BankDirect Review 2020 | Bankrate

BankDirect Review 2020

Published February 2020 by Adrian D. Garcia

AT A GLANCE
3.7

Bankrate Score

bank-logo

ATM fee refunds

Top CD rates

Those looking for an established online-only financial institution should consider BankDirect. However, those looking for access to physical branches will want to go with another option.

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    4.5
  • CDs
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    3.9
  • Savings
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    3.3
  • Checking
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    3.3
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    American Express National Bank

    Member FDIC

    Savings account

    0.60 % APY

    $ 1

    Min. balance for APY

    Sallie Mae

    Member FDIC

    MMA

    0.55 % APY

    $ 0

    Min. balance for APY

    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    0.50 % APY

    $ 0

    Min. balance for APY

    Overall

    3.7

    Bankrate Score

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

    What we like

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

    • Ability to have ATM surcharge fees refunded.

    What we don't

    • No physical branches.

    • High minimum deposit required for CDs.

    • Better savings rates can be found elsewhere.

    Money market accounts

    4.5

    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 or more 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

    • The Money Market Plus account has an ATM card.

    • First order of 50 checks are free.

    • 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

    3.9

    Bankrate Score

    OTHER CD OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    CD

    0.65 % APY

    1yr

    Term

    $ 500

    Min. deposit

    BankDirect has 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.

    Penalties for closing your CD before it matures will vary depending on the length of the CD term. As usual, the longer the term, the harsher the penalty. For 12-month CDs, the penalty is 90 days’ interest based on the amount withdrawn.

    What we like

    • Interest is compounded daily.

    • Interest rates are competitive across most terms.

    • Most standard CD terms are available.

    • Earned interest can be withdrawn before maturity without penalty.

    What we don't

    • High minimum deposit required for CDs.

    • Low yield for long-term CDs considering the high minimum deposit required.

    Savings accounts

    3.3

    Bankrate Score

    OTHER SAVINGS OFFERS YOU MAY LIKE
    American Express National Bank

    Member FDIC

    Savings account

    0.60 % APY

    $ 1

    Min. balance for APY

    BankDirect has a Regular Savings Account that is in line with Bankrate's national average for savings accounts. It has a low minimum opening balance requirement of $100. It doesn’t have a monthly fee.

    What we like

    • Low minimum opening balance requirement of $100.

    • Interest is compounded daily.

    • No monthly fee.

    What we don't

    • Much higher yields are available elsewhere.

    Checking accounts

    3.3

    Bankrate Score

    OTHER CHECKING OFFERS YOU MAY LIKE
    Simple

    Member FDIC

    Checking account

    0.60 % APY

    $ 0

    To open

    $ 0

    To avoid fees

    BankDirect’s Checking with Interest account can be opened with a $500 minimum deposit. The account offers tiered rates with interest available on balances of $2,500 or more. Those whose average daily ledger balance falls below $2,500 will be charged a $15 monthly fee.

    What we like

    • 4 reimbursed ATM withdrawals per statement cycle for Checking with Interest customers.

    • First order of 50 personalized checks for free.

    • Interest paid on balances greater than $2,500.

    • Access to cash at over 55,000 surcharge-free ATMs through the Allpoint network.

    What we don't

    • Other financial institutions make it easier to waive monthly maintenance fees and earn interest.

    • No physical branches.

    • The nonsufficient funds (overdraft) fee is $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. You can also set up controls on your cards through CardValet. This feature lets you call the shots on your debit card — such as when and where you can use your payment card — through your mobile device.

    You’ll also have the ability to use Apple Pay, Samsung Pay and Google Pay.

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

    About BankDirect

    BankDirect went live in May 1999. The financial institution is the national internet banking division of Texas Capital Bank, which was founded in December 1998. BankDirect and Texas Capital Bank operate independently.

    Adrian D. Garcia Twitter Created with Sketch. @ADRIANDGARCIA

    Adrian D. Garcia Twitter Created with Sketch. @ADRIANDGARCIA

    Adrian D. Garcia joined Bankrate as a data reporter in 2018. Adrian previously spent four years covering business, trends and other news stories for Denverite.com, the Fort Collins Coloradoan and other news organizations in Colorado. He graduated with a journalism degree from the University of Colorado Boulder in 2014. He participated in ProPublica's inaugural summer data institute in 2016 and the SABEW Goldschmidt Data Immersion Training in 2019.