	$3,000	3%	$90
Rotating Categories	$6,000	5%	$300
Everything Else	$15,000	1%	$150
Signup Bonus	$500	—	$200
TOTAL			$1,680

Beginning in the second year, the total rewards would go down to $880.

Combining Points with Other Chase Cards

Chase allows cardmembers to transfer Chase Ultimate Rewards points to other Chase cards with Ultimate Rewards. You can even transfer the points to a card belonging to a member of your household. But why transfer points at all?

Good question. Some Chase cards pay a bonus when you use Ultimate Rewards to book travel through Chase. In fact, two of the most popular travel cards Chase offers pay a bonus:

Chase Sapphire Reserve (50% bonus)
Chase Sapphire Preferred (25% bonus)

I’ve carried the Reserve card since it was first launched, and it’s arguably the best travel credit card available today. So, if you have or get that card, you can transfer the points earned with Flex over to the Reserve. When you then use those points for travel through Chase, you get a 50% bonus each time.

This bonus would turn $1,680 in first year rewards into $2,520. And it would turn $880 in rewards beginning in year two into $1,320. It’s one of the best deals available in the credit card rewards space today.

Additional Card Benefits

The card comes with a long list of additional benefits, some from Chase and some because the card is part of Mastercard’s World Elite program:

Cell Phone Insurance: Up to $800 per claim and $1,000 per year in cell phone protection against theft or damage for phones listed on cardmembers’ monthly bill.

Lyft: $10 in credit for every five rides taken in a calendar month, automatically applied to the next ride and capped at once per month. And earn 5% cash back on Lyft rides through March 2022.

Boxed: 5% cash rewards on Boxed purchases for use on future purchases.

ShopRunner: Free membership to receive two-day shipping and free return shipping at over a hundred online retailers.

Fandango: Double VIP+ points for movie tickets purchased via the Fandango app or Fandango.com, which can be used towards purchasing movie tickets on Fandango or towards streaming movies and TV shows on FandangoNOW.

Zero Liability Protections: If somebody uses your account without your permission, you won’t be held responsible. Remember to call Chase immediately. Note that zero liability protection does not apply if an authorized user uses the card without the approval of the primary cardmember.

Purchase Protection: This benefit covers purchases for 120 days for damage or theft up to $500 per claim and $50,000 per account.

Extended Warranty Protections: On eligible warranties of three years or less, this benefit extends the warranty by one year.

Free Credit Score: You get free access to your credit score.

Fraud Monitoring: Chase monitors your account 24/7 for possible signs of fraudulent transactions.

Auto Rental Collision Damage Waiver: You can decline the rental company’s insurance and charge the entire amount of the rental to the Chase Freedom Flex. It covers theft and collision damage for most cards in the U.S. and is secondary coverage to your personal insurance.

Trip Cancellation / Interruption Insurance: You can get reimbursed up to $1,500 per person and $6,000 per trip for “prepaid, nonrefundable passenger fares” if the trip is “canceled or cut short by sickness, severe weather and other covered situations.”

Travel and Emergency Assistance Services: You can call the Benefit Administrator for legal or medical referrals or other travel and emergency assistance.

Pros and Cons

What we like

Excellent cash back rewards
$200 signup bonus
Points can be combined with other Chase cards
Card travel and other benefits
No annual fee

What could be better

Requires excellent credit
You need to keep track of the different reward categories

FAQs

What credit score do you need to get approved for the Chase Freedom Flex?

Given the rich rewards and no annual fee, you’ll need good to excellent credit to get approved. While it’s possible a score in the high 600s could get approved, aim for a score of at least 720.

Is the Chase Freedom Flex a good credit card?

Yes, it’s an excellent offer. I would certainly include it in the top 5 cash back cards available today. Whether it’s the best option for you will depend on how you use the card.

Is the Chase Freedom Flex replacing the Chase Freedom card?

Yes, Chase is no longer accepting applications for the Chase Freedom. The Chase Freedom Unlimited, however, is still available.

How does the Chase Freedom Flex compare to the Chase Freedom Unlimited?

