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Aspiration is a socially conscious financial firm offering alternatives to traditional banking and investing. Launched in 2013, Aspiration Financial, LLC is a registered broker-dealer and aims to make the world a better place through its sustainable and responsible account options. The online investment firm offers two cash management accounts, plus investment and retirement accounts.
This Aspiration review focuses specifically on its cash management accounts, how they compare to those offered by competitors and whether an Aspiration cash management account is right for you. Account details and annual percentage yields (APYs) are accurate as of July 26, 2022.
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Account Basics
Aspiration Spend & Save
The Aspiration Spend & Save account is the firm’s primary cash management account. This hybrid cash account offers many features found with checking and savings accounts, allowing you to spend and save from the same place. It’s one account split into separate balances for spending and saving.
The account comes with a complimentary debit card and access to more than 55,000 fee-free ATMs nationwide. Opening an account only requires a $10 minimum deposit. Spend & Save accounts come with check-writing privileges and a complimentary first set of checks.
Spend & Save accounts have a monthly fee structure that could cost you as little as $0. That’s because Aspiration allows its customers to choose their own monthly fee, known as its “Pay What Is Fair” policy. When you open a Spend & Save account, you get to choose whatever monthly fee you think is fair, with the option to pay nothing at all.
The basic Spend & Save plan pays a very competitive 3.00% APY on the first $10,000 in your Save account each month, so long as you’re able to meet certain requirements. You must spend at least $1,000 with your Spend account within a calendar month and have an open and active Aspiration Save account on the date interest is paid. Balances greater than $10,000 don’t earn interest.
The basic plan also earns cash back for purchases at select merchants. Aspiration customers can earn 3% to 5% cash back rewards for debit card purchases at its Conscience Coalition merchants—merchants “that put ‘doing the right thing’ at the heart of their businesses,” most of which are certified B corporations. On Aspiration’s mobile app, the Aspiration Impact Measurement (AIM) feature shows the sustainable impact of the places you shop.
As part of Aspiration’s commitment to green business practices, it guarantees that customer deposits will never be used to fund fossil fuel exploration or production. You also can opt to round up your purchases to the nearest dollar, with the rounded change helping plant trees. Planting enough trees also earns extra cash rewards.
Aspiration Plus
For customers who are looking for a cash management account with even more earning power, there’s Aspiration Plus. The subscription service add-on comes with a $7.99 monthly fee ($5.99/month if paid annually) and provides access to several extra perks not included with Aspiration’s basic cash management account.
Aspiration Plus, for example, comes with enhanced interest earnings based on your balance and whether you hit monthly spending requirements. You can earn 5.00% APY on the first $10,000 in your Save account if you spend $1,000 or more purchases each month and have an active and open Aspiration Save account. If you can’t meet those requirements in a given month, the interest rate drops to 0.25% APY on balances up to $10,000. You also earn 0.10% APY on the portion of the balance above $10,000.
Upgrading to Aspiration Plus boosts your ability to earn cash back. You can earn 10% cash back on purchases made at businesses that are members of the Conscience Coalition. While that’s a very high cash back rate, keep in mind it’s only beneficial if you plan to make purchases from the program’s retail partners. On top of the same access to fee-free ATMs, Aspiration Plus comes with one out-of-network ATM fee reimbursem*nt each month.
Other Aspiration Accounts and Services
In addition to its cash management account, Aspiration also offers:
- Credit cards
- Investing
- Sustainable impact services
Aspiration Investment and Retirement Accounts
Aspiration Redwood Fund. The Aspiration Redwood Fund is a fossil fuel-free mutual fund that invests exclusively in socially conscious companies. Aspiration considers three factors when choosing companies for the Redwood Fund:
- Environmental
- Social
- Governance (ESG)
Aspiration created the Redwood Fund to allow customers to build their portfolio through companies focused on sustainability.
The Redwood Fund has a $10 minimum initial investment requirement, with additional investments as low as $1. There are no caps on how much you can invest. UBS Asset Management manages the fund. Funds are subject to tax implications that vary between investors.
Redwood IRA. Opening a Redwood IRA through Aspiration lets you save for retirement while saving the planet. Similar to the Redwood Fund, its IRA invests in companies that promote sustainability. Aspiration only offers a traditional IRA. Contributions to a Redwood IRA may be fully or partially tax-deductible. IRAs through Inspiration are subject to penalties and taxes if you decide to withdraw money early.
Access on the Go
As an online financial firm, Aspiration has no branches. Customers can assess their accounts online or through Aspiration’s highly rated mobile app, available for iPhone (4.7 stars out of 5 on the App Store) and Android (rated 4.0 stars out of 5 on Google Play). The app allows customers to deposit checks, pay bills and send checks to friends and family.
Aspiration customers also can get support via Aspiration’s customer service hotline, open seven days a week for convenience. The support is live with a real person, not an automated system. There’s also an option to send secure messages through Aspiration’s website.
Pros
- Socially conscious company
- Earn cash back
- Very competitive APY on savings if you meet specific requirements
- “Pay What Is Fair” fee structure for basic membership
- FDIC insurance up to $2 million
Cons
- Higher APY only available with paid Aspiration Plus account
- Higher cash back earnings only available with Aspiration Plus
- Cash back offers are only for purchases at select retailers
- No cash deposits
- International debit card usage is blocked in select countries
How Aspiration Stacks Up
Aspiration presents a different model for cash management than its competitors. You can earn high-yield interest by meeting spending requirements whether you have a basic account or opt for Aspiration Plus. Keep in mind Aspiration Plus carries a monthly fee, and so do basic Spend & Save accounts if you decide to pay one with Pay What Is Fair. For individuals who care just as much about sustainability as they do their own future, Aspiration is a chance to invest in both.
The account does have some limitations that could be a dealbreaker for potential customers. There’s no way to deposit cash and you’ll have to go with the paid Aspiration Plus account to earn high cash back. And while the option to pay what you want with a basic Aspiration account, even if it’s $0, is enticing, you may find other cash management accounts that bypass a monthly fee altogether.
Frequently Asked Questions
Is the Aspiration card legit?
The Aspiration debit card is a real debit card that can be used online, in stores and at any fee-free Allpoint ATM in the US. International use is subject to ATM fees and isn’t available in select countries.
Is Aspiration a good investment?
Aspiration may be a good choice for individuals who want to build up savings, invest in their future and support sustainability all in one place online. You may find better investment, retirement and banking solutions individually elsewhere or through another cash management account.
How does Aspiration cash back work?
Aspiration customers can earn up to 5% cash back on debit card purchases at retailers with a high Aspiration Impact Measurement (AIM) score, which Aspiration calls its Conscience Coalition. Aspiration Plus members can earn up to 10% cash back for purchases with Conscience Coalition members.
Can you overdraft with Aspiration?
Aspiration limits the processing of select transactions if you have insufficient funds, including checks, ATM withdrawals, transfers and debit card purchases. Aspiration doesn’t charge fees for accidental overdrafts.
Is Aspiration FDIC insured?
Deposits held in an Aspiration Spend & Save account are FDIC insured for up to $2.5 million through Aspiration’s 10 partner banks, which provide insurance of up to $250,000 each.
Is Aspiration a real bank?
Aspiration is not a bank. It is a financial firm that provides investing and cash management products and services. Aspiration partners with other banks to provide FDIC insurance for customer deposits.
