Bank5 Connect offers high-yield checking and savings accounts, plus a range of certificates of deposit. Since its launch in 2013, this bank has received top-tier customer service reviews and offers competitive interest rates on its checking account and certificates of deposit. Bank5 Connect also offers a chance to earn rewards on your purchases.
This full-service online bank doesn’t have any physical branches. But you can manage your accounts via its mobile app, website and Mint.com (a budgeting tool owned by Intuit). But the bank falls short in a few areas, such as requiring a minimum balance to earn interest and not offering services in all states.
Despite the pros and cons, Bank5 Connect is an FDIC-insured bank that can yield a decent return on your deposits. Here’s our take and how to decide if this bank is right for you.
What we like
- Manage your accounts via Mint.com, mobile app or website
- Several CD terms to choose from
- Higher yields on checking and savings accounts, compared to other banks
- 24-month investment CD available
- Up to $15 reimbursed for ATM fees per statement cycle
- Free check reordering
- No monthly fees
- Free cashiers checks
What we don’t like
- $1 charge for paper bank statements through US mail
- Massachusetts and Rhode Island residents are ineligible
- No money market accounts
- No physical branches
- No cash deposits
- No 24/7 customer service
Who is Bank5 Connect suited for?
Bank5 Connect is a good choice to earn a competitive yield on your deposits -- as long as you plan to maintain at least a $100 balance or more -- a requirement to earn interest on checking and savings accounts. Or, if you need to make regular withdrawals from an ATM, you’ll be pleased with the $15 reimbursement for out-of-network ATM surcharges.
However, you can’t deposit cash into your Bank5 Connect account, which can be inconvenient if you’re paid in cash or need to make cash deposits often. This bank also does not offer access to any physical branches, and Massachusetts and Rhode Island residents do not qualify for an account. If you live in one of these states or prefer to handle banking in person, other banks offer similar services and competitive rates -- such as Capital One and Synchrony.
Bank5 Connect products
Bank5 Connect’s high-interest checking account has some of the best features for everyday banking. Not only does it earn a competitive interest rate on your checking balance, but it also comes with free check reordering via your online account, and you can order cashier’s checks for free via a secure email to Bank5 Connect. We also like that you can earn cash back from select retailers when you use your debit card. And you can use this bank’s Pay People feature to send money to friends and family directly from Bank5 Connect’s app or online. You can also get paid up to two days sooner with early direct deposit and enroll in overdraft protection when you connect this account with a Bank5 Connect high-interest savings account.
If you use an ATM a few times a month, Bank5 Connect’s reimbursement can come in handy. You’ll get up to $15 reimbursed per monthly statement cycle for ATM charges. However, you won’t be able to deposit cash into your account at an ATM.
If you’re looking to open an account, there are no monthly maintenance fees, but you’ll need a minimum of $10 to get started and a minimum $100 balance to earn interest. You won’t earn interest on balances that exceed $1 million.
Checking Account Features
| APY | Min balance | Monthly fee | Overdraft fee | Foreign transaction fee |
|---|---|---|---|---|
| 2.00% | $10 | $0 | $0 | $0 |
Rates as of Feb. 28, 2023.
Pros
Earn a competitive APY on your checking balance (minimum $100 to earn interest)
Earn cash-back rewards from select merchants
Free check reordering
No monthly maintenance fees
$15 reimbursement for ATM fees per statement cycle
Early direct deposit -- up to two days earlier
Pay People feature in Bank5 Connect app and online
Cons
$100 minimum to earn interest
$10 minimum deposit to open an account
No physical branches
No cash deposits
Bank5 Connect’s high-yield savings account is on par with other online banks, though you can earn higher APY elsewhere, including the bank’s high-yield checking account. Plus, there aren’t any monthly maintenance fees. The account requires $10 to get started and a minimum balance of $100 to earn interest. If you have a Bank5 checking account, you can also connect your savings account to enroll in overdraft protection.
Compared to other online banks with high-yield savings accounts, Bank5 Connect’s APY isn’t as competitive as other online banks, so it’s best to weigh your options when looking for a place to park your savings.
You can deposit money into the account via ACH, external transfers from another bank, mobile check deposits or by mail. However, you won’t be able to deposit cash via an ATM for this account, either.
Savings Account Features
| APY | Min balance to open | Monthly maintenance fee |
|---|---|---|
| 1.50% | $10 | $0 |
Rates as of Feb. 28, 2023.
Pros
No monthly maintenance fees
Several ways to transfer and deposit money
Overdraft protection when you add a Bank5 Connect checking account
Higher-than-average APY
Cons
Minimum $10 deposit to open this account
Minimum $100 to earn interest
No cash deposits
Though its APY is above-average, you can earn double this amount at many other online banks
Bank5 Connect offers traditional CDs, and there are several terms to choose from -- ranging from six months to three years. We like that a 24-month CD is available that’s an investment CD. It gives you the flexibility to deposit more money throughout the CD term, unlike other CDs that only allow one deposit when you open your account.
There are no monthly maintenance fees, but the minimum $500 deposit can be steep. Keep in mind that other banks, such as Ally, don’t require a minimum deposit to open a CD, but the amount you deposit is what you’ll earn interest on until your CD matures.
When your CD matures or reaches the end of its term, you’ll have two choices. You can renew the CD or withdraw your funds, which can be deposited into your account or mailed as a check. However, if you withdraw from the CD before it matures, there’s an early withdrawal penalty of three months of interest if the CD term is less than one year or six months of interest if your CD is longer than one year -- which is common compared to other banks.
Read more: Pros and Cons of Investing in CDs
CD Account Features
| CD term | APY |
|---|---|
| 6-month CD | 3.80 % |
| 12-month CD | 3.10 % |
| 15-month CD | 2.85 % |
| 18-month CD | 3.20 % |
| 21-month CD | 3.20 % |
| 24-month Investment CD | 3.30 % |
| 36-month CD | 0.85 % |
Rates as of Feb. 28, 2023.
Pros
Competitive APYs
24-month investment CD available
CD terms range from six to 36 months
No monthly maintenance fees
Cons
Minimum $500 deposit
Three- or six-month early withdrawal penalty
Limited types of CDs available
$30 CD closeout fee if you close your account before maturity
Banking experience
Bank5 Connect is an online-only bank -- there are no physical or co-op branches to handle banking services in person. You’ll be able to manage your account using the mobile app or website, but you cannot deposit cash into your account. Instead, you’ll need to transfer money from another account or via direct deposit to fund your account.
Bank5 Connect scores a 4.4 out of 5 based on Trustpilot’s reviews and ratings. Customers value the bank’s helpful customer service and professionalism. However, some customers aren’t pleased with the transfer time when depositing money.
This bank can be a solid place for your deposits if you’re comfortable managing your money online. But if you’re looking for more savings, loans, credit cards or investment options and don’t mind a digital-only experience, Ally or Synchrony may be a better option with higher APYs.
Overdraft fees
Bank5 Connect doesn’t charge overdraft fees. If you link your Bank5 Connect savings and checking accounts, money will be pulled from your savings account to cover insufficient funds in your checking account. However, if you don’t have enough funds in your savings account to cover a charge or if your accounts aren’t linked, you could be charged a $15 nonsufficient-funds fee.
Customer service
Bank5 Connect doesn’t have physical branches, but you can manage your account via the website, mobile app, online chat feature, email or by phone. Keep in mind that 24/7 customer service is not available. You can call the bank at 1-855-552-2655.