The cards are nearly identical, with one major exception. The Chase Freedom Flex offers 5% cash back on up to $1,500 in quarterly rotating categories and 1% on all other purchases not part of the bonus rewards categories described above. In contrast, the Chase Freedom Unlimited doesn’t offer the 5% on rotating categories, but pays 1.5% on all other purchases not part of the bonus rewards categories. Both have no annual fee.

Rating

Chase Freedom Flex

Rob Berger

Signup Bonus

Ongoing Rewards

Fees

Other Card Benefits

Summary

The Chase Freedom Flex is about as good as it gets. From a signup bonus to ongoing rewards, this no fee cash back card is one of the few that gets a perfect score.

Check out the Chase Freedom Flex for more details and to learn how to apply online.

Blue Cash Everyday Card from American Express Review

September 14, 2020 by Rob Berger

American Express has been a prominent member of the credit card community since it’s inception. For years, they focused on high fee, high rewards and perks charge cards tailored to the wealthy. Over the last decade however, American Express has made a great effort to cater to middle class income earners.

The Blue Cash Everyday Card from American Express is on of Amex’s strongest offers for two reasons. This card stands out with its cash back rewards AND it charges no annual fee.

Table of Contents

Blue Cash Everyday Card from American Express Snapshot

Blue Cash Everyday Card from American Express

Learn More

Welcome Offer: $150 statement credit after you spend $1,000 in purchases within the first 3 months.
Cash Back Rewards–
- 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%);
- 2% cash back at U.S. gas stations and at select U.S. department stores; and
- 1% back on other purchases.
Note: Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits, gift cards, and merchandise.
Intro APR: 0% for 15 months on purchases.
No annual fee.
Terms Apply

Blue Cash Everyday Card from American Express Cash Back Rewards

The everyday rewards program for the Blue Cash Everyday Card from American Express is as follows:

3% cash back at U.S. Supermarkets (for the first $6,000 spent every year)
2% cash back at U.S. select department stores and at U.S. gas stations
1% cash back everywhere else

Learn more about this and other cash back credit cards and apply online at CardRatings.com.

For the typical family of four, 3% cash back at the grocery store stands to be great savings. A family spending $500 a month on groceries earns $15 cash back. Multiply that out across 12 months, and you’ll save $180 at the grocery store every year. Tack on $2,000 spent on gas every year ($40 cash back) and 1% on everything else and you quickly save hundreds annually.

You can add to that $150 during year one because AMEX offers a welcome bonus. All new cardmembers will receive a $150 statement credit after spending $1,000 in the first three months. This is a one-time bonus and the spend hurdle of $1,000 isn’t very imposing.

Blue Cash Everyday Card from American Express Pricing Details

Included with everything you see is a 0% intro APR on purchases for 15 months. After that you’ll pay a variable APR based on your credit worthiness.

Most importantly, there is no annual fee.

Additional Blue Cash Everyday Card from American Express Perks

Extended Warranty – When you use your Blue Cash Everyday Card from American Express to make purchases, American Express will extend your warranty. Warranty extensions occur as follows:

If your warranty is less than a year, American Express will match it.
If your warranty is between 1 year and 5 years, American Express will add one additional year
For warranties over 5 years, American Express adds nothing. Sorry.

In order to qualify to receive the extended warranty, your account with American Express must be in good standing. The maximum dollar amount protection on a single purchase is $10,000 and no more than $50,000 per member per calendar year.

Accidental Damage Protection – Sometimes life sucks. You buy a brand new computer only to accidentally drop it and crack the screen. American Express has you covered for up to 90 days if your purchaser doesn’t cover the damage. Same rules apply as above; you must have an account with AMEX in good standing. The limits are also the same, $10,000 max per purchase, $50,000 max per calendar year.

ShopRunner Membership – If you’re in the mood for free 2-day shipping, then this benefit can save you a lot of wait time. Cardmembers need to visit this link and sign-up an eligible American Express Card. Your account and membership will always remain active so long as the card you register remains open and in good standing.

List of current stores participating in ShopRunner 2-day shipping.

Rating

Blue Cash Everyday Card from American Express

Rob Berger

Cash Back Rewards

Fees

0% APR

Added Perks

Summary

The Blue Cash Everyday Card from American Express is a top rated cash back card that comes with all the extra perks offered by Amex. It’s an excellent no annual fee card.

