The Bottom Line: Axos Bank is an online bank that offers rewards on checking, no ATM fees on domestic purchases, and high-yield savings accounts. They take pride in their high level of security and privacy.
Looking for an online bank for both your personal and business needs?
As you’re comparing your options, make sure to put Axos Bank on the list.
Previously called BofI Federal Bank, Axos Banks aims to help customers who want simplicity in their banking — easy access to their accounts online with no fees and occasional access to out-of-network ATMs.
Don’t think that just because Axos Bank is online-only that it doesn’t offer a wide variety of products. Far from it.
There are four kinds of savings accounts (including a high-interest one), checking accounts, CDs, money markets, IRAs, loans and mortgages.
If you’re a business owner, Axos Bank also offers a few products for you as well.
In this review, we’ll go over their products, including some pros and cons and whether it’s the right choice for you.
Minimum Balance: $0
Promotion: No current promo
What is Axos Bank?
Axos Bank, founded in 2000, is headquartered in San Diego, California.
The idea is that it wants to offer its customer “banking evolved” services — aka the online bank wants to offer plenty of conveniences within their products and services.
Since it’s an online-only bank, it can help you save money because of their lack of overhead costs.
You can choose from products like high-interest savings accounts that are well above the national average and no-fee checking accounts.
Who is Axos Bank Best For?
Axos Bank is best for users who want to use an online-only bank and don’t care for in-person service. That means it’s better if you’re already tech savvy and prefer to do your banking online.
It’s also great for those who typically want to use one bank and Axos Bank offers a variety of banking products and services, including ones for retirees and teenagers.
Plus, if you’re not interested in paying fees (or struggle with things like insufficient fund fees), you’ll find that Axos Bank’s suite of products can be the perfect fit.
Or business owners, the lack of fees plus the ability to handle commercial finances can be a major draw, especially if you’re looking for an interest-bearing savings account with relatively low minimums.
Axos Bank Products
Like mentioned above, Axos offers a wide range of financial products. Keep reading for more details, including rates.
All of Axos Bank’s checking accounts don’t charge monthly maintenance fees.
Some of their products include:
- First Checking - Geared towards students, this is an interest-free account (aka you don’t earn any interest) limits account holders $500 for debits, $100 on withdrawals, and $12 in total ATM reimbursements each month.
- Essential Checking - This is also an interest-free account that offers unlimited ATM reimbursement and no overdraft fees.
- CashBack Checking - You can earn up to 1.00% APY (as of March 2020) and requires at least $1,500 for cash back rewards.
- Rewards Checking - Earn up to 1.25% APY (as of March 2020) with unlimited ATM reimbursement and no overdrafts. Increase your chances of a higher APY by using direct deposit.
- Golden Checking - Meant for seniors, account holders will receive up to 50 free checks every six months, ability to earn 0.20% APY (as of March 2020) on all balances and up to $8 in ATM reimbursements monthly.
- Ability to earn interest for many accounts
- No monthly or overdraft fees
- No minimum balance requirements
- Requirements for the highest rates may be too many for some
- Not all accounts offer free checks
Axos Bank offers two types of savings accounts, both of which earn you interest.
- Second Chance Savings - Earn up to 0.25% APY (as of March 2020) and no monthly fees. You’ll also get a free debit card but you could be charged a $25 overdraft fee and $1 ATM fee. Account holders need to open the account with a minimum of $50.
- High Yield Savings - Earn up to 1.30% APY (as of March 2020) and receive a free debit card. Minimum opening balance is $250 and you may need to pay ATM fees.
- Earn rates higher than the national average
- Free debit cards
- No minimum monthly balance requirements
- Interest compounded daily
- Account holders need to pay out-of-network ATM fees
- You could be charged overdraft fees
- No rate tiers (aka the ability to earn a higher APY for higher balances)
Money Market Accounts
Axos Bank’s High Yield Money Market Account offers a decent rate at 1.30% APY (as of March 2020) and you’ll need $1,000 to open a new account.
In addition to a free ATM card, you can also request free checks.
Keep in mind that you’re limited to withdrawals each month due to Federal Regulation D.
Although there is no monthly maintenance fee, you could be charged $25 for an overdraft fee or returned checks.
- APY is higher than the national average
- Offers check writing privileges
- Reimburses two U.S. ATM fees each month
- Account holders need a minimum of $10,000 to earn the highest APY
- You could be charged overdraft fees
- APY isn't as high compared to other banks
Axos Bank offers IRA savings accounts and IRA CD accounts. Their savings accounts require a $250 opening deposit and you’ll need that amount in the account in order to earn 0.15% APY (as of March 2020).
You’ll earn 0.70% APY (as of March 2020) if you have at least $1,000 in the account. Plus interest is compounded daily.
Since it is a savings account, you can only withdraw up to a certain amount of times each month due to Federal Regulation D — you could be charged a fee or penalties from the IRS.
