PerkStreet Financial Online Checking Account Closure Explained

PerkStreet Financial's online checking account was closed in 2014 due to a lack of profitability.

The company had been struggling to compete with larger banks and financial institutions.

PerkStreet Financial's decision to close its online checking account was likely influenced by the high costs associated with maintaining a banking charter.

This cost factor was a major contributor to the company's financial struggles.

Additional reading: Wellington Management Company

PerkStreet is closing its doors, but don't worry, your money is safe. PerkStreet customer's money is absolutely safe because it's FDIC insured.

You have plenty of time to re-direct your direct deposits, cancel any recurring payments, and spend your balance down or transfer it out. This is a 45-day notice period, starting from August 12, 2013.

PerkStreet accounts are held at two partner banks: Bancorp and Provident Bank. These banks are highly stable and secure financial institutions.

Accounts at Bancorp will continue to function normally, and you can use them for as long as you like. Accounts on Provident, however, will need to be closed out by September 26th.

Here's a summary of what happens to your PerkStreet account:

PerkStreet tried to be a good bank to customers at a time when banks were often seen as unfriendly. They offered accounts with no minimums to open and no fees to maintain, making it easier for people to have a place to put their money.

The Federal Reserve's decision to keep interest rates at 0% made it hard for PerkStreet to make money on deposits. This meant that they couldn't profit from having customers' money in their accounts.

The Dodd-Frank Financial Reform Act also made it difficult for PerkStreet to find partner banks to host their accounts, giving banks in the industry pricing power over companies like PerkStreet. This worsened their economics.

Interchange fees, or swipe fees, were also reduced due to the Dodd-Frank Act, further affecting PerkStreet's business.

Online Banking was a key feature of PerkStreet Financial's services. PerkStreet Financial allowed users to check their balance online.

You could also perform online bill pay through the platform. This made it easy to manage your finances from the comfort of your own home.

Reviewing your transactions was also a breeze with PerkStreet Financial's online banking system. This allowed you to keep track of your spending and stay on top of your finances.

The PerkStreet Financial checking account once offered a $50 cash bonus for signing up, but this promotion has since expired.

PerkStreet wasn't just any other bank, it tried to be good to customers at a time when people hated banks and it seemed some banks weren’t fond of its customers either.

They offered accounts with no minimums to open and no fees to maintain, lowering the barrier for the “unbanked” to have a place to put their money.

Their rewards program gave customers an incentive to spend only what they had rather than use a credit card.

Online banking is growing and hopefully banks continue to add services that are good for customers.

I remember when banking online seemed like this strange thing I didn’t quite trust and now I bank from my cell phone (without even having to call anyone!).

PerkStreet Financial offers a free online checking account with no account fees, no ATM fees, and no minimum balance required. This means you can use your account without worrying about any extra costs.

You'll receive a PerkStreet Financial MasterCard Debit Card that gives you 2% cash back for the first 3 months, and after that, you'll get 2% cash back for purchases made on days when you maintain a balance of at least $5,000 in your checking account. If the balance is lower than $5,000, you'll receive 1% instead.

Some of the perks you can choose from include free music or coffee, and there are no limits on the rewards you receive, which you can easily redeem online. You'll also get free checks, 24/7 live customer service, and free online banking and bill pay.

Here are some of the benefits of the PerkStreet checking account:

The more you spend, the more you get back. If you keep $5000 or more in your account at all times, you'll be able to earn 2% cash back on all your purchases.

PerkStreet Financial offers online banking with features like checking your balance, performing online bill pay, and reviewing your transactions.

You can easily access your account and manage your finances online, making it convenient to stay on top of your spending.

There are some fees to be aware of, such as a charge for overdraft protection ($30), a bounced check fee, a stop payment fee, and a monthly inactivity fee of $4.50 per month.

PerkStreet Financial has partnered with the Bancorp Bank to provide FDIC insurance, as well as other banking services, so your account has protection against losses.

To avoid the inactivity fee, you'll want to make sure to use your debit card regularly or transfer funds into your account.

Here are some online banking features you can expect from PerkStreet Financial:

PerkStreet Financial offers a 2% cash back bonus for the first few months you use your debit card, which reverts to 1% afterward, or a 2% cash back bonus for purchases made on days when you maintain a balance of at least $5,000 in your checking account.

Signing up for PerkStreet is a straightforward process. You can do it online or by phone.

PerkStreet offers a rewards program that allows you to earn points for every dollar you spend on purchases made with their credit card. These points can be redeemed for cash back, gift cards, or other rewards.

To get started with PerkStreet, you'll need to create an account online or by phone. This will require some basic information, such as your name and contact details.

PerkStreet's return is uncertain, but not impossible.

Clinton Sprauve believes the competition was too much and the pricing model wasn't aggressive enough, but the concept will resurface in another form with a stronger business model.

The current environment is tough, and Dan O'Malley thinks it might take a change in the interest rate environment for another company to come in and make a sustainable model work.

PerkStreet's founders still believe in the idea and hope others will start companies to change the banking industry, which they think needs to change.

Signing up for PerkStreet is a breeze, taking only 5 minutes of your time. This is according to their website, where you can quickly create a new account.

To get started, you'll need to select the type of rewards you're interested in. After that, you'll be asked to provide your Social Security Number, personal information, and a valid Driver's license.

You'll also need a debit or credit card to make the initial $25 deposit, which is required to fund your account.

Here's a quick rundown of the information you'll need to provide:

PerkStreet is closing down due to a combination of factors, including the Federal Reserve's decision to keep interest rates at 0%. This means that the deposits in PerkStreet accounts can't earn any interest, which was a significant source of profit for the company.

The Dodd-Frank Financial Reform Act has also had a major impact on PerkStreet's business. The act has reduced the company's options for partner banks and given banks pricing power over companies like PerkStreet.

Interchange fees, which are fees earned by banks when PerkStreet cardholders use their cards, have been pushed down due to the Dodd-Frank Act. This has further worsened PerkStreet's economics.

PerkStreet's new platform, connected to Provident, is the reason for the shutdown, which is scheduled to happen by September 26th.