Desire defies simple categorization.
Desire defies simple categorization. It almost seems as though this financial institution is defying you to classify it.
Although it offers accounts that resemble checking accounts and savings accounts, it is not a bank. Additionally, it has debit cards, offers higher interest rates than usual, gives cash back, and exudes a charitable atmosphere.
The four-star rating provided in this first-person review was determined by a grading system created by the MoneyWise editorial team, which took fees, features, and other considerations into account. The content and ideas in this essay, which reflect my understanding of Aspiration as a service, are entirely mine. Results for other clients could be different.
I'd use the word quirky to describe Aspiration as a client with one of the "Spend & Save" accounts, and I mean that in a positive, endearing sense. The debit card is "earth friendly" (made of recycled plastic), there are no fees, and by using the card to make purchases, you may contribute to the planting of trees.
Is it worthwhile to open an Aspiration Spend & Save Account? Let's look at it.
Pros
- Deposits have a greater APY than other accounts, up to 1.00%. 1 The debit card offers up to 10% cash back on purchases.
- The basic account has no monthly fees (unless you choose to pay them) and no overdraft charges.
- Allpoint's countrywide network allows for limitless free ATM withdrawals.
- Aspiration has numerous policies that are environmentally friendly.
Cons
- It can be challenging to understand the account's basic operations.
- The 1.00% APY is difficult to obtain.
- There are only a few companies that offer the best cash back rates.
- There are no physical branches, and there is no way to deposit cash.
- Paper checks are available upon request, however they are not usually free.
Describe aspiration. Are they a bank?
In contrast, Aspiration is not a bank, nor are its accounts "bank accounts." The business is, technically speaking, a broker-dealer that provides "cash management accounts."
With Aspiration, you get the convenience of a checking account for making withdrawals and spending your money together with the option to save and earn interest comparable to a savings account. A debit card from Aspiration functions exactly like a regular debit card from a bank account.
An Aspiration account is a smart choice if you detest bank fees (and who doesn't? ), as you may avoid several common expenses like monthly service fees and ATM fees.
I have one of the accounts, and Aspiration's numerous socially conscious aspects are what I find to be incredibly interesting and cool. By planting a tree each time you permit a purchase with your debit card to be rounded to the nearest whole dollar, Plant Your Change, for instance, contributes to the battle against deforestation.
Can Aspiration be trusted?
Absolutely, despite the fact that its financial statements differ slightly from those you are used to.
Aspiration's consumer safeguards actually go above and beyond what you'd get from a traditional bank because it is so legitimate.
FDIC insurance covers your money in a regular bank account up to $250,000, but Aspiration says that it can offer FDIC protection for deposits up to $2.46 million.
Review of Aspiration Spend & Save
An Aspiration Spend & Save account is what, exactly? According to Aspiration, it is "the first cash-back account in the world that allows you to measure the impact of your spending and is all handled through one simple app."
I believe it will make you reconsider where you keep and how you spend your money, especially your paycheck. Do you want it to be deposited automatically into a bank account with little or no interest? Why do you continue to pay account fees? Why aren't you receiving cash back on your debit card?
And why not let your banking experience show how much you care about the society we live in?
The advantages and disadvantages of Aspiration's cash-management accounts are detailed below.
What a Spend & Save account has to offer
Easy registration process. It only took me a short while to open my account, link it to my regular checking account, and set up a transfer. Aspiration accounts can be opened for as little as $10.
enticing interest rates for your savings. Earnings of up to 1.00% APY, or up to 15 times the national average for savings, are possible.
ATM transactions without fees. At the more than 55,000 ATMs connected to the Allpoint network, customers can benefit from limitless free withdrawals. A helpful ATM locator in the Aspiration mobile app indicates that my home's closest ATM is located within a large chain store less than half a mile away.
One out-of-network ATM fee per month is waived when you upgrade to an Aspiration Plus account (costs $3.99 per month).
minimal costs in any way. There are no monthly maintenance costs for basic Save & Spend accounts, but account holders are encouraged to "pay what is reasonable" if they like. (Monthly payments total $1. Simply because it seemed appropriate to do so.) Additionally, Aspiration doesn't impose overdraft fees because the debit cards and accounts are configured in a way that prevents you from making purchases when you don't have enough money.