For the IRA CD accounts, you’ll need a minimum of $1,000 to open an account and a minimum of $1,000 to earn interest.
Your funds will remain in the IRA CD for the agreed upon term and early withdrawal penalties may apply.
Axos Bank allows you to choose between a Traditional or Roth IRA account.
- IRA savings account offers variable rate tiers
- Interest is compounded daily
- Early or excessive withdrawal fees may apply
- Rates aren’t exactly competitive
You can open a certificate of deposit (CD) account at Axos Bank if you’re interested in putting your money somewhere for the short term and where it can potentially earn up to 2.00% APY depending on the term you choose.
In fact, you can choose shorter terms like three months all the way up to 60 months. You’ll need at least $1,000 to open an account.
The good news is that there are no opening or maintenance fees.
However, you’ll need to pay an early withdrawal penalty if you take the cash out before your maturity date.
This amount will depend on how much you would have earned had you left the amount in the CD until maturity.
For reference, here are the rates as of March 2020:
- 3 months - 0.55%
- 6 months - 0.75%
- 12 months - 1.01%
- 24 months - 1.20%
- 36 months - 1.30%
- 48 months - 1.40%
- 60 months - 2.00%
- Interest compounded daily
- Low minimum opening deposit
- Higher APYs at other banks
- The principal amount may be at risk if the early withdrawal penalty isn't enough to cover penalty
Business Banking Accounts
Whether you’re a small business owner or a large corporation, Axos Bank most likely has a banking product suited to your needs.
This includes bank accounts all the way to commercial lending
Here’s what Axos Bank has to offer (all rates as of March 2020):
- Basic Business Checking - No minimum opening deposit or monthly balance requirements, though it’s not an interest bearing account .
- Business Interest Checking - Offers 0.8% APY and no monthly maintenance fees if you have at least $5,000 in the account.
- Business Premium Savings - Offers 1.06% APY and no monthly maintenance fees if you have at least $25,000 in the account.
- Business Savings - Offers .08% APY and no monthly maintenance fees if you have at least $2,500 in the account. You’ll need at least $1,000 to open an account.
- Business Money Market - Offers .08% APY and no monthly maintenance fees if you have at least $5,000 in the account. You’ll need at least $1,000 to open an account.
- Business CDs - Offers terms from 3 to 60 months
- Certificate of Deposit Account Registry Service (CDARS) - Get access to FDIC coverage for up to $50 million in deposits.’
Other tools you can get with Axos Bank’s business accounts include merchant services, mobile banking, online banking, bill pay and treasury management.
If you’re looking for commercial banking products, you can find high-yield reserve accounts, all the way to analyzed business checking accounts.
Plus, Axos Bank will work with you to pick from a wide range of financial solutions tailored for you.
Plus, if you need some capital, Axos Bank offers small balance commercial real estate lending, to commercial lines of credit, financing equipment and more.
- Offers a wide range of business solutions
- Low minimum amounts to waive monthly maintenance fees
- Rates aren’t as competitive
- Website and mobile app can be clunky
What Axos Bank Lacks
Unfortunately, Axos doesn’t offer credits alongside their impressive banking products.
Though it’s not a big deal, it could have been convenient if you were able to bank and have a credit card with the same financial institution.
However, there are plenty of great credit card companies where you can find a card and be able to pay your balances using Axos Bank’s bill pay feature.
Also, not necessarily a major flaw, but there aren’t other types of investing products other than IRA CDs and IRA savings accounts.
You’re better off looking at brokerage accounts if you want other solutions or products that offer a higher rate of return compared to what you’ll find at Axos.
You can contact Axos Bank’s customer service via secure messaging or by calling their hotlines (depends on the type of banking product you have).
While you can get direct support 24/7, calling after hours means you’ll be talking with a third-party company instead.
Axos Bank is an online bank that offers rewards on checking, no ATM fees on domestic purchases, and high-yield savings accounts. They take pride in their high level of security and privacy.
How to Open a Bank Account
To open an account, you’ll need to visit Axos Bank’s website or by calling their customer service hotline at 888-502-2967.
For personal accounts, you’ll need to provide your full name, Social Security number, a valid U.S. address, proof of citizenship or that you’re a resident alien, a valid form of ID (such a state-issued ID).
You also need to be at least 18 years old and not have a credit freeze with any of the major credit bureaus.
For business and commercial banking, you’ll probably need to provide the same information but there may also be additional documents.
This includes your business license and articles of incorporation. Axos Bank will guide you through to the types of paperwork needed in order to open the bank account of your choice.
Axos Bank is a great choice for those looking for an online bank offering decent rates and fees.
As in, you’ll get perks like free checking and savings accounts, plus no monthly maintenance fees on most of their accounts.
Let’s not forget free debit cards, checks and domestic ATM reimbursements.
The downside is that their APYs are lower compared to other online banks.
And if you’re someone who wants the option of a brick and mortar location, you’re out of luck. Still, with some decent incentives, Axos Bank is at least worth a look.