Upgrade Review: Checking and Savings
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- Savings
- Checking
- Customer experience
- Overdraft fees
Overall institution rating
4.6
Upgrade is a digital-only financial technology company. With FDIC-insured Cross River Bank as its partner, Upgrade offers a mobile rewards checking account that can be accessed online and through a mobile app. It rewards you with cash back for purchases made with your debit card, and there are no monthly fees. But you can’t deposit cash. It also offers a high-yield savings account.
Best for: Those who want to earn cash back, high yields on savings and don’t need to deposit cash.
Pros
- No monthly fees.
- Competitive rate on savings account.
- Competitive rewards checking account.
- Extended phone customer service hours.
Cons
- No overdraft protection program.
- No cash deposit.
- No branch access.
Full review
Upgrade
Savings
Savings
Deposits are FDIC Insured
4.5
/5 NerdWallet ratingUpgrade offers a Premier Savings account that has no monthly fees. While there is no minimum balance requirement for this account, you need a balance of at least $1,000 to earn the competitive 4.41% APY (on days when the closing balance is less than $1,000, the account won’t earn interest).
COMPARE: See our picks for the best high-yield online savings accounts
Checking
Cash back and no monthly fee: The Rewards Checking Plus account from Upgrade has no monthly fee. Rewards come in the form of cash back. If you have a monthly direct deposit of at least $1,000, your account is considered an Active Account, and it's eligible for benefits such as 2% cash back on common purchases. These include monthly subscriptions, like streaming services and purchases at drug stores, restaurants, gas stations and other everyday places, up to a maximum of $500 in rewards per calendar year. You earn 1% cash back on other purchases made with your debit card that don’t fall into those categories. Once you earn $500 in rewards with the 2% cash back, you’ll earn 1% on all purchases or payments for the rest of the year.
Without direct deposit, you’ll still earn 1% cash back on common purchases and 0.50% cash back on all other eligible spending.
Free nationwide ATM network: As of May 23, 2024, customers can make no-fee cash withdrawals from more than 55,000 Allpoint ATMs nationwide. If you use an out-of-network ATM, Upgrade will charge you $2.50 and the ATM owner also might charge you a fee.
No cash deposits: You can deposit money through mobile check deposit, direct deposit or by making transfers from an external account. Upgrade doesn’t accept cash deposits.
Rate discounts: Rewards Checking Plus account holders can get a rate discount of up to 20% on Upgrade loans and credit cards. (Learn more about Upgrade’s personal loans in our review.)
» Interested in more options? See our list of the best rewards checking accounts
Customer experience
4.6
NerdWallet ratingUpgrade offers live customer service by phone every day: on weekdays from 5 a.m. to 7 p.m. PT, and on weekends from 6 a.m. to 5 p.m. PT. And the bank’s mobile app earns high user ratings. Upgrade is a neobank and though it partners with a traditional bank, it does not have branches.
What to know about neobanks: Nonbanks such as neobanks can be solid options for consumers who prefer managing money online and don’t mind having a nontraditional place to bank. But neobanks do have differences from banks that can pose risks, particularly in the way deposits are insured:
A neobank such as Upgrade is a third-party banking technology platform that partners with a bank to provide accounts to customers. Funds deposited at a neobank are ultimately held at the partner bank. The funds are FDIC insured in the event of the partner bank’s failure and only if the neobank maintained accurate deposit records. (Learn more about how neobanks work.)
If a neobank goes bankrupt, there is no FDIC insurance involved. It’s up to the neobank to ensure customers get their money back, which may involve delays and potential loss of account access. Banks, in contrast, receive prompt assistance from the FDIC if they fail. (Learn about what can happen if a neobank closes.)
Neobank accounts often have low monthly fees and earn strong rates. However, they may lack traditional banking features, including in-person customer service, wire transfers and access to personal or cashier’s checks (often required for large purchases, such as buying a home). Consider these details before opening an account.
Overdraft fees
3.8
NerdWallet ratingUpgrade doesn’t charge overdraft fees, which is a policy that some other online banks, financial companies and credit unions offer, too. But unlike many other financial institutions, Upgrade doesn’t provide overdraft protection transfers. In most cases, charges that would overdraw the account are automatically declined.
» Tend to overdraw your account? Consider the best banks for overdrafts
How does Upgrade compare?
Current Product
Deposits are FDIC Insured |  Member FDIC |  Member FDIC |  Deposits are FDIC Insured |
|---|---|---|---|
NerdWallet rating 5.0 /5 | NerdWallet rating 5.0 /5 | NerdWallet rating 5.0 /5 | NerdWallet rating 4.6 /5 |
Monthly fee $0 | Monthly fee $0 | Monthly fee $0 | Monthly fee $0 |
APY N/A | APY 0.50% With $0 min. balance for APY | APY N/A | APY N/A |
Bonus N/A | Bonus $300 Earn up to $300 with direct deposit. Terms apply. | Bonus $360 Up to $360 per year. See website for details. | Bonus N/A |
Learn more at Upgrade | Learn more at SoFi Bank, N.A. | Learn more at Discover® Bank | Learn more at Chime® |
Methodology
NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, banking experience and overdraft fees. Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
