Online institution Radius Bank has announced the launch of a new checking account that gives customers a rare combination of cash back rewards on purchases and a solid interest rate.
The new Rewards Checking stands out as one of the few checking accounts with these two features. Online firm Aspiration’s Spend & Save Account is one competitor, with both cash back rewards and a high-yield rate, but money is kept in two separate subaccounts. Radius’s offering lets customers enjoy both perks without moving any money.
“We believe the Rewards Checking will resonate with the large number of consumers who are looking for a convenient, all-in-one digital checking product,” Chris Tremont, executive vice president of virtual banking at Radius Bank, said in a press release.
The new account gives customers 1% cash back and a 1% annual percentage yield on balances of $2,500 to $99,999. Balances of $100,000 and above earn 1.20% APY; balances below $2,500 don’t earn interest. The cash back is unlimited but kicks in only for signature-based purchases, such as when you select “credit” instead of “debit” at checkout. Online purchases may pre-select the credit option.
In addition, the account has no monthly fees or minimum balance requirements, no ATM fees and unlimited refunds worldwide of ATM fees charged by other banks. It also has online budgeting tools, highly rated mobile apps on Apple and Android devices, and offers direct deposit of paychecks up to two days early. The account is insured by the Federal Deposit Insurance Corp. as well. (For more details about Radius, including its high-yield savings account, see NerdWallet’s review.)
Though there’s no minimum balance requirement, it’s best if you can avoid overdrawing. There’s a $25 nonsufficient funds fee for transactions that drop your account below zero, and being charged such a fee can result in losing access to the cash back program for one year.
Customers with Hybrid Checking or the previous Rewards Checking at Radius will have their accounts migrated to the new Rewards Checking without losing existing interest or cash back earned.