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Earlier this month, BBVA USA announced it would shut down Simple, a popular fintech company it acquired in 2014. If you're a Simple customer, you may have questions about the recent announcement, what it means for you, and where you should move your money. Here's what you should know.
Simple Bank's announcement
On Jan. 7, Simple Bank emailed its customers to tell them it would close in 2021. The bank assured customers there wouldn't be any immediate impact on customer accounts. Eventually, servicing will move over to BBVA USA, its parent company, but there's currently no timeline for that to happen.
What you need to know about Simple Bank closing
The good news is Simple customers don't need to take immediate action to protect their funds. Your debit card, online banking, and mobile app will continue to work, so you can access your money as normal.
If you're worried about whether your money is safe, it is. Simple deposits were already held at BBVA USA, meaning they are still FDIC insured through the parent company. You don't need to move your banking business elsewhere just yet.
Where should you move your money?
If you're a Simple customer, you might be wondering whether you need to move your money. Simple's relationship with BBVA USA means you don't have to do anything unless you want to. Your Simple account and card will continue to work for a while.
As mentioned, these accounts will eventually be serviced by BBVA USA. Online access will switch from Simple to BBVA USA, and so will mobile access. However, this may not be the final destination for your money. PNC Bank is currently finalizing its acquisition of BBVA USA. There's no word yet from the bank on what will happen to former Simple accounts at that time.
If you're not content leaving your money where it is, the following online banks may be suitable alternatives.
Chime
Chime offers a modern banking experience to rival the one Simple customers know and love. Instead of a high-yield checking account, customers can pair Chime's high-yield savings account with its spending or online checking account. Spending accounts come with a free debit card and access to 38,000+ fee-free ATMs. Customers will also love the automatic savings feature, early direct deposits, and mobile banking tools. Plus, there are no monthly maintenance fees with Chime.
Varo Bank
Varo Bank is another online bank that's worth a look if you're switching from Simple. The digital bank won The Ascent's 2020 bank and bank account award for "Best modern banking experience." You can pair a Varo bank account with its high-yield savings account and take advantage of automatic savings tools. Its savings account offers one of the highest APYs you'll find anywhere if you meet monthly requirements. Varo accounts come with a free debit card and access to Allpoint® ATM network's 55,000+ fee-free ATMs.
Ally Bank
Ally Bank is another popular online back that's perfect for Simple customers who want to move their money. Unlike Simple, Ally Bank is a full-service online bank offering a wide range of banking products and services. Ally and Simple do have something in common, though -- an interest-bearing checking account. You'll find several Ally bank accounts that earn interest without monthly fees, including multiple CD options, a high-yield savings account, and one of the top money market accounts in the industry. Ally's checking account comes with a debit card, free-free access to Allpoint® ATMs, and automatic savings tools.
What about my stimulus check?
Simple customers shouldn't worry about the latest round of stimulus checks released by the federal government. Even though the bank is closing, your stimulus payments will still be deposited to your account. This also goes for other direct deposits you may have set up, including unemployment benefits and paychecks. Your money is safe and will arrive at the same time as it would have.
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