Last updated Jul. 22, 2024 by Okechukwu Nkemdirim
In 2023, Aspiration continues to attract consumers with its unique approach to banking, blending financial services with a strong commitment to social and environmental responsibility. Aspiration offers an array of products designed to help individuals save and spend money while making a positive impact on the world. Among these products is the Aspiration Online Cash Management Account. This review will delve into the features, benefits, and potential downsides of the Aspiration Cash Management Account, providing you with a comprehensive overview to determine if it aligns with your financial goals.
What is the Aspiration Online Cash Management Account?
Aspiration is not a traditional bank but a financial firm offering banking services and investment products. The Aspiration Cash Management Account is an online account that combines various features of a checking and a savings account. It’s designed to offer high interest rates, cash back on purchases, and fee-free banking, all while supporting environmentally and socially ethical businesses.
Features and Benefits
High Interest Rates
One of Aspiration’s primary appeals is its competitive interest rate on savings. As of 2023, account holders can earn up to 3.00% APY (Annual Percentage Yield) on their savings balances, provided they meet specific criteria such as monthly spending requirements. This is significantly higher than the national average for savings accounts and makes Aspiration a desirable option for those looking to maximize their interest earnings.
Ethical Spending and Cash Back
Aspiration emphasizes ethical financial practices, offering cash back on debit card purchases at businesses with a strong social and environmental focus. The "Conscience Coalition" consists of merchants that align with Aspiration’s values, ranging from organic grocery stores to sustainable clothing brands. When you shop at these places, you can earn up to 10% cash back.
Fee-Free Banking
The Aspiration Cash Management Account is largely fee-free. There are no monthly maintenance fees, overdraft fees, or minimum balance requirements. Additionally, Aspiration covers ATM fees worldwide, making it an excellent option for travelers and those who frequently withdraw cash.
Environmental Impact
A unique feature of Aspiration is its commitment to positive environmental impact. Aspiration allocates a portion of the company’s revenue to reforestation projects, clean water initiatives, and other environmental causes. Users can track the environmental impact of their spending through the Aspiration Impact Measurement (AIM), which scores purchases based on their sustainability.
Potential Downsides
Spending Requirements
To earn the highest interest rates and cash back rewards, account holders must meet certain spending requirements. While these thresholds are generally manageable, they may not be suitable for individuals with lower monthly expenditures.
Limited Physical Presence
Aspiration operates entirely online, which might be a drawback for those who prefer in-person banking services. All transactions, including deposits and withdrawals, must be conducted online or through a network of ATMs.
Customer Support
Although Aspiration offers customer support via phone and online messaging, some users have reported longer wait times and occasional difficulties in resolving issues.
No Traditional Savings Account
Aspiration offers a cash management account, but it doesn’t provide a traditional savings account. While the cash management account includes features of both checking and savings, those looking for a separate, conventional savings account might need to look elsewhere.
How to Open an Aspiration Cash Management Account
Opening an Aspiration Cash Management Account is a straightforward process that can be completed online in a few minutes:
- Visit the Aspiration Website: Go to Aspiration’s official website and click on the "Get Started" or "Open Account" button.
- Provide Personal Information: You will need to provide your name, address, Social Security number, and other basic personal information.
- Fund Your Account: You can fund your new account by linking an existing bank account and transferring an initial deposit.
- Choose Your Aspiration Plan: Aspiration offers different tiers (Aspiration and Aspiration Plus). The Aspiration Plus plan includes additional benefits, such as higher interest rates and increased cash back, but it requires a monthly or annual fee.
Aspiration Plus
Aspiration Plus is the premium version of the standard Aspiration account. For a monthly fee of $7.99 (or $71.88 annually), users receive several additional benefits, including:
- Higher interest rates on savings
- Increased cash back percentages
- Carbon offsets for gas purchases
- Additional monthly ATM fee reimbursements
This plan might be particularly beneficial for users who can take full advantage of these enhancements to offset the cost.
Environmental and Social Responsibility
Aspiration ensures that the funds in your account are not used to finance fossil fuel projects. The company doesn’t invest in oil and gas pipelines, coal mining, or other environmentally harmful activities. Moreover, Aspiration invests heavily in sustainable initiatives, such as reforestation projects and renewable energy start-ups.
Security
Aspiration’s cash management account is designed with robust security features to protect users’ funds and personal information. The account is FDIC-insured up to $2.46 million through a program with various FDIC-member banks. Additionally, the platform employs advanced encryption and security protocols, such as two-factor authentication, to safeguard accounts from unauthorized access.
Mobile Banking
Aspiration provides a user-friendly mobile app, which is available for both iOS and Android devices. The app allows users to manage their accounts, monitor transactions, and track their sustainable spending on the go. It also includes features like mobile check deposit, bill pay, and instant notifications for account activity, making it convenient for modern users.
Customer Reviews and Feedback
The general sentiment around Aspiration has been positive, with many users praising the ethical focus, high interest rates, and lack of fees. However, some feedback highlights occasional issues with customer service and account accessibility. It’s important for potential users to weigh these reviews alongside the benefits when deciding if Aspiration is the right choice for their financial needs.
Conclusion
Aspiration’s Cash Management Account stands out for its high interest rates, ethical spending rewards, and commitment to sustainability. While it may not suit everyone, especially those who prefer traditional brick-and-mortar banking, it offers a compelling option for individuals aiming to make their money work harder while supporting environmentally and socially responsible initiatives.
For those willing to meet the spending requirements and manage their money online, Aspiration could be an excellent choice in 2023. With the added perks of the Aspiration Plus plan, it can be even more enticing for users looking to maximize their financial benefits while minimizing their environmental footprint.
✓ Short Answer
Aspiration’s Cash Management Account in 2023 features high interest rates, cashback rewards for ethical spending, and a fee-free structure. The account also promotes environmental sustainability through various initiatives, making it an attractive option for eco-conscious consumers.
FAQs Section
What Are Aspiration’s Fees?
Aspiration’s basic Cash Management Account has no monthly maintenance fees, overdraft fees, or minimum balance requirements. However, the Aspiration Plus plan comes with a monthly fee of $7.99 (or $71.88 annually).
Is My Money Safe with Aspiration?
Yes, Aspiration’s Cash Management Account is FDIC-insured up to $2.46 million through a network of FDIC-member banks. Additionally, Aspiration employs robust security measures, including encryption and two-factor authentication.
Can I Use Aspiration for Everyday Banking?
Absolutely, the Aspiration Cash Management Account is designed for everyday banking with features like a debit card, mobile app, and fee-free ATM withdrawals.
How Do I Earn Interest and Cash Back?
To earn up to 3.00% APY, you need to meet specified monthly spending criteria. Cash back is earned by shopping at businesses within the "Conscience Coalition," which align with Aspiration’s ethical and sustainable values.
Does Aspiration Offer Customer Support?
Yes, customer support is available via phone and online messaging. However, some users have reported longer wait times and occasional difficulties in resolving issues.
Can I Deposit Checks with Aspiration?
Yes, Aspiration’s mobile app allows for check deposits using your smartphone.
How Does Aspiration Support Environmental Causes?
Aspiration allocates a portion of its revenue to environmental initiatives such as reforestation and clean water projects. Users can also track the sustainability of their spending through the Aspiration Impact Measurement (AIM).
How Do I Open an Account?
You can open an Aspiration Cash Management Account online by visiting the Aspiration website, providing personal information, funding your account, and choosing your desired plan (Aspiration or Aspiration Plus).
With this thorough overview, you should have a solid understanding of what Aspiration offers and whether it meets your financial and ethical needs.
