FinWise Bank Overview
Vault Verified
Expert Take
FinWise Bank offers a variety of financial products for consumers and small businesses. Its best offering is a high-yield CD with generous annual percentage yields (APYs) and term lengths ranging from 30 days to 60 months. However, FinWise Bank’s savings and checking accounts are nothing special, and it’s concerning that the bank has been accused of predatory lending by several reputable organizations.
Pros
- No monthly fees for checking or savings accounts
- All bank accounts are fully FDIC-insured
- Excellent APY for CDs
Cons
- Only available to residents of Utah
- Can’t currently open an account online
- Accused of predatory lending practices
Vault’s Viewpoint on FinWise Bank
FinWise Bank is a good bank for people living near Sandy, Utah, who are looking for a high-yield certificate of deposit (CD). FinWise Bank CDs have APYs between 3.04% and 5.50%, which are some of the best rates on the market. Additionally, FinWise Bank’s CDs only require a minimum deposit of $500—much lower than many other banks offer.
FinWise Bank can also be a good fit for Utah residents who want to work with a bank that offers in-person and online services. You must visit FinWise Bank’s branch location in Sandy to open a new account or apply for a loan. But once the account is open, you can manage your money and make deposits using the bank’s online and mobile banking tools.
For people who don’t live near Sandy, FinWise Bank isn’t a good option. Unless you live close to the bank’s physical location, you won’t be able to open an account. Additionally, we wouldn’t recommend FinWise Bank if you’re shopping for a loan. FinWise Bank has been accused of predatory lending, even offering loans with a 160% APR through its partner lenders.
FinWise Bank Certificates of Deposit
CDs Overview
Vault Verified
APY
3.04% – 5.50%
Term Length
30 days – 60 months
Minimum Deposit
$500
Expert Take
FinWise Bank offers high-yield CDs with competitive APYs between 3.04% and 5.50% and 11 term lengths to choose from. The minimum deposit to open an account is only $500, which is low compared to what many other banks require.
Pros
- Offers 11 term lengths
- Competitive APYs up to 5.50%
- Minimum deposit is only $500
Cons
- Doesn’t offer no-penalty CDs or bump-up CDs
- Lower APYs for short-term yields
- CDs are capped at five years
FinWise Bank offers high-yield personal CDs with terms between 30 days and 60 months. There are 11 term lengths to choose from. The bank offers competitive APYs of up to 5.50%, and the minimum deposit to open a CD is only $500 (some banks have much higher minimum deposits).
FinWise Bank Savings Account
Savings Overview
Vault Verified
APY
0.75%
Min. Balance
$500
Monthly Maintenance Fee
None
Expert Take
FinWise Bank offers FDIC-insured savings accounts for businesses and consumers with no monthly fee. There is a minimum deposit requirement of $500, and the APY is only 0.75%, so you can probably find a higher rate elsewhere.
Pros
- Accounts for businesses and consumers
- No monthly maintenance fee
- Accounts are fully FDIC-insured
Cons
- Low APY regardless of balance
- Minimum deposit of $500 to open an account
- Can likely find a higher APY elsewhere
FinWise offers FDIC-insured savings accounts for businesses and consumers with no monthly maintenance fees. However, the bank only offers low-yield savings accounts with an APY of 0.75%, and it requires a minimum deposit of $500 to open an account.
FinWise Bank Checking Accounts
Checking Account Overview
Vault Verified
APY
None
Min. Balance to Avoid Fee
N/A
Min. Opening Deposit
$500
Monthly Maintenance Fee
None
Expert Take
FinWise Bank’s checking accounts include features like free ATM withdrawals and online banking. However, the accounts aren’t interest-bearing, and you must deposit $500 to open an account.
Pros
- No-fee withdrawals at MoneyPass ATMs
- Free debit card when you open an account
- Offers online banking features and mobile deposits
Cons
- Checking accounts don’t earn interest
- Requires a $500 deposit to open an account
- No reimbursem*nt for out-of-network ATMs
FinWise Bank offers checking accounts for consumers and businesses, with benefits like no-fee withdrawals at MoneyPass ATMs, a free debit card and online and mobile banking tools. Finwise Bank checking accounts are not interest-bearing, and you must deposit at least $500 to open an account.
About FinWise Bank
FinWise Bank is a subsidiary of FinWise Bancorp. It’s based in Sandy, Utah, and was established in 2000. FinWise Bank positions itself as a community financial institution with the features and technologies you would expect from a big bank. FinWise Bank is also committed to providing excellent customer service and personalized experiences for all of its customers.
FinWise Bank offers a good selection of financial products for consumers and small businesses, including checking accounts, savings accounts, CDs, money market accounts and loans. It works with partner companies, like Empower, Great American Finance and Opportunity Financial (OppFi) to underwrite its small business and personal loans.
FinWise Bank Fees
FinWise Bank doesn’t charge a monthly maintenance fee for its personal checking and savings accounts. However, it does charge a $7 fee for its money market accounts if the account balance falls below $1,000 on any day during the month.
For CDs, FinWise Bank charges 90 days interest on the amount withdrawn if you take the money out before the age of maturity. If the CD early withdrawal penalty fee can’t be deducted from the interest earned, or if the interest has already been paid, the fee is deducted from the principal amount.
