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Axos Bank Review: Competitive APY, Convenient Access to Funds
By: Kailey Hagen
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Axos Bank offers many of the features you need for banking online, like domestic ATM fee reimbursements and few fees. While it falls short in some areas -- like its CD rates -- it excels in others. For example, it offers a variety of checking accounts catering to all types of consumers. Its high-yield savings account features a competitive APY, as well as a free ATM card for direct access to your funds. Read our Axos Bank review to find out whether or not it's the right choice for you.
Best For: High rate savings and diverse checking accounts
Axos Bank
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Bottom Line
Axos Bank does its best to make managing your money flexible and easy. It does this by offering fee-free accounts and a variety of checking account options. Additionally, Axos provides domestic ATM fee reimbursements (so you're not tied to a single ATM network). It's also one of the few banks to offer a free ATM card for its savings account.
Pros
- Variety of checking accounts
- Domestic ATM fee reimbursements on all checking and savings accounts
- Competitive APY on savings accounts
- No maintenance fees on any account
Cons
- Low APYs on CDs
- No branch locations
- Unimpressive customer satisfaction ratings
Axos Bank savings accounts
Axos Bank offers a single high-yield savings account.
Axos Bank High-Yield Savings account
The Axos Bank High-Yield Savings account's primary draw is its high APY. The rate is one of the best, even among online savings accounts. But it also stands out for its lack of monthly maintenance fees and for being one of the few savings accounts that offers an ATM card to interested customers.
It does have a minimum balance requirement for opening. While the amount isn't outrageous, it does seem a little high when you consider how many online banks don't have minimum deposit requirements at all. However, this requirement is only for opening the account. There are no penalties for letting your balance drop below this amount later.
Compare savings accounts
The Axos Bank High-Yield Savings account offers a competitive APY. But if you don't think it's a good fit for you, here's a list of some other top savings accounts from competitors to consider instead.
Rates as
of Aug. 3, 2020
Axos Bank CD account
Axos Bank offers a single type of CD product. Term lengths range from three months to five years. All CDs require a minimum of $1,000 to open, which is not unreasonable. However, some other banks don't have minimum deposit requirements for their CDs.
You have the option to have the interest you've earned automatically transferred to another bank account if you prefer. You can also leave the money in your CD and earn interest on your interest. This is unique: Not all banks give you a choice. Axos Bank is worth considering if you'd like to enjoy some of the benefits of your CD now, rather than waiting until the end of the term.
Its CD rates aren't particularly competitive, which might deter some people from opening a CD with Axos Bank. Check out our list of the best CD rates available if you'd like to find something a little more competitive.
Axos Bank CD
MINIMUM DEPOSIT $1,000
| 6 Month APY | 1 Year APY | 1.5 Year APY | 2 Year APY | 3 Year APY | 4 Year APY | 5 Year APY |
|---|---|---|---|---|---|---|
| 0.25% | 0.40% | -- | 0.40% | 0.40% | 0.40% | 0.40% |
Compare CD rates
If you're looking for a high CD rate, one of the below options might be a better choice than Axos Bank.
Rates as of July 31, 2020
Lender
Account
1 yr. apy
2 yr. apy
3 yr. apy
4 yr. apy
5 yr. apy
Min. deposit
Early Withdrawal Penalty
Next Steps
Marcus by Goldman Sachs High Yield CD
1.00%
1.00%
1.00%
1.00%
1.05%
$500
Yes
--
Axos Bank checking accounts
Axos Bank offers five checking account types. We've explained these in detail below.
Axos Bank Essential Checking account
The Axos Bank Essential Checking account is a fee-free checking account. It offers unlimited domestic ATM fee reimbursements, which can result in signifiant savings for you. It also features the opportunity to receive direct-deposited funds up to two days early. The account does not have minimum balance requirements. And since it does not permit you to overdraw your account, there are no overdraft fees. The account comes with a Visa debit card (checks are not included).
Axos Bank Rewards Checking account
The Axos Bank Rewards Checking account is similar in many ways to the Essential Checking account. To start, there's no monthly maintenance fee. It also includes unlimited domestic ATM fee reimbursements. On top of these benefits, it has an APY that bests most savings account rates. How much you'll earn depends on how you use the account. To get the highest possible APY, you must receive direct deposits of $1,000 or more per month and complete at least 15 debit card transactions per month.
Axos Bank CashBack Checking account
For customers who use their debit cards often, the Axos Bank CashBack Checking account could be more valuable than the Rewards Checking account. You earn 1% cash back on all signature-based debit card purchases. The trade-off: You don't earn interest on money that just sits in your checking account. The account also includes unlimited domestic ATM fee reimbursements and check-writing capabilities.