4.8

Bottom Line

Owning a cash back credit card is an essential part of a strong personal finance portfolio. I know there are purists out there who like to pay cash for everything but to be honest, that’s foolish. Setting aside the obvious rewards benefits, a strong credit card offers protection too. The is one of those diamond in the rough cards that excel everywhere. Consider it for your future purchases.

Learn more about this and other cash back credit cards and apply online at CardRatings.com.

Best Checking Accounts in 2020

August 1, 2020 by Rob Berger

A good checking account is the lifeblood of a personal finance system. It’s where paychecks get deposited and serves as our spending account. In this article we’ll look at some of the best checking accounts available today.

To find the best checking account for your specific needs, consider the following factors:

Fees
Mobile check deposit
Mobile app and website that are easy to use
Overdraft protection
Free ATMs

Based on these and other factors, here are my top picks for the best checking accounts.

Traditional Checking Accounts

I prefer to have my checking account at a bank with branches near my home or work (preferably both). They won’t pay much in interest, but you can find checking accounts with minimal fees. And some pay out a nice bonus to new customers.

Here are my top picks:

Citibank

I’ve banked at Citi for three decades. They have branches everywhere, and free ATMs in every 7-Eleven. I’m also a big fan of the Citi Double Cash card.

In terms of checking accounts, here are details:

Up to $700 signup bonus. Details can be found here.
No fees for using Citi ATMs and no Citi fees for using non-Citi ATMs
Earn Citi ThankYou Points
There is a monthly service fee, but it can be waived with certain banking activity or minimum balances.
Earn cash by referring friends

Chase

While Chase doesn’t have as many locations as Citi, it’s a great option if branches are available where you live. And its credit cards are some of the best.

Earn hundreds of dollars in signup bonuses. Get details here.
Free ATMs at Chase branches.
A monthly service fee can we waived fairly easily.
Use the Chase Mobile app to manage accounts, deposit checks and transfer money.

PNC Bank

PNC offers excellent digital tools with its Virtual Wallet. The app brings together accounts for spending, savings and growth.

Signup bonuses for new customers. Get details here.
Excellent app–Virtual Wallet
Track and pay your bills
Create a budget
Automate your savings
Create savings goal

U.S. Bank

U.S. Bank offers several checking packages with signup bonuses.

Easy Checking account costs just $6.95 a month, and the fee can be waived easily
U.S. Bank Visa debit card
Student checking available
Branches in more than 25 states

Online Checking Accounts

I prefer traditional banking for my checking account. But there are several online only options that offer excellent checking accounts. These accounts usually charge no fees, many offer excellent interest rates, and they offer useful mobile apps and tools.

Chime

Chime is one of several Fintech companies that offers an excellent mobile app, Visa debit card, and FDIC-insured checking and savings accounts.

No minimum deposit required
No minimum balance required
No monthly fees
Free ATMs
Excellent mobile app

Aspiration

Aspiration offers two levels of accounts, one free and one for a small monthly fee.

Aspiration basic account is free. Get a debt Mastercard with 55,000 free ATMs.
Aspiration Plus costs $3.99 a month. You get 10% cash back on “Conscience Coalition purchases and a competitive interest rate on savings accounts.

Simple

Another Fintech banking app, Simple recently increased its interest rate on its savings account. Its checking account is free and comes with a rich set of features.

Online checking account with Visa debit card
Mobile check deposit
Budgeting app
Transfer money with friends
Send paper checks
High-yield savings account

Capital One

Capital One is a hybrid. It’s a traditional brink- and mortar bank that purchased an online bank (ING Direct) many years ago. It rebranded ING Direct to Capital One360. Today, the bank operates as a single entity, so you get the benefits of physical branches and the features of an online bank.

