Upgrade Checking Review – Digital-Only Checking
Joy Wallet is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. To read our full disclosure, click here.
For most people, their first bank account is pretty much always at the same institution of a parent or guardian. This makes sense, since when you’re just getting started with banking, a lot of parents want to have some oversight of your bank account. However, as you get older, you may move or want different features from a bank. In these situations, it’s a good idea to explore other options.
Digital banks like Go2Bank and Varo have become much more popular in recent years. Generally offering lower annual fees thanks to a more streamlined number of features, for the right account holders, using online banking and a mobile app may be perks worth ditching a traditional brick-and-mortar establishment.
If you’re considering online banks, you’ve likely come across Upgrade Checking, an option with tons to offer. But is Upgrade really an upgrade when it comes to your existing checking account? Read on for a review of the pros and cons of Upgrade, along with information about minimum balance requirements and monthly fees associated with account opening.
In this article
What is Upgrade Checking?
Upgrade is an online-only fintech company. This means that there are no physical banking locations you can go to to make a deposit, open an account, or get banking advice. Even though they don’t have a physical location to visit, Upgrade is still FDIC-insured like other banks, thanks to a partnership with Cross River Bank.
In addition to offering a checking account and debit card services, Upgrade also offers two options of savings accounts, the Performance Savings Account and the Premier Savings Account. Since Upgrade is fully digital, direct deposit, wire transfers, withdrawals is all handled online at Upgrade’s website or from their convenient mobile app.
The debit card with up to 2% cash back on purchases
- Maximize your rewardsNo monthly fees
- It's quick, easy, and free to open an account
- Get paid up to 2 days early with direct deposit
- No Overdraft Fees
- 1% cash back on debit purchases
How does Upgrade Checking work?
Unsurprisingly, as a digital-first, opening a checking account with Upgrade is a relatively straightforward process. To start, you’ll want to navigate to their website. While you’ll see options for things like high-yield savings and personal loans, you’ll want to click the green “Open Account” button underneath the Upgrade Rewards Checking Plus account header.
From there, creating your Rewards Checking Plus account is as simple as filling out a short form. This includes personal information such as your name and address, as well as your Social Security Number. All of your data is encrypted using the latest in online security features. If you need any help, you can also call Upgrade on the phone at (833) 760-5062, should you have additional questions. Generally speaking, it takes about five minutes to finish your banking application.
How much does Upgrade Checking cost?
One of the best things about an Upgrade Checking account is the low cost. Your checking account comes with no monthly maintenance fees whatsoever. It also comes with no overdraft fees. Additionally, having an existing account with Upgrade may actually save you money on additional services with the company. For example, Rewards Checking Plus customers may find themselves qualifying for up to 20% off of interest rates on credit cards, personal loans, and other credit lines with Upgrade.
Other potential costs with Upgrade Checking
While Upgrade’s checking accounts don’t come with maintenance fees, there are a few other costs that could or couldn’t impact you, depending on your financial situation while banking with Upgrade. These include things like:
- $2.50 ATM fee for out-of-network ATMs
- Foreign transaction fees of 3%
- Outbound domestic wire transfers cost $20 after your first fee-free transfer per calendar month
- Having at least $1,000 direct deposited monthly in order to reap all of the benefits of having an Active Account
Upgrade Checking features
For a bank with no monthly fees, Upgrade packs a lot of compelling features into its checking account offerings. Here are some of the top features you’ll receive when banking with Upgrade.
2% cash back
Interested in earning cash back rewards, but don’t want to open a credit card in order to get these sorts of benefits? As long as you make deposits of at least $1,000 every month, you’ll get 2% cash back on purchases made for everyday expenses, including monthly subscriptions, utilities, and purchases at gas stations, grocery stores, restaurants, and bars. All other purchases come with a 1% cash back offer.
Early direct deposit
One nice thing of having an account with regular direct deposit is the ability to access that direct deposit up to two days early before payday. The fine print on Upgrade’s website makes sure you know that in order to qualify for early direct deposit you’ll need to “set up recurring electronic direct deposit from your employer, payroll, or benefits provider” as well as the fact that it is “limited to direct deposits under $5000.” Most consumers who receive direct deposit from their employer will meet these requirements.
No monthly fees
While some bank accounts have minimum balance requirements in order to keep your account open without fees, Upgrade doesn’t have these sorts of maintenance costs. They also don’t have overdraft fees, in the event that you accidentally overdraw your deposit account.
Savings account benefits
If you bank with Upgrade for your checking account, it may be worth exploring what benefits you could get from opening a savings account with the company, too. As of writing, a Performance Savings Account with Upgrade comes with a 5.02% APY.
Joint accounts
Looking to create a joint bank account for you and your partner? With joint checking accounts and savings accounts available, applying for an account with two account holders is a breeze.
Allpoint ATM Network
Many times, the only fees that digital banks wind up costing their account holders come in the form of ATM fees. Since you can’t deposit or withdraw cash from your smartphone app, there may come a time when you need to use an ATM. Thankfully, Upgrade has partnered with the Allpoint ATM network to offer its users access to 55,000 ATMs nationwide. As long as you do your cash banking at one of these ATMs, you won’t need to worry about fees.
The debit card with up to 2% cash back on purchases
- Maximize your rewardsNo monthly fees
- It's quick, easy, and free to open an account
- Get paid up to 2 days early with direct deposit
- No Overdraft Fees
- 1% cash back on debit purchases
Who is Upgrade Checking best for?