You must pay a 1% foreign transaction fee when using the debit card outside of the country.
Cash-back incentives. With the Aspiration debit card, there is no cap on the amount of cash back you may receive, which can be up to 10% on transactions.
"Green" elements. In addition to Plant Your Change and the recycled-plastic debit cards I've already described, Aspiration also provides "Planet Protection," which may become active every time an Aspiration Plus account holder uses the debit card to purchase gasoline. Planet Protection purchases carbon offsets to offset the fuel's emissions, or else it funds initiatives to clean up the environment.
Your money is secure. The FDIC again insures deposits up to $2.46 million per depositor.
cell phone protection. When you use your Aspiration debit card to pay your monthly cell bill, your smartphone is insured for damage or theft up to $600.
Free check payments. With Aspiration's free payments feature, you can use the app to pay a company or acquaintance. After you schedule the payment, Aspiration mails a paper check to the recipient bearing your name and address in five to seven business days
characteristics for security. In the event that you unintentionally leave your account open on your computer or app, accounts are secured with automated sign-out. Multifactor authentication is needed for login: You might need to input a code that you get on your mobile device in order to access your account.
The negatives
Account fundamentals can be confusing. My Spend & Save account is divided into "Spend" and "Save" half, which I didn't immediately realize, so I assumed that any money in there would automatically earn interest.
With the money on the Spend side, you can use your debit card to make purchases and possibly get cash back. But if you want to receive interest, you must move money to the Save side.
I also didn't understand at first that you can only receive interest on your savings if you upgrade to Aspiration Plus, which costs $3.99 each month.
It's challenging to hit the 1.00% APY. An Aspiration Plus account customer must make $1,000 or more in monthly Aspiration debit card purchases to qualify for the highest interest rate. Only savings balances under $10,000 are eligible for the 1.00% APY; balances beyond $10,000 get 0.10% APY.
Members of Aspiration Plus who don't use the debit card to make the required purchases receive 0.25% APY on balances up to $10,000 and 0.10% on balances above the cap.
Checks must be requested; no cash deposits are permitted. Aspiration does not have any physical locations, ATM networks, or other means of accepting deposits in cash. The mobile app can be used to deposit checks.
You'll need to submit an online form in order to order a set of paper checks if you're an old-fashioned person who prefers them. The first batch is free, but you will have to pay postage on subsequent orders.
Cash back has layers and a cap. Only Aspiration Plus members and only when making purchases from more than a dozen "like-minded businesses" who are participants in the Aspiration Conscience Coalition are eligible for the 10% cash back on debit card transactions.
At some of those firms, customers with basic accounts receive cash back of 5%, 4%, or 3%.
All account members can receive up to 0.5% to 1.0% back when making purchases from a variety of other companies, according to Aspiration, that have environmentally friendly business practices.
Finally, is Aspiration Spend & Save worthwhile?
The Aspiration debit card is a welcome addition to my wallet. If you're seeking for an alternative to the major banks, which sometimes appear more interested in taking your money than in assisting you in making money with your money, you might feel similarly.
The accounts include all the positive qualities you desire, such as FDIC protection, a network of accessible ATMs, safety features, and a limited number of expensive and inconvenient account fees, as well as a number of unexpected benefits.
I use a debit card that not only reimburses me in cash, but also accepts spare change I wouldn't normally think twice about and actually helps the environment. I've planted five trees in the last two weeks, according to the app. I find that to be quite cool.
Aspiration has a rating of 4.5 stars from us. While updating your account and paying $3.99 a month will provide you the best results, I did find several features of Spend & Save to be a little counterintuitive.
However, the fundamental Spend & Save account provides everything you need and more, all at the lowest price. You have the option of paying nothing at all. Additionally, when you use the debit card, the cash-back feature practically gives you money, and your account enables you to help others. Does that "pay off"? Definitely.
The four-star rating provided in this first-person review was determined by a grading system created by the MoneyWise editorial team, which took fees, features, and other considerations into account. The content and ideas in this essay, which reflect my understanding of Aspiration as a service, are entirely mine. Results for other clients could be different.