May 3, 2020

Radius Bank Review

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Radius Bank offers high yield savings and checking accounts. So what's the catch? Read on to see if this online bank is worth it.

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What Is Radius Bank?

Radius Bank is an online bank headquartered in Boston, MA. It offers checking accounts, savings accounts, trusts, CDs, loans, credit cards, business checking accounts, and business loans.

The bank opened its doors in 1987 and has $1.4 billion in assets today, making it a leading online bank. In the last several years, Radius earned several impressive awards:

  • In 2018, Radius was given the FinXTech Startup Innovation Award and the EverFi Financial Capability Award.
  • In 2017, Radius won the Celent Model Bank Product Innovation Award.

These awards show that Radius Bank is very forward-thinking in their approach to the online banking industry.

In 2020, Radius Bank was acquired by LendingClub. It's the first time a fintech company has purchased a U.S.-regulated bank. LendingClub was looking for a better source of funding for their business.

LendingClub provides a platform for person-to-person lending between borrowers and lenders. It allows individuals to invest in loans for other people and then reap the benefits of interest the way traditional financial institutions have done historically.

Fees

Checking Account Fees
Here are some fees to be aware of for the checking accounts at Radius Bank:

  • Monthly maintenance fee for Essential Checking account of $9.00
  • $5.00 service charge fee per month for accounts with no activity for 12 consecutive months
  • Daily overdraft fee of $5.00
  • Expedited debit card fee of $35.00
  • Returned item charge of $25.00
  • Non-sufficient funds charge of $25.00 per item

Savings Account Fees
The only fee you need to worry about with the High-Yield Savings account is for expediting an ATM card. You'll be charged $35.00.

CD Fees
If you withdraw your money from a CD before the term is up, you'll be penalized 365 days' worth of simple interest.

Does Radius Bank use ChexSystems?
Radius Bank uses ChexSystems. But they also offer a "Second Chance" checking account—their Essential Checking Account. You can be approved even if you have a poor record on ChexSystems, but you will have a monthly maintenance fee of $9.

ChexSystems is a reporting system, similar to a credit reporting agency, but for bank accounts instead of credit decisions. If you have too many negative marks on your report, you may be declined when trying to open a checking or savings account. Here are some things that may be reported to ChexSystems:

  • Repeated bounced checks and overdrafts
  • Debit card abuse and fraudulent activity by the user
  • Accounts closed due to bad checks or other negative causes
  • Criminal activity or identity theft
  • Unpaid negative balances

Pros and Cons

Pros

  • Get paid early: Receive your paycheck as early as Wednesday on pay week when your employer submits payroll files to the Federal Reserve
  • No minimum deposit required once you've opened your accounts, except for CDs
  • No ATM fees from Radius Bank
  • Cash back rewards and interest-bearing checking accounts with two options to choose from
  • Personal finance tools to help you track and analyze your spending habits

Cons

  • Balance requirements for earning interest are high compared to other online banks
  • Essential Checking account has a high monthly maintenance fee of $9.00
  • Limited to 3 CD options when you are applying online

Radius bank routing number: 211075086

What Radius Bank Offers

High-Yield Savings
Radius offers a high-yield savings account with no monthly service fees. It takes just $100 to open. Once you've opened the account, there is no minimum balance to maintain. You can even get a free ATM card and enjoy no ATM fees from Radius.

To earn interest on your balances, you'll have to keep a certain balance in your Radius High-Yield savings account.

Applying for a High-Yield Savings account is easy. It takes about 3 minutes and you'll just need your Social Security number and $100 to open the account.

Rewards Checking
If you're looking for a checking account that earns interest on your balance and gives you cash back on purchases, check out the Rewards Checking account at Radius Bank.

You'll need $100 to open the account, but there are no minimum balance requirements after that. Here's what you can expect:

  • No monthly maintenance fees
  • First order of checks is free
  • Free debit card
  • No ATM fees and unlimited rebates for fees charged by other banks

The Rewards Checking account also lets you receive your direct deposit up to two days early.

You can earn 1.00% cash back on all qualifying signature-based purchases each month with your Radius Rewards Checking account. In order to qualify, you must either:

  • Keep an average balance of at least $2,500 each month or
  • Have direct deposits totaling $2,500 or more each month

You'll also earn interest on the balance you keep in your Rewards Checking account, but you'll need to meet the minimum balance requirements.

    Radius Bank

    Rewards Checking

    • Earn 1.00% cash back on purchases when you use your Radius debit card.
    • Earn 0.15% APY on balances of $100,000 & up.
    • Earn 0.10% APY on balances of $2,500–$99,999.99.

Superhero Checking
If you're passionate about giving, the Superhero Checking account is a great option for you. The interest you earn in a Superhero Checking account is matched by Radius Bank and then donated to March of Dimes.

It takes $100 to open an account, but then there are no minimum balance requirements. You'll still have these perks:

  • No monthly maintenance fees
  • First order of checks is free
  • Free debit card
  • No ATM fees and unlimited rebates for fees charged by other banks

While you only earn 0.50% on all balances $2,500 and up, the interest you do earn is matched and donated to March of Dimes. Plus, you still earn 1.00% cash back on qualifying signature-based debit card purchases.

Essential Checking
Radius offers an Essential Checking account for those who cannot qualify for their Superhero or Rewards checking options.

If you have some negative marks from prior bank accounts, Essential Checking is a great second-chance option to help you build a better banking record.

