Quontic Bank Review 2024: An Innovative All-Digital Bank With Competitive Rates
Updated April 26, 2024 at 3:52 pm
Quontic Bank is a digital bank that offers basic, high-quality financial products at competitive rates and with low fees.
Our Methodology Newsweek Vault’s banking experts have done hundreds of hours of research to present you with all the latest information about your banking options. Whether you’re interested in opening a new checking account or savings account, our research spans all the top online banks, credit unions and brick-and-mortar branches.
We assessed the following five key factors to help you choose the best account for your personal finance needs.
- Associated fees
- ATM access
- Balance requirements
- Customer service
- Interest-earning potential
Quontic Bank Overview
Quontic Bank
Expert Take: If you have basic banking requirements and don’t use cash frequently, Quontic Bank offers a solid suite of digital banking products at competitive rates. This bank prides itself on low fees and making banking accessible for underserved markets.
Pros
- Competitive interest rates
- No monthly fees
- Mortgages available for underserved borrowers
Cons
- Competitive interest rates
- No monthly fees
- Mortgages available for underserved borrowers
Accounts
Checking: Interest-bearing and cashback accounts available with $100 deposit and no fees
Savings: Current APY of 4.00% with $100 deposit
CDs: Terms from 6 months to 5 years with competitive APYs
Money Market Accounts: Current APY of 4.75% with $100 deposit
Vault’s Viewpoint on Quontic Bank
Quontic Bank’s offerings are competitive and straightforward. Interest rates on deposit accounts are much higher than the national average, and the bank has low deposit minimums and few fees.
While it focuses on a minimalist suite of products, Quontic Bank gives you choices on the things that really count. For example, you can choose between an interest-bearing checking account and one that gives you cash back on everyday purchases. These offerings make Quontic Bank a good choice for customers with basic digital banking needs who want to maximize their interest rates on deposits and minimize the fees they pay.
Quontic Bank may not be the best fit for customers who require more advanced investing or loan products. As a digital bank, Quontic doesn’t operate physical branches, prohibiting customers from making cash deposits or meeting in person with a banker. Customers who deposit cash frequently or want investment accounts tied to their checking or savings accounts should consider other options.
Quontic Bank Checking Accounts
Checking Account
Expert Take: Quontic Bank has two types of online checking accounts: an interest-bearing account that earns an annual percentage yield of up to 1.10% on deposits or a cash rewards account that gives you 1% cash back on all debit card purchases. Quontic also has over 90,000 in-network ATMs that don’t require a surcharge. Quontic Bank checking accounts are ideal for consumers who want minimal fees and extra perks with their checking accounts.
Pros
- Choose your favorite perk: high-interest or cash rewards
- No monthly service, in-network ATM or overdraft fees
- Works with Quontic Pay Ring
Cons
- Must make 10 qualifying transactions ($10 or more each) to earn best APY
- No cash deposits or sign-up bonus
- Other banks offer higher checking account APYs
Quontic Bank Savings Accounts
Savings Account
Expert Take: Quontic doesn’t offer the absolute highest APY on the market for its savings account, but its rate is fairly competitive. The low minimum deposit and no monthly maintenance fee make this account accessible for most consumers. Be advised that there is a limit of six withdrawals per statement cycle, and a fee applies if you exceed the limit.
Pros
- Competitive interest rate
- Low minimum deposit
- No account fee
Cons
- Other banks offer higher interest rates on savings accounts
- $10 excess transaction fee when you exceed 6 withdrawals in a statement cycle
Quontic Bank CDs
Certificates of Deposit
Expert Take: Quontic Bank offers a standard CD with five terms to choose from. At 4.00% APY, the 1-year CD offers a competitive rate. While the account minimum for opening a CD is fairly low at $500, the penalty for withdrawing interest early is hefty: 12 to 24 months’ worth of interest, depending on the terms of the account. These CDs are set to roll over automatically if you do not withdraw the money or renew during the 10-day grace period.
Pros
- High interest rate
- Low minimum deposit
- You can open the account online
Cons
- High early withdrawal penalty
- No partial withdrawals
- You cannot add funds to an existing CD
Quontic Bank Money Market Account
Money Market Account
Expert Take: With a money market account this good, it’s a wonder Quontic offers a savings account. Quontic Bank’s money market account offers 4.75% APY on all balances, a debit card and check-writing privileges. And unlike the savings account, it doesn’t have excess transaction fees.
Pros
- High APY
- No excessive check fee
- No minimum balance to earn APY
Cons
- Some banks offer slightly higher interest rates
Quontic Bank Mortgages
Mortgages
Expert Take: Quontic Bank offers a broad range of mortgage products. They not only offer a typical menu of FHA, conventional, and VA mortgages, but they also offer a host of customized mortgages that meet the needs of different types of buyers, such as immigrants or people with variable incomes. These include Lite documentation, bank statement, ITIN, asset utilization, foreign national, debt-service coverage ratio, and TBD loans. These loans are best for borrowers with strong credit and a sizeable down payment (which can include gifted funds).
