Bank5 Connect Review: Is It a Good Bank?

Written by Justin EstesUpdated: 29th Sep 2021
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There are various online-only banks to choose from, so how do you know which is best for you?

If you want the core functions of banking but do not want to pay any fees, then Bank5 Connect may be of interest to you.

Today we will discuss Bank5, an online bank that offers checking accounts, savings, accounts, and CDs.

Bank5 Connect offers customers competitive interest rates through their checking and savings accounts.

Even with their excellent rates, they do not require any additional costs or monthly maintenance fees.

Despite their benefits, it’s important to remember they only provide a checking account, savings account, and CDs.

So, if you are looking for a bank that offers a wide range of different versions and credit cards, then you may need to look elsewhere.

What Is Bank5 Connect?

Established in 2013, Bank5 Connect is an online-only financial institution that will meet your basic banking needs.

They have little to no monthly fees and provide higher savings rates than many other banks.

Covered by the FDIC, you can trust this bank with your money and enjoy the benefits they have to offer.

What Does Bank5 Connect Offer Consumers?

Bank5 Connect offers the primary banking features, including a checking account, savings account, and certificates of deposits (CDs).

Both their Savings account and CDs provide a competitive APY while still not requiring a high minimum balance.

With Bank5 Connect, you also receive access to numerous surcharge-free ATMs in the SUM nationwide ATM network.

Bank5 will reimburse you up to $15 per statement cycle for any fees that out-of-network ATMs have charged.

If you do not know which ATMs are in your network, you can utilize the Bank5 website or mobile app to find one.

Bank5 Connect Features and Benefits

Bank5 Connect provides a variety of competitive benefits while still being an online-only bank. Despite not having any physical branches, Bank5 Connect offers many features that you should consider.

Low to No Monthly Fees

Customers will be happy to know that there are virtually no monthly maintenance fees for any provided accounts.

However, there is a $1 maintenance fee if you request paper statements, but you can easily avoid this fee by forgoing any paper statements.

Aside from the paper statements, there are no monthly fees you need to worry about.

Easy Requirements

Competitive online banks are a great way to save money on monthly fees, consolidate finances, and turbocharge your savings.

However, some banks have stringent requirements and high minimum required balances to enjoy their perks without paying for them.

Thankfully, Bank5 makes opening an online bank account amazingly simple and only requires a $100 minimum balance to earn interest.

Great Customer Service

Although Bank5 Connect is an online-only bank, they still offer excellent customer service. They have an active phone line every day of the week, however, not 24/7.

Their hours are 7:30 a.m. to 5 p.m. on weekdays, 7:30 a.m. to 3 p.m. on Saturday, 11 a.m. to 3 p.m. on Sunday (All Eastern time).

Low Overdraft Fees

When compared to other notable large banks, Bank5 Connect has considerably low overdraft fees. The bank charges a $15 overdraft fee, whereas other large banks can charge around $35.

If you are likely to overdraft your account, remember that you can be charged multiple overdraft fees in a single day.

Bank5 Connect permits you to have up to 6 overdraft fees in a day, so it’s essential to be aware of your overdraft fees so they don’t build up.

Online Only

Bank5 Connect is an online-only bank, which means there are no physical branches. Because of this, you can manage all your information through an easy-to-use app.

This means that if you ever need to modify something in your bank account, you can call them or use their app right from the comfort of your home.

Bank5 Connect High-Interest Checking Account

Features

  • No ATM fees
  • No monthly account maintenance fees
  • $15 overdraft fee
  • $10 minimum deposit
  • Competitive interest rates at 0.20% APY
  • $100 minimum balance to earn interest

Bank5 Connect’s Checking account should definitely be considered when looking for a bank. While not requiring much money, you still earn very good interest rates compared to other banks.

You also get your first order checks free, and you can use their free mobile banking app.

As far as low-cost and high-reward accounts go, Bank5 Connect’s Checking Account may be one of the best.

Bank5 Connect High-Interest Savings Account

Features

  • No ATM fees
  • $100 Minimum Balance to earn interest
  • $10 minimum opening deposit
  • $15 overdraft fee
  • Interest rates at 0.40% APY.

The Bank5 Connect Savings Account offers extremely competitive rates compared to their low-balance requirements.

Like a savings account, you are limited to certain withdrawals and transfers to 6 per month.

There is a $10 fee if you exceed the limit, and if you continue to make withdrawals, then the bank can convert your savings account into a checking account.

Overall, this checking account is excellent for those looking for high interest rates while not requiring too much money.

>> More:Explore the Best High Yield Savings Accounts

Bank5 Connect CD Rates

Bank5 Connect’s CD rates require low minimum requirements while still providing high interest rates. Their CD matures in terms of 6 months to 3 years.

This account also doesn’t have any monthly maintenance fees, and it only has a $500 opening deposit.

Over time as your CD grows, you can add more funds and roll it over to start a new term. That said, with a little bit of research, you can find CD rates that yield a higher return.

Bank5 Connect Pros and Cons

Pros:

  • Competitive interest rates for all accounts
  • Both internal and external money transfers will not cost you
  • No monthly maintenance fees required
  • Covered by the FDIC
  • Comparatively low minimum balance requirements.

