Open Bank's rates and what they cost you
Open Bank is a mobile-only savings account that advertises rates competitive with other online banks, but the account comes with restrictions that make it unsuitable for most people's primary savings. The headline rate changes frequently—it has ranged from 4.0% to 5.35% APY over the past two years—but the real question is whether you can actually use the account the way a savings account should work.
Open Bank limits you to six withdrawals per month before charging a $10 fee per withdrawal over that limit. This is the core problem. A high-yield savings account should be liquid—money you can reach when you need it. If you're saving for an emergency fund, a down payment, or anything you might need to access more than six times in thirty days, Open Bank penalizes you for doing exactly what savings accounts are for.
The rate itself is not exceptional compared to other online banks. As of early 2024, banks like Marcus, Ally, and American Express offer similar or higher rates with no withdrawal limits. If the rate were substantially higher—say 1% or 2% above competitors—the withdrawal cap might be worth tolerating. It is not.
Key Takeaways
- Open Bank charges $10 per withdrawal after your sixth withdrawal in a month, which makes it impractical for any savings you might need to access regularly.
- The advertised APY is competitive with standard online banks but not higher, so you gain nothing by accepting the withdrawal restriction.
- Open Bank is a mobile app only—no website, no phone support—which limits how you can manage your money and makes customer service difficult.
- If you have money you will not touch for months, Open Bank's rate is acceptable, but a standard high-yield savings account with no limits serves that purpose better.
How the withdrawal limit actually works in practice
The six-withdrawal rule applies to any money leaving the account: transfers to another bank, transfers to Open Bank's own checking product, ATM withdrawals, and debit card purchases. A single transfer to pay a bill counts as one withdrawal. A transfer to cover an unexpected car repair counts as one. By mid-month, if you've moved money out four times, you have two withdrawals left before fees kick in.
This structure assumes you save money and leave it alone. If your actual pattern is to build a buffer and then draw from it as needed—which is what most people do with savings—you will hit the limit regularly. The $10 fee per excess withdrawal erodes the interest you earned. If you withdraw $500 extra in a month and earn $15 in interest, the $10 fee wipes out two-thirds of your gain.
Open Bank does not charge a monthly fee, does not require a minimum balance, and does not charge overdraft fees. Those are genuine advantages. But they do not offset the withdrawal penalty for anyone who actually uses their savings account.
Why the mobile-only model matters
Open Bank operates only through a mobile app. There is no website login, no phone number to call, and no physical branch. If your phone breaks, you cannot access your account from a computer. If you need to speak to a human, you are limited to in-app messaging, which can take hours or days to answer.
For straightforward deposits and balance checks, the app works fine. For anything complicated—a dispute, a question about fees, a problem with a transfer—the lack of phone support becomes a real friction point. Other high-yield savings accounts offer 24/7 phone support and web access. Open Bank does not.
Comparing Open Bank to actual alternatives
If your goal is a high-yield savings account with no strings attached, Marcus by Goldman Sachs, Ally Bank, and American Express Personal Savings all offer rates within 0.1% to 0.3% of Open Bank's current rate, with unlimited withdrawals, phone support, and web access. The rate difference is negligible—on a $10,000 balance, it amounts to $10 to $30 per year.
If you want a rate that is genuinely higher and do not mind restrictions, Wealthfront Cash Account and Betterment Savings have offered rates above 5% in recent months, but both also limit withdrawals or require you to keep money in their ecosystem. The trade-off is explicit: higher rate for less flexibility.
If you have a very large balance and want to maximize every basis point of interest, Treasury bills or money market funds through a brokerage like Fidelity or Schwab can yield more than any savings account, with daily liquidity and no withdrawal limits. These are not savings accounts, but they serve the same purpose for people with substantial cash reserves.
When Open Bank might actually make sense
Open Bank could work for a specific use case: money you are saving for a goal six or more months away and do not expect to touch. A down payment fund, a wedding fund, or a sabbatical fund that you will not draw from until the goal arrives. In that scenario, the withdrawal limit is not a restriction—it is irrelevant. You are not withdrawing.
Even then, you are betting that Open Bank's rate will stay competitive and that you will not face an unexpected need to access the money. If either assumption breaks, you are stuck with an account that penalizes you for changing your mind. A standard high-yield savings account with no limits gives you the same rate and removes that risk.
The real cost of the withdrawal cap
Open Bank's withdrawal limit is not a minor inconvenience—it is a structural mismatch between what the account is designed for and what people actually use savings accounts for. Savings accounts exist because emergencies happen, plans change, and opportunities appear. A savings account that charges you for responding to those events is not a savings account; it is a penalty box.
The fee is small enough that you might not notice it once or twice. But across a year, if you exceed the limit four or five times, you have paid $40 to $50 in fees on an account that earned you perhaps $200 in interest. That is a 20% to 25% drag on your returns—far larger than any rate advantage Open Bank might offer.
Frequently Asked Questions
Does Open Bank have FDIC insurance?
Yes. Open Bank is FDIC-insured up to $250,000 per depositor, the same as any other bank. This is standard for all legitimate savings accounts and does not distinguish Open Bank from competitors.
Can I move money out of Open Bank without paying the fee?
You get six withdrawals per month free. After that, each withdrawal costs $10. There is no way around the fee if you exceed the limit. Some banks allow you to waive fees by maintaining a high balance or meeting other conditions; Open Bank does not.
What if I only need to withdraw money once or twice a month?
Then the withdrawal limit will not affect you, and Open Bank's rate becomes acceptable. But a standard high-yield savings account with no limit offers the same rate and gives you the flexibility to withdraw more if your circumstances change.
Is Open Bank's rate higher than other banks right now?
Not consistently. Open Bank's rate moves with market conditions, as do all savings account rates. At any given moment, you can find accounts with equal or higher rates from Marcus, Ally, American Express, or others. Check current rates on those banks before opening an account anywhere.
What happens if I need to withdraw more than six times in an emergency?
You will be charged $10 per withdrawal over six. Open Bank does not waive fees for emergencies or hardship. If you face a genuine financial crisis and need to access your savings multiple times, the fees will accumulate quickly.