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If you want to set up a bank account that combines checking and budgeting capabilities, Simple may be the right service for you. Simple is an app that works with BBVA and allows you to easily manage your money on your phone. This is great if you’ve had difficulty saving money in the past, and need an effective service to help you out. Read on the review of Simple Bank and find out if it is the right financial advisor for you.
What is Simple Bank?
Simple is a free digital checking account that you can use to pay bills online. You do all the transactions through your smartphone. Simple, a subsidiary of BBVA USA, was shut down on January 7, 2021, and services began to be provided exclusively by BBVA USA.
Simple launched in 2009 based on the premise that online banking should be easy and that people should not have to pay any fees for their services. Simple is a product company that offers banking services that are as useful as a banking solution.
It enables users to have access to a wide range of different banking products and services without having to pay any fees or pay any interest. It does this in part by staying entirely online.
Simple Bank Accounts
Certificate of Deposit (CD) Account
Simple Bank offers a single, no-interest, 12-month CD that you can open at any time. In addition, it offers the same APY as its standard checking accounts. You can open as many accounts as you like, but they will have the same terms. Minimum deposit amounts are low. These CDs don’t impose any withdrawal penalties if you withdraw early.
It is common for savings accounts to earn lower APYs by that, but Simple Bank is an exception. The APY is higher than the one that you earn on a regular checking account. But, the CD APY is the equal with the one on the checking account, so there’s no point in keeping your money in a CD if you can earn the same with a checking account.
Simple Bank offers three different checking accounts to its customers. Those accounts include the Simple Checking Account, the Shared Checking Account, and the Protected Goals Account.
The Simple Checking Account is standard. You can make deposits or make withdrawals directly from your checking account. There are no limits on the amount that you can deposit or withdraw per month. You can withdraw money directly from this account as long as you keep it in good standing.
It doesn’t pay interest on money that you deposit into the account, so it’s not ideal for storing most of your savings. This is money that you plan to use to pay for your day-to-day expenses. You can also access a number of budgeting tools with this account. You can use these budgeting tools to help you decide how much money to spend, and how much you should reserve for your various goals.
Simple offers high-yielding checking accounts in the form of Simple Protected Goals Account. You can only open a Protected Goals Account if you have opened a Simple Checking Account. It offers a very high interest rate that is competitive with some of the best online savings accounts. It helps you accumulate money to help you reach certain financial goals. You can set up a saved money envelope with this account, such as an emergency savings account.
You can easily set up separate savings accounts so that you can save money for specific goals. There are no monthly withdrawal limits if you open this checking account. You can withdraw money from your Protected Goals Account as many times as you like. If you want to earn the most interest, you should limit the amount you withdraw from your checking account.
The Simple Shared Checking Account is made up of two different checking accounts and a single shared checking account. Two persons can open a shared checking account where each person can save money to help them save for various financial goals. You will need to open a Simple Checking Account to use this feature.
Benefits of Simple Bank
Simple is completely free to use and you don’t need to have a certain amount of money in the account to start using it. Simple doesn’t charge any of the usual bank fees that you would expect to pay, such as a fee to request a check to be returned, or to force you to pay a stop payment, or to close your account.
It is good for helping you learn budgeting. As a budget-based checking account, Simple encourages you to budget your money to cover your expenses, and to make room in your budget to save.
It encourages saving. Simple checking enables you to do savings by putting savings away for specific projects or programs. You fund these savings like you would pay regular bills.
Simple Bank Drawbacks
You do not get printed checks even though this is a checking account. Plus, Simple is only available in the United States. It is not available if you live outside of the United States. As an online platform, Simple also doesn’t have any physical branch to visit.
Simple does not offer a competitive interest rate, because Simple rates are nominal. They are not as competitive as high interest online banks. If you want to earn a higher interest rate, you must have at least $2,000 in a Protected Goal Account.
Simple offers checking accounts. It does not offer other products commonly associated with banking, including credit cards, certificates of deposit, and mortgages.
All in all, it’s important to think about Simple if you want a high-yielding checking account, if you like to budget with automated tools, or if you want a CD that will allow you to withdraw money at any time without being penalized for doing it.
There are several advantages of using Simple Bank for your online payments. However, there are also some disadvantages as well. If your preference suits the offers given by Simple Bank, don’t hesitate to start using their service. However, if their drawbacks unsettle you, consider checking out other similar products on the market.