Here are the details of Capital One 360 Checking:

No monthly fee
Mobile app
40,000 fee-free ATMs
No minimums
Online bill pay
Mobile check deposit

Axos

Axos is an online bank with a wide range of products and features. It offers both personal and business accounts. Here are the details on its personal checking account:

4 types of checking accounts:
- Essential Checking: Basic checking with unlimited ATM fee reimbursements.
- Rewards Checking: 1.25% APY and no maintenance fees.
- CashBack Checking: 1.00% cash back on all signature transactions
- Golden Checking (Age 55+): 0.20% APY on all balances, free personal checks, mo maintenances fees.
Refer-a-friend bonus

Varo

Our final Fintech option, Varo offers checking and savings accounts with no fees and excellent features. Here are the details:

Free Visa debit card
No monthly fees
Open account online
Manage money on your smartphone
Get paid up to two days early with direct deposit
Lock your card with the mobile app

Chime Review–A No Fee Banking Alternative

July 23, 2020 by Rob Berger

Chime is one of several new Fintech companies trying to change the way we bank. It offers a slick mobile app, low fees, and a competitive interest rate. But is it a good option as an alternative to or in addition to your existing bank account. We’ll answer that question and more in this Chime review.

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I embraced online banking when it first became a thing more than a decade ago. It started the ING Direct and the Orange Account. Since then I’ve held accounts at many online banks, including CIT Bank, Ally Bank, American Express Bank, and Capital One. Chime is different.

For starters, it’s not a bank. It’s an app that offers bank accounts through partner FDIC-insured banks.The idea was to take great technology, pair it with traditional banking, and then take over the financial industry. Let’s dig into the details to see what it offers, how much it costs, and whether it’s right for you.

In this Chime Review

Snapshot

Virtually no fees
Competitive interest rates
Award-winning mobile app
Credit builder account
Free ATM withdrawals
FDIC Insured

Learn More

Minimum Opening Deposit	$0
Minimum Balance Required	$0
Monthly Fee	$0
Savings Account APY	1.00%
Free ATM Access	Yes, at more than 38,000 fee-free ATMS nationwide
Joint Accounts	No
FDIC Insured	Yes. Deposits are FDIC insured up to $250,000 through The Bancorp Bank; Member FDIC.

How Does Chime Work?

Opening an Account

You can open an account online using this link. You’ll need to provide the typical information you would for opening any bank account. This information includes your address, mobile telephone number, and your social security number. To qualify, you must be a U.S. citizen and at least 18 years old.

The process takes just a few minutes. Once approved, you then decide what types of accounts you want. It’s pretty simple since there are only two:

Spending Account—What most people think of as a checking account. If you set up direct deposit, see below, your paycheck will go into this account.
Savings Account—It currently pays 1.00% APY in interest.

Setup Direct Deposit

Next you’ll want to setup direct deposit of your paycheck or government assistance check. To do so you’ll need two numbers—the routing number and your account number. The routing number is a unique number that identifies the bank where the direct deposit should be made. The account number is the unique number that identifies your specific Spending Account.

Finding the routing number and your account number is easy:

Log into your account online or via the Chime mobile app;
Go to the “Move Money” section of your account and select “Direct Deposit;”
There you’ll find both the routing number and your Spending Account Number.

Bank Account Options

As noted above, Chime comes with two account types: a Spending Account and a Savings Account. The Spending Account includes a Visa debit card that also serves as your ATM card.

Spending Account

The Spending Account is your checking account. There are no overdraft fees, monthly fees or minimums with this account. There are also no foreign transaction fees.

How do you deposit money into your Chime account?

There are several ways you can add money to your Spending Account:

Direct Deposit: (see above)
Transfers: Using your routing number and account number, you can transfer funds from another bank into your Chime Spending Account.
Deposit Cash: You can deposit cash to your Spending Account at over 90,000 retail locations via Green Dot. You can deposit up to $1,000 in cash every 24 hours or $10,000 per month. There will be a fee for this service, which can vary by location.
Mobile Check Deposit: If you are enrolled in direct deposit of $200 or more a month, you can deposit a check via the mobile app. Once you meet the direct deposit requirement, mobile check depositing will be automatically added in your Chime app in 30 days.

How do you spend or withdrawal money from your Chime account?

There are several ways to use the money in your Chime account:

Visa Debit Card: You can use the debit card anywhere that accepts Visa, including online.
ATM: With your Visa debit card, you can withdrawal cash at an ATM.
Bill Pay: You can set up direct pay to a creditor using your routing and account number.
Chime Checkbook: While checks aren’t as common as they once were, sometimes you need them. You can log into your account and request that Chime send a check anywhere in the U.S. for up to $5,000.

