Along with your checking account that you just use on your common spending, you’ve in all probability thought of opening a financial savings account as nicely. A financial savings account accrues a trickle of curiosity and is extra accessible and steady than an funding account, and means that you can hold your cash saved away greater than a checking account can.
Naturally, you’ll need to open a financial savings account with the very best attainable rate of interest. FitnessBank presents the nation’s highest rates of interest, however they make you hustle for it. Actually.
So how does FitnessBank work, and is it value it? Let’s examine.
FitnessBank rewards account holders who common 12,500 steps per day with the nation’s highest rates of interest (peaking at 3.0% in 2019). The less steps you get the decrease your charges, bottoming out at 0.25%.
Naturally, the thought is to encourage account holders to remain energetic. However why? Your medical insurance firm has a clear motivation to maintain you off the sofa – in case you’re more healthy, they spend much less on claims. However why would your financial institution care how match you might be?
Apparently, FitnessBank’s motivation is essentially intrinsic. America’s first “Lively Way of life Financial institution” is the brainchild of Ed Cooney, former president of Atlanta-based Affinity Financial institution. The 51-year-old business vet loves baseball and Robust Mudders, and desires his account holders to work for his or her curiosity, giving new which means to the time period “sweat fairness.”
How does FitnessBank work?
FitnessBank is online-only, however its web site is powerful and well-optimized. Opening an account is impressively fast and painless, and may be executed right here.
Notice that their hours of stay assist aren’t 24/7, however the account holders I’ve spoken to have by no means had points with wait instances.
The subsequent web page feels extra Amazon than Chase Financial institution. You’re prompted for a promo code, and use (+) and (-) buttons so as to add accounts to your “buying cart.”
Notice that the screenshot isn’t reduce off on the backside; there actually are simply two sorts of accounts. Health Financial institution Financial savings is for everybody underneath 65 – Health Financial institution Senior Financial savings simply has a decrease step threshold for upper-tier rates of interest.
As anticipated, FitnessBank then prompts you on your primary private data (identify, contact information, handle, employment standing, and so forth.) and a few monetary information.
At this stage, FitnessBank will make a delicate pull of your credit score to find out your particular rates of interest (because it’s not clear from the positioning copy, I verified with FB’s customer support workforce that it’s certainly a SOFT pull).
Because the final step, FitnessBank will ask for a deposit and direct you to obtain the FitnessBank App, which can report your each day steps (the month-to-month common dictates your charges). Their web site copy truly does a reasonably good job of explaining how the App works:
How are FitnessBank’s charges?
Listed below are their present charges and related step necessities:
|Charges||Every day common steps required|
So sure, you possibly can earn some first rate rates of interest in your financial savings account, however you actually must work for it. 12,500 steps is roughly 6.25 miles of strolling or operating per day: greater than double the nationwide common of round 5,000.
In fact, banking with FitnessBank is a neater advice in case you’re already getting over 12,500 steps per day. Should you’re in your ft for work, and together with days off nonetheless common nicely over 12,500 steps, FitnessBank is likely to be the suitable financial institution for you.
What are FitnessBank’s finest options?
The nation’s highest rates of interest
Since launching in Q2 2019, FitnessBank has persistently provided the nation’s highest rates of interest for financial savings accounts.
As a subsidiary of Affinity Financial institution, FitnessBank is a “legit” financial institution with FDIC insurance coverage, which means your deposits are protected.
FitnessBank is fairly hands-on with its prospects, gamifying the saving course of by private objective monitoring, leaderboards, and the FitnessBank Step Problem of the Month.
Prizes embrace high-end trainers and signed paraphernalia by well-known runners.
Ease of use
FitnessBank’s web site and app perform exceptionally nicely collectively as each a health tracker and a fully-featured on-line banking portal.
No hidden charges
The one time FitnessBank will cost you a price is that if your account steadiness falls beneath $100 otherwise you make greater than six debit withdrawals in a single month.
My private impressions of FitnessBank
Once I realized that FitnessBank provided America’s highest rates of interest by a large margin, my first query was: how? FitnessBank doesn’t make more cash the extra you step, so how can they provide larger rates of interest than banks which have been in enterprise for a century?
My concept was that solely a sure proportion of account holders truly make the very best tier curiosity, and everybody else earns considerably much less. All in all, their APY averages out to one thing extra cheap and sustainable.
Utilizing a good friend’s account, I used to be in a position to take a look at and confirm that sure, that is certainly the case. Fewer than half of FitnessBank’s account holders are attaining above 10,000 steps per day, which means that the different half are getting 0.45% APY or much less.
So, in case you open an account and persistently obtain 12,500 steps or larger, you will get the business’s highest rate of interest… for now. The issue is (if my concept is right), for FitnessBank to keep up this steadiness they want a roughly equal variety of energetic and inactive purchasers. And in the long run, what number of inactive or lazy individuals are going to open a “Health Financial savings Account” and settle for below-average curiosity?
I massively applaud FitnessBank’s innovation, know-how, and additional gamification of an energetic way of life (particularly for seniors). I simply have doubts about their means to maintain such excessive rates of interest because the scales tip and extra account holders vie for the higher tiers. Both the rates of interest should decrease or the step limits should rise.
FitnessBank is finest for
Anybody already averaging 12,500+ steps per day
Should you work in retail, the medical area, or in any other case have a job or way of life that ends with you averaging 12,500+ miles per day (together with weekends), it’s nearly a no brainer to open a financial savings account with FitnessBank. You’ll earn curiosity rapidly and received’t be penalized for making fewer than six debit withdrawals per 30 days. It’s free cash.
Anybody in search of motivation for an energetic way of life
Combating self-motivation to remain energetic? Possibly a little bit additional money is the carrot you want on the top of your stick. There are different apps out there that supply money rewards for each day step thresholds, however sometimes at a fraction of the speed you possibly can earn by FitnessBank.
FitnessBank shouldn’t be excellent for
Anybody who doesn’t persistently obtain 10,000+ steps per day
To be able to accrue extra curiosity with FitnessBank than with every other financial institution, you want to common 10,000 or extra steps per day. Should you common fewer than 10k steps, you’ll truly earn much less curiosity than you’d with one other financial institution.
Anybody who doesn’t want a financial savings account
Once more, the worth of a financial savings account is in entry. It accrues curiosity in contrast to a checking account, and it’s simpler to withdraw from than a retirement or funding account.
Nevertheless, in case you can afford to make investments your financial savings for a better yield, chances are you’ll not want or desire a financial savings account. And since FitnessBank at present solely presents financial savings accounts, they is probably not for you.