New Aspiration Checking Account Has 1% APY and Free Global ATM Use
Also see:
Fidelity Cash Management Account: Why It’s Great
I’m always on the hunt for a great new banking product, so when I saw Aspiration’s new Summit checking account with a 1% APY (NOT APR!), I had to check it out.
Aspiration Summit checking account will earn you 1% APY when you have a $2,500 daily balance
I’ll show you the benefits and highlight one big caveat.
What’s Aspiration?
We’re a new kind of investment firm – built on trust, focused on the middle class instead of millionaires, and founded on the idea that we can do well and do good at the same time.
Very cool.
I’m leary of signing up for yet another new checking account after I found out Radius Bank’s 1% cashback would be useless for me.
Well guess who’s behind this new checking account? Yup, Radius Bank again.
The idea is that once you hit $2,500 in the account, you’ll earn 1% interest on the balance, which compounds monthly.
You’ll also get a free debit card and free access to ANY ATM in the WORLD. Fees are reimbursed monthly.
It’s really only worth it if you can keep $2,500 in the account
If you don’t meet the $2,500 daily balance requirement, you’ll only earn .25% interest… a staggering fall from 1 full percentage point.
Good news for us travel junkies… but there’s still a forex fee. Stick to cash from ATMS and you’ll be fine
But, if you’re looking for an account with no fees and free ATM access, this one may be looking into.
This free account is pretty straightforward, and costs just $10 to open
The fee that jumps out to me is the $33 overdraft fee… ouch! But if you’re planning to keep $2,500 in the account to earn the 1% interest, it should never be an issue.
2 years later, the Summit account was born
Their Twitter account has been around since July 2013, so they’ve obviously been working on this offering for a while. I’m glad the funding for their products has finally come through. It’s always good to see people succeed in their passions.
Thinking of a checking account as a savings account
Because you have to maintain such a high balance, it worth viewing this as a savings account with a debit card instead of a normal checking account.
You’ll want to keep your balance at the $2,500 mark for sure.
The APY is on target with most high-yield online savings accounts, like the ones offered by AMEX and Barclays.
Personal finance is, well, personal, so choose what feels best for you. The Barclays Dream Account has a similar interest rate, but it’s a savings account
If you like the flexibility offered by a checking account and trust yourself to keep enough in there to earn the 1% APY, the Aspiration Summit account could be a great option.
But if you want your savings separate, tucked away, and hard to access, this might not be the right account for you (because of the “temptation to spend” factor).
$50 per year isn’t huge, but it’s better than a sharp poke in the eye!
You won’t earn enough to retire early or anything, but if you want to start a savings fund and want access to it in the event of an emergency, want the option to pay bills, need an account with no fees/no ATM fees, or simply like the product, you might consider checking out Aspiration.
Bottom line
The new Summit account from Aspiration might be interesting to some peeps.
There’s a waiting list to sign up right now. I’ve been on it for a week and will open my account in the next day or two. If I can pass along early access, I’ll be sure to share a link.
1% interest from a checking account is nearly unheard of these days. It’s on par with the best online high-yield savings accounts, like the ones from AMEX and Barclays.
Some will enjoy the flexibility of a savings account, and others will want to keep checking and savings completely separate.
If you can maintain $2,500 in the account to trigger the 1% interest rate, this could be a great, flexible option. And the free global ATM access is a huge plus – especially for those who travel often.
Will you be signing up for this new checking account?
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