In addition, there may be other fees, like an overdraft fee, returned item fee and foreign transaction fee, depending on the type of account you open. We recommend speaking with a FinWise Bank customer service agent to learn more about the fee schedule before you open an account.
Who Is FinWise Bank Best For?
FinWise Bank is best for people who live near Sandy, Utah. To open a bank account or apply for a loan, you must visit FinWise Bank’s physical branch location in Sandy. However, the bank claims that online applications are coming soon.
This financial institution can also be a good option for people who want to open a high-yield CD. FinWise Bank offers excellent APYs on its CDs, ranging from 3.04% to 5.50%. There are 11 term lengths available, with the shortest yield being just 30 days. The minimum CD deposit is only $500, which is much less than what many other banks require.
Who Should Consider an Alternative to FinWise Bank?
You should consider a different bank if you aren’t local to the Sandy, Utah, area. Otherwise, you must travel to FinWise Bank’s Sandy location to open a new account.
You should also choose a different bank if you want a high-yield savings account. A FinWise Bank savings account only has an APY of 0.75%, which is pretty low. Additionally, you must deposit at least $500 to open a savings account. There are plenty of other banks that offer savings accounts with no minimum deposit or a much lower minimum deposit.
Based on our FinWise Bank review, we wouldn’t suggest it to people shopping for a personal or business loan. FinWise Bank has been accused of unfair lending practices through its partners, and several groups have called for the FDIC to downgrade the bank’s status. According to one report, there have been hundreds of complaints about FinWise Bank’s predatory lending tactics.
How Does FinWise Bank Stack Up to Its Competitors?
When choosing a bank, it’s a good idea to compare several financial institutions. Every bank has unique pros and cons when it comes to product offerings, APYs, fees, customer service and other factors. See how FinWise Bank stacks up to some of its competitors.
FinWise Bank vs. Truist Bank
Truist Bank offers a wide variety of financial products, including checking and savings accounts, credit cards, personal loans, CDs, health savings accounts (HSAs) and retirement solutions. It offers a lot of online and mobile banking features, but it also has physical branch locations if you prefer to bank in person.
Truist Bank offers high-yield CDs, and like FinWise Bank, you can only open an account by visiting a branch. There is a minimum deposit of up to $2,500, depending on the term you choose, which is much higher than what FinWise Bank requires. Truist also has lower CD APYs, so FinWise Bank is a better overall pick for high-yield CDs.
However, Truist is a better option than FinWise Bank for checking accounts. Truist’s One Checking account only has a $50 minimum deposit, and you can open an account online. You can also earn rewards based on your monthly balance, such as bonus loyalty points on eligible credit cards, free ATM withdrawals and free checks.
FinWise Bank vs. Synchrony Bank
Synchrony Bank is an online-only bank that offers excellent savings products. You can open a high-yield savings account, high-yield CD or money market account with no minimum balance. To compare, FinWise Bank requires a $500 minimum deposit on most of its accounts.
Synchrony’s savings products also have competitive interest rates. Its high-yield savings account has an APY of 4.75% as of May 23, 2024, which is significantly higher than FinWise Bank’s savings account APY of 0.75%. If you are in the market for a savings account, Synchrony is the clear winner over FinWise Bank.
However, Synchrony’s standard CD offering isn’t quite as good as what FinWise Bank has. Synchrony’s CD APYs range from 0.25% to 4.90%, and there are only nine standard term lengths to choose from (FinWise has 11 terms). Through Synchrony, though, you can get a no-penalty CD or bump-up CD, so it offers a few more options than FinWise Bank.
FinWise Bank vs. Ally Bank
Ally Bank is one of the largest online banks. Like FinWise Bank, Ally Bank is also headquartered in Sandy, Utah. Ally offers dozens of financial products, including savings accounts, checking accounts, credit cards, CDs, auto loans, investment accounts and many others. It also has 24/7 phone support and live chat for account holders.
Compared to FinWise Bank, Ally has a better savings account. Ally’s high-yield savings account has an APY of 4.20% as of May 23, 2024, with no monthly maintenance fee, initial deposit or minimum balance. There are also benefits like spending roundups and surprise savings. However, there is a limit of 10 withdrawals per statement cycle.
In terms of CD APYs, FinWise performs better than Ally. Ally Bank’s CD APYs range from 3.00% to 4.50% as of March 23, 2024, and it only has seven term lengths. However, Ally also offers CD ladders, no-penalty CDs and bump-up CDs, which FinWise doesn’t have. Plus, Ally’s standard high-yield CD has no minimum deposit requirement.
Frequently Asked Questions
Is FinWise Bank Legit?
FinWise Bank is legit. It’s a subsidiary of FinWise Bancorp that is publicly traded on the NASDAQ. All of FinWise Bank’s accounts are FDIC-insured. However, several groups have requested for the FDIC to downgrade FinWise Bank over allegations of predatory lending.
Where Is FinWise Bank Located?
FinWise Bank has one physical branch location in Sandy, Utah. Customers must visit the branch in person to open a new account or apply for a loan.
How Long Does FinWise Take To Deposit Money?
FinWise Bank takes one or two business days to deposit money into your account after you make an in-person or online deposit. Loan funds get deposited within two to three weeks after final approval.
