FitnessBank Rises To Rate Leader for Online Savings Accounts

FitnessBank has become the rate leader for online savings accounts. The top-tier rate of its Fitness Savings Account increased 100 bps to 3.50% APY. This is an all-time high for FitnessBank that exceeds the 3.00% APY that FitnessBank offered in 2019.

The Fitness Savings Account requires that the customer average at least 12,500 steps per day in the previous month to earn the top APY (the Senior Savings Account requires only 10,000 steps per day for that APY). If you average fewer steps, the rate that you earn falls, and unfortunately, those rates haven’t been increasing much. If you just miss 12,500 steps and qualify for the second tier, you currently earn only 1.25% APY. This FitnessBank page provides the details about the FitnessBank Step Tracker App that’s needed to meet the step requirements.

The monthly step requirements make it unique to online savings accounts. This step requirement is both a benefit and a drawback. It’s a benefit in that it allows the Bank to offer a top rate. Since not every customer qualifies for the top rate, the average interest rate FitnessBank pays is more sustainable for an online bank. The drawback is that it does have step requirements that many customers may not be able to meet to qualify for the top rate.

The Fitness Savings Account currently has the following APY/step tiers:

The Senior Fitness Savings Account is for those who are at least 65 years of age. This account has lower step requirements to qualify for the interest rates:

Here’s a summary of the basic features of the Fitness Savings Account. These features apply to both the Fitness Savings Account and the Senior Fitness Savings Account.

• $100 minimum to open, to earn interest, and to avoid a $10 maintenance fee.
• Account balances are capped at $250,000
• Standard 6-per-month withdrawal limit applies. $10 fee is charged for each additional withdrawal.
• Interest is compounded daily, and credited monthly
• No debit/ATM Cards available
• No step requirements for the first month

The funds transfer features are important for online saving accounts. Below are the details for ACH and wire transfers based on the information I received today from a FitnessBank official:

• Outgoing and incoming ACH transfers initiated using FitnessBank’s online funds transfer system are limited to $2.5k per day
• Outgoing and incoming ACH transfer limits may be increased up to $15k by request
• No size limit on ACH transfers when initiated by another bank
• Free incoming wire transfers, and if the incoming wire is above $15k, FitnessBank will reimburse that fee charged by your other bank.

The small ACH limits are common for the non-major online banks. I was told by the Bank official, that “the smaller limits do reduce [their] risk especially since it settles next day.”

New Fitness Checking Accounts

In the last year, FitnessBank launched its Fitness Checking and Senior Checking Accounts. These are reward checking accounts that require debit card usage to qualify for the top rate. In addition to the debit card usage requirement, they also have step requirements similar to the savings accounts. If you meeting these requirements, you are rewarded with two rate benefits:

• Extra 10 bps on your Fitness Savings Account
• 1.00% APY on your Fitness Checking Account on up to $25k (0.25% for portion of balance above $25k)

To qualify for the above rate benefits, the following two requirements must be met:

• 10,000 steps average per day (7,500 for those 65+)
• 10 PIN-based/signature-based debit card purchases per account period

The current maximum Fitness Savings Account rate is 3.60% APY (an extra 10 bps with the checking account and qualifying activities.) To qualify for this, you must meet the following requirements:

• 12,500 steps average per day (10,000 for those 65+)
• 10 PIN-based/signature-based debit card purchases per account period

The top Fitness Checking rate is low for reward checking rates. For savers, the main benefit will be earning the extra 10 bps on your Fitness Savings Account. For a $250k balance, that results in an extra $250 of interest earnings in a year.

A few of the important features of the checking account include:

• $100 minimum to open and to avoid a $10 maintenance fee.
• Only one account per primary account holder
• If requirements are not met, the APY is 0.10% on the entire balance.
• No step or debit card usage requirements for the first month
• ATM fee reimbursement up to $10 per statement period
• Free online banking, bill pay and mobile deposit

Fitness Savings Account Rate History

Since FitnessBank was launched in 2019, the top tier rate of the savings account has been above the average rate of the major online savings accounts. There were times in 2019 and 2020 when the rate was way above the average. However, there was also an eight-month period in 2021 and early 2022 when the rate was just a little above the average.

