Have you been looking into Radius Bank and want to know if it is the right fit for you? Look no further. Read this bank review to see if you would like to try it out.

What is Radius Bank?

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

It opened in 1987 and since then it now has $1.4 billion assets. It is a leading online bank that has earned some distinguished awards:

• 2018 FinXTech Startup Innovation Award
• 2018 EverFi Finacial Capability Award
• 2017 Celent Model Bank Product Innovation Award

In 2020, the LendingClub had acquired Radius Bank, signaling the first time a fintech company had purchased a U.S. regulated bank.

LendingClub provides a platform for person-to-person lending between borrowers and lenders. It allows individuals to invest in loans for other people, but still receive the benefits of interest.

Fees

Checking Account Fees 

You may want to be aware of these fees 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 finds charge of $25.00 per item

Saving Account Fees

There is only one fee you need to worry about with the High-Yield Savings account. It is for expediting an ATM card and the charge will be $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.

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

What Radius Bank Offers

High-Yield Savings

You can get a High-Yield Savings account at Radius with no monthly fees. It only takes $100 to open, and once it is open there is no minimum balance to maintain. You can also get a free ATM card and have no ATM fees.

If you would like to earn interest on your balances, you will just have to maintain a certain balance in your account to receive interest.

It is also very easy and only takes 3 minutes to open a High-Yield Savings account. All you need is your Social Security Number and $100.

Rewards Checking

If you are looking for a checking account that earns interest on your balance while giving you cash back on purchases, you may want to consider the Rewards Checking account at Radius Bank.

In order to open a Rewards Checking account, you will need $100. With this account, you can expect:

• No minimum balance requirements unless earning cash back/interest
• 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
• Receive your direct deposit up to two days early

Additionally, you can earn 1.00% cash back on all qualifying signature-based purchases each month. 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 will also earn interest on the balance in your Rewards Checking account, but the minimum balance requirements must be met.

Superhero Checking

If you are interested in giving back, you might like the Superhero Checking account. The interest you earn in the Superhero Checking account will be matched by Radius bank and then donated to March of Dimes.

It takes $100 to open, but after that you do not need to maintain a minimum balance. You will still have access to 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

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

Essential Checking

If you do not qualify for the Superhero or Rewards checking options, you can get the Essential Checking account.

This account will help you build a better banking record if you have some negative marks from prior banks.

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

There is no minimum balance requirement, but you will have to pay a monthly service fee of $9.00. Be sure to be aware of these limits:

• $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. You can choose any increment between 3 months and 5 years.

All of the options online require a minimum balance of $500. If you need to withdraw your money before the CD term is up, you will need to pay fees equal to 365 days of simple interest.

Business Tailored Checking

Radius Bank’s Business Tailored Checking account helps you earn four times the industry average on balances over $5,000. If your balance is under $5,000, you’ll need to pay a $10 monthly maintenance fee.

$100 is needed to open the account, but after you will get unlimited transactions so you don’t have to pay penalties, up charges, or fees for using the account. Also, you won’t have to pay ATM fees worldwide.

The application process only takes a few minutes. Once you’re approved you will receive a free business debit card and have access to free bill pay. Your account will also be FDIC insured up to the maximum amount allowed.

Radius Bank Features

Overdraft Protection

There are two ways to protect yourself from overdraft. One way is to link up to 3 accounts to your personal checking account. That way in case of an overdraft it will pull from one of those accounts to cover the balance.

Another option is to apply for a line of credit. If approved, you will have a credit limit that you can access 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

You can also add your Radius Bank account to your mobile wallet. Add your debit card to Apple Pay, Samsung Pay, or Google Pay accounts to have a faster checkout.

Partnerships

Radius Bank has partnered with many financial products to help you better manage your money. You can expect to see:

• Billshark: 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

Radius Bank has a finance tool set that will help you gain a better understanding of your personal finances. You will be able to see all your Radius Bank accounts and link any external accounts.

Once you document all your spending in one place, you can create budgets to keep you on track and analyze your spending habits. It also allows you to experiment with different debt repayment strategies to see what method you should be using.

How it Compares

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Bottom Line

Radius Bank is a great online bank that offers many great high-yielding accounts to choose from. It is hard to come across checking accounts that offer both interest and cash back, but you get a chance to experience both!

See if it is the right fit for you. Check out our full list of bank bonuses to take advantage of more offers right here on HMB!