Axos Bank Golden Checking account
The Axos Bank Golden Checking account is designed for adults 55 and older. It doesn't charge a monthly fee or have minimum balance requirements. But unlike the other Axos Bank checking accounts, it only offers $8 in domestic ATM fee reimbursements per month. The account makes up for this with free personal checks and an APY that, while not as high as the Axos Bank Rewards Checking account's APY, is still quite good for a checking account.
Axos Bank First Checking account
The Axos Bank First Checking account was built for children ages 13 to 17. It also offers a modest APY and no monthly maintenance fees, which is great for younger customers getting started with banking. This account only provides $12 in domestic ATM fee reimbursements per month, but younger account holders may not use ATMs often enough to notice. There are daily transaction limits on cash and ATM withdrawals, which could be viewed as constraining by some. However, as long as you're aware of them and plan large withdrawals carefully, they shouldn't be too much of a hindrance.
Axos Bank customer service and experience
Axos Bank has received lukewarm customer satisfaction ratings, earning just a 2.8 from TrustPilot, and 2 out of 5 stars in the 2019 J.D. Power Direct Banking Satisfaction Study. But it also maintains an A+ rating with the Better Business Bureau, suggesting that it does its best to respond promptly to customer complaints.
This is something to weigh when considering where to put your money, but most people choosing an online bank don't intend to interact with their bank often. Most transactions are online. If you need cash, you visit an ATM instead of a branch. So if you don't think you'll need to reach out to Axos Bank often, its mixed customer reviews may not concern you.
Axos Bank relationship benefits
Axos Bank doesn't offer relationship benefits. For other banks, these can include higher APYs for loyal customers. Sometimes, banks offer discounts on loans or other products to customers who have multiple accounts with the bank. Axos Bank relies on its already-high APYs and low fees to draw in customers.
Relationship benefits are more common among brick-and-mortar banks. They're used to stay competitive with online banks, since online institutions often offer APY rates traditional banks cannot match. So it's not surprising that Axos Bank does not offer relationship benefits. It shouldn't be considered a negative mark.
Alternatives to Axos Bank
If you don't think Axos Bank is a good fit for you, here are a couple of other banks to consider.
CIT Bank
CIT Bank cannot match the variety of checking accounts Axos Bank offers. However, it has a competitive savings account with a tiered APY system. CIT Bank uses this system to reward customers for keeping more money in their accounts. It also has a much wider variety of CDs with more competitive APYs. It's a better option if you're interested in investing in CDs. The bank's customer satisfaction ratings are also average. Again, this might not bother you if you plan to do most of your banking online.
Ally Bank
Ally Bank is one of the best-known online banks. It offers a good mix of products, including an interest-bearing checking account, a competitive savings account, and several types of CDs -- including some less common options like raise-your-rate CDs. It's also branched out into retirement accounts and self-directed trading accounts. It could be a better fit if you're interested in retirement saving or investing.
Is Axos Bank right for you?
Axos Bank is a good choice for you if:
- You don't want to pay fees to maintain your bank accounts.
- You don't like to be tied to a specific ATM network.
- You want the opportunity to earn a competitive interest rate on your savings.
- You like having quick, easy access to your funds in any account.
Other Axos Bank products
Axos Bank offers more than the deposit accounts listed above. It also provides the following:
Axos Bank loans
- Axos Bank mortgage: Axos Bank offers new mortgages and mortgage refinances on conventional, jumbo, FHA, and VA loans. You can check your rates, get pre-qualified, and apply for your home loan entirely online. Home equity loans and lines of credit are also available.
- Axos Bank personal loans: Axos Bank offers personal loans ranging from $5,000 to $35,000 with terms ranging from one to five years. It does not charge prepayment penalties, and you can receive your funds in as little as two days after you accept the final loan offer.
- Axos Bank auto loans: You can refinance your auto loan with Axos Bank with no out-of-pocket costs. The bank also doesn't require any payments for the first 90 days.
Axos Bank brokerage
- Axos Invest Managed Portfolios: Managed Portfolios is a robo-advisor service that helps you design an investment portfolio based on your risk tolerance and automatically rebalances your portfolio to help you remain on track for your financial goals. The service is free, and there are no account minimums.
About the Author
Kailey has been writing about banks, credit cards, loans, and all things personal finance since 2012. She also writes for The Ascent's parent company, The Motley Fool. Her work has appeared on USA Today, CNN Money, Fox Business, and MSN Money. She's a graduate of the University of Wisconsin and happily lives in the woods of northern Wisconsin where she grew up.
