Radius Bank Review

Full-service online banking for all

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Radius Bank is a Boston-based online bank with full-service banking solutions for individuals and businesses. Founded in 1987, Radius Bank offers an array of interest-earning deposit accounts that are accessible online and through mobile access. This in-depth review will help you decide if its deposit accounts are right for you.

  • Pros & Cons
  • Company Overview
Pros & Cons
Pros
  • No monthly fees

  • No ATM fees

  • Cash back on debit card purchases

Cons
  • Large balance requirements to earn the best rates

  • Uncompetitive interest rates

  • No physical branches

Company Overview
  • Year Founded 1987
  • Official Website www.radiusbank.com
  • Banking Products Offered Savings, checking, CDs, MMA
  • Customer Support Live support and secure messaging responses: Monday–Friday, 8:30 a.m. to 12 a.m. (EST); Saturday–Sunday, 8 a.m. to 8 p.m. (EST): 800-242-0272

Pros Explained

  • No monthly fees – There are no monthly maintenance fees on any of Radius’ personal deposit accounts, allowing customers to keep money in their pockets to earn interest.
  • No ATM fees – Radius Bank charges no fees at more than 325,000 ATMs across the U.S. through partner ATM networks. Customers also get unlimited ATM fee reimbursements for charges from other banks.
  • Cash back on debit card purchases – Customers earn up to 1.5% cash back on select purchases made with a Radius debit card.

Cons Explained

  • Large balance requirements to earn the highest rates – The high-yield savings account requires a balance of at least $25,000 to earn the highest interest tier. Rewards checking requires a $100,000 balance for its top interest tier.
  • Rates aren't competitive with other online banks – Radius Bank’s savings rates don’t compare well with what’s currently offered by the top online banks in the market.
  • No physical branches – Having local bank branches is only a negative if you like the option of in-person banking, which isn’t possible with Radius Bank.

Who Is Radius Bank Best For?

Radius Bank should appeal to individuals who are looking for full-service online and mobile banking. Radius is a great choice for people who:

  • Like banking on the go
  • Want to keep multiple accounts at the same bank
  • Want to earn cash back rewards for online and in-person debit card purchases
  • Want to earn interest with both savings and checking accounts
  • Want a monthly-fee-free banking experience

What Does Radius Bank Offer?

Even though it’s an online bank, Radius Bank offers an array of accounts and services reminiscent of a larger national bank. These include:

Checking Accounts

Radius Bank has two main personal checking account offerings—Rewards Checking and Superhero Checking. There’s also a third option for customers who don’t meet the requirements for these two accounts.

Rewards Checking is the account that pays back customers in two ways. First, the account earns interest up to a 0.15% annual percentage yield (APY). Account holders also get money back through cashback rewards. Online debit card and signature-based credit purchases with a Radius Bank debit card earn up to 1.5% cash back.

Besides its earning potential, Rewards Checking gives you a solid checking account with fee-free ATM access and the chance to receive your direct deposited paycheck up to two days early. An account can be opened with a $100 initial deposit.

Superhero Checking also earns interest, but it’s only a 0.05% APY on balances of $2,500 or more. It has a $100 initial deposit requirement, no ongoing balance requirements, and the first set of checks is free.

Where Superhero Checking earns its name is with its charitable earning potential. Any interest earned with this checking account is matched by Radius Bank and donated to March of Dimes. One percent of your total debit card purchases also go to March of Dimes. A Superhero Checking account gives you access to a solid bank account while helping other people. You can’t get much better than that.

Customers who don’t meet the qualifications for Rewards Checking and Superhero Checking can open an Essential Checking account. Designed for individuals with less-than-perfect banking records, Essential Checking accounts have a $9 monthly service fee along with daily account limits:

  • $500 daily debit card limit
  • $1,000 mobile check deposit limit
  • $2,000 mobile check deposit limit per 10 days

Accounts have the potential to upgrade to another checking account with 12 months of positive banking history. Essential Checking is not an interest-bearing account.

