Axos Bank offers a range of online banking options that provide competitive interest rates on savings, checking, and money market accounts. As a fully digital bank, it has no physical branches, which allows it to pass savings on to its customers in the form of high-yield interest rates and low fees. If you’re considering opening an account with Axos Bank, here’s a breakdown of what it offers and whether it’s the right fit for you.
What is Axos Bank?
Axos Bank, formerly known as Bank of Internet USA, operates as an FDIC-insured online bank that serves customers nationwide. Since its inception in 2000 and rebranding in 2018, it has provided a full suite of banking products, including savings accounts, money market accounts, and checking options. As an online bank, it benefits from lower overhead costs, which translates into competitive rates for customers.
Axos is known for its high-yield savings options and no monthly maintenance fees on its accounts. They offer various loan products, including mortgages and auto loans, making them a one-stop shop for your financial needs.
Key Products at Axos Bank
High-Yield Savings Account
The High-Yield Savings account from Axos Bank offers a solid 0.61% APY with no monthly fees and no minimum balance requirement. This makes it a great choice for savers looking for a flexible account that can help grow their money over time without worrying about hidden costs. It’s ideal for short-term savings goals, emergency funds, or just stashing money for future plans. You can also request an ATM card for easier access to your funds, and mobile banking tools are available for managing your account on the go.
Money Market Account
Axos Bank’s money market account earns up to 0.25% APY, with a $1,000 minimum deposit to open. While it’s not the highest interest rate available, it does come with check-writing privileges and a free ATM card. The money market account is perfect for short-term savings or storing funds you might need access to while still earning interest. There are no monthly fees as long as you maintain the required minimum deposit.
Rewards Checking Account
One of Axos Bank’s standout products is the Rewards Checking account, which offers up to 3.30% APY based on certain requirements. To earn the highest interest rate, you’ll need to make monthly direct deposits of at least $1,500, perform 10 debit card transactions each month, and maintain a minimum balance in an Axos investment account. While these requirements may be difficult for some to meet, even earning a portion of the 3.30% APY is a great deal compared to traditional checking accounts. The account also offers unlimited ATM fee reimbursements and no overdraft fees.
Other Checking Options
In addition to the Rewards Checking account, Axos offers several other checking options:
- Golden Checking: A checking account for seniors (55+), with no monthly fees, $8 monthly ATM fee reimbursement, and a 0.10% APY.
- CashBack Checking: Earn up to 1% cash back on signature-based purchases with no monthly fees and unlimited ATM fee reimbursements.
- Essential Checking: A fee-free account with unlimited domestic ATM fee reimbursements and early direct deposit access.
- First Checking: A custodial account for teens aged 13-17, teaching money management with no monthly or overdraft fees.
Axos Bank’s Certificates of Deposit (CDs)
Axos offers traditional term CDs with terms ranging from 3 to 60 months. However, the interest rates on Axos CDs are average compared to other online banks. For terms longer than one year, you’ll only earn 0.20% APY. If you’re looking for better CD rates, you may want to explore other online banks offering higher returns or no-penalty CDs.
Loans and Credit Products
Axos Bank offers a variety of loan products to meet customers’ needs:
- Mortgages and mortgage refinancing
- Home equity loans and lines of credit
- Personal loans
- Auto loans and refinancing
Axos makes it easy to get started with online applications and offers free rate quotes for home loans. Additionally, if you have a checking account with Axos, you may qualify for $0 lender fees on mortgages, potentially saving you thousands.
Pros of Axos Bank
- Competitive Rates: Axos offers attractive rates on savings and checking accounts, especially for an online bank.
- No Fees: Most accounts come with no monthly maintenance fees, and Axos offers fee-free ATM withdrawals and reimbursements.
- Multiple Checking Options: Whether you want cash back, rewards, or basic banking, Axos has various checking accounts to suit your needs.
- Digital Tools: Axos Bank provides excellent digital tools, including mobile banking, online bill pay, and ATM access.
Cons of Axos Bank
- Average CD Rates: Axos offers standard CD options, but their interest rates are not as competitive as other online banks.
- No Physical Branches: As an online-only bank, Axos lacks physical locations, which might not be ideal for customers who prefer in-person banking.
- Limited Customer Support: While Axos offers customer service, it may not be as comprehensive as what you’d find at traditional banks with physical branches.
Is Axos Bank Right for You?
Axos Bank is an excellent choice for those who prefer the convenience of online banking and want to maximize their savings with competitive interest rates. If you’re comfortable banking digitally and don’t need physical branches, Axos can provide you with great options for savings, checking, and loans.
However, if you’re looking for more flexible CD options or prefer in-person service, you might want to consider other banking alternatives. Still, for customers looking to save, invest, and manage their money efficiently through online tools, Axos Bank offers a solid solution.
Final Thoughts
With its competitive rates, no-fee accounts, and a variety of options for savings and checking, Axos Bank is a strong contender in the online banking space. Whether you’re saving for an emergency fund, a vacation, or a down payment on a home, Axos provides excellent tools and high-yield accounts to help you reach your financial goals.
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