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This is an unbiased review of Vio Bank. In this Vio Bank Review know about Fees, Pros, Cons, Features & Interest Rates of Vio Bank in 2020.
What is Vio Bank
Vio Bank is the online division of one of the most trusted banks in the United States, the MidFirst Bank. Based in Oklahoma, Vio Bank has no physical branches or ATMs but only an online division.
Vio Bank provides two kinds of facilities high-yield savings accounts (HYSA) and certificates of deposit accounts (CDs).
Vio bank does not provide a checking account facility or even credit cards. It is a bank where you deposit your money for higher returns.
Vio Bank Certificate of Deposit
A certificate of Deposit works as a fixed deposit. This means the money deposited in this account over a stipulated time will earn you a fixed interest rate.
If you withdraw the money before the term period then you will not receive the complete interest. The longer you keep your term the more interest you will get.
Currently Vio offers an annual percentage yield of 0.80% for 10 years which is the maximum term and 0.20% for 6 months which is the lowest term. Unless you withdraw the deposited money, your CD will be renewed when the term ends.
You can be insulted from the changes of rates by Federal Law if you deposit your money before a new change is announced.
Vio Bank High Yield Savings Account
The High Yield Savings Account is a better option to opt for than the Certificate of deposits. The High Yield Savings Account is much more flexible and your money won’t be locked up for approximately 10 years.
The High Yield Savings Account provides you a compilation of your daily interest every month. You do not have to pay any maintenance fee so your profits being offset is out of question.
Even though Certificate deposits provide you insulation from dipping interest rates it could also provide the opposite effect when rates go back higher.
Currently the saving account is offering a very attractive annual yield of 1.1% which is a lot higher than what traditional banks are offering.
Vio Bank Fees
If you make monthly transactions to your savings account that are more than six then you will have to pay an excessive transaction fee of $10. Keep in mind that this is regulated by Federal Law.
This fee is applicable to checks, debit card purchase transactions, preauthorized payments to any third party (including ACH withdrawals or bill payments), online wire funds or funds transfers, overdraft protection transfers, online or mobile payments, and telephone transfers.
If you want a printed copy of your statements delivered to you then you will be charged $5 per month for it. Apart from that each additional statement request will cost you $2.
You will also have to pay the following fees in case of certain deposits or transfers
You will be charged $7 for a returned check
If you want to stop any payment or transfer of Automatic Clearance you will be charged $30
If you want to transfer money through wire then you will be charged $30 for domestic transfers.
Security of Vio Bank
FDIC insurance is provided for amounts up to $250,000.
Because Vio Bank is a branch of MidFirst Bank the FDIC insurance amount will be divided amongst the two. So if you have accounts in both MidFirst bank and Vio bank then make sure that the total of the sepoists doesn’t exceed $250,000.
Any amount that exceeded $250,000 will not be protected.
You do not have to worry about the safety of online only transactions as Vio Bank has the latest security features that ensures any fraudulent activity is prevented.
How to Open Account in Vio Bank
Getting started with Vio Bank is quite hassle-free. You have to provide your basic details just like you would when opening an account in any other banking institution. This includes your credentials, Social Security number, driver’s license, residential proof etc.
It does not take more than 5 minutes to set up your account and credit checks are also not mandatory for the set up.
Pros of Vio Bank
Competitive Rates for Annual Percentage Yield
Vio Bank has an attractive Annual Percentage Yield of 1.11% This is a great deal when compared to regular banks. This rate will further go up as per the federal regulations.
Since Vio Bank is online, they have an efficient app that is supported by both iOS and Android. It is fraud proof and completely safe. Your data can never be accessed by third- parties as Vio Bank has a high tech cyber security system that prevents all kinds of fraud.
If you have a savings account then mobile support is offered to you without any fee. You can easily access your transactions and even transfer money to other accounts linked to your Vio account.
The mobile app also helps you access your account details promptly as and when required.
Nifty Service and ease of use
The app is fairly easy to navigate and since they offer only Certificates of Deposits and High Yield Savings Account they do the job of executing both of them effectively. They are committed to providing you the best in what they offer.
Even though there is no live-chat facility available yet, customers get round the clock support that is not limited to office hours. This service is automated. They can also fill up a form to get contacted for grievance resolution
Cons of Vio Bank
Heavy penalty for early withdrawals.
The penalty for withdrawal from the CD account is quite high.
If you withdraw money from the account within a month of depositing it you will not earn any interest.
If you withdraw the money within a year of depositing it 1% of the amount you withdraw and a $25 fee will be charged.
If you withdraw the money after a year of depositing it , 3% of the amount you withdraw and a $25 fee will be charged.
No maturity intervals for Certificates of Deposits
You cannot access any part of the money as Vio Bank offers no Certificates of Deposits ladders.
You do not get a varied interest rate if you successfully cross certain time levels. This means that once you deposit your money in the Certificate of Deposits it is essentially locked up for 10 years.
This might also impact you if the interest rates go up after you have deposited your money as the new rates will not be applicable to you. The money already in a CD is insulated to any kind of market changes.
No physical branches or ATMs
Since Vio Bank is online only if you want to access your money you need to transfer your funds to a different checking account. The transfer process is not that quick and can take a few days.
Alternatives for Vio Bank
There are other banks that offer you similar yields as Vio Bank. These include:
Discover which has an annual percentage yield of 1.01%
Capital One which has an annual percentage yield of 1.00%
American Express National Bank which has an annual percentage yield of 1.00%
Marcus by Goldman Sachs which has an annual percentage yield of 1.05%