Review summary for the Beam high interest banking app
BEAM High Interest Banking App
A NOTE OF CAUTION: BEAM claims that all funds are held by their partner, Evolve Bank & Trust, an FDIC institution. However, Evolve Bank & Trust told me via a phone call today (4/10/2018) that they have no direct relationship with BEAM. The connection between BEAM and Evolve Bank & Trust is through a third party called Synapse Financial Technologies. Synapse referred me back to the BEAM terms & conditions. Perhaps everything is completely legitimate, but I’ve seen too many red flags for me to feel comfortable using and recommending this service right now.
WHAT IS BEAM? BEAM is a no-fee savings account meant to compliment, not replace your primary bank. They pay 2%-4% APY (interest compounds daily) and require no minimum balance. Beam has launched to a limited audience and is available on iOS devices. An Android application will be coming soon. There are no plans for a web-based application.
WHAT’S GOOD ABOUT BEAM? BEAM pays a minimum of 2% APY, which is double what most big banks pay. Not bad, especially since BEAM is free to use and requires no minimum balance. You can earn up to a 4% APY via a “Billies” program (more on that in the full review below). The iOS app, while still in beta, is easy to set up and use. Transferring money between your primary bank account is simple.
WHAT’S NOT SO GOOD ABOUT BEAM? To get an APY higher than 2% users must open the BEAM app daily to claim a Billie (more on this below in the full review). Even if you’ve boosted your APY, it reverts to 2% each day which can be frustrating and discouraging. My biggest concern with BEAM is their claim to FDIC insurance that nobody besides BEAM will confirm. If BEAM were a household name, like CapitalOne or Wells Fargo, this wouldn’t be an issue for me, but as an unknown startup, with unknown partners, this is a concern.
COST TO USE BEAM: BEAM is free to use.
WHERE TO GET BEAM:Get a free account here. I’ve decided against providing my referral link at this point. Too many unanswered questions.