Advertisement
U.S. markets open in 7 hours 32 minutes
  • S&P Futures

    5,209.50
    -5.25 (-0.10%)
     
  • Dow Futures

    39,213.00
    -10.00 (-0.03%)
     
  • Nasdaq Futures

    18,189.50
    -42.00 (-0.23%)
     
  • Russell 2000 Futures

    2,048.20
    -1.60 (-0.08%)
     
  • Crude Oil

    82.48
    -0.24 (-0.29%)
     
  • Gold

    2,161.50
    -2.80 (-0.13%)
     
  • Silver

    25.17
    -0.09 (-0.38%)
     
  • EUR/USD

    1.0867
    -0.0009 (-0.09%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • Vix

    14.33
    -0.08 (-0.56%)
     
  • GBP/USD

    1.2709
    -0.0020 (-0.16%)
     
  • USD/JPY

    150.2900
    +1.1920 (+0.80%)
     
  • Bitcoin USD

    65,079.21
    -3,657.98 (-5.32%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,722.55
    -4.87 (-0.06%)
     
  • Nikkei 225

    39,864.47
    +124.07 (+0.31%)
     

5 better places to bank than Walmart's GoBank

5 better places to bank than Walmart's GoBank

By the end of October, Walmarts across the nation will begin offering customers access to a new low-fee checking account via online banking system GoBank.

This isn’t the mega-retailer’s first foray into the consumer banking business. Two years ago, Walmart partnered with American Express (AXP) to launch the Bluebird card, a low-fee prepaid debit card. It was a strategic move aimed at targeting the millions of consumers in the U.S. who don’t maintain regular bank accounts.

With the GoBank checking account, Walmart is once again hoping to woo customers who are wary of the high fees associated with traditional banks. Walmart says the GoBank accounts won’t have minimum balance requirements or overdraft fees. But they aren’t entirely fee-free. First of all, you can only open an account by purchasing a $2.95 starter kit from Walmart, which includes the debit card itself. There's also a minimum deposit of $20 required when you open the account. 

[ See related: High Walmart wages: Why this store pays workers more than $17 an hour ]

And unless users set up a direct deposit of at least $500 per month, they’ll get slapped with an $8.95 “membership fee.” Any time you visit an out-of-network ATM, there’s a $2.50 charge, plus a 3% foreign transaction fee.  There’s also no savings option yet, which means customers would have to maintain a savings account at another bank. 

Walmart is teaming up with Green Dot to launch GoBank, its first federally insured mobile banking service.
Walmart is teaming up with Green Dot to launch GoBank, its first federally insured mobile banking service.

That’s not to say the GoBank account isn’t a welcome alternative to the fee-ridden bank accounts that have become the norm in the years since the financial crisis. Americans pay an estimated $260 per year in overdraft and insufficient funds fees alone, according to the Consumer Financial Protection Bureau.  Free checking accounts are practically an endangered species, making up less than 30% of checking account offerings in 2013, MoneyRates.com found. Banks now charge an average $12.50 per month for checking accounts and more than $30 for each overdraft.

“GoBank is breaking down the barriers to traditional banking and brings the benefits of an FDIC-insured checking account that’s loaded with features to a large segment of Americans,”  says Steve Streit, CEO of Green Dot Corporation, the parent company of GoBank. 

But is GoBank the best in free checking accounts today? Not quite, especially if you’re willing to go completely digital with your banking.

“If online-only or mobile options are what people want, there are plenty of other options out there that I think are superior in terms of fees,” says John Gower, a senior analyst with financial-education website Nerdwallet.

Here are 5 even better places to stash your cash:

CapitalOne 360: Arguably the best option for free checking today, CapitalOne 360 offers both checking and savings accounts. The only fee you'll face is a $25 charge for stop payments. That means no overdraft charges, no minimum balance requirements and no membership fees. The downside? You can withdraw cash at any Capital One ATM, but you can’t get service at any physical bank branches. Another drawback: You can’t deposit cash at Capital One ATMs. However, the CapitalOne 360 app does allow mobile check deposits.

Simple: Simple offers no-fee checking accounts. Customers get a break on overdraft fees, minimum balance requirements and ATM fees (except for fees the ATMs themselves might charge). A winning feature is the option to get popup notifications on your mobile device every time you make a purchase. The app lets you create a “safe to spend” balance (usually whatever cash you have leftover after bills and such) and alerts you when you’re cutting it close. It’s a handy way to keep an eye on spending and monitor your account for any fraudulent activity. There’s also a free savings account option.

Moven: Moven has all the perks of other fee-free online checking accounts. But it’s also like a budgeting tool and bank in one. Like Simple, you can get notifications for every purchase you make. But Moven takes it one step further, telling you (based on your own pre-set budget limits) how close you are to overspending in particular categories. Money transfers (free) are easy with the app, which lets you transfer cash by email, phone number or to any of your Facebook (FB) friends. They’re also part of the “pay pass” network, which means you can pay by swiping your phone at participating retailers, rather than your actual debit card.

Ally Bank: Ally Bank is not only low on fees, it also offers an interest-bearing checking account — 0.10% for accounts holding less than $15,000 and 0.60% for those carrying more. It’s not much, but at a time when interest-bearing checking accounts are all but extinct, it’s a nice plus. While it does charge an overdraft fee, at $9 per offense, it’s still a fraction of what most banks charge. They also boast one of the higher savings account interest rates out there, at 0.90% with no minimum deposit requirement.

Credit Unions and community banks. If you don’t own a smartphone or simply aren’t into the idea of going completely digital with your bank account, the best low-fee offerings available will be at credit unions or local banks. You’ll get the benefit of having a physical branch to visit when you want and the added bonus of low- or no-fee checking accounts. Since local banks typically have fewer branches, their overhead costs are low enough that they don’t need to charge exorbitant fees for their services. Find a good local bank in your area from Findabetterbank.com or peruse this list of the top credit unions in the U.S. via Bankrate.com. On top of offering great checking and savings accounts, credit unions and community banks almost always offer loan options, a perk you won’t find at an online bank (at least not yet).

--

Is your retirement in jeopardy because of unpaid medical debt? We’d love to hear from you: yfmoneymailbag@yahoo.com.

--

Read more:

The Retiree Next Door: How successful retirees stretch their savings

7 biggest money mistakes you can make in your 30s

These romance writers are making millions off of e-books

Related Video:

Advertisement