Years ago, I created this website with the tagline, “Making my money work, so I don’t have to.” I noticed that due to compound interest and living below my means, the choices I made in my early 20s had paid off handsomely by the time I turned 30. Those choices weren’t anything special, just basic ones such as maxing out my Roth IRA and 401k.
This idea of working smarter instead of working harder that lead me to create the “Lazy Man and Money” website. I wanted to show people that you don’t have to work hard to manage your money. If you do it right you can even retire early. What’s so hard about writing those annual Roth IRA checks? It took me all of a few minutes. Setting up the 401k was even faster than that.
Nearly ten years of blogging later, I’ve come to realize that there is a finite number of items that fit this criteria. Nowadays I assume most readers have this basic information and are looking to dig deeper. Today, I’ve got something new that should change how people manage their money.
Before I get to that though, let me talk about one of the biggest problems of managing money the “Lazy” way. It’s the old checking account/saving account conundrum. I need to write checks (even if they are automatic bill pay) via my bank account. The money in that account earns no interest. Alternatively, I can earn interest in my savings account, but I can’t easily pay people from it.
Thus, I’m left doing a money shuffle. The idea is to keep as much money in the savings as possible to maximize interest, while keeping just enough money in the checking so that I don’t bounce any checks.
Today, I learned that I don’t have to do the money dance. I found out that Radius Bank’s Hybrid Account acts as both a savings and checking account. It’s one banking account to rule them all.
Here’s how it works… You can use Radius Bank’s Hybrid Account just like any checking account. You can pay people from it just as you’d expect. The big difference is that account balances over $2500 earn an interest rate that is extremely competitive with the top high-interest savings accounts. How competitive? Radius Bank’s current 1% interest rate is actually better than Capitial One 360, Ally Bank, Everbank, and Bank of Internet.
So you get the best of both worlds… convenience of writing checks with an impressive interest rate.
If you are looking for gotchas, you are a smart consumer. I wish you luck, because I couldn’t find any. There are no monthly fees or minimum balance (other than the initial $10 to open to open the account). In addition, ATM fees are rebated back to your account. (That is one of my favorite features of any bank.) And of course you get typical FDIC insurance.
I think this is a game changer. Once people get a taste of this, why would anyone go back? Who wants to shift money in separate savings and checking accounts?
What do you think? Would you going to sign up for the Radius Bank’s Hybrid Account? Let me know in the comments below.
From my reading, it is not correct that “ATM fees are rebated back to your account.”
Here’s what their webpage says:
* Unlimited, fee-free withdrawals at all Radius Bank ATMs & Banking Center locations
* Unlimited surcharge-free withdrawals at ATMs displaying the SUM SM Program logo
* All foreign ATM fees will be rebated each month!
So *foreign* ATM fees are rebated. But domestic ATM fees don’t have the SUM logo are not rebated. I’ve never seen the ‘SUM’ logo, though I haven’t looked for it.
Lazy Man says
You may be right, but I’m not sure. I read “Free Debit Card with no Radius ATM fees & unlimited ATM fee rebates (2)” with that footnote leading to: “ATM surcharge rebates apply to cash withdrawals using the Radius Debit Card wherever it is accepted. Radius Bank makes its best effort to identify those ATM fees eligible for rebate.”
So I didn’t see it limited to only to those with the SUM logo. However, if it isn’t accepted anywhere else, that would essentially lead to it only be rebated at ATMs with the SUM logo.
Oh and it seems like SUM is a NYCE brand, which I think is common. So maybe SUM is prevalent.
Radius Bank says
Thank you for your questions and interest in our ATM fee rebate feature of Radius Hybrid. To clarify, Radius Bank is part of the SUM network and no ATM fees will be charged at SUM network ATMs. However, you can also use your card at an out-of-network ATM where the Radius Hybrid Debit Card is accepted, and if you are charged an ATM fee, it will be rebated by Radius Bank at the end of the month. ATM fee rebates are unlimited with the Radius Hybrid account.
Paul N says
Sorry i just cant get excited about making 1% on any amount of money. The real rate of inflation is above 2%. What is the point of making what accumulates to a lunch for a family at McDonald’s? While the bank makes 5 or 10% with your money…
Lazy Man says
The Federal Reserve rate dictates much of that. A bank takes on more risk if it is wants to make 10%… similar to you using money as an investor in Lending Club.
I have to keep some amount of cash on hand for emergencies and paying bills, so I might as well have one account that does the two things well.
Matt A says
So when does the 1% interest rate kick-in? I cannot find their tier structure for rates…
Lazy Man says
I think it’s on all money over the $2500.
I have had these kind of accounts. Many banks call them money market accounts. I had one for years with my brokerage firm which had bill pay and really good interest rates. However I broke my paycheck up to put $200 a month in a local account (I lived in TN, MO, TX, IN, IL, WA in a 3 year period). I would get my ATM card from that local checking account. When I got too much money in my checking account, I would transfer it to my other account at the brokerage firm.
I think they have others like this (like Schwab One account). I don’t know as I do something different now as I am no longer with that brokerage firm, and I am using a local credit union for my day to days and a brokerage account for all my investments.