Legally, You Have a Right to Refuse ATM Fees

Low interest rates and expensive fees are two things most customers hate from traditional bank accounts. An Aspiration online-only savings account has neither. What is has is annual interest rates 25 times higher than traditional savings accounts, which can help families keep the money their bank would otherwise take.

Aspiration is an online bank that offers a Spend and Save account with no fees,  no minimum balance or monthly deposit. Customers can choose how much they pay each month for its services. If they do not want to pay, then they can use their Aspiration account for free. In this article, we explain why you should choose Aspiration and how their Spend and Save account works.

Benefits of an Aspiration account

Aspiration offers several unique perks to its customers, such as free access to any ATM in the country. Families who have tried online banking before are aware that withdrawing money from online accounts often comes with a fee. This is because the online bank must pay brick and mortar institutions in order to access their ATM network.

This is not the case with Aspiration. Opening an Aspiration Save account will help individuals avoid these expensive fees. In some cases, a fee may still be charged, but the bank reimburses its customers when this happens. Aside from that, Aspiration also offers a wide array of banking services, such as bonus rewards for conscious spending and identity theft protection.

Aspiration offers more than just banking services. The company also allows customers to invest their money in a range of actively managed funds. The minimum investment is $10, although some investment forms will have to be submitted. Aspiration is a company that focuses on renewable energy, and as such, the investment funds available to customers are 100 percent fossil fuel free.

Finally, the company offers the option to start saving for retirement with two tax deferred individual retirement accounts, which can be opened with as little as $10. The money will be invested in fossil fuel free funds with promising growth potential and lucrative returns.

Customers who contribute to charities in order to enjoy some tax breaks and deductions can do so from their Aspiration account. The company is partnered with a long list of charities, giving account holders the chance to send money to help with the environment, healthcare, poverty and education. Also, Aspiration will donate $25 to a chosen charity whenever a customer refers a friend.

Why choose Aspiration

Aspiration is a California startup that operates based on fairness. This means there are no expensive fees to worry about. Instead, customers can choose how much they want to pay the bank each month for its services. This amount can go from $0 to $10, and can be changed whenever customers want to. Also, the company pledges ten percent of their income to nonprofit organizations and charitable causes.

But how much can you actually save by switching to Aspiration?

According to a 2017 Bank Finder Report, the average account holder pays $330 each year in fees. By moving their money to Aspiration, they will only pay between $0 and $120 in fees, depending on how much they want to pay.

Aspiration offers cash back rewards for purchases made with their debit cards. This benefit is often not available in traditional brick and mortar institutions, which only offer cash backs and rewards on their credit cards. Switching to Aspiration can help customers save an additional $54 per year in cash backs.

Another compelling reason to open an Aspiration account is its annual interest rates. The majority of traditional financial institutions offer a very low 0.1 percent annual interest rate on their savings accounts. To attract customers, some banks offer promotional rates that can go as high as 2.5 percent. However, these rates are often available as long as customers maintain a significant amount of money in their accounts.

For example, Wells Fargo offers a premium savings account that comes with 2.15 percent annual interest rate for the first twelve months. However, customers must maintain a balance of at least $25,000 to qualify for the promotional rate. According to Maurie Backman from The Motley Fool, over 40 percent of households do not have $400 in cash at hand. Also, according to a report by the Federal Reserve’s Survey of Consumer Finances, the median savings account balance is $8,100. This means most families do not have enough cash to enjoy these promotional rates.

Aspiration offers a 2 percent fixed annual interest rate on savings accounts. This means households can enjoy better returns on their money regardless of how much they can afford to save. For example, a family who saves $10,000 on a traditional savings account would gain around $10 after one year. With an Aspiration Spend and Save account, they would make $200 instead. Also, money deposited in an Aspiration account is insured by the Federal Deposit Insurance Corporation, or FDIC, for up to $1 million, which means families are not at risk of losing their money.

How to Open an Aspiration account

Signing up for an Aspiration online savings account can be completed in under twenty minutes and only requires a $10 initial deposit. However, customers must create a user account with the institution before being allowed to submit an application for the special savings account.

The first thing customers will need is an email account. Then, the bank will ask for other details, such as social security number. Only U.S. citizens or permanent residents can open an Aspiration bank account. Because this is an online account, customers will have to provide the details of a traditional bank account to link to. This is required in order to move money to and from the account.

Providing personal information is not enough to complete the process. To protect customers from identity theft, the bank also has a second step that involves several questions designed to determine whether the person creating the account is who they say they are. If the system is unable to verify the identity, an additional step must be completed.

This additional step often involves providing a picture of both a primary and secondary government identification document, such as a driver’s license and bank statement. Once these documents are submitted, the bank will take up to three days to verify the information and activate the account.