The Spending Account works with mobile payment platroms including Apple Pay and Google Pay.

Savings Account

With the Savings Account you earn 1.00% APY. That’s a competitive rate as compared to the best online savings accounts. There are no fees on this account and no minimum balance. The APY is also not capped at a certain balance.

Chime offers several ways to automate your savings:

Round Ups: Chime will roundup transactions on the Chime debit card to the nearest dollar and transfer this amount from your Spending Account to your Savings Account.
Save When I Get Paid: You can set up a recurring automatic transfer of a percentage of your paycheck from your Spending Account to your Savings Account.

Chime Credit Builder Visa Secured Credit Card

Chime has recently introduced it’s first credit card. It’s a secured card designed to help Chime members build their credit. Because it’s a secured card, there is no credit check to apply. Unlike most secured cards, there are no annual fees for the card and no interest charges.

Chime reports your credit activities from the card to the three major credit bureaus—TransUnion, Experian and Equifax. There’s no minimum security deposit required. You decide how much to transfer from your Spending Account to your secured account as collateral for the card. That becomes your limit. You can then use this money to pay for your charges at the end of the month.

Features & Benefits

Visa Debit Card

The Chime Spending Account comes with a Visa debit card. The card can be used anywhere that accepts Visa, including online. It also serves as your ATM card.

Free ATM Withdrawals

Chime has over 38,000 fee-free ATMs nationwide. They work with both MoneyPass and Visa Plus Alliance networks. You can withdrawal from either network for free. Keep in mind that free ATMs are located only in the United States. If you travel outside the country, you will be charged for using an ATM.

If you use an ATM outside of these networks, the cost is $2.50 plus anything the ATM owner charges. Also keep in mind that there is a $500 a day limit on ATM withdrawals. Also keep in mind that there is a daily limit on card usage (whether purchases, ATM withdrawals, over-the-counter withdrawals) of $2,500.

Get Paid 2 Days Early

If you set up direct deposit, you can get paid up to two days early. Here’s how Chime describes this feature.

¹ Early access to direct deposit funds depends on timing of payer’s submission of deposits. We generally post such deposits on the day they are received which may be up to 2 days earlier than the payer’s scheduled payment date.

SpotMe

SpotMe is Chime’s fee-free overdraft protection. To qualify, you must set up direct deposit of at least $500 a month. Chime determines the limits of SpotMe per customer based on account activity and history. The limit starts at $20 but can go up to $100 or more. If a transaction would overdraw your account above this limit, it will be declined.

Any SpotMe overdrafts are repaid automatically with your next direct deposit. Here’s how Chime describes the SpotMe feature

*Chime SpotMe is an optional, no fee service that requires you receive $500 in direct deposits a month to qualify to overdraw your account up to $20 on debit card purchases. Chime, in its sole discretion, may allow you to overdraw your account up to $100 or more based on your Chime Account history, direct deposit history and amount, spending activity and other risk-based factors. Your Limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your Limit. Your Limit may be increased or lowered at any time by Chime.

Mobile Banking

With the Chime mobile app, you can track your spending and savings. You can also send or receive money from friends. It works on both iPhone and Android devices. The app enables you to deposit checks and pay bills.

Alerts are built into the app. It can send you daily bank account balance notifications and instant transaction alerts when you use your debit card.

Security

You can instantly disable your debit card via the mobile app. You can also allow or disallow international transactions.

Support

Rates & Fees

There are virtually no fees for banking with Chime. There is a $2.50 fee for out of network ATM usage. The Savings Account currently pays 1.00% APY.

Pros & Cons

What we like

Excellent mobile experience
Virtually no fees
Competitive APY on the Savings Account
Credit builder account available
No overdraft fees and free overdraft protection

What could be better

It doesn’t have branches. Of course, neither do any of the online banks.
It doesn’t offer CDs.

Chime Rating

Chime

Rob Berger

Features

Fees

Rates

Mobile App

Customer Service

Summary

Chime offers low fee Checking and Savings accounts, with competitive interest rates.

