This document provides a comparison of various financial institutions, including online banks, traditional banks, and cash management accounts. The evaluation is based on features, user experience, and potential drawbacks.
Icons denote a general recommendation:
- ✔️: Recommended
- ❌: Not Recommended
Online Banks
Online banks typically operate without physical branches or a dedicated ATM network. To attract customers, they often offer benefits like no monthly maintenance fees, reimbursement for out-of-network ATM fees, and free checks.
Discover Bank ✔️
Highlights:
- 1% cash back on debit card purchases.
- Free incoming domestic wire transfers.
Caveats:
- Incoming domestic wire transfers may take several hours to post to your account.
SoFi Bank ✔️
Highlights:
- Modern and intuitive user interface (UI).
- Very fast ACH transfer processing.
- Free incoming domestic wire transfers.
Caveats:
- A maximum of five external bank accounts can be linked.
- Linked external accounts cannot be renamed or given custom aliases.
- Limited to one checking and one savings account per person.
NBKC Bank ✔️
Highlights:
- Free incoming domestic wire transfers.
Charles Schwab Bank ✔️
Highlights:
- Unlimited reimbursement of ATM fees worldwide.
- Free incoming domestic wire transfers.
Caveats:
- Zelle payments are processed via the debit card, not directly through ACH.
- Linked external accounts cannot be renamed or given custom aliases.
Ally Bank ✔️
Highlights:
- Modern and intuitive UI.
- ACH transfers pulled from established external accounts are often available in one business day.
- Free incoming domestic wire transfers.
Caveats:
- ACH transfers pushed to newly linked accounts may take up to three business days.
- Zelle payments are not always processed instantly.
American Express National Bank ❌
Goldman Sachs Bank ❌
Axos Bank ❌
Caveats:
- The web and mobile applications can be slow and unreliable.
Traditional Banks
Traditional banks and credit unions operate physical branches and ATMs, offering in-person services. However, their accounts often come with monthly maintenance requirements that must be met to avoid fees.
JPMorgan Chase Bank ✔️
Highlights:
- Modern and intuitive UI.
- For Sapphire Checking and higher tiers (requires a minimum balance, e.g., $75,000):
- Reimbursement of global ATM fees.
- Free standard checks.
- Free cashier’s checks.
- Free domestic and international wire transfers.
Caveats:
- The fraud detection system can be overly sensitive, sometimes flagging legitimate transactions.
Capital One ✔️
Highlights:
- No monthly maintenance requirements on most accounts.
- Modern and intuitive UI.
- Free incoming wire transfers.
Caveats:
- Standard ACH pushes to external accounts typically take three business days.
Manufacturers and Traders Trust Company (M&T Bank) ❌
Caveats:
- New accounts may not be fully functional for ACH transfers for up to a week after opening, a delay not clearly communicated to customers. This can cause ACH deposits to be silently rejected, potentially leading the originating bank to block the account.
- Pending transactions are displayed without clear descriptions.
- Branch staff may lack knowledge on certain products or procedures.
- Linking external bank accounts often requires submitting your login credentials through a third-party service.
Bank of America ❌
Caveats:
- The user interface can be inconsistent and difficult to navigate.
- Prone to back-end system bugs.
Wells Fargo Bank ❌
Caveats:
- Standard ACH pushes to external accounts typically take three business days.
- History of major consumer scandals.
PNC Bank ❌
Caveats:
- Wire transfer recipients cannot be saved.
- Online banking enrollment for new accounts may not work until the following business day.
U.S. Bank ❌
Caveats:
- New accounts may have a hold placed on them until initially funded. This can cause incoming ACH pushes to be rejected and prevent outgoing ACH transfers.
Citibank ❌
Caveats:
- The bank’s back-end systems are known to be buggy.
- The account number is provided immediately upon opening, but ACH functionality may not be active for another business day.
Santander Bank ❌
Caveats:
- The user interface is inconsistent and can be awkward to use.
Citizens Bank ❌
Caveats:
- Standard ACH pushes to external accounts typically take three business days.
TD Bank ❌
HSBC Bank ❌
Cash Management Accounts
Cash management accounts are brokerage accounts that include some banking features, such as direct deposit, debit cards, and ACH transfers. Because they are not technically bank accounts, they partner with other banks to provide these services, which can sometimes cause issues when linking them to traditional bank accounts.
Vanguard ✔️
Highlights:
- Offers a competitive, high-yield interest rate.
- Access to money market funds with very low expense ratios.
Caveats:
- No debit card is offered for the Cash Plus account.
Fidelity ✔️
Highlights:
- Uninvested cash can be automatically swept into money market funds, which are then treated as part of the available balance and liquidated as needed.
- Unlimited reimbursement of ATM fees worldwide.
- Free checks.
- Free domestic and international wire transfers.
Caveats:
- Some money market funds may have higher expense ratios compared to competitors like Vanguard.
- Outgoing wire transfers can take approximately one hour to process.
Wealthfront ❌
Highlights:
- Offers a high-yield interest rate.
Caveats:
- Linking external bank accounts requires submitting your login credentials through a third-party service.
- Does not offer joint accounts.
Betterment ❌
Financial Technology Companies (Fintech)
Financial technology (fintech) companies often offer appealing, user-friendly “accounts” that mimic traditional banking. However, it is crucial to understand that most are not banks.
Unless a fintech company explicitly states that your deposits are held at an FDIC-insured partner bank, your funds may not be protected. In the event the company faces financial trouble, your money could be at risk. It is generally advisable to exercise caution and verify FDIC insurance coverage before depositing significant funds.