Oxygen Bank Review: Personal Checking with Generous Cash Back Rewards

Banking
Updated: 29th Sep 2021
Written by Jordan Blansit
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Oxygen Bank is a “neobank”, which means they are a financial technology firm that offers internet-only banking services which appeal to freelancers and businesses that are driven primarily via their mobile app.

Oxygen Bank offers both a personal and business account option with no monthly fees, no overdraft fees, unlimited fee-free transactions, and available for both iOS and Android smartphones and tablets.

Although Oxygen Bank offers banking services, they are not an actual bank but rather backed by The Bancorp Bank, Member FDIC.

What Does the Oxygen Bank Personal Checking Account Offer?

When you sign-up for a personal checking account with Oxygen Bank, you will have access to numerous services with zero fees.

Plus, you can earn easy-to-track cash back rewards on everyday purchases at approved merchants, all while being able to control expenses, set alerts, and have your account insured up to $250,000.

Adding funds to your account is as easy as walking into any Walmart, CVS, Walgreens, and other Green Dot locations.

>> More: Best Checking Accounts

How Does Oxygen Personal Banking Work?

Although it is not very clear on their website, you need to download their app to register for Oxygen Personal Banking.

You then fill out your name and address and wait for an invitation to be sent to you. From there, continue the registration process. Shortly after, you will have access to all their features and benefits outlined below.

Oxygen Bank will also send you their Oxygen Visa Debit Card that can be used anywhere Visa is accepted!

Oxygen Bank Features and Benefits

  • No Monthly Fees: Oxygen Bank does not charge any monthly fees for their Personal or business accounts.
  • No Overdraft Fees: You will not incur any overdraft fees when using Oxygen Bank.
  • No Minimum Balance Fees: Whether your account has $1 or $250,000, you will not be penalized for not having a minimum balance.
  • No ACH Bank Transfer Fees: You also will not be hit with any ACH fees, incoming or outgoing.
  • Generous Cash Back Rewards: Oxygen Bank offers a “Cash Back Boost”, which are rewards that rotate each month. For example, you can earn 5% on gas, pharmacies, food delivery, and more while earning 7% at stores such as Walmart and Whole Foods when you use your Oxygen Visa Debit Card. You need to earn at least $10 in a category before turning it into a cash reward. Please note these rewards can change at any time, so it is always good to check for the latest rewards within the app.
  • Get Paid Early: Setting up a Direct Deposit allows you to receive your funds up to two days sooner than you would with a traditional bank. Oxygen Bank also offers bonuses from time to time to set up Direct Deposit, so it is in your best interests to see what bonuses, if any, they are running prior to setting up your Direct Deposit.
  • Track Expenses: Oxygen Bank makes it easy to record (referred to as “Flag”) expenses. Whether you are paying rent, insurance, utilities, or taking a client to lunch, all you need to do to “flag” your expenses is to take a photo of the receipt within the app!
  • Robust Security: Oxygen is PCI DSS certified, which stands for Payment Card Industry Data Security Standard. This is mandated by the card brands but administered by the Payment Card Industry and was created to increase controls around cardholder data and to reduce credit and debit card fraud.
  • FDIC Insured: Oxygen Bank is backed by The Bancorp Bank, Member FDIC, which means your funds are insured up to $250,000.
  • Referral Bonus: Another perk Oxygen Bank offers is a referral bonus. In fact, you and the person you referred can both earn $25 when they meet the referral criteria; 1) The Referee opens a new Oxygen Consumer or Business Deposit Account (“Account”) using the Customer’s unique referral link within 30 days of receiving the link; 2) the Account receives $200.00 or more in deposits within sixty (60) calendar days of opening the account, and 3) the Account has at least five (5) debit purchase transactions with the Oxygen Visa® Debit Card (including Virtual Card purchases) that have posted and settled to the account within sixty (60) calendar days of opening the Account. The referee must be a new Oxygen customer with no current or prior Oxygen account.
  • Create Virtual Cards: Oxygen Bank allows you to create as many virtual cards as you would like. Virtual Cards are unique numbers that are only used for that specific use case. Setting up a virtual card for a specific merchant (e.g., a monthly subscription to a magazine or drop shipping company) is added security because you can remove the virtual card whenever and no personal account information is ever shared with the third party.
  • Real-Time Alerts: Have you ever lost a credit/debit card? Well, with Oxygen Bank, if you lose your card, you can “lock” or “unlock” it from within the app. You can also set up alerts to be notified of unusual activity or when certain thresholds are hit.

