The financial lives of Americans have undergone massive changes since the pandemic-induced mass unemployment and recession. As difficult circumstances forced us to become more financially aware, many have struggled to reduce their monthly budgets, create multiple income channels, and seek financial advice for wise investments.
While these steps can help, losing your money to high bank charges could still drain your hard-earned money and ultimately delay your savings goals. Traditional banks, for example, charge a fee for almost any banking functionality you use. Investopedia reported that traditional banks charge an average account maintenance fee of $ 14.13 per month, which translates to $ 169.59 just for having a bank account. They further pointed out that bank transfer fees can go up to $ 30, while overseas transaction fees are typically 3% of the total transaction amount.
In addition, Federal Deposit Insurance Corp. (FDIC) Regulation D states that bank account holders could be charged a fee of $ 15 if their monthly savings withdrawals exceed six times. Continuing violations could also result in account closure. There’s also no breathing space for ATM withdrawals, as off-grid ATM usage can run as high as $ 4 or more.
How could digital banking platforms help you?
FinTechs are currently using cutting edge technology and partnering with regional banks to deliver digital banking solutions that dramatically lower fees, offer high interest rates on savings accounts, and process paychecks faster than traditional banks.
Lower fees and process payments faster
An emerging fintech called Oxygen offers a cutting-edge digital banking platform with faster processing of direct deposits, cash backs, high-interest savings accounts, and zero account maintenance fees. All of these banking services are provided by The Bancorp Bank, member of the FDIC.
Additionally, the California-based fintech company follows a unique concept of four elements – earth, water, air and fire – each representing a tier with unique banking features encompassing benefits for retail and business. trips.
Faster direct deposits
When employers deposit monthly wages, traditional banks can take up to two days to clear paychecks. Oxygen’s checking accounts, on the other hand, could speed the process up to two days with super-fast paycheck clearing to put your funds at your disposal when your employer sends the payment file.
Oxygen Earth level does not require any paperwork and you can easily create a checking account through the Oxygen iOS or Android application. You can also create a direct deposit form on the app, fill out the necessary information, and share it with your employer to get your paycheck cleared faster each month.
Free ATM network
The fintech company offers an Oxygen Visa (R) debit card issued by The Bancorp Bank under license from Visa USA. With it, you can visit Allpoint ATMs to withdraw money at no cost. You can even use the app to locate toll-free ATMs nearby. Allpoint has over 50,000 participating ATMs, including popular retail stores such as Walgreens, Kroger, Target, Safeway, Circle K, among others.
Mobile Check Deposits
When you opt for an Oxygen Visa (R) debit card, you can deposit checks directly through the mobile app. Their Ingo Check Deposit feature allows you to scan both sides of the check and enter the transaction amount with the option of an instant deposit at a standard one percent fee for government or payroll checks. with printed signatures.
Instant Check Deposits for any other type of check accepted cost four percent of the transaction amount plus a minimum charge of $ 5. You can scan and deposit a check for free using the standard method, and it may take a few business days for the amount to be reflected in your Oxygen checking account.
Land Tier allows you to earn two percent cash back rewards from select vendors if you make purchases with your Oxygen debit card. You could earn $ 1 fixed on food and coffee purchases, and when your cash returns reach $ 10, you can transfer the amount directly to your Oxygen checking account.
The Cashback tab in the app allows you to select the type of offer and view details such as minimum purchase amount, expected cashback, and the number of times an offer can be redeemed. You can only activate one offer at a time.
High interest savings account
As of September 20, 2021, the average interest rate offered by traditional banks on savings accounts was 0.06 percent. Savings accounts on the Oxygen app, on the other hand, offer a high interest rate of 0.25%. You can visit the Accounts tab in the app and click the Open Savings Account option to make sure your information is correct before agreeing to the terms. Oxygen ensures that money transfers from your deposit account to your savings account remain smooth.
In addition, the application allows you to create three financial goals with the possibility of automating the financing of your savings account with the features “Round Up Spare Change” or “Save When You Get Money”. The first rounds your debit card purchases to the nearest dollar and transfers the rounded amount from your deposit account to your savings account. For example, a purchase of $ 4.80 by debit card will be rounded to $ 5.00 and the $ 0.20 will be transferred to your savings account.
The âSave when you get the moneyâ feature allows you to automatically set aside a portion of each qualified deposit, since the deposit amount is $ 50 or more. You can also customize the amount you want to save in both features. Eligible deposits include bank transfers, visa transfers, mobile check deposits, and any ACH transfers to your deposit account.
Oxygen could help you avoid high bank charges and earn cash back rewards with the ability to grow your money in a high interest savings account. To date, the fintech company has received total funding of $ 24 million since its inception in 2018.