In your search for an online bank, Axos Bank may be one of the few on your shortlist. Should you open an account?
Well, they have top notch free checking, and they have solid business banking. They also pay high yields on their savings accounts.
Check out our full review of Axos Bank below.
- Full service online bank
- Earn interest on checking accounts
- Fewer fees than most banks
Who Is Axos Bank?
Axos Bank started life on July 4, 2000, as Bank of Internet USA, offering only basic checking services. The bank’s focus was on a superior online experience coupled with 24/7 access.
On October 1, 2018, the company changed to Axos Bank and began trading on the New York Stock Exchange under the ticker “AX.” Existing brands were absorbed into Axos Bank. These included Bank of Internet USA, BofI Federal Bank, including BofI Advisor, Bank X, NetBank, Apartment Bank, Annuitants Federal Bank, and Virtus Bank.
Axos Bank is still very focused on the “100% digital” experience, as evidenced by its lack of branches. No branches mean higher rates of return for customers through financial products. Axos Bank is also a full-service bank with financial products for individuals and businesses that span deposit accounts and loans.
What Do They Offer?
While Axos Bank offers products for individuals and businesses, we’ll focus on offerings for individuals.
Axos Bank offers five different checking accounts with two of them focusing on age categories (13–17 years old and 55+ years old). These two accounts are also called Specialized Accounts.
- Rewards Checking: This is for frequent debit card use and direct deposits. It has a 1.25% APY, no overdraft or non-sufficient funds fees, and unlimited domestic ATM fee reimbursements. The 1.25% rate is calculated through spending on your debit card and direct deposits totaling $1,000 per month.
- Essential Checking: This is no-fee checking, has no overdraft or non-sufficient funds fees, and has unlimited domestic ATM fee reimbursements.
- CashBack Checking: You get 1.00% cash back when using your debit card and maintaining a $1,500 balance with this account. This has unlimited domestic ATM fee reimbursements and unlimited check writing.
- Golden Checking (Age 55+): This has a 0.20% APY, free personal checks, and no monthly or minimum balance requirement. You also get up to $8.00/month in ATM fee reimbursements.
- First Checking (Ages 13 to 17): This has a 0.25% APY, no monthly fee, no non-sufficient fund fee, and up to $12/month in ATM fee reimbursements. This is managed as a joint checking account.
Checking accounts do include overdraft protection. There is no annual fee for using overdraft protection. However, you’ll be charged an 18.00% APR from the date the overdraft transaction occurs. There is also a $25.00 late fee if the overdraft is paid 10 days after the due date.
Axos Bank does have a mobile banking app that lets you deposit checks.
Non-retirement savings products come in three flavors:
- High Yield Savings: There is a low APY, no monthly fee, a free ATM card, and no minimum balance required.
- High Yield Money Market: There is a average APY, limited check writing, no monthly fee, and no minimum balance.
- Certificates of Deposit: These require a $1,000 deposit, you can earn up to a high APY, and there are 3- to 60-month terms.
You can also open or transfer an existing IRA into an Axos Bank IRA Savings or IRA CD. Rates on IRAs range from 0.15% to 0.70% APY. An IRA Savings requires a minimum deposit of $250 while an IRA CD requires a deposit of $1,000.
Axos Bank customer service can be contacted through an 800 number on their website, through chat, or by email.
Are There Any Fees?
There are some fees depending on the situation. Some of the more common fees include:
- Debit or ATM card replacement: $5.00
- Bank verification letter: $35.00
- Account paper statement: $5.00
- Domestic outgoing wire: $35.00
- International outgoing wire: $45.00
- Item returned unpaid, per item: $10.00
- Excess transaction or withdrawal fee: $10.00
- Stop-payment request that is completed online: $10.00
- Stop-payment request that is completed with assistance: $35.00
How Do I Open an Account?
Visit https://www.axosbank.com to open an account and click the “Open an Account” button. You’ll need the following to open an account:
- A Social Security number
- A valid form of ID, which can include a driver’s license or state ID
- A valid U.S. address that is not a PO Box
- U.S. citizenship or status as a resident alien
Is My Money Safe?
Yes — Axos Bank is an FDIC member, which insures deposit accounts up to $250,000 for each customer. Additionally, they utilize bank-grade encryption, two-step authentication, anti-virus and malware protection, automatic logout, and account monitoring. Basically, everything you’d expect from an online bank.
Axos Bank recently acquired the robo-advisor WiseBanyan and rebranded them as Axos Invest. They are a free robo-advisor, which is a great deal.
Check out our full Axos Invest review here.
Is It Worth It?
Working with an online bank that has no branches or only a few that aren’t nearby is common practice nowadays. Online banks that are full-service are becoming more common. Eliminating or never offering branches allows online banks to increase returns on financial products for customers. That is what you get with Axos Bank.
ATM reimbursements are another great feature of Axos Bank, allowing you to use ATMs across the country, rather than in one regional area. All of these features make Axos Bank appealing to a broad audience of customers.