4.8

FAQs

Is the Chime debit card a prepaid card?

No. It is a debit ATM card. If you are interest in a prepaid card, you can check out our list of the best options here.

Does it offer free ATM withdrawals?

Yes, at more than 38,000 ATM locations nationwide.

How can I add money to my account?

Several ways, including direct deposit, mobile check deposit, bank transfer, and cash deposits at certain retailers using Green Dot.

Is Chime a Bank?

No, but deposits are held at one of two FDIC-insured partner banks.

Compare Chime Alternatives

There are other options to consider for those looking for a low cost online banking experience. There are other Fintech options, such as Aspiration, Simple and Varo. Think of these as digital bank apps. You could also consider online banks, most of which charge little in fees and offer competitive interest rates. If a checking account is your primary goal, however, it’s hard to beat Chime.

Final Thoughts

Chime offers virtually no fee checking and savings accounts. Its mobile app is excellent, and its list of features make it an ideal banking option. To learn more and open an account, visit Chime.

The Best CD Rates July 2020

July 20, 2020 by Rob Berger

Certificates of Deposits offer a safe way to save money. Whether for an emergency fund, to buy a home or liquidity during retirement, term CDs can also offer higher yields than savings accounts (although not always). Here we cover the best CD rates available nationwide.

CD Rates

Best 1 Year CD Rates

The 1-year CD terms is one of the most popular for savers. Here are some of the best rates available for 12-month terms.

Bank	APY	Minimum Deposit	Early Withdrawl Penalty
Comenity Direct	1.00%	$1,500	180 days interest
CFG Bank	0.95%	$500	Yes
Marcus	1.10%	$500	270 days interest
Live Oak Bank	0.70%	$2,500	120 days interest
Synchrony Bank	0.90%	$2,000	90 days interest
CIT Bank	0.75%	$1,000	Yes

Best CD Rates Overall

CFG Bank

Many have never heard of CFG Bank. Headquartered outside of Baltimore, MD, the bank was founded in 1997 as AmericasBank (FDIC # 34294). CFG is a community bank, meaning it’s locally owned and operated.

CIT Bank

CIT Bank is one of our favorites. It tends to offer some of the best rates on deposit accounts, including CDs. In addition to the high-yield CDs below, it also offers Ramp Up CDs, Jumbo CDs, and a no-penalty CD.

BMO Harris Bank

BMO offers competitive yields on CDs. That said, its rates have come down sharply along with other banks over the last month. We’ve also seen a flattening of rates, with terms ranging from 6 to 18 months offering the same rates, and two to four years also offering the same rates.

Ally Bank

Ally offers several types of certificates of deposit: high-yield CDs, Raise Your Rate CDs, and a no-penalty CD. There are no monthly maintenance fees and no minimum deposit requirement. However, the amount of your deposit can affect the interest rate you’ll receive (see rates below)

Marcus by Goldman Sachs

Marcus by Goldman Sachs offers some of the highest yields on CDs available today. In addition to high-yield certificates of deposit, the bank offers a no-penalty CD.

Comenity Direct

Comenity Direct is one bank many have never heard of. A brand of Comenity Capital Bank headquartered in Draper, UT, it was established in 2003 as World Financial Capital Bank. It’s FDIC-insured (Certificate # 57570) and offers some of the best CD yields available in the country.

CD Interest Calculator

Best Online Banks September 2020

July 19, 2020 by Rob Berger

Internet-only banks have grown in popularity. By offering the best interest rates and no fees, savers have poured billions of dollars into financial institutions with no branches. To help you navigate this new world, we’ve assembled this list of the best online banks for your money.

Best Online Bank Listing

Best Full-Service Online Banks

These full-service online banks could serve as your only financial institution. In addition to savings and CD accounts, they offer checking accounts and other services that can accommodate most banking needs.

Ally Bank

Ally Bank is arguably the best all-around online bank. It offers every bank account type, auto and home loans, and investing services. It could serve as a place to park your cash for higher rates, which is how we use it, or as your primary bank. Its website and mobile app are very easy to use.