Oxygen Cash Back Rewards

“Cash Back Boost” is Oxygen Bank’s reward program. You earn rewards anytime you use your Oxygen Bank Visa Debit Card. As an added perk, certain merchants will offer higher rewards during certain months.

An example of this is Walmart, and Whole Foods are currently offering 7% rewards. You can keep track of the revolving rewards program within the Oxygen Bank app.

Oxygen Bank Business Checking Account

Oxygen Bank also has a business checking account. You will receive all the great features that are in the Personal account as well as LLC creation (if you need it) powered by CorpNet, Inc., Oxygen Visa Business Debit Card, the possibility to mail checks from the App, access to tools such as cash flow projections, and other accounting tools integration.

How Does Oxygen Bank Compare to Other Banks?

#1. Chime vs. Oxygen Bank

Chime is a neobank that is backed by The Bancorp Bank, a member of FDIC, so your account is insured up to $250,000.

They advertise no hidden bank fees, fee-free overdraft up to $100 (for eligible members) and paid up to 2 days early with their direct deposit option, all while growing your savings automatically.

If you receive at least $500 each month in direct deposits, you can enroll in Chime’s “SpotMe” service, which allows you to overdraw your account by up to $20 on debit card purchases without any fee. This allowance can be raised to $100 when you maintain a good standing account.

>> More: Chime Bank Review

#2. Lili Bank vs. Oxygen

Lili is another neobank that launched in 2019 with the plan to empower freelancers with tools and services designed to improve their work, life, balance.

Their banking services are provided by Bank of Choice Financials Group Inc., which is a member of the FDIC that insures your account up to $250,000.

Lili does offer a higher referral fee at $50 and allows you to withdraw cash, for free, at more than 38,000 locations. Lili also offers a wide variety of tools, from automatic savings to tax tools and expense tracking.

>> More: Lili Bank Review

#3. CIT Bank Checking Account vs. Oxygen Bank Account

CIT Bank is a top 50 U.S. bank that aims to empower people to power their business, savings, and communities.

Having a CIT checking account allows you to take part in their many product lines that stem around savings, such as multiple savings accounts, Money Market, eChecking, Term CDs, No-Penalty CDs, Jumbo CDs, and CIT bank Custodial Accounts, which allows you to save money for a child’s future.

All accounts except for the eChecking account can be set up as custodial accounts. As you can imagine, CIT Bank is an FDIC Member, so your funds are insured up to $250,000.

>> More: CIT Bank Review

Frequently Asked Questions

What Is Oxygen Bank?

Oxygen Bank is a “neobank”, which means they are a financial technology firm that offers internet-only banking services which appeal to freelancers and businesses that are driven primarily via their mobile. Although Oxygen Bank offers banking services, they are not an actual bank but rather backed by The Bancorp Bank, Member FDIC.

Is Oxygen Bank Legit?

Yes! Winners of the 2018 Benzinga Best Digital Banking award, Oxygen Bank offers both a personal and business account option with no monthly fees, unlimited fee-free transactions, and available for both iOS and Android smartphones and tablets.

Is Oxygen Bank FDIC Insured?

Oxygen Bank is backed by The Bancorp Bank, Member FDIC. This means your funds are insured up to $250,000.

Who Issues the Oxygen Bank Debit Card?

The Oxygen Visa® Debit Card and the Oxygen Business Visa® Debit Card are issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

How Much Cash Back Do I Need to Earn to Cash Out?

You need to earn at least $10 in rewards before you can redeem rewards.

Can I Set Up Direct Deposit with Oxygen Bank?

You can certainly set up Direct Deposit with Oxygen Bank, and doing so will allow you access to your deposits by up to two days sooner than you would be able to access them with a traditional bank.

Is Oxygen Bank Safe?

From storing your information on an SSL website to being PCI DSS certified, which is the highest security standard in banking, not only is your information safe, but your funds are insured up to $250,000 due to Oxygen Bank being backed by The Bancorp Bank, Member FDIC. Furthermore, Oxygen Bank allows unlimited virtual cards, so third-party merchants never have access to your personal information.

Bottom Line: Oxygen Bank Account Review

If you are looking for a secure, zero-fee, online banking that offers great benefits and rewards, then it will be hard to pass on Oxygen Bank.

Their one drawback, if you see it like that, is that there is no web portal. From registration to everyday use, you have to use their mobile app, which is available on iOS and Android smartphones and tablets.

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Jordan Blansit
Jordan Blansit
Jordan is a freelance writer with an inexplicable predilection for investing and personal finance. When she’s not click-clacketing from the comfort of her living room, you can find her (or not) craftily avoiding human contact in the California redwoods or Oregon Siskiyous with her black cat, Bean.