Have you ever tried to transfer money out of your savings or money market account several times in a given month and eventually hit a roadblock or limit on your ability to do so? Your financial institution may have sited a federal regulation known as Regulation D (FRB). It places a limit of six withdrawals or outgoing transfers per month from savings or money market accounts across different methods.
The only way to avoid this regulation is to keep your savings in a checking account. However, no one ever wants to do that because your checking account isn’t paying interest or if it does, it’s not anywhere near your savings account return. We all know that every little bit helps!
Now there is an interesting new option available to people that are tired of managing separate checking and savings accounts and running into transfer limits. Radius bank is offering a savvy new product called the Hybrid Checking account. The account is as it sounds; it’s a hybrid between checking and savings.
With this new product, you get the flexibility and usefulness of a checking account and the opportunity to earn interest as you would in a savings account. You no longer have to worry about transferring money back and forth between two accounts to get the earnings and the utility you desire to manage your money. You have unlimited access to your money and can withdraw it anytime you want.
Personally, I like the sound of this. It opens new possibilities for budgeting money and irregular expenses as I’ll share below. It offers more convenience and less overhead in managing more than one account and still provides all the services you would get with separate bank products.
Aside from the Hybrid feature, you there are more stand – out features that make this product worth considering.
More Features of the Radius Hybrid Checking Account
- Yield – Just how good is the yield on the Radius Hybrid Checking account? Radius is offering consumers up to 1.00% APY on balances above $2,500. Keep in mind that anything below $2499.99 earns 0%. There are rate tiers established. Anything over qualifies for an APY range of 0.0% to 1.00%.
- Free debit card and no Radius ATM fees – You get a free debit card with this account to use just like you would with any checking account. Also, there are no ATM Fees when you use a Radius ATM (located in Boston and NY). You can also use Surcharge Free ATMs with SUM. Click here to find one near you.
- Free first order of checks – Another nice benefit to this account is in receiving your first order of checks for free. Personally, I feel this is to be expected, but certainly worth mentioning as you don’t get this benefit with all checking accounts.
- Online and mobile banking – Radius offers convenience with online and a mobile banking app. Note: you must enroll in online banking and elect to receive eStatements to open a Hybrid account. The app is available for both Apple iOS and Google Android devices. It offers features such as the ability to deposit checks, transfer funds (which you won’t need to!), bill pay, finding ATM locations and more.
- No monthly maintenance fees – Tired of checking accounts that are charging you monthly fees to cover bank overhead? Don’t worry as you don’t have any maintenance fees with this account.
- No monthly balance requirement – You don’t have to worry about getting charged fees because of your balance either. There is no monthly balance requirement after you deposit the initial $10 to open your account.
- FDIC insured – Finally, this checking account offers FDIC insurance so your balance is insured up to the $250,000 required by federal law. Definitely worth mentioning as you shouldn’t open an account that is not FDIC insured.
If you’re still wondering about the advantages of this new Hybrid product from Radius, keep in mind the following:
- You’re encouraged to save – While this is a checking account the rate tier up to 1% over $2499.99 really encourages you to save more money in the account. The more you put into the account the higher your rate will be until it reaches the maximum allowed. So, think of it as a checking account to meet your short-term spending needs but also a place you can save for irregular expenses or short-term savings goals.
- The Hybrid helps with budgeting irregular expenses – It can be challenging to budget for irregular expenses such as car maintenance, Christmas, birthdays and so on. Savvy budgeters will add up the cost of these expenses across the year, divide by 12 and save for them monthly so they don’t have as big of an impact on their budget. It can be inconvenient to transfer this money out of your savings account when you need it as well as maintaining the auto deposits each month. As long as you’re maintaining or tracking budget balances for these budget categories, with the Hybrid account, you can leave the money right where it is and let it work for you.
- You’re done with Regulation D (FRB) – If you continually run into the constraints with this regulation mentioned above, this account is definitely for you. Again, your money doesn’t need to go anywhere and you have the advantages of both a checking and savings account in one. Yes, but what about separation of savings and making sure you don’t tap it for spending. Again, if you’re a savvy budgeter and maintaining category balances for irregular expenses in your budgeting software, such as with YNAB or Personal Capital, you shouldn’t have anything to worry about.
Who is Radius Bank?
Many of you will want to learn more about Radius Bank before jumping in an opening an account and this is quite understandable. In short, Radius Bank was formerly First Trade Union Bank. They’ve been around since 1987 and have assets over $725 million and compete with many national brands, including Ally Bank. They are headquartered in Boston, MA and provide a wide variety of products in addition to their Hybrid Checking Account. They are committed to customer service as evident in their tagline “Built Around You” and strive to put client service first as stated on their website: “We believe in a client-first, “sales through service” strategy.” You can read more here.
How do you open an account and complete initial funding?
Opening up a Radius Hybrid checking account is super easy. The requirements to open an account are an initial funding of $10 or more, enrollment in online banking and election to receive eStatements as well as electing the free debit card. You simply go to the online sign up page and provide the required information (same as any checking account application) and submit. The convenience off signing up online offers you the ability to get approved quickly and initiate your initial deposit.
It’s obvious Radius is trying to find products that work best for their customers’ needs with the innovation behind this checking account. I honestly haven’t seen a product like this from the banking industry before. It’s worth checking out if you continually run into transfer limitations and simply like the idea of extra convenience around your financial accounts with the advantages of both checking and savings.
What do you think about this new Hybrid Checking Account from Radius Bank?