Everything You Need to Know About Rocket Money Costs and Fees
Rocket Money is a digital banking service that allows its users to manage their finances online. In our constantly evolving world, more people are turning to online banking for their financial needs. But, with the various costs and fees that come with such services, it can be challenging to figure out whether Rocket Money is worth it. In this article, we delve into Rocket Money’s costs and fees, from the structure of the pricing to the actual numbers involved.
Breakdown the Cost Structure of Rocket Money
Before diving into Rocket Money’s fees, it’s essential to understand its cost structure. The platform applies a tiered pricing structure, which means that users are charged a monthly fee based on the tier they choose. The more advanced the tier, the higher the fee. Rocket Money offers three tiers: Starter, Premium, and Ultimate.
The Starter tier is the basic and the cheapest option that Rocket Money provides. It costs $0 per month and offers standard banking services, including a checking account and a debit card. It’s ideal for users who are just starting with online banking and are looking for a simple and easy-to-use platform to manage their finances.
The Premium tier costs $9.99 per month and includes all the services of the Starter option. In addition to these basics, it also offers cashback on purchases, a higher debit card limit, and the ability to make use of the Paycheck Protection Program. Plus, it includes access to budgeting and saving features that aren’t available on the Starter package.
The Ultimate tier is the most advanced and expensive option. It costs $19.99 per month and includes everything that the Premium tier has. It also offers high-interest savings accounts and early payday deposits for qualifying users.
Detail All the Fees Associated with Using the Service
Aside from the monthly charge associated with each tier, Rocket Money also applies several fees. Here are some of the fees charged by Rocket Money:
- ATM fees: Rocket Money provides an extensive ATM network, but if users go outside of it, they face charges. The fees range from $2.50 to $4, depending on the type of ATM.
- Overdraft fees: If a user overdraws their Rocket Money account, they face a $30 fee per transaction.
- Foreign transaction fees: Users who use their Rocket Money debit card outside of the United States face a 3% foreign transaction fee per transaction.
- Replacement card fees: If a user loses or damages their Rocket Money debit card and requires a replacement, they’re charged $5 for a new one.
Provide Examples of How Much Each Fee Might Cost
It’s essential to understand individual fees and how much they might cost in the long run. Here are some fee examples, based on Rocket Money’s pricing:
- ATM fees: If a user withdraws from an outside network ATM twice every month over the course of a year, they will pay at least $60 on ATM fees annually.
- Overdraft fees: If a user overdraws on their account twice a year, they would pay $60 in overdraft fees annually.
- Foreign transaction fees: If a user uses their Rocket Money card five times outside of the United States per year, they would pay $15 in foreign transaction fees annually.
- Replacement card fees: If a user loses or damages their debit card once a year, they would pay $5 annually.
Explain How Users Can Avoid or Reduce Certain Fees
Rocket Money users can mitigate some of their possible fees by taking advantage of the different tools and features that the platform offers. Here are some strategies:
- Use in-network ATMs: By sticking to Rocket Money’s broad ATM network, users can avoid ATM fees and save money each transaction.
- Cashback rewards: By making purchases using their Rocket Money debit card, users can earn cashback rewards, which can help offset the foreign transaction and other fees.
- Automatic savings: Rocket Money provides automatic savings for its customers. Users can save by setting up recurring savings goals and never have to worry about overdraft fees.
Is Rocket Money Worth the Cost? A User’s Perspective
Let’s explore the opinion of actual Rocket Money users. We did the research and asked some users about their experience with the platform.
Angela, a user on the Starter package, finds the platform easy and straightforward to use. She appreciates the basic banking services that come with the account and believes the monthly fee is worth it for what she gets in return.
Lee, who subscribes to the Ultimate package, appreciates the high-interest savings account and early payday deposit features and believes the monthly fee is a small price to pay for such services. He also notes that the platform’s mobile app is intuitive and easy to navigate.
Overall, users agree that the platform is worth the cost, considering the features and services it offers for the price.
Rocket Money vs Other Online Banking Services: How Much Does It Really Cost?
It’s essential to compare Rocket Money’s cost structure to other online banking platforms. Here’s a comparison of the cost of using Rocket Money versus other digital banks:
- Revolut: Revolut is free and offers basic finance services, including a checking account and currency exchange. It also charges fees for premium features and services, such as premium support and early payday access.
- Chime Bank: Chime Bank offers a completely free checking account and debit card, with no monthly fees, overdraft fees, or foreign transaction fees. However, users on the platform face out-of-network ATM fees and third-party transfer fees.
- Ally Bank: Ally Bank provides a free checking account with no monthly fees. Still, the platform charges $25 per overdraft or returned item. Ally also charges a $10 overdraft transfer fee, and $20 per item if you have overdraft protection.
Maximizing Your Savings: How to Save Money While Using Rocket Money
Here are some strategies to save money while using Rocket Money:
- Using in-market ATMs to avoid fees
- Using direct deposit to avoid fees and get early access to paychecks
- Consistently saving money through the platform’s automatic savings feature
The Future of Rocket Money Costs: What to Expect in the Coming Years
It’s hard to predict exactly what Rocket Money’s cost structure will look like in the future, but it seems probable that the company will continue to provide new and exciting features to users. As the platform grows and evolves, it’s also a possibility that the fees will change accordingly, so users should keep an eye out for updates and changes to the platform.
Conclusion
Rocket Money is a premier digital banking platform for users who want convenience and a host of features. Although it requires a monthly fee, users feel that the cost is worth it, given the services provided through each subscription level. To maximize savings while using Rocket Money, users should use in-network ATMs, take advantage of automatic savings, and use the platform’s direct deposit feature.
