Spruce Banking is a solid mobile banking platform that doesn't charge monthly fees. Its accounts come with several special perks like cash-back rewards and early direct deposit. Spruce doesn't pay interest on its accounts, though, so you may want to consider one of the best high-yield savings accounts instead.
Pros and Cons
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Spruce Savings Account
no monthly service fee
3.50%
$0
- No monthly fees
- No minimum balance
- Savings feature that allows you to set individual financial goals
- Get cash back rewards through Dosh when you shop at one of 10,000+ select retailers
- Online-only experience
- Spruce Savings account is linked to Spending account, which is the primary Spruce bank account
- When you use the Spruce debit card at select retailers you'll get cash back rewards automatically deposited into your account
- 55,000 free ATMs nationwide through the Allpoint ATM network
- Deposits are FDIC insured through Pathward®, N.A.
The Spruce Savings Account may be ideal if you're looking for unique savings features. You can set up individual financial goals through the account and evaluate them through charts that track your progress. If you use your debit card at select retailers, you'll get cash-back rewards deposited into your account.
Spruce Spending Account
no monthly service fee
None
$0
- No monthly service fees
- No minimum balance
- $20 bonus if you meet the requirements by April 20, 2022
- Early direct deposit
- No overdraft fees
- Courtesy Coverage that covers a negative balance of up to $20 if you meet the requirements
- Unable to overdraw your account
- $3 out-of-network ATM fee
- $4.95 fee for bank teller cash withdrawals
- 55,000 free ATMs nationwide through the Allpoint ATM network
- To receive Courtesy Coverage, you must make at least $200 in qualifying direct deposits within a 35-day period
- To get a $20 bonus, open a new Spruce bank account before April 20, 2022, and make at least $200 in direct deposits during the first 45 days of opening the account
- Deposits are FDIC insured through Pathward®, N.A.
The Spruce Spending Account is a solid free account. You won't have to deal with monthly service fees, minimum opening deposits, or overdraft fees.
If you use an ATM outside of the Allpoint network, you'll have to pay a $3 fee. There's also a fee if you go inside a another bank and withdraw cash with a teller.
How Spruce Banking Works
Spruce is a new fintech platform created by the tax preparation company H&R Block.
H&R Block is not a bank. However, the Spending and Savings accounts are FDIC insured through Spruce's banking partner Pathward, N.A. Money deposited in your account will be safe. You'll also have access to over 55,000 fee-free ATMs through the Allpoint network.
You don't need to be a client of H&R Block to become part of Spruce. You can sign up online or through mobile.
With Spruce, you'll open checking and savings accounts. At this time, the banking platform doesn't allow you to only open a Spruce Savings or Spruce checking account by itself.
The Spruce mobile app is available in the Apple Store and Google Play Store, where it has 5 stars but limited customer reviews.
Customer service is available over-the-phone or online from 5 a.m. to midnight CT.
Is Spruce Banking Trustworthy?
We usually include ratings from the Better Business Bureau to help indicate how a business deal with customer issues and handles transparency. Spruce Banking is a new banking platform so it doesn't have a BBB rating, yet.
Since accounts are also insured by Pathward N.A., we're also including the bank's BBB rating for some additional perspective. Pathward N.A. has a B- rating because it has a high number of customer complaints, and it still hasn't resolved a few of them.
How Spruce Banking Compares
We compared Spruce Banking to two other online banking platforms: Chime® and One.
All three banking platforms require no minimum opening, deposit, or monthly fees. You can also see up financial goals through their different savings features.
Choosing between these three platforms will likely hinge on what you prioritize in your banking experience.
You may prefer Spruce to the other banking platforms if you'd like to get cash back on some purchases. Cash-back rewards are provided by Dosh. There are more than 10,000 retailers that offer rewards.
If you're more concerned with earning interest, it'll be a toss-up between Chime or One.
One pays the highest interest rate of all three platforms, but the amount you'll earn will vary depending on your account balance. If you have a high account balance, you also may want to consider other options.
Chime pays a good rate on its Chime Savings Account, but it has access to fewer fee-free ATMs than Spruce or One. However, you would also need to open the Chime® Checking Account.
Why You Should Trust Us: How We Reviewed Spruce Banking
We rate bank accounts on a scale from one to five stars. For Spruces spending and saivngs accounts, we used Personal Finance Insider's bank account ratings methodology. The exact factors we evaluate vary depending on the type of account — for example, we look at overdraft fees for checking accounts and interest rates for savings and money market accounts.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Chime® Disclosures:
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
Early Pay: Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
Round Up: Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.
SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your physical Chime Visa® Debit Card or secured Chime Credit Builder Visa® Credit Card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime's sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
Qualifying Direct Deposit: The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Save When You Get Paid: Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.
Once the retailer accepts your cash, the funds will be transferred to your selected Chime Account. Barcode and debit card cash deposits land in the Checking Account. Credit Builder card cash deposits first go through your Card Account and then land in your Secured Account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade.
Tax e-file services provided by April Tax Solutions Inc. ("april") or Column Tax, Inc. ("Column Tax"). These tax filing offers are not endorsed or offered by our partners, The Bancorp Bank, N.A. or Stride Bank, N.A.
Maximum refund guarantee is provided by april or Column Tax. If you use april's service to prepare and file your return and you find an error in the tax preparation that entitles you to a larger refund (or smaller liability), you may use their service to amend that return at no additional charge. To qualify, the larger refund or smaller tax liability must not be due to differences or inaccuracies in data supplied by you, your choice not to claim a deduction or credit, positions taken on your return that are contrary to law, or changes in federal or state tax laws. See here for details. If you use Column Tax's service, Column Tax will reimburse you for up to $250 if you are able to pay less federal or state income tax or receive a larger federal or state income tax return by using another tax return preparation provider. Eligibility requirements apply. See terms for details.
If the april tax preparation software makes a mathematical error that results in your payment of a penalty and/or interest to the IRS that you would otherwise not have been required to pay, april will reimburse you up to a maximum of $10,000. See april terms for details. If interest and/or a penalty is imposed by the IRS as a result of a computational error by Column Tax, you may be entitled to up to $10,000 reimbursement by Column Tax. See Column Tax terms for details.
There are no fees required to use this product. Chime does not require you to deposit your refund into your Chime Account to qualify for free tax filing. Certain costs may be incurred if you decide to obtain other optional financial products offered in relation to your tax filing. The Internal Revenue Service (IRS) may impose penalties or other charges depending on your personal tax situation. If the april tax preparation software makes a mathematical error that results in your payment of a penalty and/or interest to the IRS that you would otherwise not have been required to pay, april will reimburse you up to a maximum of $10,000. See april terms for details. If interest and/or a penalty is imposed by the IRS as a result of a computational error by Column Tax, you may be entitled to up to $10,000 reimbursement by Column Tax. See Column Tax terms for details.
Chime does not guarantee timing of refund. Six day refund estimate is based on 2023 tax year filing data. Refund timing estimates are dependent upon timing of complete tax return submission and when the IRS submits your refund.
