Axos Bank Review: Personal Savings

Axos Bank Review: Personal Savings
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Most people don't put a lot of thought into their personal savings accounts. The return on even the highest-yielding savings vehicles pales in comparison to what you could get by investing, so it's easy to assume that one savings account is as good as another.

But the interest you earn from a savings account can still be significant in the long run, and the difference in returns between accounts grows larger over time. That's why finding a bank with competitive interest rates and a generous fee structure is so important.

Axos Bank offers several savings account options for consumers looking to earn a high interest rate. See how these accounts stack up against the competition in our Axos Bank review.

For our ratings, we compared these accounts to similar accounts from other major banks and credit unions. We compared rates, fees, minimum opening deposits and balance requirements.

High Yield Money Market Account

Rating: 9/10

A high yield money market account is similar to a high yield savings account. You deposit money into the account, where it then begins to earn interest. One of the main differences between the two account types is that customers can write checks directly from their money market account, which they can't do with a savings account.

The interest rate for an Axos Bank High Yield Money Market Account is 0.60% APY for all balances, one of the highest interest rates available for money market accounts nationwide. The opening deposit requirement is ​$1,000​, which is much higher than other high yield money market accounts.

Like a savings account, only six withdrawals per month are allowed. There are no minimum balance requirements and no monthly maintenance fees. The money market account is FDIC-insured ​up to $250,000​ per account.

High Yield Savings Account

Rating: 10/10

As the name implies, a high yield savings account is a savings account with a higher interest rate than a traditional savings account.

According to the FDIC, the average interest rate among savings accounts nationwide is currently ​0.05% APY​. The interest rate for the Axos Bank High Yield Savings Account is currently ​0.61% APY​, a comparable rate to other online-only savings accounts.

The interest rate is the same for all balances, and is subject to change depending on the market.

Customers can also request an ATM card to withdraw cash from their savings account. The card is free, but you have to call and ask for it. This is a rare perk, because not every bank offers ATM cards for savings accounts.

There is a ​$250​ requirement to open an account, which is slightly higher than other high yield savings accounts. There are no minimum balance requirements and no monthly maintenance fees.

Like other savings accounts, the Axos Bank high yield account only allows six withdrawals per month. Users can manage their accounts using the Axos Bank mobile app, available on both the Google Play Store and the App Store.

Certificates of Deposit (CDs)

Rating: 7/10

A Certificate of Deposit (CD) is a savings vehicle that locks in an interest rate for a predetermined amount of time. Because the interest rate on a savings account can change at any time, some customers prefer to seal their interest rate by buying a CD.

Unfortunately, Axos Banks' Certificates of Deposit are one of their least impressive savings options. Most banks offer higher interest rates for long-term CDs, but Axos Bank provides the same interest rate, currently at ​0.20% APY​, no matter the term.

A three-month CD has the same interest rate as a 60-month CD. Other online banks offer as much as ​0.85% APY​ for a 60-month CD. This could result in a huge difference in how much interest you eventually earn.

Let's say you open a CD with Axos Bank. You deposit $5,000 and choose a 60-month term. Once the CD matures, you'll have $50.20 in total interest. If you chose a bank with a CD that paid 0.85% APY on a 60-month term, you'd earn $216.14 in total interest. That's a difference of $165.94.

The minimum amount required to open an Axos Bank CD is ​$1,000​, which is much higher than what other online-only banks require. Axos Bank CDs have a ​10-day grace period​ during which time you can call and cancel to get your money back. You can also use that time to change the deposit amount and the CD term.

If you withdraw money from the CD before the term is over, you'll owe a penalty that varies based on the total term length. For example, if you chose a six-month CD, the penalty would be three month's worth of interest. Penalties are standard for almost all CDs, and Axos Bank's fees are reasonable in that regard.

The Bottom Line

Axos Bank offers high interest rates on savings products that are competitive with other online banks- but not all their savings products are created equally.

There are few reasons to sign up for an Axos Bank CD, particularly because the interest rate is lower compared to the Axos Bank high yield savings account. If you want a CD with a higher interest rate, look at other banks.

If you want a flexible savings vehicle that provides a good return, stick to the high yield savings account. It has the most flexibility and lowest requirements compared to both the CD and the money market account. It also has one of the highest interest rates available on the market.