Upgrade offers banking solutions that focus on simplicity and value. With no monthly fees, a high-yield savings account boasting an APY of 4.02%, and up to 2% cash back on debit card purchases, Upgrade is designed to make managing your money easier and more rewarding.
Whether you’re looking to maximize savings, earn rewards, or avoid unnecessary fees, Upgrade provides options that cater to your needs. Let’s explore how their checking and savings accounts stack up.
Overview of Upgrade
Upgrade combines the convenience of digital banking with features that focus on customer rewards and savings growth. Unlike traditional banks, Upgrade operates entirely online, which helps reduce overhead costs and allows them to offer competitive benefits, like a 4.02% APY on savings and up to 2% cash back on debit purchases. Their accounts are FDIC-insured through a partnership with Cross River Bank, ensuring deposits are safe and secure.
Upgrade’s approach is designed for those who value straightforward banking without the burden of fees. With no monthly maintenance charges, no overdraft fees, and the ability to manage accounts entirely through a mobile app, it’s a practical option for people seeking flexibility and transparency in their banking experience. Whether you’re looking to earn rewards on everyday spending or grow your savings, Upgrade delivers modern banking solutions tailored to your financial goals.
Upgrade Rewards Checking Plus Account Features
The Upgrade Rewards Checking Plus account is built to reward your everyday spending while keeping costs low. With no monthly account fees, overdraft charges, or minimum balance requirements, it provides a straightforward banking experience.
Cash-Back Rewards Based on Direct Deposit Activity
Customers who set up a monthly direct deposit of $1,000 or more unlock the full benefits of the cash-back program. This includes:
- 2% cash back on common everyday expenses at convenience stores, drugstores, restaurants and bars (including deliveries), gas stations, recurring utility payments, and monthly subscriptions like phone, cable, and streaming services.
- 1% cash back on all other eligible debit card purchases.
- The 2% cash back benefit is capped at $500 in rewards per calendar year. Once this limit is reached, all eligible debit card purchases earn 1% cash back for the rest of the year.
For accounts without monthly direct deposits of at least $1,000 within 60 days of opening, the rewards structure is reduced:
- 1% cash back on everyday expenses mentioned above.
- 0.50% cash back on all other eligible debit card purchases.
Access and Convenience
Starting May 2024, Upgrade Rewards Checking Plus customers will enjoy fee-free access to over 55,000 AllPoint ATMs worldwide. Additionally, the account offers early direct deposit, allowing you to access your paycheck up to two days sooner than standard processing times.
Combined with features like mobile check deposit, internal and external account transfers, and built-in protections against overdrafts, this account provides a modern, flexible banking experience designed for convenience.
Upgrade Premier Savings Account Features
The Upgrade Premier Savings account is a high-yield option tailored for savers looking to maximize their returns without unnecessary fees or restrictions. With a competitive annual percentage yield (APY) and user-friendly features, this account makes saving simple and accessible.
Earn a Competitive APY with No Hidden Conditions
The Premier Savings account offers a standout 4.02% APY, significantly higher than the national average. Unlike many high-yield savings accounts, Upgrade does not impose strict conditions to qualify for this rate—there are no monthly fees and no minimum balance requirement to earn interest. This makes it an ideal choice for savers at any financial stage.
Flexible Deposit and Withdrawal Options
Building your savings is seamless with multiple deposit methods, including ACH transfers, wire transfers, and direct deposits. Upgrade also supports linking external accounts for transfers, giving you the flexibility to manage your funds efficiently. There’s no cap on the balance eligible to earn interest, so your savings can grow without limitations.
Peace of Mind with FDIC Insurance
The Upgrade Premier Savings account is FDIC-insured through Upgrade’s partner, Cross River Bank. Your deposits are protected up to $250,000, providing security and reassurance as your balance grows. Whether you’re saving for an emergency fund, a major purchase, or long-term financial goals, your money is safe.
Upgrade Rewards and Incentives
Upgrade’s bank accounts go beyond traditional features by offering rewards that turn routine transactions into earning opportunities. Whether you’re buying groceries, paying for subscriptions, or filling up at the gas station, the Rewards Checking Plus account lets you earn up to 2% cash back on eligible purchases. Once you reach the annual cap of $500 at the higher rate, you’ll continue earning 1% cash back on all other debit card transactions.
Cash Back That Works for You
This cash-back program is simple and straightforward—there’s no need to keep track of rotating categories or enroll in complicated programs. With everyday spending in mind, Upgrade ensures you get rewarded for purchases that matter most.
Additional Perks for New Customers
For newcomers, Upgrade sweetens the deal with occasional sign-up bonuses. By meeting deposit or transaction thresholds, you could earn extra cash as a welcome reward. Keep an eye out for these offers, as they can give your finances a quick boost while you start exploring Upgrade’s benefits.
A Competitive Edge in Banking Rewards
When comparing Upgrade to competitors like Current and SoFi, the cash-back structure stands out for its consistency and simplicity. Unlike SoFi’s tiered benefits or Current’s focus on savings pods, Upgrade’s rewards system keeps things clear while maximizing value for regular debit card users.
Security and Insurance
Upgrade prioritizes the security of your finances by partnering with Cross River Bank, an FDIC-insured institution. This partnership ensures that your deposits are protected up to $250,000 per account, providing peace of mind as you save and spend. For added security, the Premier Savings account offers the same FDIC protection, making it a reliable choice for growing your financial reserves.
