Alyssa Lane
Simple Bank, a mobile and online bank founded in 2009, offered fee-free checking accounts with no physical branches. Simple Bank was acquired by BBVA in 2021, and all accounts were transitioned to BBVA, which is insured by the FDIC. FDIC-insured accounts are protected for up to $250,000 per depositor in the event of a bank failure.
| Characteristics | Values |
|---|---|
| Is Simple Bank insured? | Yes, by the FDIC. |
| What is the insured amount? | $250,000 per depositor, for each ownership category. |
| Are there any fees? | No, Simple Bank does not charge any fees for account maintenance, overdrafts, transfers, or debit card replacements. |
| What other services does Simple Bank offer? | Online banking, mobile banking, access to over 40,000 Allpoint ATMs, and a Safe-to-Spend feature to help with budgeting. |
| Is Simple Bank still operational? | No, Simple Bank was acquired by BBVA in 2021 and transitioned all members to BBVA accounts. |
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What You'll Learn
Simple Bank is insured by the FDIC
Simple Bank, an online banking service, is no longer in operation as of 2021. Simple Bank was acquired by BBVA, and all members were transitioned to BBVA accounts. Simple Bank offered fee-free FDIC-insured checking accounts to U.S. citizens through a partnership with U.S. Bancorp before transitioning over to BBVA USA. FDIC-insured accounts are covered up to $250,000 per depositor, for each ownership category, in the event of a bank failure. This means that as an account holder at an FDIC-insured financial institution, you are protected for up to $250,000 against loss if the bank fails.
Before opening a bank account, it is important to confirm that the financial institution is FDIC-insured. The FDIC, or Federal Deposit Insurance Corporation, is a United States government corporation supplying deposit insurance. This means that the FDIC can cover deposits if an FDIC-insured bank or savings association fails.
As a Simple Bank customer, your account was FDIC-insured. However, since Simple Bank is no longer in operation, your account has been transitioned to BBVA. Your account will continue to be housed in an FDIC-insured deposit account but will now be under the full-time account servicing of BBVA USA.
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Simple Bank accounts are now with BBVA
Simple Bank, the neobank founded in 2009, was closed on May 8, 2021. The company was originally called BankSimple and was based in Brooklyn, New York. It was acquired by BBVA in 2014, which is one of the largest banks in Europe. Following the closure of Simple Bank, all remaining accounts were transitioned to BBVA checking and savings accounts.
BBVA stands for Banco Bilbao Vizcaya Argentaria. The transition of accounts from Simple Bank to BBVA was a strategic decision, with customers informed that they would receive further information about the timing of the transition. BBVA has over 600 branches across the southern and western U.S. and offers in-person services.
The transition from Simple Bank to BBVA did not go smoothly. Customers reported issues with accessing their online accounts and money, and there were long wait times for customer service. BBVA acknowledged these issues and apologised, stating that they were working to resolve the problems.
Simple Bank had no physical branches, instead offering customers access to an online banking system and mobile apps. Simple Bank was known for its user-friendly interface, which included features such as hashtag searching, memos, and location-based information for transaction history. It also offered a Protected Goals Account, which allowed customers to save for short- and long-term financial goals with a higher interest rate.
With the transition to BBVA, former Simple Bank customers now have access to a wider range of banking services and products, including the Premium Checking account with simpler qualifying criteria and expanded benefits. While some former Simple Bank customers have expressed dissatisfaction with the transition, others have noted that BBVA's account offerings may be appealing.
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Simple Bank offered no physical branches
Simple Bank, an American neobank, offered no physical branches. Instead, it provided its customers with access to an online banking system and mobile apps for Android and iOS. The bank earned revenue by collecting interest on customer deposits and through interchange fees.
Simple's online banking interface offered several features to enhance the user experience. It integrated hashtag searching, memos, and location-based information for transaction history. The Goals feature allowed account holders to schedule automatic savings daily, while the Expenses feature enabled them to allocate funds for bill payments. Additionally, Simple offered a Safe-to-Spend® feature, helping customers budget and spend according to their income and balance.
The absence of physical branches meant that customers primarily interacted with Simple through its digital platforms. They could access their accounts online using a username and passphrase, check transactions, manage budgets, and set financial goals. Simple also provided fee-free access to over 40,000 Allpoint® ATMs, ensuring customers could withdraw cash without incurring additional charges.
Simple Bank's approach to banking was notable for its lack of fees. There were no charges for account maintenance, overdrafts, transfers, or debit card replacements. This differentiated Simple from traditional banks and made it attractive to customers seeking a simpler banking experience.
Simple Bank was acquired by BBVA in 2021, and its customers' accounts were transitioned to BBVA's platform. This transition marked a shift from Simple's purely digital presence to one that included the option of accessing services through BBVA's physical branches.
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Simple Bank had no fees
Simple Bank, which was established in 2009, sought to eliminate the fees most commonly associated with bank accounts to help customers feel more confident with their money. As a result, Simple does not charge any fees for account maintenance, overdrafts, transfers, debit card replacements, or out-of-network ATM usage. There are also no minimum balance requirements, meaning that customers can open an account with as little as a few dollars.
Simple earned revenue by collecting interest on customer deposits and through interchange fees. The interest rate structure at Simple is based on the "daily collected balances" of accounts. While Simple does not charge fees for out-of-network ATM usage, non-network ATMs may still charge a fee to customers for their use.
Simple's online banking interface integrated hashtag searching, memos, and location-based information for users' transaction history. The Safe-to-Spend feature helps customers budget and spend responsibly by showing their available balance in real time, minus the amount reserved for savings goals and recurring bills.
Simple Bank was closed on May 8, 2021, and remaining accounts were transitioned to BBVA checking and savings accounts. BBVA USA, Simple's partner bank, is insured by the FDIC, protecting account holders for up to $250,000 against loss if the bank fails.
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Simple Bank closed in 2021
Simple Bank, a neobank based in Portland, Oregon, closed in 2021. The company was founded in 2009 in Brooklyn, New York, by CEO Joshua Reich and CFO Shamir Karkal. Simple was a mobile and online bank that provided an uncomplicated banking experience for its customers. It offered a single type of checking account that earned interest at a low rate of 0.01% APY. However, customers could also open a Protected Goals Account in conjunction with their Simple Checking Account, which offered a higher interest rate of up to 0.40%.
Simple stood out in the industry for its consumer-friendly, technologically savvy, and no-fee approach to mobile online banking. It eliminated fees commonly associated with traditional bank accounts, such as account maintenance, overdrafts, transfers, or debit card replacements. Additionally, Simple did not have any minimum balance requirements, making it accessible to customers with varying financial backgrounds.
The bank's online banking interface integrated innovative features such as hashtag searching, memos, and location-based information for transaction history. The Goals feature allowed account holders to schedule automatic savings, while the Expenses feature enabled them to allocate funds for bill payments. Simple also offered a Safe-to-Spend® tool to help customers budget and spend according to their income and account balance.
However, in 2021, Simple Bank announced its closure, and customers were notified that their accounts would be transitioned to Simple's parent company, BBVA USA, which was later acquired by PNC Financial Services Group. The decision to close Simple Bank was described as a strategic decision by BBVA, and customers were assured that their accounts would remain FDIC-insured during the transition.
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Frequently asked questions
Yes, Simple Bank was insured by the FDIC.
FDIC-insured accounts are covered up to $250,000 per depositor, for each ownership category, in the event of a bank failure.
Simple Bank was acquired by BBVA in 2021 and transitioned all members to BBVA accounts.
