Axos Bank Review [2024]: Checking More Worthwhile Than Savings

Choosing an online bank account is a big decision. When I was shopping around for a new bank account, Axos Bank was at the top of my list because of its great reputation. They offer many of the same benefits most online banks offer, such as no maintenance fees and easy access to your funds with partner ATMs.

Whether Axos Bank is right depends on your required features and targeted APY. All banks, whether brick-and-mortar or online, pay different interest rates, so the best way to choose is to compare all features and interest paid for any account that interests you. For example, if you are in the market for a checking account, compare checking accounts between banks to determine which is best.

Axos Bank overview

Axos Bank was one of the first digital-only banks, originating in 2000. The technology-driven bank is FDIC-insured and headquartered in San Diego, California and has over $20 billion in assets.

It offers a wide range of banking products including:

• Checking
• Savings
• Investment products
• Small business and commercial banking
• Personal and auto loans
• Mortgage loans

Key checking account features

Axos Bank checking accounts

Axos Bank offers five checking accounts, each with different features and requirements. However, none of these accounts have a monthly maintenance fee, and most reimburse unlimited monthly ATM withdrawal fees, which is important when looking for the best checking accounts.

Essential Checking

Essential Checking is a great option if you receive direct deposit and prefer early access to it. Its Direct Deposit Express feature allows access to your paycheck up to two days early, and it’s free. Since most “instant pay” features charge a fee, it’s nice to see this feature available at no cost, plus there are no overdraft fees.

Rewards Checking

If you’re looking for a checking account to carry high balances, you might as well earn a high interest rate. The Axos Bank Rewards Checking account pays some of the highest APYs I’ve seen on a checking account, but you must meet specific criteria to earn up to 3.30% APY¹.

For example, you receive a certain APY for monthly direct deposits of $1,500. That’s an easier one to meet. You also receive a certain APY for using your Visa® debit card at least ten times a month, which is pretty easy. Each requirement you meet gets you closer to the full 3.30% APY.

The other factors require you to have at least a $2,500 balance in a managed or self-directed investment account (or both) or make loan payments from your Rewards Checking account to pay an Axos loan. These aren’t as easily accomplished, so your APY may not be as high as the maximum they advertise.

Cashback Checking

If you’re like me and pay everything you can with your debit card, the Cashback Checking may be worthwhile. You can earn up to 1.00% (as of 10/28/24) back on signature-based transactions up to $2,000 per month if you keep at least a $1,500 monthly balance.

I know $20 a month doesn’t sound like much, but you receive $240 a year just for using your debit card on regular purchases. If you can’t meet the requirements of the Rewards Checking account to get your APY above 1%, this is the next best option.

First Checking

Axos offers a bank account solely for teens. The First Checking account has daily transaction limits and pays 0.10% (as of 10/28/24). Teens must open an account with a parent co-owner. It also includes features my friends with kids love, such as account alerts, sharing a dashboard, and the ability to lock or unlock your teen’s card while teaching them financial management skills.

Golden Checking

The Golden Checking account helps people over age 55 earn 0.10% (as of 10/28/24) without worrying about meeting specific criteria. However, the account only reimburses up to $8 in non-network ATM transitions, so it’s important to determine if you’d exceed that limit.

Axos Bank Savings accounts

You won’t find as many savings accounts at Axos Bank, but the APYs exceed those at most brick-and-mortar banks. When looking for the best savings accounts, I always choose an online bank because I don’t want to touch the funds I deposit in it. Using an online savings account limits my access while paying a higher interest rate, too.

High Yield Savings

If you have up to $24,999 to deposit in savings, you may earn up to 0.61% (as of 07/01/24) and pay no monthly maintenance fees. This high-yield savings account includes a free debit card upon request, but I recommend skipping it. Otherwise, you may be tempted to withdraw funds and lose interest.

High Yield Money Market

The High Yield Money Market offers the best of both worlds between a checking and savings account. I recommend this account if you have a large amount of money to deposit but need access occasionally and don’t receive direct deposit. Otherwise, the Rewards Checking pays a higher APY than this account’s 0.25% (as of 10/28/24) just for having direct deposit.

CDs

CDs are one product where Axos Bank disappoints. For an online bank, the APYs are low 0.20% (as of 10/28/24), and they don’t vary based on length, like most banks’ CDs offer. You can open a 3- to 60-month CD with a $1,000 minimum deposit, but I’d look elsewhere to earn a much higher interest rate.

Who is Axos Bank best for?

Axos Bank is best for people who primarily bank from their checking accounts. The checking accounts offer some unique features, and none have a monthly maintenance fee. However, if you need an account for savings, you’ll likely find better options elsewhere.

If you use the ATM frequently, check out the ATM locator to ensure there are nearby ATMs. While most accounts reimburse for ATM fees, that’s a hassle you shouldn’t deal with regularly because you must wait for reimbursement. Fortunately, Axos uses the Green Dot Network, which has over 100,000 locations.

How to open an account

Opening an account at Axos Bank is simple, and takes only a few minutes. Before you start, make sure you have the necessary documents and information:

• Valid driver’s license
• Smartphone with storage to download the Axos app
• Selfie for identification
• Social security number

Alternatives

When looking for the best online bank, it’s important to compare your options. I always compare the features, fees, and interest rates. Also, be sure to read the fine print to determine if the interest rates or other perks are a promotional offer and only temporary.

Here are the top alternatives to Axos Bank.

Ally

Ally is another online-only bank, but it works a little differently. They have a single option for checking and savings accounts. This can be favorable because you don’t have to pick and choose among features, like early direct deposit access, overdraft protection, or earning interest. Their interest rates work in tiers (based on your balance), and they offer options like round ups, which automatically transfer funds to your savings account with each debit card purchase. Check out their other features in our Ally review.

Chime®

Chime is also online only, but it's not a bank.² Instead, Chime is a financial company that partners with The Bancorp Bank, N.A., or Stride Bank, N.A., to offer financial products.

Chime has one checking account option with no monthly maintenance or service fees, though you may be charged a fee if you use an out-of-network ATM.³ If you qualify, Chime’s SpotMe® program offers fee-free overdraft up to $200 for eligible members.⁴

If you frequently overdraft or only have a small balance to deposit, consider Chime®. But if you have a large amount of money to deposit, you’ll miss out on interest earnings with its low 2.00% (as of Sept. 9, 2024) Annual Percentage Yield,⁵ on savings and no APY on checking account balances.

Check out our full Chime review to learn more.

FAQ

Bottom line

Axos Bank may be at the top of your list of eligible online banks if you have a lot of money to deposit, want to avoid monthly fees, or use the ATM frequently. It leaves a lot to be desired with its savings accounts, so I’d recommend looking elsewhere for better options, but I think most people can find something valuable out of the five checking accounts Axos Bank offers.

If you’re thinking about switching banks to Axos or any other online bank, the process is simple, and can be rewarding.