Axos Bank Review: Is Axos Right for You?

0 2 12 minutes read

Axos Bank

Axos logo 2024

Product Name: Axos Bank

Product Description: Axos Bank is an online bank with a full suite of bank account offerings. It has no monthly fees or minimum balance requirements on any of its bank accounts.

Go to Axos Bank

Summary

Axos Bank has several attractive checking accounts, as well as savings accounts, a money market, and CDs. Some of its interest rates are competitive while others are not, but there are no monthly fees or minimum balance requirements. It also offers mortgages, personal loans, and auto loans.

Pros

High interest on checking accounts
Most Axos Bank accounts are no-fee
Fee-free ATM network of 95,000 locations
Offers small business and commercial banking products
Invest via a self-directed or managed portfolio option (robo-advisor)

Cons

Have to jump through several hoops for maximum checking interest
Interest on High Yield Savings, Money Market, and CDs isn’t competitive
No credit cards

Online banks are everywhere these days, but not all of them stand out in any meaningful way. Axos Bank offers all of the convenience of online banking – including low and no fees – with many of the products associated with traditional banks, like loans, small business banking accounts, and investments.

At a Glance

If you’re wondering how Axos’ accounts and services compare to your bank or other online banks, here’s a list of key features you can expect from Axos:

No minimum balance requirements or monthly fees on checking or savings accounts.
95,000 fee-free ATMs
Rewards checking account pays up to 3.30% APY
Cash Back Checking offers up to 1% cash back on purchases
Provides small business and commercial banking and financing
Offers both self-directed and managed investments
Offers mortgage, personal loans, and auto loans

Who Should Use Axos

If you are looking to do all your banking in one place, Axos is worth a look. The Axos ONE checking and savings account earns a competitive interest rate, and you only need $1,500 in direct deposit to qualify.

If you want to invest with Axos, it offers both managed and self-directed accounts.

Axos Bank Alternatives


APY on savings	3.80% APY	3.80% APY	4.00% APY
Cashback on checking	No	No	Yes
Investing options	Yes	No	No
	Learn more	Learn more	Learn more

Table of Contents

Axos Bank Alternatives

Launched on July 4th, 2000, Axos Bank is a technology-driven digital bank, FDIC insured #35546. Because it operates digitally, it can offer its services to consumers nationwide. Axos specializes in offering competitive interest rates, little to no fees, and convenient access. Since its launch, Axis has grown steadily and now has more than $20 billion in assets.

However, what sets Axos Bank apart is that it comes very close to providing comprehensive banking services. That includes checking and savings accounts – the mainstay of online banks – and loan products. Axos has also added investments and small business banking products to its lineup.

Go to Axos Bank

Axos Bank Offerings

Axos Bank offers five different checking accounts, savings and money market accounts, and Certificates of Deposit (CDs). Here’s a closer look at what each account has to offer.

Axos ONE Checking and Savings

The Axox One account is both a checking and savings account. There are no monthly or overdraft fees and there are no minimum balance requirements.

You can earn up to 4.86% APY on savings and up to acf field=”interest-rate-checking-1st” post_id=”75185″] on checking. To qualify for these rates, you’ll need to receive at least $1,500 in direct deposit into your Axos ONE checking account. Otherwise the rate on your savings account will be 1.00% APY and 0% APY on checking.

Rewards Checking

With Axos Rewards Checking, there is no minimum balance requirements an no monthly or overdraft fees. It will also reimburse you for all domestic ATM fees.

You can earn up to 3.30% APY. There are several hoops to jump through to earn this rate, and each hoop adds a little more to what you can earn. Note that to earn any interest at all, you must have at least $1,500 in direct deposit per month.

Activity	Additional interest
$1,500 in direct deposit	0.40% APY
Use debit card for at least 10 transactions per month, OR link a Personal Finance Manager account	0.30% APY
Have an average daily balance of at least $2,500 in an Axos Invest Managed Portfolio	0.99% APY
Have an average daily balance of at least $2,500 in an Axos Invest Self Directed Trading Account	0.99% APY
Have either a mortgage, personal loan, or auto loan with Axos and use your Rewards checking to make the payment.	0.60%

You can mix and match these activities; for example, if you meet the direct deposit and debit card transaction requirements, you would earn 0.70% APY. If you added in a car loan, you would earn 1.30% APY.

CashBack Checking

The Cashback Checking account doesn’t pay interest, but you can earn up to 1% cash back when you make purchases with your debit card. There are no monthly fees and you’ll receive unlimited domestic ATM fee reimbursement.