One thing that has changed with this new 3.50% APY is that there is now a wide difference between the top tier rate (3.50% APY) and the second tier rate (1.25% APY). In the past, the difference has been much smaller. If you think you might not be able to meet the 12.5k/day step requirements, you would be better off with an online savings account from another bank.

FitnessBank Concept

When I first wrote about FitnessBank in 2019, I was worried that this concept might be considered too much of a gimmick. After more than three years, It’s a good sign that FitnessBank is still going strong with new checking accounts.

I know some people don’t want to play games with their savings. Also, the customer must be a smartphone user who is willing to download the Step Tracker app. There may also be privacy concerns with having your steps tracked.

Those who have physical limitations may find it difficult or impossible to qualify for the high interest rates. However, it should be noted that the Step Tracker app is now able convert cycling and swimming distances into steps. So you’re no longer limited to just walking and running.

In my experience with FitBit, you can achieve between 2,000 and 3,000 steps by walking a mile. Also, a lot of household chores such as taking out the trash, doing the dishes and cleaning your house can quickly add 1,000+ steps.

There are definitely a few concerns with this concept, but there are also some positives. Most everyone can achieve health benefits by walking more, and a concept like this can provide that incentive.

Availability and Application

FitnessBank offers its bank accounts online only to US Citizens, 18 years or older, with a valid Social Security number. Also, the applicants must have a residential mailing address (not a PO Box) and a valid driver’s license or US passport.

Single and joint accounts can be opened. With joint accounts, FitnessBank will only connect the account to one of the account holders for rate purposes. You will want to choose the most active person to get the best rate.

FitnessBank does not do a credit pull in the account application. So you don’t need to worry about a hard pull that dings your credit score. FitnessBank just uses ChexSystems for all account applications.

The initial deposit can be made by ACH transfer from another bank. This will require that you provide your current bank account and routing number. When you apply, you’ll get an email confirmation with your application confirmation number and a copy of the disclosures attached. You’ll get another email when the account is open letting you know of the next steps.

Beneficiaries

The online application does not provide options for designating beneficiaries. However, beneficiaries can be designated after the account has been opened and funded by submitting the name, social security number and date of birth for each beneficiary via a secure message within online banking. FitnessBank only allows individuals as beneficiaries. There is no limit to the number of beneficiaries on an account.

Bank Overview

FitnessBank is a division of Affinity Bank. FitnessBank was originally the division of Newton Federal Bank, but in January 2020, Newton Federal Bank acquired Affinity Bank and changed its name to Affinity Bank.

As an online division of Affinity Bank, FitnessBank operates under Affinity Bank’s FDIC Certificate and shares its financial history. Also, Affinity Bank and FitnessBank are treated as the same entity for the purpose of calculating FDIC insurance limits and deposits.

FitnessBank’s website address (fitnessbank.fit) has the “.fit” top-level domain (TLD). The “.fit” TLD was made available in 2015 to all who want to identify themselves as part of the fitness community.

FitnessBank/Affinity Bank has an overall health grade of "B+” at DepositAccounts.com, with a Texas Ratio of 9.48% (excellent) based on June 30, 2022 data. In the past year, the Bank increased its total non-brokered deposits by $7.12 million, an above average annual growth rate of 1.14%. The Bank has assets in excess of $766 million, and deposits in excess of $633 million. Please refer to our financial overview of FitnessBank/Newton Federal Bank (FDIC Certificate # 29510) for more details.

How the Fitness Savings Account Compares

When compared to Savings Accounts and Money Market Accounts tracked by DepositAccounts.com that are available nationwide, FitnessBank’s Fitness Savings APY currently ranked first. This assumes the FitnessBank customer will maintain the required step activity to earn the top tier rate.

The above rates are accurate as of 10/3/2022.

To search for the best Savings Account, both nationwide and state specific, please refer to DepositAccounts.com’s Savings Account Rates and Money Market Accounts page.