Pros
- Various mortgage products are available to a wide variety of borrowers
- Gifted funds are accepted
- Registered in all 50 states
Cons
- High down payment requirements for portfolio products
- Higher credit score required for portfolio products
Quontic Bank Pay Ring
Pay Ring
Expert Take: You’ll never have to worry about forgetting your wallet at home again. The Quontic Pay Ring is like a debit card you can wear on your hand. It uses the same technology that chip-enabled debit cards do and can be used at a tap-to-pay terminal by just holding your fist over it. The ring is extremely secure, as there are no numbers printed on it so skimmers can’t get your card information. Like a debit card, it’s secured by a PIN and can be activated or deactivated with Quontic’s mobile app.
Pros
- Free with a Quontic checking account
- Durable and waterproof design
- Secure, skim-proof technology
Cons
- You may need to order a ring-sizing kit first to get your ring size
- No alternative to swipe a magnetic strip if tap-to-pay does not work
Key Features
- No need to charge it
- No numbers visible
- PIN protected
- Waterproof
- Use with tap-to-pay terminals
About Quontic Bank
Quontic started out as a community bank in New York City in 2009 and has since expanded into an online fintech bank. Unlike most digital banks, Quontic has been designated by the U.S. Treasury as a Community Development Financial Institution (CDFI), meaning it offers banking and mortgage solutions to a diverse range of customers who have historically had less access to these products.
Although Quontic is now a fully online bank, it has kept to its roots as a community-based institution by keeping a U.S.-based customer service team, focusing on lending to underrepresented borrowers and giving to charities in New York City and other areas.
Who Is Quontic Bank Best For?
Homebuyers who may not qualify for a mortgage under conventional bank standards may find some of Quontic Bank’s portfolio products helpful. They offer flexible underwriting so non-traditional types of borrowers (self-employed, low or alternative income or non-U.S. citizens) can become homeowners.
As a digital bank, Quontic doesn’t have the upkeep associated with branch locations, so they can offer competitive rates on traditional deposit accounts, like checking, savings and CDs. These accounts have low deposit minimums, making them accessible to a wide range of customers.
Who Should Consider an Alternative to Quontic Bank?
If you make regular cash deposits, Quontic may not be the best choice. Deposits can only be made through the bank’s mobile app.
Also, customers looking for a full suite of banking products will want to look elsewhere. Quontic Bank doesn’t offer personal or auto loans, individual retirement accounts (IRA) or investment accounts,
How Does Quontic Bank Stack Up to Its Competitors?
Quontic Bank offers competitive interest rates and low fees, but its products aren’t the best fit for each situation. Here are a few alternative banks to consider.
Quontic Bank vs. Ally
Quontic and Ally Bank are online banks that offer great interest rates and low fees to their customers. Ally’s suite of products is more comprehensive than Quontic Bank’s. They offer multiple types of CDs, credit cards, IRAs, investment accounts, personal loans, and auto loans — none of which are offered by Quontic. Ally accounts also offer additional features, such as buckets to organize specific funds and round-ups to funnel additional money into savings.
Despite its additional products and features, Ally doesn’t offer the highest interest rates. As of March 2024, both Ally’s savings and CD APYs are lower than Quontic’s. Each bank charges minimal fees to its customers.
Quontic Bank vs. Discover
Discover is also an online bank, and its offerings closely mirror those of Quontic Bank (though they do not offer first-lien home loans, only home equity loans and refinances). Discover also earns 1% cash back on debit purchases from its checking account, though its cash back limit per statement cycle is slightly lower ($30 versus $50). Its interest rates on savings accounts, money market accounts, and CDs are similar to Quontic’s, though slightly lower as well.
Discover offers a few additional products not available to Quontic customers, such as credit cards and personal loans. They also offer IRA accounts, but they are savings or CD accounts, not investment accounts. Their expanded offerings may be good for someone who wants good interest rates along with a few more types of accounts from a single bank.
Quontic Bank vs. Wells Fargo
As a large, legacy bank, Wells Fargo offers thousands of branch and ATM locations across 36 states. This makes talking with a banker in person or depositing cash much easier at Wells Fargo than at Quontic.
But local convenience comes at a cost. Wells Fargo doesn’t offer nearly as high interest rates as Quontic Bank. Even the top-tier Wells Fargo checking account only offers 0.01% interest (100 times less than Quontic), and the savings account isn’t much better. To make up for the low interest rates, Wells Fargo tends to offer sign-up bonuses on their checking and savings accounts, which Quontic does not have.
Frequently Asked Questions
What Is the Old Name of Quontic Bank?
The company now known as Quontic Bank began as Golden First Bank on Long Island, NY. When owners Steve Schnall and George Lazaridis bought the bank in 2009, they changed the name to Quontic.
Does Quontic Bank have any physical locations?
While Quontic is an online bank, they do have a handful of offices in the following locations:
- Astoria, NY
- Melville, NY
- Flushing, NY
- Miami, FL
- Mesa, AZ
These offices focus on helping customers with mortgages rather than traditional banking activities.
Does Quontic Bank use Zelle?
Yes. The Quontic app offers Zelle as a free option for transferring money between friends and family quickly. Most transactions take just a few minutes. You can send up to $500 per transaction and $1,000 per day.
Editorial Disclosure: We may receive a commission from affiliate partner links included on our site. However, this does not impact our staffs’ opinions or assessments.
