What We have Realized From Making an attempt It

Nowadays, online-only banks are a dime a dozen. And it appears as if each financial institution has a unique APY or reward construction to attempt to entice new prospects. Nevertheless, you often have to leap via hoops or obtain vital direct deposits to get the most effective charges.

This is not the case with Present, a neobank that is providing 4% APY on as much as $6,000, no questions requested. It additionally provides a wonderful, free account for teenagers and a sturdy rewards platform and does not cost month-to-month charges.

Our Present overview is breaking down every little thing this neobank has to supply, together with among the finest alternate options.

Execs & Cons

About Present

Present is a neobank that started in 2015, initially specializing in its fee-free financial institution accounts for teenagers. Since then, Present has grown into some of the aggressive online-only banking choices, providing excessive rates of interest, cash-back rewards, all with out charges or stability necessities.

It is vital to notice that Present is a monetary providers firm and never a financial institution. Nevertheless, it offers its banking providers via Selection Monetary Group, so cash will get FDIC insurance coverage and is safe.

How We Examined Present Financial institution

In July, Clint Proctor (our Editor-in-Chief) opened a Present account for himself in addition to his spouse. His major motivation for getting began with Present was to assert the promotional 4% APY on financial savings.  Listed here are the most important professionals and cons that he is discovered from utilizing Present up to now:

“To start with, I’ve to say that Present’s account opening course of could not be any simpler. It actually takes about 2 minutes to get an account up and working. I might additionally give the app’s consumer interface a 5 out of 5 when it comes to usability.

Earlier than switching to Present, I am embarrassed to say that I used to be incomes near nothing on my financial savings. However I could not resist the chance to earn as much as 4% on my emergency fund. Sure, the 4% APY is capped at $6,000 in financial savings. However when you have a partner and also you’re each capable of open an account, that restrict doubles to $12,000.

One factor to remember is that the 4% is proscribed to the primary $2,000 in every financial savings pod. So to earn that prime APY on as much as $6,000, it is advisable create three financial savings pods beneath every consumer’s account. So I am receiving $0.21 to $0.22 per financial savings pod per day, so $0.63 to $0.66 complete.

One of many issues I used to be most disillusioned to find was that Present does not combine with Zelle proper now. Sure, it has it is personal P2P cost service that works properly for shifting cash round between Present accounts, however that may’t enable you with shifting cash from different financial institution accounts. So I had to make use of an ordinary switch to make my preliminary deposit, which took 4 enterprise days to indicate up. If I might have used Zelle, the cash would have arrived immediately.

Present Banking Promo Codes

Proper now, Present is supply a $50 signup bonus for brand spanking new account holders. To earn the bonus, you will must enter the next promo code throughout the signup course of:

WELCOME50

Then you definately’ll must make a qualifying direct deposit of no less than $200 inside 45 days of opening your account. After you have met the deposit requirement, you need to obtain your bonus inside 10 enterprise days through Present Pay.

What Does Present Financial institution Supply?

There are two principal Present prospects: those that desire a no-fee private account with a excessive APY and oldsters who desire a fee-free account for his or her teenagers. However beneath these two account varieties, you get quite a few options like a rewards level system, financial savings accounts, and overdraft safety.

Present Private Account

Present’s principal providing is its private account. This account has $0 month-to-month charges and no minimal stability necessities. Different perks embrace:

No overdraft charges
No financial institution switch charges when sending cash to different Present members
Free ATM withdrawals at 40,000+ AllPoint ATMs
Getting paid as much as two days early
On the spot fuel maintain removals (so your cash is not locked up for days after filling up your automobile)
Cellular verify cashing

You may sign-up for an account in beneath two minutes in accordance with its web site. And the actual fact there is not any account charges is a promoting level. And options like fuel maintain removals or early paycheck direct deposits could make a distinction if cash is tight.

Saving Pods

Present’s private account allows you to spend cash with the Present Visa debit card. However proper now, you’ll be able to earn a whopping 4% APY on as much as $6,000 by shifting your cash into financial savings pods.

Each Present account comes with three financial savings pods. You may put as much as $2,000 right into a financial savings pod to work in the direction of completely different targets, much like a high-yield financial savings account. You earn 4% APY on as much as $6,000 yearly throughout all of your pods, which is a really aggressive fee. And the most effective half is that there is not any direct deposit or spending necessities like many different on-line banks should unlock the most effective rate of interest.