Account Types: Savings, Checking, Money Market, High-Yield CD, Raise Your Rate CD, No Penalty CD, IRA Savings, IRA CDs
Savings APY: 0.80
CD Terms: 3 to 60 months
Bank Branches: No
Free ATMs: Yes–Allpoint Network and Ally reimburses up to $10 a month in fees charged by other ATMs.
Other Financial Services: Home loans, auto loans, investing
FDIC Certificate No.: 57803
Free Credit Score: Free FICO score access with auto loan
Credit Inquiry: Soft pull
Year Established: 2004
Other Features: Zelle, bill pay, mobile deposit

CIT Bank

Having opened a savings account at CIT Bank several years ago, I can tell you two things about this financial institution. First, it tends to pay some of the highest rates available on deposit accounts. Second, its website could be better. It was easy to use but not as polished as I would have liked. Still, I go to banks for their rates, not a fancy website.

Account Types: Savings, Checking, Money Market, Savings Builder, CDs, No Penalty CDs, Jumbo CDS, Rampup CDs
Savings APY: 0.55
CD Terms: 12 to 60 months
Bank Branches: Limited
Free ATMs: Yes–CIT Bank doesn’t charge ATM fees and reimburses up to $15/month in other bank’s ATM fees.
Other Financial Services: Home loans
FDIC Certificate No.: 58978
Free Credit Score: No
Credit Inquiry: Soft pull
Year Established: 2009 as OneWest Bank, FSB, and changed its name to CIT Bank on August 3, 2015.
Other Features: Zelle, bill pay, mobile deposit

Discover Bank

Best known for its credit cards, Discover Bank also offers a full range of deposit accounts. Its rates are competitive and its fees are low. I’ve also found its website to be easy to navigate.

Account Types: Checking, Savings, MMA, CDs, IRA CDs
Savings APY: 0.80
CD Terms: 3 to 120 months
Bank Branches: No
Free ATMs: Yes
Other Financial Services: Student loans, personal loans, home loans, credit cards
FDIC Certificate No.: 5649
Free Credit Score: Yes
Credit Inquiry: Soft pull
Year Established: Founded in 1911 as the Greenwood Trust Company, it changed its name to Discover Bank in 2000.
Other Features: Checking debit pays 1% cashback on up to $3,000 in debit card purchases each month, online bill pay

Capital One Bank

Capital One Bank can easily serve as your full-service bank. It offers all of the accounts most would need, and it even has bank branches in about ten states. Its rates are competitive and its fees are low.

Account Types: Checking, Savings, Kids Savings, MONEY (Teen checking), CDs, IRA Savings, IRA CDs
Savings APY: 0.65
CD Terms: 6 to 60 months
Bank Branches: Yes
Free ATMs: Yes
Other Financial Services: Auto loans, credit cards
FDIC Certificate No.: 33954
Free Credit Score: Yes
Credit Inquiry: Soft pull
Year Established: 1994
Other Features: Accounts for children, mobile deposit, online bill pay, overdraft options
More info: Capital One Bank review

HSBC Direct

While not the most popular bank on the list, it offers one of the highest savings account rates available today.

Account Types: Checking, Savings, CDs
Savings APY: 0.50
CD Terms: 6 to 24 months
Bank Branches: Yes
Free ATMs: Yes
Other Financial Services: N/A
FDIC Certificate No.: 57890
Free Credit Score: No
Credit Inquiry: Soft pull
Year Established: 2004
Other Features: Bill pay, mobile check deposit

Best Limited-Service Online Banks

Marcus by Goldman Sachs

When it comes to deposit accounts, Marcus does one thing and does it well–savings accounts. It pays one of the highest APYs available, with no monthly fees.

Account Types: Savings
Savings APY: 0.80
CD Terms: N/A
Bank Branches: No
Free ATMs: N/A
Other Financial Services: Personal loans
FDIC Certificate No.: 33124
Free Credit Score: No
Credit Inquiry: N/A
Year Established: 1990
Other Features: Mobile app

American Express Bank

American Express Bank offers limited deposit accounts–Savings and term CDs. As such, it’s not intended to replace your existing bank. It does, however, pay competitive rates.

