LAST UPDATED: April 22nd, 2021
Bank5 Connect is strictly an Internet based bank, with no brick and mortar bank locations. This Internet bank is a division of BankFive out of Fall River, MA, that has been in business for nearly 160 years. Like most online banks Bank5 Connect can offer better rates because they do not invest any money in maintaining a building.
- Account services
- Low minimum deposit
Bank5 is a division of a long-running bank out of Massachusetts, which definitely gives it some structure and backbone. They have made a great effort to offer everything that a traditional bank offers such as checking accounts, savings accounts, and CDs. In addition to the standard bank services Bank5 Connect also offers online bill pay, eStatements, and free mobile banking. There are three basic accounts Bank5 Connect customers can choose from. There are checking, savings, and CDs available. Each account comes with its own unique features and services with competitive rates and fees. The basic Bank5 Connect accounts can be broken down as follows: Checking: deposit money into an account and then write checks against the balance. Bank5 checking comes with more modern-day flexibility.
- No monthly maintenance fee
- Free online banking, bill pay, eStatements
- Free mobile banking
- UChoose Debit Rewards program
- Free ATMs anywhere and at anytime
- 0.76% APY
Savings: put money aside for a rainy day, to earn interest, or to save toward a major purchase.
- Free online banking/eStatements
- Free mobile banking
- Savings can be used to cover overdrafts of checking account
- 2.05% APY on balances of $100 and up
Certificate of Deposit: a safe and secure investment with a solid return
- Only a $500 minimum deposit
- No monthly maintenance fees associated with Bank5 Connect CDs
- Connect CDs have terms of 6, 12, 18, 24, and 36 months
- 6-Month CD: 1.45% APY
- 12-Month CD: 2.55% APY
- 18-Month CD:1.75% APY
- 21-Month CD (special): 2.40% APY
- 24-Month 'Investment' CD: 2.70% APY
- 36-Month CD: 2.90% APY
- Investment CD has a term of 24 months
- All Bank5 Connect CDs are FDIC insured for up to $250,000
- All Bank5 Connect CDs are also DIF insured for over $250,000
- Once the CD matures, clients have the opportunity to deposit additional funds and roll it over into a new term
Low Minimum Deposit
There is a very low minimal payment required to open a checking account. An account can be secured for as little as $10.00. Checking accounts with balances of $100 or higher will be eligible to draw interest at a rate of .76% APY.
- Customer service
- No physical branches
Customer service online chat is only available M-F, 8-4:30 eastern. There is a lot of smaller print, including the disclaimer that the interest rate may change after the account is opened, and that fees may reduce earnings.
No Physical Branches
Bank5 doesn't have any actual branch locations to visit in case of a problem. There are a few disclaimers on their site, rejecting responsibility in some specific situations. Potential customers should carefully read all the small print. Other common concerns include:
- Inability to lend money to Bank5 Connect clients
- Rates can change on savings accounts at anytime
The Bottom Line
There are a variety of online banks available these days, and if I were opening an account, I would be cautious of this one. While it is an FDIC bank, if there were issues with the account, I am not sure what the procedure might be to straighten out the issue. A major plus is that this bank is blended in with a very established bank that does have a physical address. Bottom line, this bank may be just as reliable as the competition, but will just need to be looked over a bit closer before signing on the dotted line. Those that use Bank5 Connect can expect the following from their service:
- Competitive rates and fees
- Quality online banking features
- No branch locations
- Limited customer service
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