Best Banks for Millennials in 2021
If you are like the majority of millennials, you are probably tired of traditional brick-and-mortar megabanks. Instead, you might prefer to do most of your banking online on your mobile, computer, or tablet. Or even further. You want a bank that can provide you financial advice and support you with real-time financial data. That may seem like too much to ask from a bank, but this article will provide you with the best banks for millennials that offer just that and more.
Why Banks for Millennials Need to Be Different?
Selecting the ideal bank can be challenging for everyone. When it comes to millennials, this process can be even more complex, since many from this generation demand different services and a disruptive approach to finance. In fact, more than half of millennials think their bank doesn’t offer anything unique or special. This reveals that most banks – or at least the most popular ones – are not very attractive to this demanding generation.
On top of that, the millennial generation faces the most challenging economic climate of perhaps any generation in America since the Great Depression. This age group of people born from 1981 to 1996 (a debatable timeframe), is experiencing its second recession in only a decade. These crises were experienced by millennials at the beginning of their adulthood. This is a crucial period career-wise and to start building financial stability. Due to that, many millennials were left with specific debt and affordability concerns. Those that managed to build wealth, lost trust in the traditional financial market.
Thus, millennials tend to have different demands and expectations when it comes to banking. This generation is more open to disruptive formats and alternative banking. But, at the same time, very critical of unnecessary fees and disappointing interest rates. If you are a millennial looking for the ideal bank to open an account, this article can be helpful. It will present the best banks for millennials in 2021, taking into consideration the features your generation usually looks for in financial services.
What Makes a Bank Great for Millennials?
There are a few features and characteristics that can make a bank more attractive to the millennial generation. Of course, everyone is different, and you might have a different opinion on some of these topics. However, in general, these are the main features that can make a bank great for millennials.
Mobile Access
Millennials are the first generation to have continuous Internet access across a wide range of devices. Because of that, connectivity became a critical aspect in banking for them. In fact, according to data from American Bankers Association (ABA), millennials are three times more likely to open a bank account on their phone than in person. Thus, the best banks for millennials will create a smoother experience by offering intuitive, multi-functional mobile apps. This easy-access format of banking offers more convenience, efficiency, and practicality. At least from the eyes of most millennials. Some of these apps also provide additional tools such as budgeting, envelope banking, and goal setting. These extra features improve even further the user experience.
Low, Transparent, or No Fees
With so much debt piling up, it's no surprise that millennials are fed up with excessive fees. According to data, high banking fees were found to be a key cause of disappointment for millennials. If you're searching for the right banks for millennials, aim for a bank that avoids fees as much as possible. Millennials usually expect their banks to don’t charge maintenance fees, don’t apply minimum balance fines, and to don’t have minimal overdraft fees. It might be farfetched to demand banks to don’t charge any type of fee, but if the bank does charge some fees, they better not be hidden. The millennial generation demands transparency from banks, especially since they don’t trust many financial institutions. That is why banks that wish to attract millennial clients usually need to offer a transparent fee structure.
Flexible Requirements
Flexible criteria are critical for millennial banking. This can range from minimum account balance conditions to opening account deposits. The most ideal banks for millennials are those that make their services available and aim to have versatile guidelines. This laid-back format of banking allows account holders to access their money anytime they need it, offering liquidity and a flexible experience.
Best Banks for Millennials in 2021
Finally, based on these relevant features and tools that millennials look for when choosing a bank, here are the best banks for millennials in 2021.
Due
Due allows you to send and receive payments from clients and customers from your eBank account. This process can be done by phone number or email account in as little as ten minutes. It also only takes one day to send money to a conventional bank account. When it comes to security, Due encrypts all of your information and stores it on a secure server. Unauthorized transfers are also monitored by the next-generation digital payment technology.
Chime
This online bank offers all the traditional services, such as sending money to friends and paying bills, without charging any monthly or overdraft fees. What makes Chime stand out is its automated savings. This feature works by rounding up your transactions to the next dollar and converting that amount to your savings.
BBVA
Similar to Chime, BBVA focuses on assisting millennials in saving money. BBVA claims that by using their tools of setting targets and visualizing how you invest money; you can save ten percent of your annual income. It also allows you to deposit checks and transfer money from your mobile. On top of all that, Simple doesn’t charge any maintenance fees.
Ally
Ally is probably the most popular and highly rated online bank. This bank achieved this position due to its no-fee checking, high savings and CD yields, and 24/7 customer support. Ally also offers a savings account and a 12-month CD with very competitive interest rates. Finally, Ally bank accepts and sends transfers from every bank in the United States.
Moven
The online mobile bank Moven provides a checking account as well as the ability to monitor your financial health at all times. This bank app keeps track of not only your Moven account but also any other banking accounts you've linked to it. It also doesn’t charge any overdraft fees, only a few account fees. The only major disadvantage of Moven is that checks can take up to 10 days to clear.
Circle
Circle takes great pride in being more than a payment app. It states it is a platform that really can transform the world economy. Circle uses blockchain technology to offer you the opportunity to send and receive money from anywhere in the world quickly, anonymously, and for free. It only takes a picture of your debit card to instantly send money to a friend. To add some fun, this app also offers GIFs or emojis to personalize your money messages.
Outlet
Outlet does not offer checking account services, thus it is not exactly a bank. However, it does offer saving services that can help you collect over 50 times more money than a conventional savings account. This savings account platform allows clients to easily navigate through the crypto environment without taking the major risks this market usually has. This way, you can take advantage of crypto’s attractive interest rates without needing to have expertise in this field. On top of all that, Outlet is completely free to use and doesn’t charge any hidden maintenance fees. Outlet holds your funds with SOC II Compliant custody partner.
Axos Bank
While Axos’ savings and CD yields aren't the best, the checking account will earn up to 1.25 percent APY. No fees, online check deposits, cash-back payment incentives, and 24/7 mobile service are some of the other benefits of checking accounts.
iGOBanking
The online iGOBank is backed by the almost 80-year-old Flushing Bank. Some of its features are smartphone deposits, balance requests, and free bill pay. All without any fees and offering a 1.00 % annual percentage yield. The Allpoint Network has 43,000 ATM sites in all 50 states where you can make surcharge-free withdrawals. A great advantage of iGOBank is that it is insured by the Federal Deposit Insurance Corporation (FDIC).
N26
This is a European online bank that opened operations in the US in 2019. This easy-to-navigate bank app is fully licensed and highly trustworthy. Similar to some of the other options, N26 has no minimum daily or monthly account balance requirements, and no monthly maintenance fees. A great feature of this online bank is that it doesn’t charge fees for foreign transaction exchanges while traveling overseas. You can also do up to 2 ATM withdrawals without any fees.
Revolut
Revolut is a mobile-first bank that makes managing your money simple and fast. It allows you to make online transfers securely, reliably, and quickly from your mobile app in many different currencies. By opening an account on Revolut, you will get a debit card that can be accessed from ATMs. But as with every option, Revolut has its downsides. If you pass the withdrawal limit of the month (which is not very high), you will have to pay a fee. Also, you can’t add money to your account with cash or cheque, instead, you need to transfer from another account – for now at least.
