Level App Offers 2.10% APY and 1% Cash Back on Debit Purchases
Level is a new banking app startup that is entering the market with a 1% cash back on debit card purchases, 2.1% APY on deposits, early access to paychecks and no fees. That should get your attention if you already use similar apps. Level itself is not a bank. Its customers’ funds are actually held in FDIC-insured accounts (up to $250,000) through Evolve Bank & Trust. Level, meanwhile, provides the technology, the customer-facing experience and banking services. Level is available today on both iOS and Android, after first signing up on levelbank.com.
The banking service is the latest from the same team behind the “debit-style” credit card called Zero. Level also targets a younger demographic who no longer see the need for physical banks. It is similar to Simple, Ally, Chime, Varo, N26, Current, Space, Step, Stash, Empower and others. Level takes on these rival challenger banks, too, by offering a higher 2.10% APY on its FDIC-insured deposits, without requiring a minimum balance.
1% Cash Back
Level also offers a rare 1.0% unlimited cash bank on debit card spending. That is not a good rate compared to credit cards, but there is only a handful of debit cards that earn 1%. This cashback applies to both signature-based and online purchases, but there is a catch. The cash back is paid out on accounts that have at least a $1,000 monthly direct deposit.
Early Access to Funds
Level also offers early access to your paycheck. For customers with a direct deposit, Level will make the funds available based on when they are received, which could be up to two days early.
Also like most other banking startups, Level ditches the numerous fees big banks charge. There are no monthly, overdraft, foreign transaction or add-on ATM fees, says Level, and no minimum balance is required to have an account. It will even reimburse ATM fees worldwide up to three times per month, at up to $4 per reimbursement to take the sting out of the increasingly costly fees to access your cash.
Level additionally includes features that have now become part of the baseline experience for challenger banking apps, like being able to see transactions on a map, lock a missing debit card from the app and receive push notifications for purchases, refunds and transfers.