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BankDirect Review 2022

Published March 2022 by Karen Bennett

AT A GLANCE
4.4

Bankrate Score

bank-logo

ATM fee refunds

Free Checking

Consumers looking for an established online-only financial institution may want to consider BankDirect.

  • Checking
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    4.8
  • MMAs
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    4.7
  • CDs
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    4.2
  • Savings
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    3.2
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    Capital One

    Member FDIC

    CD

    1.70 % APY

    2yr

    Term

    $ 0

    Min. deposit

    Goldman Sachs Bank USA

    Member FDIC

    CD

    1.30 % APY

    1yr

    Term

    $ 500

    Min. deposit

    Capital One

    Member FDIC

    CD

    1.70 % APY

    2yr

    Term

    $ 0

    Min. deposit

    Overall

    4.4

    Bankrate Score

    BankDirect is an online-only bank that features competitive rates on some products and is available to customers in all 50 states.

    What we like

    • You can access cash at more than 55,000 surcharge-free ATMs through the Allpoint network.

    • The rates on some products are competitive.

    What we don't

    • There are no physical branches.

    • There is a high minimum deposit required for CDs.

    • The money market and interest checking require high balances to earn top rates.

    • You can find better savings account rates elsewhere.

    Checking accounts

    4.8

    Bankrate Score

    OTHER CHECKING OFFERS YOU MAY LIKE
    SoFi

    Member FDIC

    Checking account

    1.25 % APY

    $ 0

    To open

    $ 0

    To avoid fees

    BankDirect’s Smart Checking, the product scored for this review, requires no opening balance and charges no monthly maintenance fee. Overdraft fees, however, are steep.

    The Checking with Interest account earns a competitive rate for account holders with a balance greater than $2,500.

    What we like

    • There is no minimum balance to open either checking the account.

    • There are no monthly maintenance fees for the Smart Checking account.

    What we don't

    • The nonsufficient funds (NSF) fee is steep at $45 an item and exceeds the national average for NSF fees.

    • Checking with Interest requires a balance of $2,500 or more to avoid the $15 monthly fee.

    Money market accounts

    4.7

    Bankrate Score

    The Money Market Plus account pays a highly competitive annual percentage yield (APY) on accounts with a balance of at least $10,000. Interest is compounded daily. An initial order of 40 personalized checks is free. Account holders also receive an ATM card and are reimbursed for up to four ATM withdrawals each statement cycle.

    What we like

    • The account earns a high APY.

    • The first order of 40 checks is free.

    • There is no monthly fee.

    What we don't

    • A high minimum balance of $10,000 is required to earn the highest yield.

    CD rates

    4.2

    Bankrate Score

    OTHER CD OFFERS YOU MAY LIKE
    Capital One

    Member FDIC

    CD

    1.70 % APY

    2yr

    Term

    $ 0

    Min. deposit

    BankDirect offers a range of traditional CDs across nine terms, from six months to five years, providing customers the ability to build a CD ladder. But they require a $10,000 minimum balance, putting them outside some consumers’ reach. Yields for most terms are underwhelming. Interest is compounded daily.

    BankDirect offers neither a bump-up CD nor a no-penalty CD.

    What we like

    • Most standard CD terms are available.

    • Interest is compounded daily.

    What we don't

    • Annual percentage yields (APYs) aren’t competitive for most terms.

    • There is a high minimum deposit required for traditional CDs.

    • Bump-up and no-penalty CDs aren’t available.

    Savings accounts

    3.2

    Bankrate Score

    BankDirect’s Regular Savings Account has a low minimum opening balance requirement of $100 and charges no monthly fee. Other banks, however, offer higher APYs.

    What we like

    • There is a low minimum opening balance requirement of $100.

    • There is no monthly fee.

    What we don't

    • Higher APYs are available elsewhere.

    Bank experience

    BankDirect is a member of the Allpoint network, providing customers fee-free access to more than 55,000 ATMs nationwide. The BankDirect app offers basic functions such as bill pay and mobile check deposits but doesn’t offer more robust features such as a peer-to-peer payment option. Customer support by phone is limited to weekdays.

    About BankDirect

    BankDirect is the national internet banking division of Texas Capital Bank. It was established in 1999 and provides banking products nationwide.

    BankDirect and Texas Capital Bank operate independently.

    Karen Bennett Twitter Created with Sketch. @

    Karen Bennett Twitter Created with Sketch. @

    Karen Bennett is a consumer banking reporter at Bankrate. She uses her finance writing background to help readers learn more about savings and checking accounts, CDs, and other financial matters. Karen brings decades of writing and reporting experience to the table, including the roles of credit cards writer for travel website Million Mile Secrets and money and career writer for The Cheat Sheet. Her work has also appeared in USA Today, Illinois Legal Times, and several Chicago, Milwaukee, and Washington, D.C. newspapers. In addition, she’s worked in the areas of marketing and business development, and she was product manager for a consumer money-saving website. When she’s not writing Bankrate articles, she can often be found cheering her kids on at soccer games, cooking and reading up on saving for retirement and other personal finance topics.