Employees paid with direct deposit
If you’re paid with direct deposit and aren’t interested in banking at a physical location, then there’s a lot to like about Upgrade. Regular monthly direct deposits will qualify you for a higher cashback percentage as well as other account perks, meaning that you’re getting the most that Upgrade has to offer if you have your direct deposit sent to your checking account.
Consumers with poor credit who want in on the cash back game
If you have a low credit score, it can be hard to qualify for the best rewards credit cards. As such, you may have FOMO knowing that in a high period of inflation where prices on everyday expenses have been raised, you’re paying more than others with better credit. With an Upgrade checking account, you’ll get access to up to 2% cash back on a variety of expenses — all with your debit card.
Who shouldn’t use Upgrade Checking?
Consumers who frequently deal with cash
While Upgrade offers a pretty generous ATM network, that doesn’t change the fact that if you frequently deal with cash as a part of your day-to-day finances, an Upgrade checking account is going to make that more of a chore to work with. For starters, you can’t even deposit cash to your Upgrade account, even though you can withdraw at an ATM.
If you can transition your business to digital invoicing or even paper checks, this is a less of a concern, but for tipped workers or others who use paper money often, Upgrade falls short.
People who like a physical branch
Just because you don’t visit your brick-and-mortar bank often doesn’t mean it isn’t nice to have around. Sometimes, when you’re exploring a new financial product or if you need a document notarized, having access to a physical branch can be beneficial. With Upgrade’s focus on online-only banking, you don’t get these personal perks.
Pros & cons
Pros
- Competitive cash back rates. Not all banks offer cash back on debit card purchases, and with active accounts at Upgrade qualifying for 2% back on subscriptions, bills, groceries, and more, they rival even credit card companies in this area.
- Easy-to-use mobile app. Upgrade’s user experience is excellent, whether you’re banking on their website or on-the-go using their iOS or Android app.
- No monthly fees. Unlike some online banking institutions that charge a $5 monthly fee, your Upgrade account won’t cost you a penny in maintenance fees.
Cons
- No physical branches. Not everyone needs access to an in-person banking option, but when you do, Upgrade won’t be there for you.
- No cash deposits. Not being able to deposit cash at all into your Upgrade Checking account may cause problems for some customers.
- Out-of-network ATM fees. While Upgrade offers the Allpoint network of ATMs for your ATM needs, if you aren’t able to find a conveniently located Allpoint ATM, you’ll be paying $2.50 plus any additional ATM fees to withdraw cash.
The debit card with up to 2% cash back on purchases
- Maximize your rewardsNo monthly fees
- It's quick, easy, and free to open an account
- Get paid up to 2 days early with direct deposit
- No Overdraft Fees
- 1% cash back on debit purchases
Upgrade Checking vs SoFi Online Checking
Bank | Cash Back Rewards | Monthly Account Fees | Savings APY |
Upgrade Checking | 2% on everyday purchases, 1% all else | $0 | Up to 5.10% |
SoFi Checking | No | $0 | Up to 4.60% |
SoFi Checking
Compared to a checking account with Upgrade, SoFi does offer some similar perks. For example, they do not have monthly account fees or overdraft fees on their online checking accounts. However, their savings APY is lower than Upgrade’s, and they don’t offer additional perks like cash back rewards on debit card purchases. While SoFi’s checking account is by no means a bad option, Upgrade definitely edges it out on features and overall value offered to its account holders.
Read a full review of SoFi Checking.
FAQs
Is my Upgrade Checking account FDIC-insured?
Yes. Upgrade is FDIC-insured thanks to a partnership with Cross River Bank.
How do you qualify for a Rewards Checking Plus account?
In order to qualify for a Rewards Checking Plus account with Upgrade, you need to be a United States citizen or permanent resident with a valid social security number. Additionally, you need to be at least 18 years or older.
Are there limits to using mobile deposit?
Potentially. According to Upgrade’s website, “we may impose limits on your eligibility to use Mobile Deposit.” These include limits on either the number of deposits you make or the amount you are able to deposit.
The bottom line
Not everyone likes the idea of a virtual banking option — but many people do. Particularly if you travel a lot or live in a smaller part of the United States where local credit unions and banks have limited offerings, having access to the benefits of a financial institution like Upgrade could be a major upgrade to your personal finances.
With no monthly fees and cash back perks, customers who receive monthly direct deposits will reap the most from banking with Upgrade. Additionally, if you add on a savings account to your Upgrade bank account, you’ll gain access to a high annual percentage yield to boost your savings with an APY comparable to many money market accounts right now.
Of course, Upgrade won’t be right for everyone. If you need to be able to make cash deposits into your bank account or frequently make ATM withdrawals, using Upgrade could become tedious or even untenable. However, for those who like the idea of a feature-rich, digital-first banking experience with an excellent user interface and little to no fees, Upgrade is well worth considering.
Joy Wallet is an independent publisher and comparison service, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.
Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
We value your privacy. We work with trusted partners to provide relevant advertising based on information about your use of Joy Wallet’s and third-party websites and applications. This includes, but is not limited to, sharing information about your web browsing activities with Meta (Facebook) and Google. All of the web browsing information that is shared is anonymized. To learn more, click on our Privacy Policy link.
Images appearing across JoyWallet are courtesy of shutterstock.com.
Writer
Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.
Share this article
