Aspiration Bank

A REVIEW OF ASPIRATION BANK: HIGH APY AND ECO-FRIENDLY FEATURES

With the rise of online-only financial firms, many customers are choosing them over traditional banks due to their convenience and ease of use. Among the features that attract users to Aspiration are a high APY, cash back on debit card purchases, and unique perks that benefit the environment — just to name a few.

Since taking full advantage of Aspiration’s perks requires a monthly fee, it makes sense to take a look at the pros and cons of this online firm before signing up. We’ll cover everything for you in our in-depth review.

HOW DOES ASPIRATION WORK?

A customer who opens an Aspiration account automatically gets a checking and savings account. You can’t choose one over the other; you get both when you apply.

It is essential to maintain both accounts because they offer different benefits. The Spend account, Aspiration’s checking account, offers withdrawals from ATMs and debit cards, while the Save account offers interest.

When members sign up for Aspiration, they choose between two service tiers. The basic Aspiration account uses the “Pay What Is Fair” model, in which customers don’t need to pay a monthly fee if they don’t want to. The Aspiration Plus account has a monthly fee, but it offers more lucrative perks. You can switch between the two tiers, including access to checking and savings accounts.

MINIMUM AND MAXIMUM DEPOSIT

Minimum deposit: $10

Maximum deposit: None

DEPOSIT & WITHDRAWAL METHODS

• Making deposits with an ACH transfer, a debit card, or a wire transfer is possible.
• You can withdraw money from your linked bank account via wire or ACH transfer.

MINIMUM ORDER & LOT SIZE

Since Aspiration Bank does not offer brokerage services, there is no minimum order or lot requirement.

VERIFICATION PROCESS & DOCUMENTS REQUIRED

To open an account with Aspiration Bank, you will need to provide the following information:

• Name, address, and date of birth
• Your Social Security Number
• Your email address
• Your phone number
• You may also have to provide additional information, such as your employment status and income.

AVAILABLE ASSETS

The following types of accounts are available at Aspiration Bank:

SPEND ACCOUNT:

With this account, you can access an ATM and a debit card.

SAVE ACCOUNT:

You earn interest on the balance of this savings account.

INVESTMENT ACCOUNT:

This brokerage account lets you invest in stocks, ETFs, and mutual funds.

FIAT AND CRYPTOCURRENCY SUPPORT

Among the fiat currencies that Aspiration Bank supports are:

• USD
• EUR
• GBP
• AUD
• CAD

Aspiration Bank does not accept cryptocurrencies.

PLATFORM FEATURES

A variety of platform features are available through Aspiration Bank, including:

• A mobile app for iOS and Android
• An online banking website

There are three ways to contact customer support: by phone, email, and live chat.

ASPIRATION BANK MOBILE APP

This application lets users view credit plans, make deposits, pay bills, and earn cashback. The Aspiration Bank app for Android allows users to save and invest in profitable businesses.

SERVICES

Using this tool, customers of a well-known American financial platform can access their accounts, apply for credit cards, and complete transactions on the go. The service will also return a certain amount of cashback if they purchase using the tool.

SAFETY

Using touch ID or face ID will allow you to access your account only. Banking apps usually offer these protections.

UNIQUENESS

Customers receive services from the application and take care of their environment. Transactions are usually made via carbon credit cards. As a result, you can see how much carbon has been emitted by your spending and how much its impact on nature is.

INVESTMENTS

The Aspiration mobile app allows users to invest their money and make profits. You can view available plans and select the deposit amount before committing, and read the terms and conditions.

FEATURES

• Bill pay and funds transfer;
• Carbon credit card;
• Spending tracking via transaction history;
• Investment and credit plans;
• Free Android and iOS app download.

MOBILE CHECK DEPOSIT:

With the app, available for both iOS and Android, you can deposit checks on your mobile device. Processing time is just one to two days (there is a five-day hold in the first 30 days).