To fund your pods, you make one-time transfers out of your principal stability. Alternatively, you’ll be able to switch cash to your present account through ACH or by depositing a verify, which many cell banking apps do not help. Present additionally has a round-up characteristic much like microsaving apps that rounds-up your purchases to the closest greenback and deposits the additional cash right into a pod.

And since Present works with Selection Monetary Group, cash in your financial savings pods will get as much as $250,000 in FDIC insurance coverage.

Present Teen Account

In case you’re on the lookout for a wonderful banking answer on your teen, Present is value contemplating. It provides a teen account that is similar to its private account, solely with extra parental controls.

Teenagers can spend cash wherever Visa is accepted with their Present card. In addition they get one pod to assist them save and may activate round-ups to construct good habits. And like its private account, teenagers get free AllPoint ATM withdrawals and on the spot fuel maintain removals.

And Present’s teen account has a number of helpful options for fogeys like:

Block retailers to forestall spending
Assign chores on your teen to finish
Automate allowance funds
Set spending limits
Obtain notifications about your teen’s spending
Ship on the spot transfers to your teen’s account
Let members of the family add funds to their account

Dad and mom simply must obtain Present, create an account, after which create an account for his or her teen that they entry with their telephone. You do not pay extra charges or subscriptions on your teen’s account both.

Money-Again Rewards

With its factors rewards program, Present members can earn as much as 15% money again from over 14,000 retailers throughout the nation. All it’s important to do is activate provides within the Factors tab of the app and store together with your Present card to earn factors. It takes 100 factors to redeem $1, and money credit to your account stability.

Many provides solely pay 1% to 2% in factors, however that is nonetheless a wonderful rewards program for a free debit card. And Present companions with many main manufacturers like Burger King, Endlessly 21, Ceremony Support, and Subway.

On the spot Transfers (However Solely to Different Present Members)

Present means that you can switch cash immediately and without spending a dime to different members. With Present Pay, members can ship or obtain money with no charges by merely utilizing their ~tags.

Whereas this looks like a pleasant profit on the floor, it ought to be famous that the majority banks already supply on the spot transfers via Zelle. Nevertheless, as of writing, Present doesn’t have Zelle integration.

This implies you will want to make use of an ordinary switch to maneuver cash from Present to an exterior checking account, And these transfers will take longer to reach (typically 3-5 enterprise days).

Overdrive

Qualifying Present members can overdraft as much as $200 with the Overdrive characteristic with out paying charges. This generally is a significantly better various than turning to your bank card or a private mortgage. To qualify for overdrive it’s essential to:

Be 18 years previous or older
Obtain $500 or extra in payroll or social safety deposits into your account over a 30-day interval

Your overdrive restrict begins at $25 and may improve as much as $200 primarily based in your account exercise and historical past. It is a related idea apps like Floatme and Earnin use to offer you money advances primarily based on direct deposits.

Cryptocurrency Investing

One in every of Present’s newest options is the flexibility to put money into cryptocurrency proper out of your account. You solely want $1 to begin investing, and Present helps 25+ well-liked cryptocurrencies like:

This is not as a lot choice as main crypto exchanges like Crypto.com or Coinbase supply. However you get the main cryptos like BTC and ETH plus main altcoins. And a $1 minimal funding requirement means anybody can get began. Nevertheless, it’s important to be 18 or older to put money into crypto via Present.

You do not pay buying and selling charges, however Present fees a variable unfold charge that varies primarily based on the given crypto and market situation. Sadly, Present is not clear about what this unfold charge is however says it is much like different exchanges.

In case you’re a extra critical crypto investor, you are in all probability higher off with an trade and utilizing your individual pockets so that you’re answerable for your non-public keys. However for dabbling in well-liked cryptos, Present has you lined.

Present Banking Charges & Pricing

One benefit of Present is that you do not pay any account upkeep charges or face minimal stability necessities. However there are nonetheless a number of charges you would possibly encounter, together with:

Money Add Payment: $3.50.
International Transaction Payment: 3%.
International ATM Withdrawal: $3 + 3%.
Home Out-of-Community ATM Withdrawal: $2.50 plus ATM charges.
Crypto Trades: Variable unfold charges.

