One Year In: How a Zero-Fee Banking Service Helped Members Earn $50M in Interest

A digital banking platform completed its first year of operations with remarkable results. Since its February 2022 launch, the service has attracted millions of users and generated substantial returns on savings, demonstrating strong market demand for competitive interest rates.

Interest Payouts and Competitive APY Rates

The high interest rates offered have proven attractive to savers. Direct deposit members currently earn 3.75% APY on savings accounts—approximately 12 times the national average—along with 2.50% APY on checking balances, which is 50 times the typical national rate for interest-bearing checking accounts. Over the first twelve months, members collectively earned more than $50 million in interest on their account balances.

“Our members earned over $50 million dollars in interest on their balances in the first year alone,” noted the company’s CEO, emphasizing how the service helps people maximize their money during periods of high inflation. The platform eliminated account fees entirely, making competitive banking accessible to a broader audience.

User Adoption and Regional Growth

By the end of 2022, the service had amassed 2.1 million members, with the platform’s parent company holding $7.3 billion in deposits across its banking operations. Quarter-over-quarter deposit growth reached 46% in Q4 2022, with 88% of deposits coming directly from payroll direct deposits—indicating strong member engagement.

Geographic analysis revealed the largest membership concentrations in California, Texas, and Florida. However, when measuring total savings accumulated, California residents maintained the highest average balances—nearly three times higher than Texas and four times higher than New York.

Smart Savings Features Driving User Engagement

Members have embraced organizational tools designed to simplify financial management. Over 250,000 have opened dedicated savings “Vaults”—essentially sub-accounts for specific goals like emergency funds, travel, home purchases, and vehicle savings. These vaults earn the same high interest rates as primary savings accounts.

An automated roundup feature, which rounds up debit card purchases to the nearest dollar and deposits the difference into savings, has helped members accumulate over $3.4 million. The feature demonstrates how small, automatic actions can compound into meaningful savings.

Product Evolution and Enhanced Offerings

Throughout the year, the company introduced multiple enhancements. A premium membership tier launched in October 2022, providing exclusive benefits including the highest available APY, elevated cash back rewards, and rate discounts across the company’s product suite.

Interest rates have been adjusted upward eleven times since launch, reflecting competitive market positioning. Additional features rolled out include early paycheck access (up to two days advance), no-fee overdraft protection, and a buy-now-pay-later option allowing members to split purchases between $50-$500 into four interest-free installments.

The platform integrates with the company’s investment and loan management tools, enabling members to manage multiple financial products—from brokerage accounts to loan repayment—through a single application.

Industry Recognition

The service received twelve industry awards in its first year, including recognition from GoBankingRates, NerdWallet, Money.com, and Motley Fool Ascent. Categories included Best Neobank, Best Checking Account for High Interest, and Best Digital-Only Bank, reflecting broad approval from financial rating organizations.

Market Position and Growth Trajectory

With over 5.2 million total users across all platforms, the financial services company continues expanding its reach. The first year demonstrated that substantial demand exists for transparent, fee-free banking with competitive high interest rates. Deposit growth rates and member engagement metrics suggest the trajectory will continue upward in coming periods.