CASH:

To deposit cash directly, Aspiration suggests buying a money order with cash and depositing it using the mobile check deposit option. You can also use a third-party app, such as PayPal to deposit cash and then deposit to the bank.

ASPIRATION SPEND & SAVE ACCOUNT

With its first checking-like account, Aspiration attracted attention for its high interest rate of 1% APY, which was much higher than those offered by some brick-and-mortar banks.

After meeting certain conditions, Aspiration announced it would replace its checking account and offer an interest-bearing cash management account called “Spend & Save.”.

Aspiration claims it is 100% fossil fuel-free despite technically being two accounts. However, the consumer can expect to view it as one seamless Aspiration account.

FEATURES

Bill pay: Yes

Mobile check deposit: Yes

Fraud protection: Yes, and users can get up to $1,000 in reimbursement for identity fraud

Debit card: Yes

Rewards: Aspiration’s Conscience Coalition member brands offer up to 10% cash back on purchases made at selected “mission-driven” brands.

Annual Percentage Yield: 3.00% APY on balances up to $10,000 (0% APY above $10,000).

Other Insurance: You can get phone insurance up to $1,000 on your Aspiration Mastercard debit card when you use it to pay your monthly bills.

Security features: Multifactor authentication and automatic sign-out

FDIC Insurance of up to $2 million is available at night. Your funds are swept to FDIC-network member banks at night. Your insurance coverage expands from $250,000 to $2 million. During the day, your funds are held at Coastal Community Bank. It’s the same entity that issues Aspiration debit cards.

A checking or savings account is insured up to $250,000 by the FDIC. The network increases your FDIC insurance coverage from $250,000 to $2 million by sweeping your funds into a network of member banks at night.

Fees

ATM fee: 55,000 accessible in-network ATMs with no fees.

Monthly fee: There are no mandatory fees for Spend & Save accounts, and Aspiration asks that you “Pay What Is Fair.” For Aspiration Plus accounts, the fee is either $7.99 a month or $5.99 a month if you pay yearly.

• Overdraft fee: $0
• Foreign currency transaction fee: 2% per transaction

ASPIRATION INVESTMENT ACCOUNTS

Two investment products at Aspiration cater to sustainable investing, which is also called environmental, social, and governance (ESG) investing. Two portfolios are available to average Joe investors through Aspiration: the Redwood Fund and the Redwood IRA, both of which require a minimum initial deposit of $10.

The Redwood IRA and the Redwood Fund invest in companies that actively promote social progress and environmental responsibility. UBS Asset Management manages both accounts.

Aspiration partners with outside businesses to offer its investment products, so their operating expenses to third parties are limited to 0.5% of the client’s assets. There is a “Pay What’s Fair” fee for both accounts, but the IRA comes with an additional $15 annual custodial fee and is subject to the same tax implications as other traditional IRAs when you access your funds.

FEES

Sales commission (front or back end): $0

Transaction fee: $0 per transaction

Performance fee: $0

Redemption fee: $0

ASPIRATION COUNTRIES

The Aspiration program is only available to US citizens and permanent residents.

ASPIRATION ACCOUNT OPENING PROCESS

Opening an account at Aspiration takes several days, from submitting your application until you can access your account and initiate transactions.

Here are the steps we took:

• You can either fill out the information on the website or on the app. You’ll be asked to provide your name, email address, SSN, and bank account number.
• Aspiration verifies your bank account by sending a small amount (a few cents) within two days.
• To create an account with Aspiration, you must verify that you have received the money and deposit the $10 minimum deposit.
• The next step is scanning an ID document, such as a driver’s license or passport, taking a photo, and sending it to Aspiration. Aspiration might take another 1-2 days to review these documents.
• Depending on the reason for the flagging, you may need to submit additional documentation, such as bank statements. This further review can take a couple of days.
• While verifying your account and making your minimum deposit, you can start using Aspiration.