To earn the 1% cash back, you must maintain an average daily balance of at least $1,500 and run the debit card as a credit card at the cash register. This is where you sign instead of entering a pin number. If you don’t meet the balance requirements, you’ll earn 0.5% cash back instead.

You can also earn up to $2,000 cash back per statement period, which is a lot. Most cashback checking accounts limit the earnings to $50 or less.

Go to Axos Bank

Essential Checking

This is a very straightforward checking account, with no hoops to jump through and few rewards. Like Rewards Checking, Essential Checking has no minimum balance requirement and no monthly maintenance, overdraft, or non-sufficient funds fees. It also comes with unlimited ATM fee reimbursements.

The account includes Direct Deposit Express, which allows you to get paid two days early. However, it also includes peer-to-peer payments with family and friends, as well as bill pay.

First Checking

The Axos First Checking account is designed for teens between the ages of 13 and 17. The account comes with daily transaction limits of $100 in cash and $500 in debit purchases and must be co-owned by a parent or guardian.

You’ll earn 0.10% APY, and there are no monthly maintenance, overdraft, or overdraft fees. You’ll also receive up to $12 in domestic ATM fee reimbursements per month.

Golden Checking

Designed specifically for consumers 55 and over, this is an interest-bearing checking account currently paying 0.10% APY on all balances. It also comes with free personal checks, no monthly maintenance fees, and up to $8 in domestic ATM fee reimbursements per month.

Axos High Yield Savings

There is no minimum balance or monthly fees for the Axos High Yield Savings account. It also has a free ATM card upon request and a suite of digital money management tools.

The account pays 0.61% APY on balances below $25,000, then drops to 0.25% APY on balances between $25,000 and $100,000. At $100,000 and above, the rate drops to 0.15%.

Axos High Yield Money Market

The account pays 0.25% on all balances and comes with check-writing privileges. There are no minimum balance requirements or monthly fees.

In addition to check writing privileges, you can access your account balance with a debit card. The account comes with a referral bonus, peer-to-peer payments, debit card management, and bill pay.

Axos Certificates of Deposit (CDs)

Axos Bank offers CDs in terms ranging from 3 to 60 months. Unfortunately, the returns aren’t at all competitive, with all CDs paying only 0.20% APY regardless of the balance or term. The minimum amount required to open a certificate is $1,000. There are no setup or maintenance fees; each CD automatically renews within a 10-day grace period.

First Savings

First savings pairs with the First checking and is available for teens between 13 and 17 years old and must be jointly owned with a parent. There is no minimum balance, monthly fees, or overdraft fees. It comes with a debit card and will reimburse up to $12 in domestic ATM fees.

The account earns 0.10% APY.

Go to Axos Bank

Axos Small Business & Commercial Banking

Axos Bank also offers a full suite of business accounts, including Business Checking, Savings, Money Market, and Business CDs.

They also offer commercial banking services to larger businesses, including third-party payment processing, HOA banking and lending, global fiduciary banking, merchant services, treasury management, IntraFi Network deposits, etc.

In addition to core banking, commercial clients can get loans, lines of credit, equipment financing, and commercial real estate loans.

If you are in the market for a small business checking account, check out our list of the best business checking accounts.

✨ Related: Best Business Savings Accounts

How to Open an Axos Bank Account

You can open an account online or by downloading the mobile app.

To get started, you’ll need to provide the following information:

Your Social Security number
A valid form of ID, typically a US driver’s license or state ID
A US cell phone number
Valid US address (other than a PO Box)
A valid email address
You must be either a US citizen or a resident alien
You must be at least 18 years of age

You’ll be asked if you want to open a Best Savings Account, paying a much higher rate of interest than their other savings products. However, that product is not listed as a general offer and does require a minimum of $10,000.

Go to Axos Bank

Axos Loan Products

Axos Bank provides mortgages, personal loans, and auto loans.

Mortgages are available with no lender fee and can be used for both purchases and refinances.

Personal loans are unsecured and can be used for debt consolidation, home improvements, major purchases, or any major expense. You can borrow between $7,000 and $50,000 with terms ranging from 3 to 6 years. Rates and payments are fixed for the life of the loan, and there are no prepayment penalties. You can get a prequalification offer online in about three minutes without affecting your credit score.

Auto loans are available for a new purchase or to refinance your existing loan. Loans are available for between $10,000 and $1000,000 with terms up to 96 months. The vehicle must have less than 125,000 miles and a value of at least $8,500. There are no out-of-pocket expenses, and no payment is required for the first 90 days.

