WebBank review: There are no monthly fees, but drawbacks like high minimum deposits mean it isn’t for everyone

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The bottom line: You can find better online bank accounts elsewhere. But you might like banking with WebBank Savings Account if you have a branded credit product and want to bank with and borrow from the same business.

Overall bank rating

FeatureInsider rating (out of 5)Savings2.75CD2.5Trustworthiness5Total3.42

Pros and cons

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ProsCons

 

Can get credit products from WebBank and do most of your banking with the same institutionNo monthly service fee on savingsNo mobile appNo checking accountLow savings and CD interest rates Can’t deposit cashCan’t access savings quickly

Savings

WebBank pays a higher interest rate than most brick-and-mortar banks, but you can find higher rates at other online banks.

Its minimum opening deposit is pretty hefty, at WebBank Savings Account. Most brick-and-mortar banks require significantly less, and many online banks don’t require an opening deposit at all.

Accessing your cash is tricky with WebBank, because it doesn’t have a checking account.

You’ll have to transfer funds to an external bank account via an outgoing wire transfer. This transfer will cost $25, and it could take a couple of business days for your money to arrive in the other bank account.

CDs

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The WebBank CD charges standard penalties if you withdraw funds before your CD matures, and it pays higher rates than what you’ll earn with a brick-and-mortar bank. But other online banks have better options.

WebBank also only has five term length options, while many competitors have more lengths to choose from.

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How WebBank works

WebBank is an online bank with a savings account and CDs. It also partners with brands such as Avant, PayPal, and Yamaha to provide credit cards and loans.

You can speak with a live customer service representative by calling Monday through Friday, 8:00 a.m. to 5:00 p.m. ET. There’s no customer support available on weekends, and there’s no live online chat feature.

WebBank doesn’t have physical branches or a mobile app. You can only bank from your web browser.

Your deposits are FDIC insured for up to $250,000, or $500,000 for a joint account.

Is WebBank trustworthy?

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The Better Business Bureau gives WebBank an A+ in trustworthiness. A strong BBB score indicates a company advertises honestly, is transparent about business practices, and responds effectively to customer complaints.

WebBank doesn’t have any recent public scandals. Between its clear history and good BBB grade, you may decide you feel comfortable working with WebBank.

How WebBank compares to similar banks

We’ve compared WebBank with two other online banks with bank accounts and credit products: Ally and Discover.

WebBank review vs. Ally review

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Ally pays higher rates on savings and CDs than WebBank does. It doesn’t require minimum deposits for any of its accounts.

Ally offers checking and money markets accounts along with its savings and CDs. You can also get home, auto, and personal loans through Ally. You’ll probably prefer Ally to WebBank if you want quick access to your savings. You can simply transfer funds from your Ally savings account to Ally checking account and spend the money almost immediately.

WebBank review vs. Discover review

You might prefer Discover to WebBank because it pays higher rates and doesn’t require minimum deposits for checking and savings accounts. You do need $2,500 to open a CD or money market account with Discover, though.

You can get a credit card or home, personal, and student loans through Discover. You can quickly access your savings by transferring funds to the Discover Cashback Debit Account, and this checking account lets you earn cash back on debit card purchases.

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