Haris Ashley
Aspiration is a fintech company that offers a climate-friendly banking alternative. It is not a bank itself, but it does offer cash management accounts through Aspiration Financial, LLC, a subsidiary of Aspiration Partners, Inc. Aspiration's cash management accounts, known as Spend & Save, include both checking and savings functionalities. While Aspiration is not a bank, it partners with FDIC-insured banks to provide insurance for its customers' deposits. Deposits in Aspiration accounts are FDIC-insured up to certain limits, which vary depending on the partner bank. It's important to note that while Aspiration promotes environmentally and socially conscious banking, it may fall short in certain areas compared to traditional banks or other financial institutions.
| Characteristics | Values |
|---|---|
| Type of institution | Brokerage offering cash management |
| FDIC insurance | Up to $2 million per depositor |
| Account types | Spend & Save (checking and savings) |
| Account fees | No mandatory fees; monthly fees for Aspiration Plus; out-of-network ATM fees for customers not enrolled in Aspiration Plus; foreign transaction fees; wire fees; operating expense fees |
| Cashback | Standard customers: 3-5% cashback; Aspiration Plus: 10% cashback |
| Cell phone protection insurance | $600 per claim, $1,000 per 12-month period |
| Account bonuses | Standard account: $150 bonus when you spend $1,000 in the first 60 days; Aspiration Plus: $200 bonus when you spend $1,000 in the first 60 days |
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What You'll Learn
- Aspiration is not a bank, but deposits are FDIC-insured up to $2 million
- Aspiration's unique selling point is its commitment to environmental causes
- Aspiration offers a Spend & Save account, with no monthly fees
- Aspiration Plus offers 10% cashback on socially conscious spending
- Aspiration has been criticised for its poor customer service
Aspiration is not a bank, but deposits are FDIC-insured up to $2 million
Aspiration is a fintech company that offers an alternative way to bank for customers who want to support environmentally-friendly causes. It is not a bank, but a brokerage offering cash management services. Aspiration Financial, LLC, is a registered broker-dealer and a subsidiary of Aspiration Partners, Inc. Aspiration does not have branch locations and is headquartered in Marina Del Rey, California.
Aspiration's unique selling point is its commitment to keeping customers' deposits
While Aspiration is not a bank, its customers' deposits are FDIC-insured. FDIC insurance is available through pass-through insurance at partner banks, which may change over time. Currently, Coastal Community Bank is one of the top partner banks, and deposits are FDIC-insured up to $250,000 per depositor. For balances over $250,000, Coastal Community Bank sweeps the excess funds to other FDIC-insured institutions in its network, providing insurance of up to $1.25 million per depositor.
Aspiration's website states that deposits are FDIC-insured up to $2 million per depositor by being swept to FDIC Member institutions. This higher coverage amount may be due to Aspiration's partnership with multiple program banks, each providing FDIC insurance for funds.
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Aspiration's unique selling point is its commitment to environmental causes
Aspiration is a fintech company that offers a unique alternative to traditional banking. Its commitment to environmental causes is a key selling point, attracting customers who want to support green initiatives.
Aspiration's dedication to sustainability is evident in its promise to keep customers' deposits "fossil fuel-free". The company ensures that funds are not invested in fossil fuel exploration or production, giving customers peace of mind that their money is being used responsibly and ethically.
Furthermore, Aspiration's GreenFi program takes environmental stewardship a step further. With GreenFi, customers can save money, earn cash back, and even plant trees while keeping their funds out of the fossil fuel industry. This innovative approach to banking allows customers to make a positive impact on the environment with every transaction.
Aspiration also invests in environmentally and socially conscious companies, ensuring that its customers' money is supporting sustainable and ethical businesses. Through its Dimes Worth of Difference program, Aspiration donates 10% of its earnings to charities that promote economic opportunities for disadvantaged communities. This two-fold approach to sustainability, focusing on both environmental and social impact, sets Aspiration apart from other financial institutions.
While Aspiration's commitment to environmental causes is its standout feature, it also offers attractive financial incentives. The company provides competitive interest rates and cashback rewards, as well as unlimited withdrawals at over 55,000 Allpoint ATMs worldwide. With no mandatory fees and the option to pay what you want each month, Aspiration makes sustainable banking accessible to a wide range of customers.
In summary, Aspiration's unique selling point is its ability to combine financial services with a strong commitment to environmental causes. By offering customers a way to align their money with their values, Aspiration has created a compelling and differentiated value proposition in the banking industry.
