A Review of Aspiration Banking. Are Aspiration's Savings Accounts a Good Investment?

Feb 15, 2024 By Triston Martin

Aspiration is not a chartered bank but a financial services company. To encourage clients to shop at ethical businesses and get cash back, the company provides a choice of accounts. Aspiration's FDIC-insured partner banks hold the money users deposit through Aspiration. Check out our comprehensive evaluation of Aspiration banking to discover if it's a suitable match for you.



For Whom Is Aspiration the Ideal Option?


The convenience of banking online without visiting a branch may be a good fit for Aspiration customers. Those who want to:


  • Avoid paying monthly checking account maintenance costs might consider it.
  • Pay with your debit card and get a rebate at specific merchants.
  • Use a financial institution that has an emphasis on environmental stewardship.
  • Do not pay ATM transaction costs


The Aspiration Spend and Save Account


At first, Aspiration provided a single checking-like account with a high payout of one per cent annual percentage yield (APY). That was a vast improvement over certain well-known brick-and-mortar banks, with results as low as 0.01%.


A "Spend &' Save" account has replaced Aspiration's checking account for the New Year. The latest version includes a debit card-linked spending account and a savings account that pays 2% interest. It's two accounts, but it's designed to function as one seamless Aspiration account for the customer. On the other hand, Aspiration boasts that it is entirely free of fossil fuels.


Investing Aspiration



A total of two of Aspiration's investment products are designated for sustainable investing, commonly known as ESG supporting. Redwood Fund and Redwood IRA are their names. The Flagship Fund and the Flagship IRA both adhere to a low-volatility philosophy. These funds are geared at investors wary of taking on too much risk.


Investments in these two funds comprise other funds that employ risk-adjusted techniques to minimize market fluctuations. Investors of all stripes may now have access to portfolios previously only available to Aspiration clients for a small initial commitment of $10. In addition, the Securities Investor Protection Corporation (SIPC) ensures all securities up to a maximum of $500,000.


We put our money into firms that actively support a diversity of ethnicity, gender, and ethics, as well as those who are working to combat climate change. UBS Asset Management is in charge of the account. Emerald Asset Management is the company in order when it comes to the flagship items.


What Is the Value of Aspiration?


Customers dissatisfied with the traditional banking system may want to consider Aspiration as an alternative. It's clear about its pay-what-you-want pricing structure. Customers may get cash back at ATMs and earn interest on their Spend &' save account. But several drawbacks make it tough to commit to Aspiration.


A significant drawback of internet banking is that there is no method to deposit cash, which is typical for most. People who need to pay a bill or transfer money urgently may run into difficulties if they do so.


Other than that, customer care is more responsive via email than phone calls. A chat function and phone support reps for the phone number it offers on its website should be available if Aspiration plans to give out AIM scores to other firms and go after other financial institutions. They can be found on the Aspiration website. As the business is still in its infancy, more significant progress in this area is possible.


Aspirational Banking: How to Get Started


Using Aspiration's mobile app or internet banking is your primary banking means. However, All point ATMs do provide free cash withdrawals.


You may sign up for an Aspiration account online if you so like. It's helpful to know what information you'll need to get started, much as when creating a bank account in the first place.


Aspirational Customer Service


This is an internet bank. Thus you can only get in touch with them by email or phone. Aspiration's online form or the phone number 1-800-683-8529 can be used to ask a question. Aspiration's mobile app and website are more options for account management. Apple and Android devices users may get the software for free from the respective app stores.


Conclusion


If you're seeking a firm with a purpose to promote positive social and environmental change, Aspiration may be a suitable fit. Aspiration stands out from other financial institutions, both traditional and online, due to the flexibility of its fees.


With the Spend &' Save Account, you'll be able to earn cash back on debit card purchases while also supporting ethical businesses. However, if you want to earn a 1.00 per cent annual percentage yield (APY), you'll have to register an Aspiration Plus account and enroll in Aspiration Plus to do so.


In addition, neither Aspiration nor any of its subsidiaries provide funds to establish credit. While the company's emphasis on social responsibility is a plus, clients seeking a wide range of accounts and straightforward ways to earn interest may find it unappealing.

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