Advanced Security Features for Your Accounts
Upgrade implements robust security measures to safeguard your personal and financial information. This includes encryption technology, secure login protocols, and continuous monitoring for suspicious activity. With these safeguards in place, you can bank confidently, knowing that your data and funds are well-protected.
A Trusted Banking Partner
Cross River Bank, the institution backing Upgrade’s accounts, specializes in working with fintech companies to deliver modern, secure banking solutions. With over $8.7 billion in managed assets, Cross River Bank provides the infrastructure and reliability that ensures a seamless banking experience for Upgrade users.
Safe and Insured Savings for Peace of Mind
Whether you’re building an emergency fund or simply maintaining your checking account, Upgrade’s FDIC insurance ensures your deposits are secure, even in the event of unexpected circumstances. This financial protection, paired with Upgrade’s commitment to transparency, gives customers confidence in their choice to bank digitally.
How Upgrade Compares to Competitors
When comparing digital banking options, each competitor brings unique features to the table. Here’s how some of the most popular alternatives to Upgrade stand out:
SoFi
SoFi offers an integrated approach to financial services, combining checking, savings, investing, and lending into a single platform. Its savings APY of up to 3.80% is competitive, but it requires setting up direct deposit or maintaining a $5,000 monthly deposit. SoFi also provides 2% cash back on purchases when rewards are redeemed for financial goals, and an elevated 3% cash back for travel booked through SoFi Travel.
Current
Current appeals to savers looking for goal-oriented tools. Its “Savings Pods” feature allows users to create specific savings goals and earn up to 4.00% APY on balances. The platform also offers rewards points on debit purchases, which can be redeemed for cash back. While its approach is versatile, managing point conversions may be less straightforward compared to a cash-back system.
Varo Bank
Varo offers a standout APY of up to 5.00%, one of the highest in digital banking, but this requires meeting strict monthly conditions like direct deposits of $1,000 or more and maintaining a positive balance. Varo’s lack of a cash-back program for debit purchases might make it less appealing to spenders who value rewards. Its “Varo Advance” feature, allowing small cash advances, is a unique offering for those in need of short-term funds.
Chime
Chime focuses on simplicity and accessibility. Its savings account earns 2.00% APY, and its checking account provides early access to direct deposits and no monthly fees. Chime’s “Credit Builder” secured credit card is a useful tool for users looking to establish or improve their credit scores, filling a gap that many digital banks don’t address.
Ally Bank
Ally is a full-service online bank with a wide array of products, including auto loans, home loans, and investment accounts. Its savings account offers a 4.00% APY, which is lower than some competitors but remains solid for an established institution. Ally’s Interest Checking account earns up to 0.50% APY on high balances but lacks cash-back rewards, making it better suited for those who prioritize traditional banking features.
Final Thoughts
Upgrade stands out as a compelling option for digital banking, offering a high-yield savings account, straightforward cash-back rewards, and a fee-free approach to managing your money.
It caters to savers who want to grow their balances quickly and spenders who appreciate earning rewards on everyday purchases. With its seamless digital experience and competitive benefits, Upgrade provides a modern alternative to traditional banking.
While Upgrade shines in areas like rewards and APY, it’s important to weigh your own financial needs. If you prioritize in-person branch access or a wider range of financial services, you may want to explore other options.
However, if you’re comfortable with online banking and focused on maximizing savings and rewards, Upgrade delivers a reliable, user-friendly solution. Whether you’re building a rainy-day fund or looking to earn as you spend, Upgrade offers tools that align with your financial goals.
Frequently Asked Questions
Can I open a joint account with Upgrade?
Yes, Upgrade now offers joint accounts for both the Upgrade Rewards Checking Plus account and the Upgrade Premier Savings account. To open one, select the joint account option during your application.
How can I fund my Upgrade accounts?
You can fund your accounts through ACH transfers, wire transfers, or direct deposits. Upgrade does not currently accept cash deposits.
Are there any fees associated with Upgrade accounts?
There are no monthly fees, overdraft fees, or minimum balance requirements. However, out-of-network ATM usage may incur a $2.50 fee plus any fees charged by the ATM owner.
How does Upgrade’s cash-back program work?
With $1,000 or more in monthly direct deposits, you earn 2% cash back on everyday expenses like groceries, gas, and subscriptions, up to $500 annually. After reaching this limit, and for other eligible purchases, you earn 1% cash back. Accounts with less than $1,000 in direct deposits earn reduced rewards of 1% and 0.50%, respectively.
Is my money safe with Upgrade?
Yes, deposits are FDIC-insured up to $250,000 through Upgrade’s banking partner, Cross River Bank.
Can I access my Upgrade account internationally?
Yes, you can access your account and use the Visa debit card internationally, though foreign transaction fees may apply.
Does Upgrade offer budgeting tools or financial planning features?
Upgrade doesn’t include built-in budgeting tools, but you can link your account to third-party financial apps for tracking and planning.
How do I close my Upgrade account if I no longer need it?
To close your account, contact customer service. Ensure your balance is transferred out before initiating the process.
Are there limits on how much I can transfer into or out of my Upgrade accounts?
Yes, daily and monthly transfer limits may apply based on the transfer type and account activity. Contact customer service for specific details.
Can I link multiple external accounts to my Upgrade accounts?
Yes, you can link multiple external accounts to your Upgrade accounts for deposits and transfers, offering flexibility for managing your money.
