5 min read
Understand why legacy financial institutions overcharge and underserve
At a time when public trust in financial institutions remains questionable (the top 5 US banks have an average NPS score of -15), banks are insistent on burying retail customers under a myriad of banking fees. If you were to open a bank account today, you’re looking at up to 17 different types of charges on your regular deposits - from monthly service fees to overdraft fees to inactivity fees to the most ridiculous one of them all, the account closing fee.
In an age where Amazon lays out a bevy of retail goods at free two-day shipping and where Spotify lets you access all the music ever made for the price of a venti vanilla bean frappuccino, we’re all stuck in financial dystopia, paying big banks up to $329 a year for the privilege of using our own money.
Benjamin Franklin once famously remarked that there were only two things certain in life - death and taxes. But Benjamin Franklin never owned a 21st century checking account. As predictable as a metronome, banks have continued to hike services fees at a rapid clip, transforming the once 'free' checking account into a deceptive labyrinth of hidden charges.
Even though bankers often sermonize the deep relationship they build with customers, it is important to recognize banks for what they are. Simply put, they are storefronts of financial products - the student loan, the credit card, the 30 year fixed mortgage. Expecting a bank to look after your financial wellness is like asking your corner bodega to manage your diet. When push comes to shove (as things did in 2008), banks will always look to protect the financial product; the customer is but a bystander with a chequebook. And so, while we pen rambling editorials on the ills of the financial industry, banks will continue to overcharge and underserve customers because that is what their incentives compel them to do.
Show me the incentive and I will show you the outcome - Charlie Munger
In today’s zero-rate environment where large banks earn lesser interest income from lending, they will raise service fees to preserve revenue, effectively paying negative rates on deposits. As we wade through these uncertain times, it is imperative for essential services like banking to realign themselves with the needs of customers. Juno’s FDIC insured High Yield Checking Account can help you earn an industry-leading 2.15% on all deposits. No more anxiety of switching between checking and savings accounts. No account opening fee. No minimum balance. No monthly service fee. No ATM withdrawal fee. No excuses.
Your money should work for you 24/7 at no added cost. We’re working tirelessly to ensure this reality. Sign up for priority access at onjuno.com and lock your rates for the year.
12.15% bonus rate is a promotional rate for our Priority Access users. The Priority access users get 2.15% bonus rate up to $50,000 in deposits. The bonus rate drops to 0.50% beyond $50,000. These bonus rates are fixed until April 30, 2021 and will be subjected to evaluation after.
21.65% bonus rate is a promotional rate for our Premium Access users. The Premium access users get 1.65% bonus rate up to $50,000 in deposits. The bonus rate drops to 0.50% beyond $50,000. These bonus rates are fixed until April 30, 2021 and will be subjected to evaluation after.
31.15% bonus rate is a promotional rate for our Basic Access users. The Basic access users get 1.15% bonus rate up to $50,000 in deposits. The bonus rate drops to 0.50% beyond $50,000. These bonus rates are fixed until April 30, 2021 and will be subjected to evaluation after.
The OnJuno Checking Account and Debit Card are part of an offering of CAPITALJ Inc ("OnJuno") and Evolve Bank and Trust, Member FDIC. Your deposits at each Bank are eligible for insurance by the Federal Deposit Insurance Corporation (FDIC) up to $250,000, subject to FDIC rules on aggregation of deposits held in the same insurable capacity. Please visit the FDIC website. Neither OnJuno by CAPITALJ Inc. nor any of its subsidiaries is a Bank.
Interest rate and Annual Percentage Yield comparisons are based on a comparison of OnJuno's Checking Account 2.15% bonus rate to the following checking & savings account APYs reported by Bankrate for 7/29/2020: Marcus Savings Account (0.8% APY), Wealthfront Cash Account (0.35% APY), BofA Adv. Relationship (0.02% APY) and Chase Premier+ (0.01% APY). Actual savings may vary based on rates that are available during the time of your deposit The Annual Percentage Yield (APY) for the Cash Account is as of a specific date and may change at any time, which could decrease or increase actual earnings. The national average is based on rates published at https://www.fdic.gov/regulations/resources/rates/, as of July 29, 2020.
Customers will earn cash back for purchases made at selected merchants. Cash back will be reflected in your OnJuno Account upon a transaction being posted. For example, if you make a purchase of $1000 from a select merchant using your OnJuno Debit card, then you would receive a total of $50 as cash back which would be reflected in your account immediately. In case of a refund or dispute resolution, the cash back would be deduced from the amount transferred. This cash back rewards program is subject to change by OnJuno at any time without notice.
OnJuno has curated the list of favorite brands as representative of the kinds of purchases that earn cash back from OnJuno. All third-party trademarks displayed on the Site and App, include these displayed brands, are for informational purposes and does not mean that they have a relationship with or sponsor or endorse OnJuno or are involved in the cash back program. All third-party trademarks displayed are owned by their respective owners.
This site and the account services offered are for U.S. persons only. This is not an offer or solicitation in any jurisdiction where CAPITALJ is not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction. System availability and account access times may vary due to a range of factors, including market conditions, trading volumes, system performance, and other factors.
© Copyright 2020 OnJuno by CAPITALJ, Inc