BankProv Review: Not As Good As It Seems

October 23, 2021
Reviews
BankProv-Review

BankProv is an innovative online banking service from The Provident Bank that offers savings accounts with unlimited insurance on your deposits. However, BankProv misses the mark in a few key areas, including several that are essential for online banks: overall functionality, customer service, and its mobile app.

If you’re looking for a reliable, smooth business banking experience, I suggest banking with N26 instead. N26 has been Europe’s top online bank for years, and its recent expansion into the US market has brought a new level of service unmatched by American online banks.

What Is BankProv?

BankProv is the online component of The Provident Bank, which is the United States’ tenth oldest bank with branch locations in Massachusetts and New Hampshire.

The-Provident-Bank-Logo

Its main areas of focus are on adaptive digital banking technology that facilitates crypto payments, renewable energy, financial technology, and commercial value lending.

It’s worth mentioning that BankProv and The Provident Bank are not connected in any way to Provident Bank, a full-service bank that provides services in New Jersey and Pennsylvania.

What Does BankProv Offer?

BankProv offers access to high-yield savings accounts with unlimited insurance.

Many banks offer FDIC insurance, but the FDIC insures up to $250,000 in bank deposits.

The FDIC does not guarantee insurance for any deposits that exceed this amount, which makes it more difficult to have any certainty that your money is fully protected.

The fact that BankProv can protect more than $250,000 through DIF, a private insurance program used by some banks, distinguishes it from other services like it.

What Is DIF?

TheDepositors’ Insurance Fund (DIF) is a private, industry-sponsored organization distinct from theFederal Deposit Insurance Corporation(FDIC), which is a government agency with complete political backing.

It has over $270 million in assets and $100 million in reinsurance.

DIF insurance covers deposit account types such as:

  • Savings accounts
  • Checking accounts
  • Certificates of deposit (CDs)
  • Bank money market accounts
  • NOW accounts
  • IRA deposit accounts
  • Business checking accounts

If you have more than $250,000 that need a place to be deposited, there are a few methods to overcome the FDIC limit if you really need to and if you’re willing to go through some trouble.

However, because BankProv provides limitless insurance, you no longer have to depend on any workarounds. Depositors can create a BankProv deposit account and have complete confidence that funds in excess of $250,000 will be completely safe.

When you receive DIF insurance on your account, it’s automatically applied and funded as well. There are no fees or applications to fill out for receiving this protection from the DIF, and no depositor has ever lost funds with an account that has both FDIC and DIF coverage.

BankProv’s Interest Rates

BankProv offers a high-yield savings account as its only product. For those with balances of $250,000 or more that can take advantage of unlimited insurance, BankProv provides a 1.15% APY rate.

In addition to not incurring charges, this is undoubtedly a benefit when compared to spreading your money across multiple banks.

BankProv has three interest rate tiers, which are:

  • $0.00 to $49,999.99 = 0.00% APY
  • $50,000.00 to $249,999.99 = 0.75% APY
  • $250,000.00 and above = 1.15% APY

Although BankProv’s unlimited insurance on deposits benefits bigger accounts, it tends to fall short whenever smaller accounts are concerned.

BankProv’s Deposits And Withdrawals

The minimum deposit to open an account is $1,000, and BankProv requires a wire transfer for depositing funds — no funds can be added to the account by any other means.

BankProv charges about $30 for each wire transfer, like most banks.

It’s likely that BankProv is restricting transfers to wires because it expects bigger money flows.

BankProv-Review

The benefits of this move are two-fold. On the one hand, it’s a good thing for bigger accounts because depositing large amounts of money into a savings account doesn’t require those funds right away, making the $30 wire transfer fee irrelevant.

However, this advantage can also be considered a con, as withdrawing funds from the account often will come at a high price.

BankProv’s Fees

There is no monthly fee to pay if you have a BankProv account.

However, because wire transfers are the only way to transfer money into or out of your account, you’ll pay a fee for each transfer.

How To Open A BankProv Account

BankProv’s account creation process is completely online, and it’s not necessary for you to go personally.

The following information will be requested on your application:

  • Full name
  • Date of birth
  • Email address
  • Phone number
  • Mailing address
  • Social security number
  • Occupation
  • Driver’s license or passport

BankProv Customer Service

Customer service at BankProv includes personalized and automated phone support, email, chat, and a contact form to assist account holders in every way possible.

If you live in Massachusetts or New Hampshire, the bank’s physical locations are open to you as well.

The customer service center takes all calls and passes them on to a member of the desired branch of the team that can attend the inquiry.

Inquiries using BankProv’s self-service offers balance inquiries, transfers, and most recent transactions, to cleared checks, interest information, and check status.

A privacy data removal page and an identity theft toolkit are also at the disposal of any BankProv account holder.

Is BankProv The Best Online Business Bank In The US?

Certainly not. BankProv has a few good things going for it, but it misses the mark in some key areas, as you’ll see below.

Instead of BankProv, I suggest banking with N26, which has long held the title of the top-rated online business bank account in all of Europe.

Here are a few reasons I prefer N26 Business over BankProv: 

#1 Better features

BankProv offers a few features relevant to business owners, such as personalized lending and business crypto transactions.

But N26 offers much more: cashback on every purchase, expense tracking, simplified invoicing and tax returns, sub-accounts, travel and mobile device insurance, and more depending on the plan you choose.

If you operate in the cryptosphere or need a business loan, you may find BankProv attractive, but if not, N26 is likely a better option for you.

#2 Better mobile app

The BankProv app is pretty clunky. It’s buggy, hasn’t been thoroughly tested, and only has a few thousands users between both iOS and Android. It’s rated 1.0 out of 5 stars on the App Store, and the written reviews are scathing.

The N26 app is the opposite: well-rated, easy to use, and beautiful. Users praise it for its functionality and ability to do everything they need without becoming so bloated that it becomes hard to use.

N26 Business Banking App

In other words, the BankProv digital banking experience feels like it was built by bankers, while N26 was built by technologists. The difference may sound trivial, but it’s a big deal.

#3 Better customer support

BankProv customers often complain that getting support is a slow, painful process, and that that help often doesn’t solve their problems. N26 Business customers, on the other hand, praise N26’s customer support agents for their quick, helpful replies. 

In Summary

BankProv is an innovative online banking service from The Provident Bank that offers savings accounts with unlimited insurance on your deposits. However, BankProv misses the mark in a few key areas, including several that are essential for online banks: overall functionality, customer service, and its mobile app.

If you’re looking for a reliable, smooth business banking experience, I suggest banking with N26 instead. N26 has been Europe’s top online bank for years, and its recent expansion into the US market has brought a new level of service unmatched by American online banks.

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