WebBank is an online-only bank that offers above average rates on a couple of select deposit products. Founded in 1997 in Salt Lake City, this Federal Deposit Insurance Corporation (FDIC)–insured state chartered bank is known more for its brand partnerships, where it serves as the issuer for many popular lending and credit solutions. In this review we’ll explore the details of the bank structure and the products it offers to help you decide if it’s the right bank for you.
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Above average rates for deposit accounts
Multiple CD term options
No monthly fees
No mobile app
Limited bank products
Paper statement fees
Above average rates for deposit accounts – While you won’t earn the best rates available from top online banks, WebBank’s savings account and certificates of deposit (CDs) earn competitive rates with many online banks.
Multiple CD term options – WebBank doesn’t offer a lot of extra perks with its accounts, but customers do have five term options with its CDs.
No monthly fees – You’ll never get charged a monthly maintenance fee for WebBank accounts. There are other fees you may see, such as a $5 fee for paper statements and $25 for outgoing wire transfers.
No mobile app – WebBank is an online-only bank, and yet it lacks a mobile banking app. It also doesn’t have mobile check deposits. Customers can only manage accounts through online access.
Limited bank products – WebBank is missing common bank products, such as checking accounts, money market accounts, credit cards, and investment accounts.
Paper statement fees – There is a $5 fee for paper statements each month. There doesn’t seem to be an option to opt for an electronic statement and waive the fee.
Who Is WebBank Best For?
WebBank is a good fit for customers who want a place online to set aside money and forget about it for a while, so it earns interest long term. It could be a good fit for customers who:
- Want account access online 24/7
- Aren’t looking for a full-service banking solution
- Don’t care about the in-person service from local brick-and-mortar locations
- Want a decent annual percentage yield (APY) earning with no pesky account maintenance fees
What Does WebBank Offer?
WebBank offers limited personal banking products and services directly to consumers. Much of the bank’s business lies in its partnerships with other financial companies. WebBank deposit accounts are limited to two options:
- Savings account
All WebBank accounts are insured by the FDIC up to $250,000 per depositor.
WebBank offers one savings account: a high-yield online savings account. A minimum deposit of $1,000 is required to open a savings account through WebBank. The account has a decent interest rate, currently set at 0.85% APY. While its rate is lower than the best high-yield savings accounts around, it’s still competitive with what’s offered by many online banks and far superior to the national average of 0.06%.
Interest on WebBank’s savings accounts compounds daily. You’ll earn slightly more than you would on an account that compounds monthly. The difference is minuscule with smaller balances, but it is much more noticeable with a larger balance in the account. WebBank doesn’t charge a monthly maintenance fee on its savings account, although there is a $5 charge for paper monthly statements.
|WebBank Savings Account|
|Account Name||Minimum Opening Deposit||Monthly Fee||APY|
The other type of account available from WebBank is its CDs, which the bank refers to as “time deposits.”
WebBank’s time deposits require a minimum deposit of $2,500 and come in five terms, ranging from six months to five years. Most terms currently earn a 0.55% APY, which is much lower than the best CD rates on the market.
Customers are subject to early withdrawal penalties if they withdraw funds before they reach maturity. Here’s a list of early withdrawal penalties, which are based on your time deposit term length.
- Less than one year – Three months simple interest
- One to two years – Six months simple interest
- Three years – Nine months simple interest
- Five years – One year simple interest
Once a time deposit reaches maturity, WebBank customers have 10 days to withdraw funds without a penalty.
|WebBank Time Deposits|
Other Financial Products Offered by WebBank
Besides its own personal banking products, WebBank also partners with several well-known financial companies to offer a variety of loans, credit cards, and other financing options to consumers. These products aren't available directly through WebBank, but it is the issuer for them. WebBank brand partners include:
- CAN Capital
- Dell Financial Services
- Lending Club
WebBank Customer Service
Customers who need account support can reach WebBank by phone Monday through Friday between 8 a.m. and 5 p.m. MST.
Email support is available by filling out the contact form on WebBank’s website. Correspondence is also available by mail to WebBank’s corporate headquarters at 215 State Street, Suite 1000, Salt Lake City, Utah 84111.
Despite being an online bank, WebBank doesn’t have a mobile app and doesn’t accept check deposits. The only way to deposit funds to WebBank accounts is through electronic funds transfers or wire transfers. Outgoing wire transfers come with a $25 fee.
How to Bank Through WebBank
To open an account with WebBank, apply through its website. You need to be at least 18 years of age and a U.S. citizen or legal resident. When opening an account, you’ll be asked to provide personal information such as your:
- Date of birth
- Social Security number or Individual Taxpayer Identification Number (ITIN)
You may also be asked for a copy of your driver’s license or other documents for identification purposes.
Banking with WebBank is relatively simple because of its limited account options. It doesn’t offer the best rates on the market, but there’s still enough earning potential to make it a viable option for consumers looking for a home for their emergency fund or other savings goals. Keep in mind that there are minimum deposit requirements associated with every WebBank account. Other online banks may offer better rates without the initial financial commitment.
Webbank isn’t a practical banking solution because of its lack of a checking account and other services offered by most banks. However, if you just want a simple high-yield savings account or CD with no monthly fees, WebBank may be a good supplement to your accounts held at another bank.
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 need
Federal Deposit Insurance Corporation. "Weekly National Rates and Rate Caps - Weekly Update." Accessed July 29, 2020.
Internal Revenue Service. "Individual Taxpayer Identification Number." Accessed July 29, 2020.