BankDirect Review 2021

Published January 2021 by Mary Wisniewski

AT A GLANCE
4.3

Bankrate Score

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Top CD rates

Those looking for an established online-only financial institution should consider BankDirect.

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    4.7
  • CDs
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    4.2
  • Savings
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    3.3
  • Checking
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    4.4
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    0.50 % APY

    $ 0

    Min. balance for APY

    Goldman Sachs Bank USA

    Member FDIC

    CD

    0.70 % APY

    18mo

    Term

    $ 500

    Min. deposit

    Goldman Sachs Bank USA

    Member FDIC

    CD

    0.55 % APY

    1yr

    Term

    $ 500

    Min. deposit

    Overall

    4.3

    Bankrate Score

    BankDirect is an online-only bank that features competitive rates 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 bank products are competitive.

    What we don't

    • There are no physical branches.

    • There is a high minimum deposit required for CDs.

    • You can still find better savings rates elsewhere.

    Money market accounts

    4.7

    Bankrate Score

    The Money Market Plus account has a competitive yield. It’s not a top-tier APY, but it’s still much greater than the Bankrate national average. To get this APY, you need to have at least $10,000 in the account. This account has interest compounded on a daily basis and has checks — up to 50 — available for free. You also can get an ATM card — so accessibility and a respectable APY are two features of this account.

    What we like

    • First order of 50 checks are free.

    • There is no monthly fee.

    What we don't

    • High minimum balance requirement ($10,000) to earn highest yield on the Money Market Plus account.

    CD rates

    4.2

    Bankrate Score

    OTHER CD OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    CD

    0.70 % APY

    18mo

    Term

    $ 500

    Min. deposit

    BankDirect offers a handful of CDs that are available across different terms. Besides traditional CDs, there are IRA CDs that require a lower minimum deposit in exchange for a lower annual percentage yield. You must deposit at least $10,000 to open a CD.

    What we like

    • Interest rates are competitive across most terms.

    • Most standard CD terms are available.

    What we don't

    • There is a high minimum deposit required for CDs.

    Savings accounts

    3.3

    Bankrate Score

    OTHER SAVINGS OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    0.50 % APY

    $ 0

    Min. balance for APY

    BankDirect’s Regular Savings Account has a lower minimum opening balance requirement of $100. It doesn’t have a monthly fee. However, you can find higher yields at other banks.

    What we like

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

    • There is no monthly fee.

    What we don't

    • There are higher yields available elsewhere.

    Checking accounts

    4.4

    Bankrate Score

    OTHER CHECKING OFFERS YOU MAY LIKE
    Quontic Bank

    Member FDIC

    Checking account

    1.01 % APY

    $ 100

    To open

    $ 0

    To avoid fees

    BankDirect’s Smart Checking can be opened with just $100. There is no monthly maintenance fee either. Overdraft fees are steeper.

    What we like

    • You only need $100 to open the account.

    • There are no monthly maintenance fees.

    What we don't

    • The nonsufficient funds (overdraft) fee is steep ($45 per item).

    Bank experience

    BankDirect provides plenty of access to ATMs. As a customer, you will have access to more than 55,000 ATMs for free through the Allpoint network.

    While the mobile banking app exists, the design is basic. But the most important features are in the app, including the ability to pay your bills and deposit checks.

    The ability to get customer support on the phone is limited to weekdays, however.

    About BankDirect

    BankDirect is the national internet banking division of Texas Capital Bank and it went live in May 1999.

    BankDirect and Texas Capital Bank operate independently.

    Mary Wisniewski Twitter Created with Sketch. @MARYMWISNIEWSKI

    Mary Wisniewski Twitter Created with Sketch. @MARYMWISNIEWSKI

    Mary Wisniewski is a banking editor for Bankrate. She oversees editorial coverage of savings and mobile banking articles as well as personal finance courses. She occasionally writes on fintech trends — a beat she has covered for more than a decade. Mary is a frequent speaker at a variety of leading digital banking events and podcasts, including: Money Next Summit, the Money Experience Summit, the Future of Fintech, Fintech South, Breaking Banks and more. She was named as one of 200 revolutionists in fintech and one of top 100 fintech influencers in 2019. She was also a judge for the Finovate Awards in 2020 and 2019. Previously, Mary covered fintech for American Banker and edited op-eds for the publication's BankThink section. She was also a blogger and editor at Bank Innovation and served as a fashion editor for National Jeweler, where she reported on fashion shows and jewelry news. Her work has appeared in American Banker, Bankrate, the Associated Press, Star Tribune, Billboard, MSN and more. Her stories are referenced in numerous industry reports, like this one by Deloitte. Mary grew up in the Michigan suburbs and now lives in Los Angeles with a maltipoo, a record player and roller skates.