What Is Radius Bank?
Radius Bank is an online bank based in Boston, founded in 1987 under the name First Trade Union Bank. The fast-growing bank is noteworthy for its low-cost accounts with favorable terms and rates for customers.
Radius Bank works primarily as an online bank. It has a cashless branch in the same building as the corporate headquarters in Boston but otherwise doesn't offer any branch banking. It has a few of its own ATMs, but choosing a Radius-owned ATM isn't a big deal, as you'll see in the next section.
While you can make cash deposits at its Boston full-service ATMs or a limited number of ATMs in the MoneyPass and NYCE networks, the bank is best for people who get paid via direct deposit and don't have a regular need to deposit cash.
If you're up for handling most of your money management online or through the Radius Bank mobile app, Radius Bank could be a good choice for your money.
Radius Bank Features
|Accounts||Savings, Checking, Money Market, CDs|
|Access||Web Based, iPhone App, Android App, Blackberry App|
|Amount of Branches||0|
|Customer Service||Phone: M–F 8:30 A.M.–1:00 A.M.; Sat–Sun 8 A.M.–8 P.M. Eastern Time|
In addition to the consumer banking features mentioned above, Radius Bank offers accounts for small and large businesses. Its small-business accounts are great for small businesses that operate primarily online. Institutional banking services are also available for larger businesses that need more sophisticated cash management services.
How Does Radius Bank Work?
Radius Bank is popular with customers thanks to a combination of no recurring fees and interest rates well above what you get at the typical traditional bank.
You can open an account online in less than five minutes. There is a $100 minimum to open either of its checking or savings accounts, but there is no ongoing minimum balance requirement.
For most accounts, the only fees you'll pay are for uncommon and avoidable activities like overdrafts and wire payments. You can view a full fee schedule here. Accounts are FDIC insured up to $250,000 per depositor, so you know your money is always safe.
You can deposit checks and make transfers with the Radius Bank mobile app and withdraw cash from any ATM in the world without any fees or charges. Learn about which accounts include this feature in the next section.
Radius Bank's Checking Accounts
- Rewards Checking: The flagship checking account at Radius Bank gives you 1% back on debit card purchases (terms apply) and interest on some balances. Interest currently starts at 0.10%, with a balance of at least $2,500. If you have $100,000 in your account, you get 0.15% APY. There are no recurring fees or minimums after opening your account with a $100 minimum deposit.
- Superhero Checking: Superhero Checking is very similar to the Rewards Checking account, but most of the interest and benefits go to the March of Dimes, which works to improve the health of babies and mothers. You earn less from the account (currently 0.05% APY), but interest is matched as a donation to the March of Dimes. The 1% debit card cashback rewards are also automatically donated to this nonprofit.
- Essential Checking: Applicants with poor credit or banking histories may not qualify for the two top-tier accounts. If you've previously been denied a checking account or otherwise don't qualify for one of the above two accounts, you may be able to open the Essential Checking account. This basic account requires a $9 monthly fee and has low limits on debit cards. It is not an ideal account for most banking customers.
- Unlimited ATM fee refunds: Both Rewards Checking and Superhero Checking feature fee-free ATMs worldwide. You can use any Radius, MoneyPass, or SUM ATM with no fees at all. If you use an out-of-network ATM that charges a fee, you'll get an automatic reimbursement at the end of the month. There are no limits. And it works worldwide.
- Early direct deposit: Get your direct deposit payroll up to two days early with the early direct deposit feature. As soon as your employer sends its payroll file to the bank, Radius credits your account. Many people will get their paychecks on Wednesday, instead of Friday, with an early direct deposit.
Radius Savings Accounts
Radius High-Yield Savings is a competitive savings account. Rates are not as good as some other online banks, but they are up to 25 times better than what you get from the biggest brick-and-mortar banks in the United States.
As of this writing, these are the current interest rate tiers:
|Balance||Rate (APY as of April 21, 2020)|
|$10 to $2,499.99||0.05%|
|$2,500 to $24,999.99||0.15%|
|$25,000 and up||0.25%|
The account has no recurring fees and no minimum balance requirement, aside from a $100 minimum to open a new account.
Certificates of Deposit (CDs)
Radius Bank offers CD accounts with competitive rates for online banks. These require a minimum of $500 to open. Some CDs are not available with the online application. Here's a look at just a few of the CD accounts you can currently open online:
|Term||Minimum Balance||Rate (APY as of April 21, 2020)|
Remember that CD accounts require you to lock your money away for the full term of the account to earn the published interest rate. If you break the CD and withdraw funds early, interest penalties apply.
Radius Bank vs Competitors
Radius Bank Pros & Cons
No Recurring Fees on Some Accounts—Pay no maintenance fees for top checking and savings accounts.
Competitive Interest Rates—Rates aren't the highest on on Rewards Checking and High-Yield Savings, but they're much better than what you'll find at a brick-and-mortar bank.
No ATM Fees Worldwide—If you're a frequent ATM user, Radius could be a great choice for you.
Early Direct Deposit—You can get your direct deposit paycheck early in some cases.
Not the Highest Rates—Radius Bank doesn't pay the best interest rates among online banks.
Minimum Deposit Requirements—High balances are required for the best interest rates.
One Physical Branch—The only physical branch is in Boston.
Radius Bank is among the best online banks in the United States. It offers great accounts with low fees and competitive interest rates. If you're looking for an easy-to-use online bank, Radius Bank could be the right choice for your needs.
Radius Bank online banking and mobile apps feature all of the important features you look for in a bank, including mobile check deposits and the ability to transfer funds. Early access to direct deposit sweetens the deal. And regular ATM users and international travelers love getting back all ATM fees charged by non-bank ATMs.
Overall, this bank receives a very positive review and could be an excellent choice for most people looking to handle their banking online.