I can’t remember how I stumbled upon Simple. I did somehow, and I remember looking over their site and deciding to open an account with them almost instantly.
I never wanted multiple bank accounts dedicated to different goals, but I also didn’t want all my money in one big heap. And the Envelope System, even though I love it, doesn’t work for things I pay for online.
Opening a Simple account and using their goal system like envelopes was the solution, and it’s become an essential part of my money management system.
What is Simple?
- I think their website sums it up nicely:
Simple offers a bank account that has all the tools you need to manage your money built right in. The funds in your Simple account are held by our partner bank, The Bancorp Bank, Member FDIC. Simple provides everything else, including the Simple Visa® Card, our powerful iOS and Android apps, a beautifully designed web interface, and customer support that really cares.
- In case you were wondering, The Bancorp Bank is what’s behind brands like PayPal and T-Mobile, among many others.
I don’t often write posts praising something so enthusiastically, but I do when it’s deserved and when it’s had such a positive effect on my life.
Simple is my favorite banking service hands down. Here are some reasons why:
- Simple’s Goals are like virtual envelopes that you can label and keep money in for a specific purpose…the best part is it’s all in one account!
- You can set your envelope to automatically reach its goal. For example, if I label an envelope “Rent” and set it to $1,000, I can specify the day I need it by. Then I can kick back and relax as Simple sets aside some money each day in order to meet my goal by the deadline I set. Although I don’t personally use this feature and prefer to just put the money in myself, I still think it’s pretty darn cool.
- The money you put in those envelopes are excluded from your balance; this means that if I have $500 in my account but $300 are in my envelopes, Simple will tell me I have $200 that is safe to spend. This psyches me into only spending money that hasn’t been committed already for a specific purpose.
- Simple in no way locks down the money you have in your envelopes. You’re free to add to and subtract from them at your whim; you can click your Safe-to-Spend number and immediately see what’s in the whole account.
- There’s a messenger in the app where I can text tech support. I love that so much. I have a simple question and I no longer have to go to the branch physically or call and wait forever for someone to pick up. No more talking to robots either.
- Simple has NO fees. That’s right! No overdraft! (Not like that would ever happen once you start budgeting)
It’s these factors which have made me so enthusiastic about my banking app.
Some things I don’t like about Simple:
- They don’t have checkbooks, so I can’t write a check. (Although I can write one virtually and have them send a physical one)
- They don’t let me deposit business checks.
How much does Simple cost?
Opening an account is free! On top of Simple having no fees, including overdraft, and no minimum balance requirement, you have so much to gain and nothing to lose in opening an account.
How does Simple make money if it doesn’t charge any fees?
Here’s a quote from their website answering that question:
- Although we love technology, we don’t knock tradition. In the past, banks made most of their profits off interest margin—the difference between the amount of interest they make on loans, and the interest they pay customers on their deposits. Our partner bank splits this interest margin with Simple.
- When you swipe your debit card, the merchant pays a service fee (called interchange) to the issuing bank. Our partners split this with us.
No more mentally subtracting from my balance to see if I can afford something. Using Simple’s goals like envelopes has really made me live out one of my favorite quotes about money: “Having a budget is telling your money where to go instead of wondering where it went.”
Simple is a central part of the way I handle my money and it lives up to its name: It’s simplified the way I manage my money, and by extension, it’s simplified my life.
Click here to check out Simple and see how it transforms your money management system!