Radius Bank Checking Accounts
Account Name Minimum Opening Balance Monthly Fee Annual Percentage Yield (APY)
Rewards Checking  $100 $0 0% if under $2,500
0.10% if $2,500 to $99,999
0.15% if $100,000 or more
Superhero Checking  $100 $0 0% if under $2,500
0.05% if $2,500 or more
Essential Checking  $10 $9 None 
(As of Aug. 5, 2020)

Savings Account

Radius High-Yield Savings is the bank’s only savings account option. The most you’ll earn with this account currently is a 0.25% APY on balances of $25,000 or more, which is not competitive with the best high-yield savings accounts available.

You can open a high-yield savings account for just $100 with no ongoing balance requirements and no monthly fees. Customers can also request a complimentary ATM card to use with their savings account.

Radius Bank Savings Accounts
Account Name Minimum Opening Deposit  Monthly Fee Annual Percentage Yield (APY)
Radius High-Yield Savings  $100 $0 0% if under $2,499
0.15% if $2,500 to $24,999
0.25% if $25,000 or more
(As of Aug. 5, 2020)

CDs

Radius Bank also offers CDs with nine term lengths ranging from three months to five years. Its rates are much lower than the best CD rates found at other banks, which typically are more than a 1.00% APY.

The minimum deposit to open a CD is either $500 or $1,000 depending on the term length. Currently, CDs under one year earn 0.25% APY, and CDs that are one year or longer earn 0.50% APY.

Radius Bank CD Rates
Term Annual Percentage Yield (APY)
Three Months 0.25%
Six Months 0.25%
Nine Months 0.25%
One Year 0.50%
18 Months 0.50%
Two Years 0.50%
Three Years 0.50%
Four Years 0.50%
Five Years 0.50%
(As of Aug. 5, 2020)

Credit Cards

Radius Bank offers three personal credit cards and three business credit cards.

Personal Credit Cards

Business Credit Cards

  • Business Cash Card
  • Business Real Rewards Card
  • Business Rewards PLUS Card

Other Financial Products Offered by Radius Bank

Radius Bank also offers a wide range of other products and services:

  • Trusts
  • Student loans
  • Personal loans
  • Yacht loans
  • Insurance
  • Small business solutions
  • Commercial solutions
  • Institutional solutions

Radius Bank Customer Service

Customers can reach Radius Bank’s support by phone (800-242-0272) or live chat seven days a week: Monday through Friday from 8:30 a.m. to midnight EST and Saturday and Sunday 8 a.m. to 8 p.m. EST. Support through social media is available Monday through Friday from 8:30 a.m. to 8 p.m. EST. The mobile banking app, Radius Mobile, is available on Google Play (4.3 stars, 611 ratings ) and the App Store (4.5 stars, 713 ratings ).

How to Bank With Radius Bank

To open an account with Radius Bank, visit its website or call customer service at 800-242-0272. You must meet the following requirements to open a deposit account through Radius Bank:

  • Be a U.S. citizen or legal permanent resident
  • Be at least 18 years old
  • Have a Social Security number
  • Have a U.S. street address
  • Have a U.S. bank account to fund your account

To open an account, you’ll need to provide personal information to verify your identity.

Verdict

Radius Bank offers customers a chance at full-service online banking that fits a variety of needs. While its rates are lower than found at competitors, it offers an array of products and services not often seen from online banks.

If you’re looking to earn the best interest rates, other popular online banks may be a better fit. With some accounts, you’ll need to keep a higher balance to earn interest or earn at the highest APY tier. Make sure you can meet those requirements before opening an account at Radius Bank.

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of banks. We collected over 20 data points across more than 80 banks—including products available, interest rates, fees, and accessibility—to ensure that our content helps users make the right decision for their savings and banking needs.

Article Sources

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  1. Google Play. Radius Mobile. Accessed Aug. 14, 2020.

  2. App Store. Radius Mobile. Accessed Aug. 14, 2020.