Transaction Limits

Dad and mom can set spending limits for his or her teen’s Present debit card. However there are additionally normal spending and withdrawal limits:

Day by day ATM Withdrawal: $500 most.
Day by day Spending Restrict: $2,000.
Examine Deposit Restrict: $2,000.
Present Pay (Peer-to-Peer Switch Restrict): $5,000 per transaction.

Is Present Financial institution Protected?

In accordance with its web site, Present makes use of encryption to guard your information whereas it is in-transit and at-rest. And, as talked about, you get $250,000 in FDIC insurance coverage from Selection Monetary Group. You may even block transactions from throughout the app and arrange fingerprint and face ID locking to maintain your account safe. Total, Present is secure and safe and follows the identical steps different main neobanks do.

How Do I Open an Account?

Opening a Present checking account takes a couple of minutes and does not contain a credit score verify. The data you present contains:

A U.S. Social Safety Quantity
A U.S. residential tackle
Your telephone quantity to obtain a affirmation SMS message

How Do I Contact Present?

You may attain Present buyer help by emailing [email protected] or through the use of the chat characteristic throughout the app. There’s additionally a contact type on its web site.

Finest Alternate options

We like Present since there are no spending or direct deposit necessities to get the most effective APY. That is very uncommon for online-only banks. Often, it’s important to obtain round $1,000 per thirty days in deposits to unlock the most effective charges.

Present additionally has a wonderful teenage checking account. However if you would like credit-building instruments or extra bank-like options, some alternate options may be superior.

Chime

In case you like Present for its lack of charges, you are going to love Chime. With Chime, you do not pay account charges and there is not any minimal stability requirement both. It additionally has a financial savings account that pays 0.50% APY. And like Present, you will get paid as much as two days early and borrow as much as $200 to keep away from overdraft charges.

The principle distinction between Chime® and Present is that Chime additionally has a credit-building device. This secured account does not cost charges or curiosity, and it helps you slowly enhance your credit score rating with common funds.

You may check out Chime at this time or learn our article on the most effective Chime alternate options for much more choices.

Axos

One in every of Present’s most unusual options is its free teen account with quite a few parental management settings. Many mobile-only banks depart teenagers out, however fortunately, this is not the case with Axos.

Axos truly has quite a few checking accounts we’re followers of, together with a profitable Rewards Checking account that pays 1.25% on balances as much as $50,000. However it additionally has a First Checking account for teenagers between the ages of 12 to 17. This account does not cost month-to-month charges and pays 0.10% APY.

You can even discover different Axos’ providers, like Axos Make investments or its high-yield financial savings account. Total, it is a full-service banking choice that is extra complete than Present.

Varo

Varo is one other wonderful Present various if you wish to earn a excessive APY on a smaller money stability. Its financial savings account pays a beginning 1.20% APY. However for those who obtain as much as $1,000 in direct deposits per thirty days, you earn 5% APY as much as $5,000.

Varo additionally has different banking perks, like no account charges, no minimal stability necessities, and free AllPoint ATM withdrawals like Present. Members may earn as much as 6% money again by purchasing with a Varo debit card or Varo Imagine bank card.

In case you’re actually searching the best APYs on the market, you’ll be able to contemplate parking your emergency fund or further money in Present financial savings pods to earn 4% APY. You may then swap direct deposits to Varo so that you’re incomes 5% APY there.

Backside Line

When Present launched, it centered on its teen account. It nonetheless provides among the finest fee-free teen accounts on the market, however it’s additionally dramatically expanded its merchandise since then.

The underside line is that proper now, Present is a superb method to get a excessive APY as much as $6,000. And for those who leverage its factors program, you’ll be able to earn much more.

For credit score constructing and full-service banking options, look elsewhere. However because it stands, Present is among the prime neobanks for good motive.

Chime Disclosure – Chime is a monetary expertise firm, not a financial institution. Banking providers and debit card supplied by The Bancorp Financial institution or Stride Financial institution, N.A.; Members FDIC. 1Save After I Get Paid robotically transfers 10% of your direct deposits of $500 or extra out of your Checking Account into your financial savings account. ^Spherical Ups robotically spherical up debit card purchases to the closest greenback and switch the spherical up out of your Chime Checking Account to your financial savings account.