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Bank5 Connect Review: Checking, Savings and CDs

January 19, 2018
Banking, Banks & Credit Unions, Checking Accounts, Savings Accounts
bank5-connect-review
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We adhere to strict standards of editorial integrity. Some of the products we feature are from our partners. Here’s how we make money.

NerdWallet rating: 4.0/5.0

Where Bank5 Connect shines:

  • No monthly fees
  • Attractive rates on deposit accounts
  • ATM fee reimbursements

Where Bank5 Connect falls short:

  • No physical branches
  • Not available to residents of Massachusetts or Rhode Island

Where Bank5 Connect shines:

  • No monthly fees
  • Attractive rates on deposit accounts
  • ATM fee reimbursements

Where Bank5 Connect falls short:

  • No physical branches
  • Not available to residents of Massachusetts or Rhode Island

Where Bank5 Connect shines:

  • No monthly fees
  • Attractive rates on deposit accounts
  • ATM fee reimbursements

Where Bank5 Connect falls short:

  • No physical branches
  • Not available to residents of Massachusetts or Rhode Island

 

The bottom line

Bank5 Connect

at Bank5 Connect,

Member, FDIC

Bank5 Connect, like other online banks, has accounts with no monthly fees and higher savings rates than many brick-and-mortar competitors. With a mobile-friendly platform and access to a robust ATM network, Bank5 Connect is a solid choice for a no-frills online bank.

Best if: you’re looking for online checking and savings accounts with decent interest rates
.


Read on for details about Bank5 Connect’s checking and savings accounts, CDs, bank experience and fees.

Checking: 4.5/5.0

Bank5 Connect offers just one checking account, but it earns interest and has a highly competitive annual percentage yield of 0.76%. To earn the APY, you have to maintain a minimum $100 balance.

ProsCons
  • No monthly service fee
  • Affordable $10 minimum deposit to open an account
  • Access to over 7,200 free ATMs and up to $15 per month reimbursed for fees racked up outside Bank5's ATM network
  • Must accept e-statements. Otherwise, $1 monthly paper statement fee
Account reviewed for rating: High-Interest Checking

Savings: 4.0/5.0

Bank5 Connect also offers one savings account, High-Interest Savings, which, true to its name, has an attractive 2.05% APY. This rate far exceeds the national average of 0.08% APY — but there are higher rates available.

ProsCons
  • Good interest rate
  • No monthly service fee
  • Requires $100 minimum balance to earn interest

Account reviewed for rating: High-Interest Savings

» To compare interest rates, check NerdWallet’s best high-yield online savings accounts

Certificates of deposit: 3.5/5.0

Bank5 Connect has two types of CDs: Investment CDs, which allow additional deposits after opening, and Connect CDs, which don’t. The Investment CD is available only for a 24-month term but has a very good promotional rate of 2.70% APY. Connect CDs are available in terms of six, 12, 18, 24 and 36 months (no five-year term is available). Rates are as high as 2.90% APY for a three-year term. A minimum $500 deposit is required to open a CD.

ProsCons
  • Special rate of 2.70% on 24-month Investment CD
  • Longest term available is three years; many banks offer five-year terms, which often come with higher rates. A few banks have terms longer than that

» Find out if there are better deals near you on NerdWallet’s best CD rates tool.

Bank experience: 3.5/5.0

Banks that have no physical branches must put a premium on strong online and mobile platforms and customer phone support to provide a good experience for customers. For the most part, Bank5 Connect delivers.

Its website is user-friendly; information about accounts, rates and fees is generally easy to find. Online chat support is available on weekdays. There is no 24/7 live customer support, but you can get a representative on the phone during Eastern time business hours, some weekday evening hours and on weekends.

With the bank’s mobile app, you can deposit checks, pay bills, transfer funds and find an ATM. Android and iOS users rate the app 4 out of 5 stars.

Overdraft fees: 3.0/5.0

The bank’s $15 overdraft fee isn’t cheap, though it’s notably lower than the national median of $34. The bank caps the number of possible overdraft fees in a single day at six, meaning that overdrawing multiple times in a day could cost you up to $90.

The good news is that Bank5 offers overdraft protection transfers from a linked account for free, which is rare among banks.

Bank5 Connect

at Bank5 Connect,

Member, FDIC

A solid online option, available to most

Bank 5 Connect is not available to people who live in Massachusetts or Rhode Island. For those residents, the territory is covered by the bank’s brick-and-mortar parent company, Bank Five. If you don’t live in those two states, however, Bank 5 Connect offers online accounts that don’t charge a lot of fees and earn decent rates, which makes it worth considering.

» New to online banking? Learn ways to make your transactions more secure.

Updated Jan. 19, 2018.


Ratings methodology

NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, customer experience and overdraft fees.

Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation.

The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.