Most bank accounts these days pay you a tiny little pittance in interest on your money, and they’re eager to charge you hefty $35 overdraft fees whenever they can. That’s how the big banks make their profits.
Why let them rip you off? Luckily, we’ve found a banking service that pays you the highest interest rate we’ve seen in some time. It’s called One, and it pays you up to 50 times the national average. (That’s not a typo. We’ll lay out the numbers for you.)
Not only that, but One also allows you to borrow money from an affordable line of credit that it makes available to you. And it lets you overdraft your account without charging you any fees.
One is a state-of-the-art online account that’s built for the 2020s. It combines all the helpful features that other digital accounts offer — like the ability to get paid up to two days early. And you can save money automatically.
What makes One unique, though, is its generous interest rate combined with its handy Credit Line that can help you plow through any temporary financial obstacles that come your way. No other account we’ve seen can match it.
Organize Your Money Easily
This is an all-in-one account, a hybrid of spending and saving that keeps your money in different “Pockets.”
Here are the three Pockets you start with:
Spend: This basically functions like a checking account with a debit card. There are no maintenance fees or minimum balances. If you want, you can also create different Pockets in here for a variety of expenses, like gas, rent or groceries.
Save: You can put savings in this Pocket, which pays a nice interest rate of 1.00% APY* — way higher than most traditional banks. It pays interest on balances up to $5,000, or up to $25,000 if you’re direct-depositing your paychecks to One.
Auto-Save: This is the headliner, the big draw for a lot of One customers. This is where your automatic savings go. It functions as a high-yield savings account, paying out a whopping 3.00% APY*. Seriously, that’s 50 times the national average interest rate for savings accounts, which is currently 0.04% APY, according to the FDIC.
You can Auto-Save in two different ways. You can funnel up to 10% of your direct-deposit paychecks (up to $1,000 per month) into this Pocket. You can also round up your debit card purchases to the nearest dollar, sending your digital spare change into Auto-Save.
Each of these three Pockets — Spend, Save and Auto-Save — has its own account number, so you can set up direct deposits to each of them if you want.
You can also set up Shared Pockets with other people, similar to a joint account. Share an account with your spouse or your roommate and save toward mutual goals.
Tens of thousands of One customers have created Pockets to share more than $20 million with others.
So. Many. Features.
There’s a lot of competition in the growing industry of digital banking services. That field is getting kind of crowded, to be honest.
So, like we said earlier, One makes sure it offers every available modern-day banking tool that’s designed to make your life easier.
Here’s a list.
Borrow money: When you set up direct deposit, qualifying customers can get access to a line of credit that’s equal to the value of their paycheck. If you find yourself in a financial crunch, it’s super easy to finance purchases from your Credit Line. It charges interest at 1% per month, which amounts to 12% APR⁑. (Credit cards charge way higher interest than that.)
Get paid early**: If you have direct deposit, you may be able to get your paychecks up to two days early, depending on your employer.
Fee-Free Overdraft protection: The average overdraft fee banks are charging these days has risen to nearly $35. With this account, you avoid overdraft fees. If you overdraft your account, it automatically dips into your Credit Line to make up the difference. If you pay it back by the end of the month, you won’t pay any interest.
ATMs: You can use nearly 55,000 ATMs fee-free through the Allpoint network.
Credit Builder†: This feature makes automatic on-time payments for qualifying customers every month, helping to build your credit and improve your credit rating.
FDIC insured: Your account is FDIC-insured through One’s partner, Coastal Community Bank. It’s protected by bank-level 256-bit encryption.
Pros and Cons
Are there any drawbacks to One? Well, if you’re not used to having an online-only account, it can be a bit of an adjustment. But you might be surprised by how little you’ll miss having a brick-and-mortar bank to go to. You don’t really need one.
One has customer support available by phone, email or chat Monday through Friday.
Here are the pros we like most:
- We like the ability to earn some real interest on your earnings. Brick-and-mortar banks used to pay out decent interest on savings accounts, but they don’t anymore.
- We like the flexibility One gives you to power through any temporary financial glitches you run into. We also like the ability to easily share money with others.
These reasons are why One’s app is highly rated by those who use it. As of September, the app was rated 4.8 out of 5 with 8,500 reviews in Apple’s App Store, and was rated 4.6 out of 5 with nearly 5,000 reviews on Google Play.
Signing up is easy. You type in your basic info. They do a soft credit check, which won’t hurt your credit, then you finish your profile.
One’s motto is, “Organize your money, simplify your life. Make real progress.” If you use the tools it offers, you actually can make real progress.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He likes earning interest.
*Annual Percentage Yield effective as of 9/1/2020 and subject to change. 3.00% APY available on all Auto-Save balances. Maximum contributions of up to $1,000 per month for paycheck Auto-Save and no maximum contribution for card Auto-Save. 1.00% APY available on Save balances up to $5,000, up to $25,000 with a qualifying paycheck direct deposit.
Early Paycheck may post up to 2 days earlier than the scheduled payment date. Early direct deposit of a paycheck depends on factors such as timing of the payer’s deposit transmission, and the type of payer transmitting the deposit. Learn more about what qualifies as a paycheck direct deposit here.
⁑ Subject to credit approval. Offer valid for One account holders issued One cards. We’ll inform you of your credit limit after you set up recurring qualifying direct deposits. Your credit limit may be determined by multiple factors including your credit score, income, and ability to repay. APR ranges from 12% to 18%. Additional limitations, terms and conditions apply.
† Credit Builder functions as a secured charge card that is designed to help you build your credit. Must have a One account to use Credit Builder. No credit history required. A variety of factors impact your credit including payment history, utilization, derogatory marks, account age, total number of accounts, and inquiries. Building your credit may take time and is a process, but Credit Builder may be able to help.
FDIC national average interest checking rate as of 05/17/21
The One card is issued by Coastal Community Bank, Member FDIC, pursuant to license by Mastercard International.
Banking services provided by Coastal Community Bank, Member FDIC. One is a financial technology company, not a bank.