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Bank5 Connect Review: Checking, Savings and CDs

March 19, 2019
Banking, Banks & Credit Unions, Checking Accounts, Savings Accounts
bank5-connect-review
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4.0 NerdWallet rating

Where Bank5 Connect shines:

  • No monthly fees if you choose paperless statements.
  • Attractive rates on deposit accounts, including checking.
  • 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 if you choose paperless statements.
  • Attractive rates on deposit accounts, including checking.
  • 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 if you choose paperless statements.
  • Attractive rates on deposit accounts, including checking.
  • 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, like other online banks, has accounts with easily avoidable monthly fees and higher savings rates than many brick-and-mortar competitors. With a mobile-friendly platform and access to a solid 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 very good interest rates.


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

Checking: 4.5/5.0

ProsCons
  • No monthly fees with paperless statements.
  • Affordable $10 minimum deposit to open an account.
  • Access to about 6,600 free ATMs and up to $15 per month reimbursed for fees racked up outside Bank5's ATM network.
  • $1 monthly paper statement fee
  • $100 minimum to earn interest.
  • The daily ATM withdrawal limit is $500 and daily debit card purchase limit is $1,000. (A blessing if your card gets stolen, but slightly annoying otherwise.)
Account reviewed for rating: High-Interest Checking

Bank5 Connect offers just one checking account, but it’s a good one, with a highly competitive annual percentage yield of 0.76%. To earn the APY, you have to maintain a minimum $100 balance, but it’s a relatively small requirement compared to those of other banks. Just keep an eye out for Bank5’s daily usage limits. Other banks have these, but Bank5’s are on the low side.

» For the best rates and perks, read NerdWallet’s best online checking accounts

Savings: 5.0/5.0

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

Account reviewed for rating: High-Interest Savings

Bank5 Connect also offers one savings account, High-Interest Savings, which, true to its name, has an attractive 1.90% APY. This rate far exceeds the national average of 0.09% APY.


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

Certificates of deposit: 4.0/5.0

ProsCons
  • Multiple CD types available.
  • Solid rates on all CDs.
  • Longest term available is three years.
  • $500 minimum deposit to open.
Unlike many other banks, Bank5 Connect has two main 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 2.10% APY.

Connect CDs are available in terms of six, 12, 18 and 36 months, and there’s a promotional CD with a term of 21 months. Most banks offer longer terms — and accordingly, higher maximum yields. Still, Bank5 pays 2.05% APY for a three-year CD, which is comparable to what many high-rate CDs pay.

A minimum $500 deposit is required to open a CD.


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

Bank experience: 3.5/5.0

Bank5’s 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 users rate the app 4.3 stars out of 5, and iOS users rate it a perfect 5.

» Learn more about your options, with NerdWallet’s best banks and credit unions

Overdraft fees: 3.0/5.0

The bank’s $15 overdraft fee isn’t cheap, though it’s notably lower than what many of the largest banks charge, around $35. 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 — many larger banks charge for this service.

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


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.

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