Radius Bank Review - Everything You Need to Know

Enjoy competitive savings rates and free ATMs worldwide

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Image by Emilie Dunphy © The Balance 2019

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Radius Bank is a primarily online bank headquartered in Boston. Founded in 1987, the bank holds over $1 billion in assets.

Who Is Radius Bank Best For?

This bank is a good option if you:

Pros

  • No ATM fees

  • Industry competitive interest rates

  • Earn up to 1.2 percent APY with the flagship hybrid checking account

Cons

  • You can’t deposit cash

  • Multiple account choices can be confusing

  • $100,000 deposit required to earn the best interest rates

Types of Accounts

  • Hybrid Checking
  • Rewards Checking
  • High-Yield Savings
  • CDs
  • Other accounts
  • Credit and loans

Hybrid Checking

This free hybrid checking and savings account is the most exciting account at Radius Bank, and could potentially act as both a checking and savings account. The account charges no monthly service charges. It pays an interest rate on par with many top-tier savings accounts. And it offers free ATMs worldwide with no limits.

Some highlights:

  • Earn one percent on balances from $2,500 to $99,999.99
  • Earn 1.2 percent on balances of $100,000+
  • No ATM fees and unlimited reimbursements for fees from other banks
  • $100 minimum to open, but no minimum balance thereafter

When you sign up, you’ll get your first book of checks for free. If you are into free banking, this account is one of the best around. And with an ability to earn one percent or more on your balance, it might be the only bank account you need.

Rewards Checking

The rewards checking account from Radius Bank doesn’t offer the great interest rate you get from hybrid checking, but it has its own unique benefit that can pay you every time you use your debit card. This account offers one percent cash back when you use the card for online purchases or press the credit button (not debit with a PIN) at checkout in stores.

Other things to note:

  • No monthly service charges
  • Unlimited worldwide ATM reimbursements
  • $100 minimum to open, but no minimum balance thereafter

If you typically keep less than $2,500 in your checking account, this is a better account for your needs than the Hybrid Checking. But if you do keep a high balance, you’ll have to compare your potential interest with average monthly spending to figure out which is more valuable for your needs.

High-Yield Savings

While you can certainly use the Hybrid Checking account as your savings account, Radius Bank also offers a dedicated high-yield savings account. This savings account currently pays among the top interest rates in the country.

Things to keep in mind:

  • Earn 1.5 percent APY on balances from $2,500 to $24,999.99
  • Earn 1.96 percent APY on balances of $25,000 or above
  • No monthly fees
  • $100 minimum to open, but no minimum balance thereafter

Like all savings accounts, this one is subject to a maximum six withdrawals per month. If you have the cash to put away in an emergency fund, home down payment savings, or a similar goal, this account is ideal for storage.

CDs

Radius Bank offers a range of CDs with a $500 or $1,000 minimum to open. Rates start at 0.85 percent for 3 months and go up to 2.2 percent APY for 5 years.

CD Rates
Term APY
3 months 0.85%
6 months 0.95%
9 months 1.25%
12 months 1.55%
18 months 1.60%
2 years 1.70%
3 years 1.85%
4 years 1.95%
5 years 2.20%

Keep in mind that CD accounts are time-bound. You can’t withdraw funds at any time. If you withdraw before the maturity date, you’ll have to pay an interest penalty.

Other Accounts

Radius Bank offers a few additional accounts that are not as exciting, but still worth mentioning.

  • Superhero Checking: This account offers rewards as a donation to the March of Dimes
  • Essential Checking: This is the most basic checking account. It charges a $9 monthly fee, so it isn’t as good as the other checking options at this bank
  • Radius offers a range of business accounts that may be useful for small business owners

Credit and Loans

Radius Bank offers six consumer credit cards. Cards include rewards, low interest, secured, and a card for college students.

Personal loans are available with APRs from 6.95 to 35.99 percent depending on your credit history. These unsecured loans come in sizes from $2,000 to $35,000 with a 36-month or a 60-month term.

Radius also offers mortgages and yacht loans as well. Yes, yacht loans. If you want to tap into your inner Wolf of Wall Street, Radius Bank has you covered.

Tips for Banking With Radius Bank

Overdraft protection: Radius Bank offers two options for overdraft protection. You can either link an account to transfer in funds to cover an insufficient funds situation or link to an overdraft line of credit. Both offer an opportunity to save you an embarrassing overdraft and a $25 overdraft fee.

Fees: Fees are typically lower than the big, traditional banks. However, they are higher than some other online-only banks. Most fees are uncommon and easily avoidable.

About Radius Bank

Radius Bank has won several awards in recent years for innovation and financial technology. Because the bank is so focused on Web and mobile banking, it is best for people who are comfortable with online-only banking and don’t need to deposit cash.

When you do need cash on occasion, you can use any ATM in the world and Radius Bank will not charge any fees. In fact, it offers an unlimited ATM fee reimbursement. Very few banks offer this benefit, which can be very valuable to some banking customers.

Radius Bank also offers great interest rates, competing with some of the top rates you can find from other online or offline banks. While it also offers small business and commercial banking, today’s review will focus on consumer banking products.

The Bottom Line

Benefits Radius Bank is a good choice for someone looking for an online bank account with low fees and competitive interest rates. If you get paid via direct deposit and don’t use much cash, this bank could be perfect for your needs. And when you do need a few paper greenbacks in your hand, you can use any ATM in the world with no fees.

Drawbacks Those who are less comfortable with online and mobile banking may be best off sticking with a traditional brick and mortar bank. Radius Bank does offer several options for help and customer service, but you can’t walk into the bank and get in-person support.