Should you close your foreign bank account?
Considering closing your foreign bank account? Discover the tax implications, benefits, and steps involved in making this decision. Learn more here.
Established in 1997, WebBank is an online bank that allows customers to manage their money online.
There are no brick-and-mortar stores, and the bank doesn’t have an app, but WebBank offers a host of services for online banking.
WebBank has two accounts available: a savings account and a Certificate of Deposit (CD). The online-only bank has no monthly fees and daily compounding interest, which can lead to earnings on your deposited funds.
If you’re in the process of weighing up your banking options, this WebBank review should help you decide.
You can also read about how to avoid high international transfer costs by using Wise - An easy and low-cost online solution for transfers in more than 50 currencies.
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WebBank offers a savings account and a CD account to customers. Neither requires monthly fees, and both are FDIC-insured, so your money (up to the value of $250,000) will be safe.¹
While WebBank’s savings account is free from monthly fees, you will have to deposit a minimum balance of $1,000 to open one. As an FDIC-insured account, your money is protected.
One of the most appealing features of this savings account is the high yield interest rate, which compounds daily. As a result, you should notice an increase in your savings regularly. The savings account has an APY of 0.25%.²
Though WebBank doesn’t have a mobile app like some other online banks such as Green Dot, you can manage your account online through a secure web browser.³
WebBank’s CD account is available with no monthly fees, but it does require an initial investment of $2,500 to set up. As an FDIC-insured product, your money is safe in the CD account.
Just like the savings account, WebBank’s CD account offers high yield interest which grows interest daily, which is one of the main reasons to go with WebBank.
The account is manageable online-only, and there are five convenient terms, which range from 6 months up to 5 years.
The APY starts at 0.10% for a 6-month time deposit, before increasing to 0.25% for the rest of the time your funds are in the account.⁴
WebBanks also offers a range of products, from loans to credit cards, through their partners.
For example, you can acquire PayPal Working Capital, as well as the PayPal Business and Loan Builder loans.⁵
Yes, as an FDIC-insured bank, your funds are protected up to the value of $250,000.⁶
Plus, like most other online-only banks, WebBank has measures in place to ensure the security of your funds and data.⁷
Here are some of the security features WebBank has in place:
Yes, operating out of Salt Lake City in Utah, WebBank is an industrial bank that is regulated by the FDIC and the Utah Department of Financial Institutions.
You can reach out to WebBank through the contact page on the company’s website. You can also call the customer service live Monday to Friday from 8:00 am – 5:00 pm.⁸
This is limited compared to Ally⁹ and Axos¹⁰, who provide a 24/7 phone line for personal banking questions. There are some WebBank FAQs available, but compared to Varo Bank’s help center, the answers provided are not as extensive.¹¹
A major difference between WebBank and other online bank services is that there is no mobile app available. This can be a deciding factor for some users.
There are two online methods you can use to add money to your WebBank account, either via an Electronic Funds Transfer or a Wire Transfer.
To access your funds, you will first need to transfer the money from your WebBank account to an external bank.
As an online-only bank WebBank is convenient to use, but this doesn’t make it unique, so what are some pros and cons of the bank?
To see how WebBank fares against other online banks, this table highlights some of the most important features and fees of WebBank and two of its online bank competitors: Ally and Axos.
All three of these online-only banks offer savings and CD accounts. This table will focus on the savings accounts of the banks.
Bank | Fees and minimum balance | APY |
---|---|---|
WebBank |
| 0.25% |
Ally Bank |
| 0.61% |
Axos Bank |
| 0.50% |
WebBank can be a good choice for customers looking for online-only banking with daily compound interest.
If you like the idea of managing your money through a secure web browser, and don’t need a mobile app, WebBank is a good option to grow your funds over time.
If a mobile app is a must-have for you, then you can also read the Varo Bank and Ally Bank reviews for more options.
To access your WebBank funds, you need to transfer the money to an external account. The outgoing wire transfer fee for WebBank is $25, but you can avoid this when you use an ACH transfer to send money to your Wise account.
Once the funds are in your Wise account, you’ll be able to convert and spend at the real mid-market rate that you see on Google.
You can read more about Wise, and see how over 10 million people trust us to move more than £4.5 billion every month, saving them £3 million in bank fees every day.
And start enjoying an easier, low-cost way to send, spend, and receive money internationally.
Sources:
All sources checked 17 May 2021.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Considering closing your foreign bank account? Discover the tax implications, benefits, and steps involved in making this decision. Learn more here.
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