Editor’s Note: Simple announced in early January 2021 that it will cease operations within the calendar year. Servicing of all Simple Accounts will be transitioned to BBVA USA later in 2021.

When Simple launched in 2009, it did so on the premise that banking should be, well, simple. Partnering with BBVA, Simple created accounts that are integrated with budgeting and savings tools. In fact, Simple thinks of itself as a product company as much as a banking solution.

Simple combines these banking products with virtually no fees and competitive interest rates. It accomplishes this in part by remaining entirely online. There are no Simple branches.

As good as Simple seems, does this online platform deserve your banking business? This review will help you decide. Account details and annual percentage yields (APYs) are accurate as of January 4, 2021.

Account Basics

Online Checking (Simple Account)

Simple’s primary account is its Simple Account. This checking account currently does not earn interest (or, as stated at Simple’s website, it earns 0.00% APY). It has no monthly maintenance fees or minimum balance requirements. There are also no fees charged for:

  • Overdrafts
  • Incoming wire transfers
  • Stop payment requests

Unlink many online checking accounts, Simple Accounts come with access to checks, with a $5 charge for a pack of 25 checks. Simple Account holders also have access to mobile check deposit through the Simple mobile app. 

Simple Accounts come with a Visa debit card and access to 40,000+ Allpoint fee-free ATMs nationwide. Simple doesn’t charge a fee for out-of-network ATM use, but the ATM owner may. There is a 1% International Service Assessment (ISA) fee on international purchases made using a Simple Visa debit card. 

High-Yield Checking (Protected Goals Account)

Simple’s Protected Goals Account is a high-yield interest checking account that works more like a savings account. The Protected Goal Account currently earns 0.50% APY. 

A Simple Account is required to open a Protected Goals Account, since they are linked together.  

As with the Simple Account, there are no monthly fees or minimum deposit requirements associated with this checking account. But since it’s meant for savings instead of everyday use, it doesn’t offer access to an ATM card or checkbooks (your Simple Account, however, provides these). 

Protected Goal Accounts help you save by letting you set a savings goal amount and desired end date. Then, you can set up automatic savings contributions through transfers from a Simple Account. This type of account can be great for savings goals like funding travel or building an emergency fund.   

Shared Checking (Simple Shared Account)

If you’re looking for a checking account to share with someone else, Simple offers its Simple Shared Account. Simple Shared connects two individual Simple accounts, creating one account to share and the two individual accounts to use solo. This provides added flexibility when it comes to managing your money with someone else. 

Shared accounts have the same interest rate as the individual accounts: A Simple Shared Account currently earns 0.00% APY. A Shared Protected Goals Account earns 0.50% APY. Opening a Shared Account requires each individual to open their own Simple Account first. Money from the individual accounts is used to fund the Shared Account. 

Simple aims to look beyond a traditional joint account for couples. You can use Simple Shared Accounts for shared spending with roommates, parents, children, travel partners and more.

Certificates of Deposit (CDs)

No-penalty CDs are also available through Simple. Available in only a 12-month term, these no-penalty CDs currently earn a fixed rate of 0.40% APY. Simple CDs require a $250 minimum opening deposit. 

Typically, banks charge early withdrawal penalties if you pull funds from a CD before it reaches maturity. Simple’s no-penalty CDs are different. Customers can withdraw their full balance and any credited interest seven days after opening a CD with no penalties or fees. 

Customers must open a Simple Account before they can open a CD. There’s a limit of five CDs at one time with a maximum combined balance of $250,000.  

Distinguishing Features

Besides offering some attractive online accounts, Simple Accounts come with access to several built-in budgeting tools designed to help customers automate budgeting, set savings goals and track spending habits. 

Simple customers can set up a budget by inputting monthly bills and other expenses. Then, Simple sets aside the money you need. 

Simple’s Safe-to-Spend tool gives you a real-time snapshot of available funds, factoring in your assigned expenses, so you never spend money earmarked for something else. Safe-to-Spend offers a clear picture of how much money you can safely spend without having to pull out your calculator or check outstanding bills and expenses. 

As mentioned before, customers can also set savings goals through a Protected Goals Account. And there’s an option to set round-up rules with your Simple Account. With round-up rules, Simple rounds up the amount to the next whole dollar amount whenever you make a purchase. Once the rounded up change reaches $5, it’s transferred to your Protected Goals Account. 

Access on the Go

Like many online banks, much of Simple’s account management is done online or through its mobile app. The app is available for download in the App Store (it gets a rating of 4.6 out of 5 stars) and Google Play (4.1 out of 5 stars). It comes with many of the features you would expect with a decent banking mobile app, including:

  • Mobile check deposit
  • Debit card blocking for lost or stolen cards 
  • Simple’s budgeting tools 
  • Instant transfers to other Simple customers
  • External account linking
  • Third-party payment services 

Simple doesn’t have any branches. The only in-person banking service available with Simple is access to 40,000+ fee-free ATMs through the Allpoint ATM network. Simple doesn’t charge out-of-network ATM fees, but, unlike some banks, it doesn’t offer rebates for fees charged by ATM operators. 

Pros

  • No monthly fees
  • No minimum balance requirements
  • Competitive APY on Protected Goals Account
  • 40,000+ fee-free ATM network
  • Built-in budgeting tools

Cons

  • No cash deposits
  • Only one CD term available

How Simple Stacks Up

While Simple offers plenty of value through its online banking products, it also has very appealing built-in budgeting tools, which can help you save, pay your bills and spend safely. 

In addition, its Shared Accounts make it easier to track joint expenses. These accounts can be a good fit for those who want to share expenses but still keep separate accounts. 

In terms of APY, the Simple Protected Goals Account offers a competitive yield. But, while it behaves like a savings account, it isn’t a true savings account. Simple doesn’t offer a stand-alone savings account option. 

In addition, Simple only offers one no-penalty CD term, which doesn’t offer much flexibility for customers looking to address a mix of shorter and longer-term savings goals. 

Simple suits individuals who want straightforward bank accounts and are looking to budget and save money. Simple is not for individuals who want full-service banking or the in-person service of local bank branches.

Frequently Asked Questions (FAQs)

Is Simple FDIC insured?

Yes, all funds in Simple account are FDIC insured through partner bank, BBVA USA (FDIC# 19048). The federal government protects your money up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.

Does Simple have any branches?

No, as an online-only banking platform, Simple doesn’t operate any traditional bank branches.

What do I need to open an account at Simple?

A Simple Account can be opened in minutes online through Simple’s website. You must be a U.S. citizen over 18 years of age and with a valid U.S. taxpayer identification number to open an account. As with most banking services, you’ll be asked for personal and identifying information during the application process.