Dave Banking launches checking account
Los Angeles fintech start-up, Dave, has launched a digital-only deposit account that aims to help young people stay on top of their money, reports Jane Connolly.
Dave started out two years ago with a mobile app designed to help young adults avoid overdraft fees. According to Bankrate, the new checking account, Dave Banking, offers a debit card, free withdrawals at 30,000 ATMs and no monthly fees. Dave Banking makes money on interchange revenue from card swipes.
Although the account will not allow users an overdraft, an interest-free $100 advance is available against their next pay cheque.
Dave Banking will also help customers to build their credit score by reporting rent payments to its partner CreditPop. Utility payments will be added to this service soon, reports Bankrate.
Funding a Dave Banking account is free if done via direct deposit, but other methods will be charged.
The money is deposited and insured by the Federal Deposit Insurance Corporation (FDIC) partner bank, Evolve Bank and Trust.
Users of Dave’s core app – who have an average age of 22 – will not have to open a Dave Banking account in order to access the app’s services.
Jason Wilk, co-founder and CEO, says: “People can come and try us out for a year and then decide to open a bank account. They can do it never. Or they can do it the same day that they join. It’s a very flexible model.”
Half a million joined the waiting list for a banking account, out of its 3.5 million app users.
JP Morgan Chase recently decided to shut down its millennial-targeted digital account Finn, just a year after launch.
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