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Aspiration offers a Spend & Save account, with no monthly fees
Aspiration is a fintech company that offers a climate-friendly banking alternative. It promises to keep customers' deposits out of fossil fuels and invests in environmentally and socially conscious companies. The company offers a Spend & Save account, with no mandatory monthly fees.
The Spend & Save account provides unlimited cash-back rewards on debit card purchases, with extra rewards for spending at socially conscious businesses. Customers can choose to pay a monthly fee for their account, and in return, Aspiration will reimburse ATM fees up to five times monthly. There are no mandatory minimums, but customers can also opt to pay $7.99 per month for an Aspiration Plus account.
Aspiration Plus members can earn 3.00% APY on their savings balance up to $10,000 with $500 worth of qualifying settled debit card transactions per month. Without the $500 worth of qualifying transactions, they will earn 1.00% APY, and any balance over $10,000 will earn 0% APY.
Aspiration's Spend & Save account is ideal for those who want to support environmentally-friendly causes. The account offers high-yield savings and a planet-friendly debit card. Deposits are FDIC-insured, and there are no hidden fees.
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Aspiration Plus offers 10% cashback on socially conscious spending
Aspiration is a fintech company that offers an alternative way of cash management compared to the traditional banking industry. It is best suited for those who want to bank in alignment with their values and support environmentally-friendly causes. Aspiration is not a full-service institution and does not offer in-person banking.
Aspiration offers a Spend & Save account that provides customers with a high-interest rate and cashback rewards on debit card purchases. The company issues free debit cards through MasterCard, which usually take between 7 to 10 business days to arrive. The card can be activated via the Aspiration App or their website. Aspiration provides a free replacement card if the original is lost or stolen and also offers a digital card that can be used before the physical card arrives.
Aspiration Plus is an upgrade to the Aspiration Spend & Save account that offers additional financial and social-environmental benefits for a monthly fee of $7 or $69 per year if paid upfront. With Aspiration Plus, customers can earn 10% cashback on purchases made with "Conscience Coalition" members, which is an increase from the standard 3-5% cashback offered in the Spend & Save account. This upgrade also includes the Planet Protection benefit, which automatically buys carbon offsets based on the number of gasoline purchases made with the debit card.
In addition to the increased cashback rewards, Aspiration Plus members can also benefit from a higher interest rate of 3.00% APY on their savings balance up to $10,000 with $500 worth of qualifying settled debit card transactions per month. Without the monthly transactions, the interest rate decreases to 0.25% or 0% APY. Aspiration Plus also reimburses one out-of-network ATM fee per month, both domestic and international.
Overall, Aspiration and Aspiration Plus offer unique features for customers who want to support environmentally and socially conscious companies while also earning cashback rewards and competitive interest rates.
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Aspiration has been criticised for its poor customer service
Aspiration is a fintech company that offers an alternative way to bank for customers who want to support environmentally friendly causes. It is not a bank itself but a brokerage offering cash management. Aspiration Financial, LLC is a registered broker-dealer and a subsidiary of Aspiration Partners, Inc. Aspiration's cash management accounts are FDIC-insured up to $2 million per depositor.
Despite its impressive consumer products and commitment to giving back to the community, Aspiration has received criticism for its poor customer service. One review on Apple's App Store reports that after nine years of membership, during which time the reviewer had no issues with customer service, their experience deteriorated when Aspiration switched from being backed by Radius Bank to Coastal Community Bank. The reviewer states that their balance became inaccurate, with deposits causing their balance to decrease rather than increase.
Another review on depositaccounts.com gives Aspiration a one-star rating, citing issues with fraud protection and language barriers. The reviewer claims that $200 was stolen from their account, and they were told to refer to Apple Pay for assistance. They also mention that the customer service team barely speaks English, and they had to wait over 20 days to receive a response regarding their issue.
While some customers have praised Aspiration's cash management accounts for their low fees and high interest, the company has received criticism for its poor customer service, inaccurate balances, and lack of fraud protection. These issues may have arisen due to Aspiration's switch from Radius Bank to Coastal Community Bank. It is important for Aspiration to address these concerns to maintain customer trust and confidence in their financial services.
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Frequently asked questions
Yes, Aspiration is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor.
Aspiration is not a bank and does not have a banking license. Therefore, it partners with FDIC-insured banks to insure its customers' deposits.
Aspiration has partnered with Coastal Community Bank, FDIC #34403, since 2024.
Yes, for balances over $250,000, Coastal Community Bank will sweep the excess funds to other FDIC-insured institutions in their network, providing insurance of up to $1.25 million per depositor.
FDIC insurance covers the failure of an FDIC-insured bank. Customers' deposits are insured up to $250,000 per depositor.
