What Open Bank offers and who it works best for
Open Bank is an online savings account with no monthly fees, no minimum balance requirement, and interest paid on what you save. It's run by a company called Customers Bank, which is insured by the FDIC — meaning your money up to $250,000 is protected by the federal government if the bank fails.
Open Bank works best if you want a straightforward savings account without branches to visit, don't need customer service by phone, and are comfortable managing your account through a website or mobile app. The account is genuinely free to open and maintain, which removes one barrier many people face when starting to save.
It's not the right choice if you need to deposit cash in person, prefer talking to someone on the phone, or want the highest interest rate available right now. Those needs point you toward different accounts or banks.
Key Takeaways
- Open Bank charges no monthly fees and has no minimum balance, so you can start saving with any amount.
- Your money is FDIC-insured up to $250,000, which means it's protected if the bank fails.
- You manage the account entirely online or through an app — there are no physical branches and no phone support.
- The interest rate changes over time and may be lower than other online banks, so compare rates before opening.
- You can only deposit money by transferring it from another bank account, not by depositing cash or checks in person.
How the interest rate works
Open Bank pays interest on the money you keep in your savings account. The rate changes — sometimes weekly — based on what the Federal Reserve does with interest rates across the economy. This means the amount you earn will go up or down over time, and you have no control over when that happens.
Before you open an account, check what the current rate is on Open Bank's website and compare it to rates at other online banks like Marcus, Ally, or American Express Personal Savings. A difference of even 0.5% per year adds up if you're saving a larger amount. For example, $5,000 earning 4% per year makes $200, while the same $5,000 at 3.5% makes $175 — a real difference.
Open Bank's rate has historically been competitive with other online banks, but "competitive" changes month to month. Check the rate the day you're ready to open, not the day you read this article.
Deposits and withdrawals: what you can and cannot do
You can only put money into Open Bank by transferring it from another bank account you already own — a checking account at your current bank, for example. You cannot deposit cash, deposit checks by mail, or walk into a branch with money. This matters if you get paid in cash or receive checks regularly.
Withdrawals work the same way: you transfer money out to another bank account. The transfer usually takes one to three business days. If you need cash urgently, you would have to transfer the money to a checking account first, then withdraw it from an ATM — a process that takes time.
Open Bank does not issue a debit card, so you cannot spend directly from the savings account. This is actually a feature for most savers — it makes it harder to dip into savings on impulse — but it's worth knowing upfront.
Customer service and how to get help
Open Bank offers support through email and an online chat system, but not by phone. If you prefer talking to a person on the phone when you have a question or problem, this will frustrate you. Email responses typically take a business day or two.
The website and app are designed to be straightforward enough that you don't need much help — you can see your balance, transfer money, and check your interest earnings without calling anyone. But if something goes wrong or you have a question that the FAQ doesn't answer, you're waiting for an email response.
How Open Bank compares to other online savings accounts
Open Bank is one of many online savings accounts. The main differences between them come down to interest rate, customer service, and features. Here's what separates Open Bank from common alternatives:
| Feature | Open Bank | Marcus (Goldman Sachs) | Ally Bank | American Express Personal Savings |
|---|---|---|---|---|
| Monthly fee | None | None | None | None |
| Minimum balance | None | None | None | None |
| Phone support | No | Yes | Yes | Yes |
| Cash deposits | No | No | No | No |
| FDIC insured | Yes, up to $250,000 | Yes, up to $250,000 | Yes, up to $250,000 | Yes, up to $250,000 |
The rate is the biggest variable. On the day you're comparing, one bank might pay 4.5% and another 4.0%. Over a year, that gap matters. Check the current rates at each bank's website before deciding.
Red flags and things to watch
Open Bank is legitimate and FDIC-insured, so your money is safe. But there are a few practical things to know before opening an account.
First, you need another bank account to transfer money in and out. If you don't have a checking account anywhere, you'll need to open one first — Open Bank alone won't work as your only account.
Second, transfers take time. If you're saving for an emergency and need the money fast, you're waiting one to three business days. A savings account is not the same as having cash on hand.
Third, the interest rate will change. Don't open an account expecting to earn 4.5% forever. The rate will drop when the Federal Reserve lowers rates, and it will rise when the Fed raises them. This is true at every bank, but it's worth remembering so you're not surprised.
When Open Bank makes sense and when it doesn't
Open Bank is a good choice if: You already have a checking account at another bank, you want to save money without paying fees, you're comfortable managing your account online, and you don't need to deposit cash. It's straightforward, free, and your money is protected.
Open Bank is not the right choice if: You need phone support, you receive cash or checks regularly and need to deposit them, you want the absolute highest interest rate available, or you prefer dealing with a bank that has physical branches. In those cases, look at Marcus (for phone support), Ally (for phone support and more features), or a local credit union or bank (for branches and cash deposits).
Frequently Asked Questions
Is my money safe at Open Bank?
Yes. Open Bank is FDIC-insured, which means the federal government protects your money up to $250,000 if the bank fails. This protection is the same at every FDIC-insured bank. Your savings account is as safe at Open Bank as it is at any other insured bank.
Can I use Open Bank as my main checking account?
No. Open Bank only offers savings accounts, not checking accounts. You need a checking account somewhere else to transfer money in and out of Open Bank. Many people use Open Bank as a separate savings account alongside a checking account at another bank.
How long does it take to transfer money out if I need it?
Transfers typically take one to three business days. If you need cash when ready, a savings account won't help — you'd need to keep emergency money in a checking account or as physical cash instead. Savings accounts are for money you're not planning to use right away.
What happens if Open Bank changes its interest rate?
The rate can go up or down based on what the Federal Reserve does. Open Bank will notify you of changes, and the new rate takes effect on a date they specify. You don't have to do anything — the change happens automatically. If the rate drops and you're unhappy, you can transfer your money to a different bank.
Do I need a lot of money to open an Open Bank account?
No. There is no minimum balance requirement. You can open an account and deposit $1 if you want. Many people use Open Bank to start building a savings habit with small amounts.