EDIT: I apologize for how this post was worded. I was simply excited about bringing something I thought hadn't been seen or mentioned on the forums, and I even did a search to make sure, but by me being so overzealous, I may have come off as someone somehow representing Simple, and this is not the case. I'll still leave this message (mostly) intact, as some people may want other alternatives as far as accounts. I should have expected that such an awesome community would have other, better options as far as banks go, and I thank those who have commented for helping me find a place that will reward me even more money for my business.
End editI'm going to talk about something that I don't think has been mentioned on the forums before me. It's about a bank called Simple (
https://www.simple.com/) and it's
quite possibly the best bank currently in existence the best bank I feel matches my current situation. You might think I'm exaggerating or whatever, but I'm being honest and serious. This might also look like a spam post, but I promise, this is a real post from a real person (I'm just a huge fan of theirs and have used their services for over a year, possibly two).
Firstly, Simple is not like most other banks because they do not have any real physical buildings that you can go to for services. Other than their headquarters, they are pretty much an online-only bank, and they get the storage for funds from another bank, and both mutually benefit from such a partnership. Their site will explain how this works for those willing to do the research (it's actually pretty easy to find this information) but this basically is summarized in one simple equation: Bank - buildings - building staff = bank + more money + more consumer savings.
In other words, everyone wins because they don't spend money on buildings for their branches or the labor costs involved to keep said branches open. This means a whole lot in terms of how they make money, to the point that there are no unnecessary fees. The bottom line is,
if you spend too much and you don't have the funds to cover the purchase, you are not punished with any fee. Their entire fee schedule is available on their site at the bottom of the page, just look up "Fees." No service charges, ever. No overdraft fees, ever. Statements are available online, but they have a fee for printing it and shipping it to you (which isn't unreasonable and makes sense).
The biggest thing that you all will love is the way they have set up "Goals." Basically, think of YNAB, except applied more loosely. In your own bank account, you have two amounts of money. One is your account balance, just like every single other bank. The other is what they call "Safe to Spend." Anything that isn't reserved by a goal, is shown in this amount. Ideally, if you follow YNAB, this should be as close to 0 as possible, without a tiny exclamation point near your account balance. If you see an exclamation point, it means you don't have enough money in your account balance to cover the goals, which means you're technically in the negatives as far as what you want saved up. It's like having an emergency fund for if you dip a little too much in other expenses and just need a little bit of time to make up for it. It's ingenious, saves your bacon, and still lets you put eggs on the table (or oats, or whatever you wish to eat for breakfast).
The way that I use the Goals system is by combining the practices of YNAB with the end dates of the Goals. For example, October's expenses are looming. I've been saving as much money as I can from September to put to October. I've saved up my money for work drinks in one large sum ($30) out of my first paycheck of September. I had to suspend the amounts put for my Household Items for October, as I couldn't easily afford to keep it draining my money when I didn't have much in my account, so I waited until I had enough, and then finished setting the rest aside when I did have the money. My fuel costs are $100 every month. I finished up September's amount for fuel a couple weeks ago, but I still don't have the $53 I need to just "catch up" for what I'll need before October hits. It's no problem, I paused it, so that when I get enough in my account, I can just put a lump sum in it. My phone bill is saved up to $60, but I didn't have enough to cover the entire amount just yet. I have it to where it takes a little bit of money everyday out of my Safe to Spend money automatically, without me having to do anything different. I don't even have to check my balance everyday just because of a cup of tea, I simply refer it to my spending goal for work drinks for September and it deducts from that goal, leaving my Safe to Spend untouched.
They're still trying to add things to the system, like recurring Goals, and even Joint-Sharing (the individuals involved have their own accounts and there's a pool where they can send the money into for things like a car or house...you know, combined purchases) and I honestly can't wait for even more features. They support Android and iPhone, and it's quite possibly the most elegant design for a bank. They're even insured by the FDIC to its maximum ($250,000) so not only is your money safe, but it's even safer to use than most traditional banks, especially since their security is a lot more rigid when it comes to their apps and online interface. Because it's solely online, they have to invest in the security for the online apps and web interface, which actually is cheaper than, say, a bank vault.
They don't have many options for loans or other services that a traditional bank would have (401k would probably not happen for quite awhile), but what they lack in traditional offerings, they make up for in doing one thing really, really well. That thing is managing a budget. The best part is, it's free to get started, and you get a free debit card that can be cancelled through the app or web interface, no phone call needed. The card is even backed by Visa, so you can use it out of country. There's no charge for making a purchase with your debit card, even if you're in another country, though there's a $2 charge for using an ATM in a different country. That's still amazingly better than most offerings.
I won't go so far as to say that this is a replacement for any bank, however. You should always use what you feel is best for your living situation, or what you believe is the best thing for you. Honestly, I use a credit union in my town to supplement some of the things Simple can't easily do, like cash deposits. I just love the way Simple works, and how much they are doing for their customers. Their support is better than any big-name bank, and they actively work with you to help you, they don't do anything against the best interests of the customer. We are all treated as individuals with more than just a number. You can talk to customer service representatives inside both the apps and through the web interface, and it's all seamless.
This is the best bank I've ever had the pleasure of doing business with, and I would encourage everyone to check them out. I did have a referral link for anyone willing to give them a try, but they have recently had a huge infrastructure change as some things needed to be updated. As a result, I'd say to put your email on the invite list, as it's still not completely finished yet, but when I registered, I think it took a week or two before I was invited. But honestly, for something like this, I'd have waited a year, just because the concept is so amazing.
Again, sorry if this seems like a spammy post, but I wanted to let some mustachians know about such an amazing service. Maybe Mr. Money Mustache himself might like this service? I know it can save fuel, time, and energy, just to have pretty much everything you need in one small place, not to mention save trouble from any fees (but I know most of you don't even have to worry about fees from a silly bank ) ;)
