Openbank by Santander Review: Pros and Cons

Open Bank at Santander is an online bank offering a single product: a High Yield Savings Account currently paying 4.40% APY.

Millions of American’s trust online banks and fintechs as a way to get more interest on their savings. These digital financial services providers operate with less overheard than traditional brick and mortar banks, and are able to offer lower fees and higher APYs on savings.

With so many competitors in the market, many of whom offer a wider range of products, is Openbank by Santander worth considering? Find out in our full review.

• Online-only bank
• Attractive savings APY
• No monthly fees or hidden charges
• FDIC-insured

What Is Openbank?

Openbank is a division of Santander Bank, N.A., the American banking arm of Santander Group, a Spanish multinational financial services giant with a significant presence in the European market.

Santander is the 14th largest banks in the world, though it doesn’t have a large of a US-presence as other banks.

What Does It Offer?

High-Yield Savings Account

At the moment, Openbank by Santander only offers one product: A High-Yield Savings Account, which is currently paying 4.40% APY. There are no monthly or withdrawal fees, nor are there any transaction limits. In addition, deposits are FDIC-insured up to $250,000.

There is a $500 minimum deposit for this account. This is noteworthy, as many competitors do not have a minimum deposit for savings account.

Are There Any Fees?

As mentioned, Openbank does not charge any monthly or transaction fees. Here is some additional information on charges and fees:

• Monthly Fees: $0
• Returned Deposit Item: $0
• ACH Stop Payment: $0
• Incoming Wire Transfer: $0
• Garnishment/Levy/Legal Processing: $0
• Paper statement: N/A (Paper statements are not available)
• Overdraft fee: N/A (Overdraft is not available for this account)
• Official Bank Check: N/A (Openbank does not offer Official Bank Checks)

How Does Openbank Compare?

Openbank’s current APY of 4.40% is one of the highest rates among online banks right now. In fact, it’s higher than what our two comparables below, CIT Bank and Barclays Bank, are offering.

That said, interest rates aren’t the only consideration. CIT Bank has a lower minimum opening deposit of $100, and Barclay’s doesn’t have a minimum limit. These banks provide other account options too, such as checking, money market account, and certificates of deposit (CDs).

How Do I Open An Account?

To open a High Yield Savings Account with Openbank by Santander, you must meet the following criteria:

• Be a U.S. Citizen or U.S. Resident Alien with a valid U.S. residential address
• Be at least 18 years old
• Have a U.S. mobile phone number
• Have a smartphone or tablet (so you can use the Openbank app)
• Your ZIP Code must be within a U.S. state or the District of Columbia (Openbank’s current service area)

You can open a savings account on the Openbank website, or by downloading the Openbank mobile banking app, which is available on both the Apple App or Google Play stores. According to Openbank, the account opening process only takes about five minutes.

Note that you must deposit a minimum of $500 to open the account.

Is It Safe And Secure?

Openbank employs the same biometric security that you would find with most mobile banking apps. This includes using your face or fingerprint to access your Openbank account. In addition, Openbank complies with federal law when it comes to safeguarding your personal and private information. For more information, you can refer to Openbank’s Privacy Policy. Remember that Openbank deposits are FDIC – insured for up to $250,000.

How Do I Contact Openbank?

You can contact Openbank’s Customer Service Center by telephone, Monday-Saturday, 8:00 AM to 8:00 PM EST, at 1-833-833-8305. According to Openbank, if you call from inside the mobile app, you will get through more quickly as they can automatically verify you. To do so, login in to the app, choose the menu icon on the top left of the screen, select “Support”, and “Call Us”.

Open Customer Service

Because Openbank is so new (U.S. launch was October 2024), there’s not much of a track record to work with to gauge its customer service levels. We appreciate that they offer telephone support with extended hours. However, customer reviews in online forums such as Reddit tend to be more negative than positive, in general.

For example, one Reddit user complained that they found it very difficult to speak to a representative, noting that “their phone system will disconnect you after 3 minutes if there are no representatives available.” They went on to say that it took 16 call attempts before they finally reached a human representative.

Other complaints pertained to being unable to access funds for a prolonged period and glitches with the mobile app. Remember, though, that most people will find a way to complain, but positive experiences aren’t always highlighted.

Is It Worth It?

While Openbank gets marks for its high savings APY, it’s difficult to ignore the fact that it only offers a single product. Not only that, but its minimum opening deposit of $500 is higher than most online banking competitors. If your sole priority is to get the highest possible rate on your savings, then Openbank is worth considering. However, given the amount of online commentary relating to poor customer service levels, I would test Openbank with a small amount of money first, before depositing a larger sum.

I wouldn’t recommend Openbank if you are looking for more account options, including checking accounts or CDs. Perhaps they will add additional accounts in the future, but until then, options are limited.

Check out Openbank here >>

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