May 4, 2023

- Advertisement - Some traditional banks still offer truly free checking accounts, but it becomes more difficult to find one every year. More often than not, you have to jump through annoying hoops to waive those monthly maintenance fees. The good thing is that traditional banks — and tradition-minded online banks — are no longer the only game in town. Dozens of fintech apps like Current have stepped up in recent years to offer banking services for free with no strings attached. - Advertisement - What is the current app? Current is a financial technology app that provides basic banking services through Choice Financial Group, Member FDIC. It offers a checking account with a Visa debit card that earns rewards on select purchases and linked savings accounts that earn variable interest. - Advertisement - Current Fees There is no monthly maintenance fee and no minimum balance requirement. Notable banking features include early direct deposit with qualified payers, optional overdraft protection, extensive fee-free ATM network, and mobile check deposit. Current also has a crypto investment platform, but it is completely optional to use and you are not required to keep any of your funds in crypto if you do not want to. - Advertisement - Current has several features that set it apart from other bank accounts and fintech apps: Open to children 13 years of age and older. You can open a current account as soon as you turn 13, however teen accounts work only when linked to a parent’s account, meaning a current account of someone 18 or older . Generous rewards on qualifying purchases. You can earn up to 7x rewards on eligible Debit Card purchases with Current. That’s more generous than most rewards debit cards, though not all spending earns rewards. Competitive yields on eligible balances. Offers an impressive yield on current qualified savings: 4.00% APY on Savings Pods on balances up to $2,000 in each Pod. You can have up to three Savings Pods, for a total interest-bearing balance of up to $6,000 across all Pods. Does not hold any gas. Current automatically and instantly removes debit cards charged by gas stations. These keep your available balance low, which can be a big problem if you have little or no buffer in your account. Main features of present Current is basically a mobile-friendly checking and savings account package with a crypto investment platform attached. Overall, it works like any other online bank account, but it has a few features that set it apart. Earn Rewards on Debit Card Purchases Eligible Debit Card purchases earn rewards through the Current Points program. However, you don’t earn as many points when you make purchases with a normal credit card. According to Current, approximately 14,000 locations participate. You can find eligible current point locations using the Rewards Map in the app. For each location, the map shows how many points you can earn per $1 spent – as little as 1x or as little as 7x depending on the merchant. You have to activate each offer to earn points, which adds a step to the process but is easy enough to do in the app. You can redeem points for cash or credit against future current purchases. There is no limit to the total number of points you can earn. initial direct deposit Eligible personal direct deposits arrive in current accounts up to two days in advance. Most private employers qualify. If you receive government benefits by direct deposit, your money may arrive up to four days earlier. Interest on Savings Pods and Savings Balance You can set up a maximum of three savings sub-accounts in your current account. Known as savings pods, these are goal- or objective-driven buckets that set aside your funds as you work toward specific future plans. Savings Pod balances earn 4.00% APY on the first $2,000 in each Pod. This means you can earn up to $6,000 in interest on your savings pods. You can save faster by taking advantage of the round-up feature of currents. After you opt in, it automatically rounds up each debit card purchase to the nearest dollar and deposits the difference into the designated pod. overdraft protection (overdrive) Current offers fee-free overdraft protection on checking balances through its Overdrive facility. You must do direct deposit, then opt in, to qualify – the protection is not automatic. Overdrive protection tops out at $25 to begin with, meaning it allows current transactions that would result in negative balances as large as $25. This is up to $200 per occurrence, depending on your current assessment of your risk of nonpayment. Generally, your limit increases over time, but there is currently no set time for an increase. ATM access Current has a network of over 40,000 duty-free ATMs. ATM withdrawals outside this network may still incur surcharges that currently cannot be controlled. gas hold removal If you use your current debit card at a gas station which normally puts a hold on the account until the transaction is settled, Current removes it without requiring any action on your end. This frees up any cash that would have been tied up with the hold – up to $50 in many cases. spending insight Current’s Spending Insights feature helps you track your spending and saving patterns over time. Depending on your activity, Currents may suggest positive changes that can free up space in your budget