After you have 12 months of positive banking history with your Essential Checking account, you may be able to upgrade to a Rewards Checking account.

While there isn't a minimum balance requirement, you will have a monthly service fee of $9.00. Here are some limits to be aware of:

  • $500 daily debit card limit
  • $1,000 daily check deposit limit
  • $2,000 ten-day check deposit limit

CDs
Radius Bank offers CDs that are FDIC insured up to the maximum amount possible. You can choose from many increments, between 3 months and 5 years.

All the online options require a minimum balance of $500.

If you do need to withdraw your money before the CD term is up, you'll pay fees equal to 365 days of simple interest.

Business Tailored Checking
Radius Bank's Business Tailored Checking account helps you earn 4x the industry average on balances over $5,000. However, you will have a $10 monthly maintenance fee if your balance is under $5,000.

You only need $100 to open the account and you'll get unlimited transactions. That means you won't pay penalties, upcharges, or fees for using the account. Plus, you won't pay ATM fees worldwide.

Applying for a Tailored Business Checking account online only takes a few minutes. Once you're approved, you'll receive a free business debit card and have access to free bill pay. Plus, your account is FDIC insured up to the maximum amount allowed.

Radius Bank Features

Overdraft Protection
Radius Bank offers two ways to protect yourself from overdrafts. The first option is to link up to 3 accounts to your personal checking account. Then, in the case of an overdraft, money would be pulled from one of those 3 accounts to cover the balance.

You also have the option to apply for a line of credit from Radius Bank to protect you from overdrafts. If approved, you'll have a credit limit that you can automatically tap into if your checking account balance falls below zero.

Mobile App
Using the Radius Bank mobile app, you can:

  • Deposit checks
  • Send money to family and friends
  • Manage your accounts
  • Set transaction restrictions and spending caps
  • Turn your debit card on and off
  • Set security alerts

Radius Bank is also compatible with mobile wallets. Add your debit card to Apple Pay, Samsung Pay, or Google Pay accounts for faster and safer checkouts.

Partnerships
Radius Bank partners with plenty of financial products on their Marketplace to help you better manage your money. Here are a few companies you can expect to see:

  • Billshark is a bill negotiating service to help you lower your monthly bills
  • Ladder offers simplified life insurance
  • Credible helps with loan refinancing
  • Lemonade provides property and casualty insurance for renters

Financial Dashboard
You can gain a better understanding of your personal finances using Radius Bank's finance tool set. You'll be able to see all your Radius Bank accounts, plus you can link external accounts, so you have the full picture.

Once you capture all your spending in one place, you can create budgets to help you stay on track and analyze you spending habits. Radius Bank also lets you experiment with different debt repayment strategies to see which method you should be using.

How It Compares

    HSBC

    HSBC Advance Checking - Up to $270 Cash Bonus

      Get up to $270 with a 3% Cash Bonus Checking Offer when you open a new HSBC Advance checking account and complete the following qualifying activities.
    • Open your new HSBC Advance checking account online by June 29, 2020; and
    • Set up Qualifying Direct Deposits into your new HSBC Advance checking account; and then
    • Enjoy 3% Cash Bonus, up to $270, on Qualifying Direct Deposits up to $50 per month, during the first 6 calendar months after account opening
    • You will automatically receive the 3% Cash Bonus in your new HSBC Advance checking account approximately eight weeks after completing that month's qualifying activities.
    • Deposit products are offered in the U.S. by HSBC Bank USA, N.A. Member FDIC.
    Expires 6/29/2020
    HSBC

    HSBC Advance Checking - $225 Welcome Deposit

      Get a $225 Welcome Deposit for eligible new customers who open a new HSBC Advance checking account and complete the following qualifying activities.
    • Open your new HSBC Advance checking account online by June 29, 2020; and
    • Make recurring monthly Qualifying Direct Deposits totaling at least $500 from a third party to your HSBC Advance checking account(s) for 3 consecutive calendar months from the second full calendar month after account opening
    • You will automatically receive the $225 Welcome Deposit in your new HSBC Advance checking account approximately eight weeks after completing all qualifying activities. It's that simple.
    • Deposit products are offered in the U.S. by HSBC Bank USA, N.A. Member FDIC.
    Expires 6/29/2020
    HSBC

    HSBC Premier Checking - Up to $700 Cash Bonus

      Get up to $700 with a 3% Cash Bonus Checking Offer when you open a new HSBC Premier checking account and complete the following qualifying activities.
    • Open your new HSBC Premier checking account online by June 29, 2020; and
    • Set up Qualifying Direct Deposits into your new HSBC Premier checking account; and then
    • Enjoy 3% Cash Bonus, up to $700, on Qualifying Direct Deposits up to $120 per month, during the first 6 calendar months after account opening
    • You will automatically receive the 3% Cash Bonus in your new HSBC Premier checking account approximately eight weeks after completing that month's qualifying activities.
    • Deposit products are offered in the U.S. by HSBC Bank USA, N.A. Member FDIC.
    Expires 6/29/2020

Bottom Line

Radius Bank is a great online bank offering several high-yielding accounts for you to choose from. Checking accounts that offer interest and cash back are very rare. But Radius lets you take advantage of both, plus a High-Yield savings account.

Look into how Radius Bank stacks up against your current bank to see if it's right for you.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

More from CreditDonkey:


Best Online Savings Account


Best CD Rates


Best Free Checking Accounts



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