Account Types: Savings, CDs
Savings APY: 0.80
CD Terms: 6 to 60 months
Bank Branches: No
Free ATMs: N/A
Other Financial Services: Personal loans, credit cards
FDIC Certificate No.: 35328
Free Credit Score: No, although available with Amex credit cards.
Credit Inquiry: N/A
Year Established: 2000
Other Features: None

Barclays Bank

Barclays Bank is another alternative for those looking to get a higher rate on savings or CDs. Its rate is competitive among online banks.

Account Types: Savings, CDs
Savings APY: 0.60
CD Terms: 3 to 60 months
Bank Branches: No
Free ATMs: N/A
Other Financial Services: N/A
FDIC Certificate No.: 57203
Free Credit Score: No
Credit Inquiry: N/A
Year Established: Founded in 2001 as Juniper Bank. Change its name to Barclays Bank in 2006.
Other Features: Mobile check deposit

Best Fintech Banking Services

Fintech companies have elbowed their way into the banking world over the last few years. These companies partner with an FDIC-insured bank, layering online and mobile apps on top of traditional banking.

Note that most Fintech banks do not pay the highest rates, although generally better than brick and mortar banks. What they do offer are unique tools and user experiences to help consumers manage their money.

Aspiration

Aspiration aims to combine banking and investing with social responsibility. It gives 10% of its profits to charity and offers socially-responsible investing through its Redwood Fund.

Account Types: Spend & Save Cash Management account
Savings APY: Up to 1.00
CD Terms: N/A
Bank Branches: No
Free ATMs: Yes, at all Allpoint ATMs
Other Financial Services: Investing, traditional IRA
FDIC Insurance: Cash balances in the Aspiration Spend & Save cash management account are eligible for FDIC insurance* by being swept to FDIC Member institutions.
Free Credit Score: No
Credit Inquiry: Soft pull
Year Established: Founded in 2013, opened for business in 2015.
Other Features: Mobile check deposit, cell phone protection insurance, up to 10% cash back on purchases, bonus rewards for spending at socially-conscious businesses, digital debit card

Chime

Think of Chime as a cash management account. It’s designed to help you budget your money and save for a rainy day. It charges virtually no fees but pays little in the way of interest. For that reason, Chime could serve as a checking account alternative, but not where you want to stash a lot of cash.

Account Types: Checking, Savings
Savings APY: 1.00
CD Terms: N/A
Bank Branches: No
Free ATMs: Yes, at all MoneyPass ATMs
Other Financial Services: None
FDIC Insurance: Chime accounts are insured up to the standard maximum deposit insurance amount of $250,000 through its partner banks, Stride Bank, N.A. or The Bancorp Bank, Members FDIC.
Free Credit Score: No
Credit Inquiry: N/A
Year Established: 2013
Other Features: Chip-enabled Visa debit card, fee-free overdraft, mobile banking, get paid up to two days early with direct deposit

Simple

Of the Fintech banks, this is my favorite. It offers checking, savings, and CDs, and pays a competitive interest rate on its savings account. It also comes with excellent tools to budget your money and save for the future.

Account Types: Checking, Savings, CDs
Savings APY: Up to 0.80
CD Terms: 12-month, no penalty for early termination
Bank Branches: No
Free ATMs: Yes, at all MoneyPass and Visa Plus Alliance ATMs
Other Financial Services: None
FDIC Insurance: Chime accounts are insured up to the standard maximum deposit insurance amount of $250,000 through its partner banks, Stride Bank, N.A. or The Bancorp Bank, Members FDIC.
Free Credit Score: No
Credit Inquiry: N/A
Year Established: 2009
Other Features: Mobile check deposit, Visa debit card,

Online Banks FAQs

Are online banks safe?

Yes. They offer the same or similar online security features as traditional brick and mortar banks. Their deposits are also insured by the FDIC.

What are the best online banks?

That depends on your specific financial needs. For the best savings rates, online banks are the clear winner over traditional banks. As a full-service bank, many online banks offer a full range of accounts, including savings, checking, CDs, and even investment accounts.

Do online banks charge fees?

Most online banks do not charge monthly fees. Some do charge certain fees, such as overdraft fees.

Do online banks offer free ATM withdraws?

Most online banks do have free ATM withdraws from their participating network of ATMS.