or increase your savings momentum. mobile features Current is a mobile friendly app. Notable mobile capabilities include: Fee-free mobile check deposits Instant transfers to outside bank accounts and linked current accounts including Kish accounts Core assignments with custom payment amounts for linked Kish accounts Real-time notifications when a Kish user swipes their debit card Customizable spending controls for teen accounts, including the ability to block crypto investments from specific merchants or merchant categories Current has a built-in crypto investment platform where you can buy and sell popular coins like bitcoin and ethereum. Currently only available for adult accounts. And crypto pricing is extremely volatile, so be cautious if you choose to use this feature, and don’t invest more than you can afford to lose. benefits of current The Current ticks many of the boxes you’d expect of an entry-level checking and saving package. No monthly service fee. There are currently no monthly service charges, regardless of your balance or transaction activity. There is no cost to open and maintain your account. Fee free overdraft protection. Current’s overdrive facility is a fee-free overdraft protection program that covers negative balances of up to $200. Many fintech apps also have overdraft protection, but a fee-free option is rare. Competitive interest rate on eligible balance. Current’s Savings Pod yields are at par with the best high-yield savings accounts in the market. Many fintech apps don’t pay interest at all, and those that do often can’t compete with top-notch returns. Initial direct deposit with eligible payees. If your employer qualifies — and most do — you can get paid up to two days in advance with Current. That’s a Wednesday instead of the usual Friday pay day. You do not need to wait till the age of 18 to open an account. Current is open to children under the age of 13 as long as they link their accounts to an adult account that is 18 or older. With built-in handy and allowance features, this is an ideal first bank account for older children. Does not hold any gas. The current releases gas station holds as soon as the station engages them. It can free up to $50 (and sometimes more) immediately without the customary two- to three-business-day wait. Strict parental controls for teen accounts. Present’s parental monitoring and control features include real-time debit card transaction alerts, customizable payment blocks at merchants or transaction categories, and a home management interface that lets you assign tasks and then mark them complete. If your teen is ready for more independence and flexibility but still needs financial training wheels, Current has your family covered. loss of current There are currently some significant downsides, including a relatively low maximum balance to earn interest and significant limits on the rewards program. Many current purchases do not earn rewards. Current only earns rewards on purchases made with certain debit cards. You’ll need to use the current points map to find participating merchants and see how much you can earn at each. This adds time and friction to the process – and even with careful planning, current can’t match the efficiency or earning potential of a general-purpose rewards credit card. Activate offers in the app to earn rewards. Existing purchases do not automatically earn rewards. You have to activate each opportunity in the app. While the app is quite user-friendly, it adds another step that’s easy to forget. Only $6,000 in the savings balance is eligible to earn interest. Savings Pod balances only earn interest on the first $2,000, and you can only have three Savings Pods at a time. This means that the maximum balance on which you can earn interest is $6,000. how current stack up Not the only mobile-friendly checking and savings solution on the current market. Chime is a popular option—one that appears in many product comparisons on Current’s website. So before you open an account with Current, see how the two stack up. Current ChimeMonthly Fee$0$0Debit Card Rewards Up to 7x Any Savings Yield at Eligible MerchantsAny Savings Yield4.00% APYUp to $6,0002.00% APY on All Savings BalancesEarly Direct DepositYes, Two Days EarlyYes, Two Days EarlyOverdraft ProtectionYes, Up to $200Yes, Up to $200 DepositInsuredYes, Up to $250,000Yes, up to $250,000 Last word Current has several advantages over traditional bank accounts, including no monthly service fee, fee-free overdraft protection, early payments with qualified direct deposit, a potentially generous rewards program, and a very competitive savings yield. This makes it an ideal bank account for those who live paycheck to paycheck and for young people transitioning into the workforce after finishing school. It is also useful for teens and their parents because of the teen-friendly account with parental supervision and controls. However, current has some drawbacks. Many purchases don’t earn rewards at all, and you need to activate the offer before each transaction, which adds friction to the process. There is currently a relatively low maximum balance to earn interest – just $6,000 across all eligible savings sub-accounts. For most future users, there’s more to like than dislike the current one. But before you rush to apply, make sure it suits your needs.