ASPIRATION CURRENCIES

Aspiration offers only USD bank accounts, and the associated Spend, Save, and Investing accounts are also available in USD.

SECURITY

Aspiration is a non-bank service provider and does not hold a banking license. However, your deposits are safe because they reside at several FDIC-insured partner banks.

Aspiration’s partner banks (Program Banks) sweep up Spend and Save balances to distribute up to $246,500 per bank at the end of each day. Aspiration protects up to $2 million of your deposits, including interest. Aspiration may add or remove partner banks at any time, and you can also exclude banks from your partner bank list to adjust your total coverage.

With the Aspiration Debit Card, you get a debit card issued by Coastal Community Bank in Washington State. With Aspiration, a Priority List of Banks belongs to your account.

• Coastal Community Bank
• ProgressBank
• Amalgamated Bank
• EagleBank
• Manufacturers Bank
• C3Bank, NA
• The Freedom Bank of Virginia
• Bridgewater Bank

ASPIRATION CARDS OVERVIEW

Does Aspiration offer any kind of credit card?

There is only one type of physical card, a debit card, provided by Mastercard.

How long till I get my Aspiration card? 

Aspiration cards arrive within 7-10 business days and can be activated online, through the Aspiration app, or by phone once they reach their destination.

Can I get a digital card from Aspiration? 

You can use this digital card when you receive your physical card, even before you receive your opening deposit. Its number differs from the physical debit card, but it works the same way as the physical card, and it’s tied to your Spend Account balance. It’s an app-only feature, but you can use the digital card whenever you don’t have your physical card nearby.

If I lose or steal my Aspiration card, what should I do? 

You can report a lost or stolen Aspiration card via the app, website, or phone. In this case, the card will stop working, and you will receive a replacement card at your registered address.

When I travel abroad, can I use my Aspiration card? 

You can use your Aspiration debit card for payments and withdrawals from ATMs outside the US. You must access your settings by logging in to the website and enabling International Travel. In addition to Apple, Samsung, and Google Pay, you can link your digital debit card to these services. There is also a 1% fee for MasterCard’s international transactions and a list of countries that will not accept transactions.

Aspiration Plus members also receive a $4 reimbursement for one international ATM fee. While Aspiration does reimburse third-party currency conversion fees, it does not cover the 1% Mastercard foreign transaction fee.

ASPIRATION PREMIUM ACCOUNTS

The Aspiration Plus premium account has an annual membership fee of $69, or $7 per month.

• Aspiration Plus offers the following benefits:
• A 10% cashback offer is available at certain partners
• Monthly rebate on out-of-network ATM fees
• You can earn 1% interest on your first $10,000 (subject to additional conditions)
• Through Planet Protection, you can offset all your gas purchases with carbon offsets.
• Recycled plastic bank card

TOP-UP METHODS FOR ASPIRATIONS

You can top up your account with Aspiration using the following ways:

ELECTRONIC (ACH) BANK TRANSFER:

You can transfer funds electronically (ACH) from your home bank to your Aspiration account within 3-4 business days. ACH transfers are free, but the daily limit is $1,000.

WIRE TRANSFER:

It is faster to deposit money this way since it will arrive within one day, but it costs $2.06 for incoming domestic wire transfers.

ASPIRATION CUSTOMER SERVICE

To get in touch with Aspiration, you can use the following methods:

Phone

Occasionally, the phone support was very fast, and we got helpful, relevant answers from the representative. At other times, the phone support was slow, and we could not get what we needed.

Email

It took varying amounts of time for us to receive answers, sometimes within ten minutes but other times after more than 24 hours. Most of the answers were helpful, although the email sometimes was not accessible.

The customer service department is available 24 hours a day.

Bottom line

The Aspiration account is an ideal fit for conscientious individuals who wish to earn rewards and interest while contributing to society at the same time. Aside from the small monthly fee, its cashback rewards and high-yield savings account compensate for the lack of interest in its checking account. It’s a simple fee schedule that leaves you with very few expenses.