Consumer Reports evaluated 10 banking apps from traditional banks and digital-only providers, analyzing safety, user experience, and features to help you decide the best option.
Key Findings and Recommendations
1. Fee-Free Checking and Savings
- Digital Providers with No Monthly Fees:
- Ally, Chime, Current, and Varo charge no maintenance fees.
- Albert requires a $14.99 subscription but includes features like identity protection.
- Traditional Banks:
- Fees around $5/month for basic accounts, though waivable with conditions (e.g., direct deposits).
- Capital One matches top digital providers with fee-free accounts and competitive rates.
2. Savings Account Interest Rates
- Highest Rates from Digital Providers:
- Varo: 5%
- Ally and Capital One: 4.35%
- Current: 4%
- Traditional banks like Bank of America, Chase, and Wells Fargo offer only 0.01%.
3. Budgeting and Financial Tools
- Comprehensive financial tools (budgeting, goal-setting, and savings trackers) available from:
- Albert, Ally, Bank of America, and U.S. Bank (with some limitations).
- Chime offers these tools via a separate app, soon to integrate them into its main app.
4. Data Privacy and Security
- Data Sharing:
- Most apps share user data for joint marketing purposes.
- Albert shares only non-identifiable data; Varo does not share data for marketing.
- Targeted Ad Controls:
- Apps with controls: Albert, Ally, Chime, Varo, and Wells Fargo.
- Ally automatically opts users out of targeted ads.
5. Accessibility Features
- Dark Mode: Available on Ally and Chime to reduce eye strain.
- Screen Reader Compatibility: All apps work with screen readers for Apple and Android devices.
- Spanish Support: Available on traditional banks like Bank of America, Capital One, and Chase but not on most digital-only apps.
6. Fraud Monitoring and Alerts
- Best monitoring practices: Albert, Ally, Chase, Chime, Current, and Wells Fargo explicitly commit to continuous fraud monitoring and alerts.
- Real-Time Alerts Only: Offered by Bank of America and Capital One, but without clear documentation for fraud monitoring.
How to Mobile Bank Securely
Enable Two-Factor Authentication (2FA): Adds an extra layer of security to your accounts.
Set Up Notifications: Receive texts for every transaction to catch fraudulent activity quickly.
Use Strong Passwords: Manage them easily with a password manager like 1Password or Dashlane.
Update Apps and Devices: Keep your banking app and device operating systems updated for the latest security patches.
Secure Device Settings: Enable auto-lock and limit app permissions for camera, microphone, and location.
Final Recommendations Based on Needs
- Fee-Free Banking with High Savings Rates: Varo, Ally, or Current.
- Comprehensive Budgeting Tools: Albert, Ally, or Bank of America.
- Best Data Privacy: Varo or Albert.
- Accessibility Features: Ally or Chime for dark mode and screen reader compatibility.
- Continuous Fraud Monitoring: Ally, Chime, or Wells Fargo.
By aligning features with your priorities, you can find a banking app that ensures convenience, security, and financial well-being.
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