Cons:

  • No physical locations
  • $1 monthly maintenance fee if you request paper statements rather than electronic statements
  • Lack of financial services
  • Lack of customer service during federal holidays

How Does Bank5 Connect Compare to Other Online Banks?

Online banks continue to surge in popularity thanks to their low fees, accessible accounts, and compelling interest rates.

Bank5 is an excellent choice for many consumers because they have a core suite of accounts that works for many different customers, but how do they stack up to their competition?

Let’s see how Bank5 compares to some of its online bank counterparts and some larger national banks:

#1. Bank5 Connect vs. Chime Bank

Chime is another online-only bank that offers checking and savings accounts with minimal fees.

Chime is partnered with two banks and is FDIC insured, so you can trust that your money is secure with Chime.

There are also no monthly maintenance fees or overdraft fees, so you can take advantage of Chime’s benefits without worrying about any extra costs.

Both Chime and Bank5 Connect are solid options, providing customers with high interest rates and low fees.

>> More:Chime Bank Review

#2. Oxygen Bank vs. Bank5 Connect

Oxygen Bank is another low-cost online bank that is suited for small businesses. With no monthly fees and a $0 minimum opening deposit, Oxygen Bank will save you money while also rewarding you with its cash-back features.

Similar to Bank5 Connect, up to $250,000 is federally insured by the FDIC. Where Bank5 Connect stands out is its high interest rates.

Over time, banking with Bank5 Connect may make you more money due to the higher APR.

However, Oxygen Bank is directed at smaller business owners who want an inexpensive way to separate their personal and business finances.

>> More: Oxygen Bank Review

#3. Chase Bank vs. Bank5 Connect

Chase Bank differs from Bank5 Connect because it isn’t an online-only financial institution.

Chase Bank offers various features compared to Bank5 Connect, including auto loans, mortgages, and numerous different credit cards. Chase has excellent sign-up bonuses, as well as a good standard checking account.

Chase is great for those who want physical branches and decent rates and having a variety of benefits.

#4. Bank5 Connect vs. TD Bank

TD Bank is a brick-and-mortar financial institution that is based primarily in the Eastern United States.

Unlike Bank5 Connect, TD Bank has many physical branches available along the East Coast.

These branches have long hours and are open on the weekends, so if you ever need to make an appointment with them, they are often available.

They also offer free ATMs in Canada and the U.S., along with notable sign-up bonuses for their checking accounts.

However, TD Bank offers a much lower interest rate than Bank5 Connect, so if you are someone who values high-yield accounts and minimum costs, then you might prefer Bank5 Connect to TD Bank.

Frequently Asked Questions

Bank5 Connect is unique due to the combination of services offered coupled with its online-only model.

Let’s discuss some of the most frequently asked questions so that you have all the information you need to determine if Bank5 Connect is a good fit for you.

Is Bank5 Connect a Good Bank?

Bank5 Connect is a good bank for your core banking functions like a checking account, savings account, and CDs.

They offer competitive interest rates for all of their accounts, and they provide good customer service despite being an online-only bank.

They also have lower overdraft fees compared to some larger banks, only charging $15. Overall, Bank5 Connect is definitely a good online bank to consider; however, you should always consider other options to see what fits best with you.

Is Bank5 Connect Worth It?

Bank5 Connect is worth it for those who want a secure online bank that offers high interest and a variety of benefits.

That being said, if you prefer a physical bank with many different account options, then Bank5 Connect may not be the best bank for you.

Does Bank5 Connect Have Any Physical Branches?

No – Bank5 Connect is an entirely online bank. Despite having no physical locations, they still offer great customer service, and the bank is available to every state in America except Rhode Island and Massachusetts.

Who Should Bank with Bank5 Connect?

If you are someone who wants an online bank with minimal fees, competitive yields, and low account minimums, then Bank5 Connect could be great for you. They don’t charge any fees, as long as you avoid paper statements.

Their checking and savings accounts both have high yields, and both accounts only require a $10 deposit to open.

This bank is for those who want the essential functions of banking while still having good benefits.

Consumers who want access to travel rewards, high bonuses, and luxury perks may not.

Is Bank5 Connect FDIC Insured?

Yes – When the FDIC federally insures banking with Bank5 Connect, up to $250,000.

Bottom Line: Bank5 Connect Review

Bank5 Connect offers great interest rates for its provided checking and savings accounts despite having limited account options.

Their high-yield accounts are excellent for those who want basic banking functions while also receiving great rewards.

As an online-only bank, you don’t have to worry about a lack of customer service. They provide an active phone line that is available throughout the week.

Also, Bank5 Connect provides you with an easy-to-use app that will help you manage your banking and finances.

Overall, Bank5 Connect does well in providing customers with the core banking functions while also offering great rates and benefits.

If you are looking for an online bank that will meet your primary banking needs, then Bank5 Connect should definitely be one to consider.

Justin Estes
Justin Estes

Justin Estes is a Senior Personal Finance Writer who is a recognized small business accountant, consultant, and credit card expert. His background in accounting and finance led to a passion for helping people make the most of their money and matching them with financial products that enhance their lifestyle. Justin attended Charleston Southern University where he double-majored in Finance and Accounting. Justin’s areas of expertise are credit cards, small business finance, accounting, and taxes.