Radius Bank Review: Could It Be the Best Online Bank?
If you’re looking for a bank that has it all online, then Radius might be the one for you. There’s a reason why people are talking about it: the bank offers a lot of great online bank account options and some business banking choices as well.
Given that the way to access your money is through Radius Bank’s mobile app or an ATM, it might seem weird for those who aren’t used to mostly virtual banks. That’s not to say you can’t get used to it but it isn’t for everyone.
Read our Radius bank review to see what this financial institution offers and whether Radius online banking is the best choice for you.
Overview of Radius Bank
Founded in 1987, Radius Bank’s headquarters is in Boston, Massachusetts. This location is where their corporate office is, which has their full-service customer service department, Radius’ ATM and financial center–their cashless branch.
Since Radius Bank works mostly as a virtual bank, most of the features you can access are found online. There’s also an app, helping you manage your finances on the go. Radius Bank has both personal and business account offerings.
Radius Bank Features
Again, to be clear, when banking with Radius, you probably won’t have access to banking locations or a full service branch. The good news is that if you have a checking account or their high-yield savings account, you will get a debit card. That means you can use any MoneyPass® and SUM ATMs without being charged a fee–though these ATMs may charge their own fee. There’s also Radius ATMs.
Plus, you can also use their mobile and online banking features. That means you can deposit checks using your mobile phone and turn your debit card on and off with a swipe of your finger. You can also customize transaction restrictions, spending caps, account alerts and more.
Types of Accounts
Rewards Checking
Radius Bank’s rewards checking account doesn’t offer the highest rate that you can get with their other checking account, but it does offer a perk in that you get a reward each time you use your debit card. Whenever you do, you get 1% cash back but only if you use the card as a credit card in person (meaning you don’t use it with your PIN number) and for online purchases.
This account doesn’t have a monthly maintenance fee and offers unlimited ATM reimbursements worldwide. To open the account, you’ll need a minimum of $100 but there are no balance requirements after that. If you know you’ll keep more than $2,500 in the account, then this might be a good account to have since that’s when you’ll start earning interest.
Superhero Checking
The Superhero Checking account offers pretty much the same features as the Rewards Checking, except that you earn a little less interest on balances $2,500 and above. However, where this account shines is that any interest you earn, Radius Bank will match it and donate that to the March of Dimes.
Account holders also get a free debit card, unlimited ATM reimbursements and no monthly maintenance fees. If you make signature-based transactions with your debit card, you’ll also receive 1% cash back.
You’ll need a $100 minimum to open the account. It’s worth considering if you’re not worried about earning interest in a checking account, but want to be able to do something good for a charity–in this case the March of Dimes.
High-Yield Savings
This account is one of Radius Bank’s more well-known ones. You can earn decent rates–some of the highest around. It’s tiered, meaning you’ll earn a higher rate the more you have in the account.
There are no monthly fees and minimum balance requirements, plus you get a free debit card which isn’t that common with online savings accounts. You do need to open the account with at least $100 and you’re limited to a maximum of six withdrawals a month due to federal regulations.
CDs
Certificate of Deposits, or CDs, offer a way for you to stash cash for a certain amount of time–think of them like a savings account that in theory has higher interest rates. Since the money is set aside for a specified amount of time, it’s best for those who have short-term savings goals and want the money for a purpose.
Radius Bank has CDs starting at a $500 or $1,000 minimum and terms of three months to five years. When you lock into a term, you won’t be able to withdraw before the maturity date. Otherwise, you’ll be subject to an early withdrawal penalty.
Business Checking
You can open a business checking account with Radius Bank called the Tailored Checking Account. Just like the personal accounts, there are no monthly maintenance fees nor minimum balance requirements. Plus, there are no transaction limitations that are common with many business bank accounts.
Not only that, you earn some interest but only if your account balance is over $5,000. There is an app for business banking, but it’s separate from the personal products, which could be a bit of a hassle.
What Are The Fees?
Radius Bank luckily doesn’t charge monthly maintenance nor ATM fees, but there are some charges you need to be aware of.
First, there is an overdraft fee. You can link up to three accounts for the bank to draw funds from in case you overdraft. You need to enable it by filling out a form and sending it to Radius Bank. Keep in mind if the linked account falls below zero, you could be charged a maintenance fee.
For accounts that are negative, there is a $5 overdraft fee, which starts on the 5th day of the month. There is the option to apply for an overdraft line of credit, but you’ll pay interest on the amount that’s taken out.
Other fees include a $25 NSF (or returned payment) fee, a stop payment fee of $25 and a $5-a-month dormant service charge if you don’t use your checking account for 12 consecutive months.
Should You Sign Up For Radius Bank?
This mostly virtual-only bank is a great choice if you’re looking for competitive rates, low fees and an easy to use app. The cash back reward for their checking accounts is a nice perk, rewarding you for using your account. However, if you prefer in-person service, then Radius Bank may not be for you.
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