Axos will not finance RVs, motor homes, camper vans, ATVs, or motorcycles.

Axos Invest

One of Axos Bank’s competitive advantages is that they are a banking and investing solution wrapped into one. In addition to the banking products and services covered above, you can open self-directed trading and managed portfolio accounts with Axos Invest.

Axos Self-Directed

Key Features:

$50 welcome bonus if you open a new account and purchase $100 of EFTs, mutual funds, or a combination of both
Commission-free trades of stocks, ETFs, and mutual funds
Individual, joint, and IRA accounts are available
No annual or monthly fees
No inactivity fees
Margin Trading (Axos Elite)
Enhanced market data (Axos Elite)
Extended trading hours (Axos Elite)
TipRanks market research (Axos Elite)

Axos’ Self-directed trading is done through either a Basic Self-Directed Trading Account or an Axos Elite Account. The Basic Self-Directed Trading Account has no monthly fee, commission-free trading, $1 per contract on options trading, and is available during standard market trading hours.

The Axos Elite Account provides real-time market data and analysis through TipRanks and offers margin trading and extended trading hours. There is a $10 per month service fee, but trading is commission-free, with options trading at $1.00 per contract. The account also provides instant trade settlement credits.

Axos Managed Portfolios

Key Features:

Low advisory fee of 0.24%
Low $500 minimum balance requirement
Automatic portfolio rebalancing
Free tax-loss harvesting
Extra interest on a linked checking account

Managed Portfolios can be used for both taxable investment accounts and IRAs (traditional or Roth). You can build unique portfolios and as many as you like. Once your portfolio has been created, you’ll get the benefit of automatic portfolio rebalancing and tax loss harvesting.

As a robo-advisor, Managed Portfolios uses algorithm-driven strategies to manage your account. But they can make manual changes to your account as your investment needs and goals change. The portfolio is comprised of exchange-traded funds and is designed for long-term investing.

Go to Axos Bank

Axos Bank Alternatives

Axos Bank has a lot to offer, but so do a lot of other online banks. Before signing up with Axos, check out the following alternatives to make sure you choose the best bank for your needs.

Ally Bank

Ally offers both a checking and savings account with low fees and competitive rates. Both accounts have no monthly fees and no minimum balance requirements. The checking account earns 0.10% APY, and the savings earns 3.80% APY.

For lending, Ally offers mortgages and auto loans. For investing, it has automated investing and self-directed trading.

Here’s our full review of Ally Bank for more information.

Go to Ally Bank

Capital One 360

Capital One offers checking and savings accounts with competitive rates and fees. The 360 checking account has no monthly fees and no minimum balance requirements. The 360 Performance savings account earns 3.80% APY APY with no monthly fees or minimum balance requirements.

Capital One also offers CDs and kids checking and savings. They do not have investment options, but they do have credit cards and in-person branches, which Axos doesn’t offer.

Here’s our full review of Capital One 360 Performance Savings for more information.

Go to Capital One

Quontic Bank

Quontic Bank has two attractive checking accounts, one that earns cash back on debit card purchases and one that earns interest. Both accounts have a $100 minimum opening deposit with no monthly fees. It also offers a money market account that earns 4.75% APY and several CDs with competitive interest rates.

For lending, it only offers mortgages and doesn’t have any investment options.

Here’s our full review of Quontic Bank for more information.

Go to Quontic Bank

FAQs

Is Axos legit?

Yes, Axos is a legitimate online bank with over $20 billion in assets, offering a wide range of banking and investment products.

Who is Axos Bank owned by?

Axos Bank is a federally chartered savings and loan association and direct bank. The San Diego, California-based company is an Axos Financial brand.

What is the biggest con of Axos Bank?

While it’s certainly up for debate, one of the biggest drawbacks to Axos Bank is its low CD rates. Axos CDs are priced at 0.20% APY, far lower than competing banks.

Does Axos Bank charge monthly fees?

Axos does not charge any monthly fees on its checking or savings accounts.

The Bottom Line on Axos Bank

Axos Bank is a solid choice if you are looking for an online bank that provides something close to full banking services, including investment options through its self-directed trading and robo-advisor platforms.

I like the number of accounts they offer to cater to different customer types. Unfortunately, their interest rates on savings and CDs leave much to be desired. That said, you can earn up to 3.30% APY in Rewards Checking.

If you’re looking for a high-yield savings account, there are better options. Also, if you’re looking for a credit card or credit-builder product, Chime is a better option than Axos.