Bank Simple - The Way Banking Used to Be

Banking has come a long way in my lifetime. When I opened my first bank account, there was no such thing as online bill pay. Heck, the internet wasn't even around, or if it was, I didn't know about it.

ATM's were just barely beginning to become popular. Huge overdraft fees weren't really in place then. If you didn't have any money, you couldn't spend any money - it was pretty simple in many ways.

Some of the changes in the banking industry have been very welcome indeed. Online bill pay, for example, makes my financial life drastically simpler.

However, the way banks profit has changed, and not for the better. A huge percentage of bank profits these days is from fees - ATM fees, overdraft fees, maintenance fees, F-You fees, you get the picture. It's gotten out of control, and away from how banks began.

Bank Simple eliminates the confusion.

No hidden fees. No overdraft fees. No fee for online bill pay. No markup on the fees they do charge. Meaning, if an international transfer costs Bank Simple $15, you pay $15.

How does Simple Bank intend to make a profit?

The same way banks used to profit - interest spread. For example, they pay out 4% on the deposit accounts, and charge an average of 9% on loans. The spread, or 5% in this case, covers losses and, hopefully, generates a profit.

There's a killer feature.

Bank Simple took this out of USAA's playbook. With a special smartphone app, you can take a picture of a check, and it's instantly deposited into your Bank Simple account. No more running to the bank to deposit your check, or caching it at a liquor store (generally a terrible idea, by the way.)

There is one little catch though.

No, the catch is not a fee - Bank Simple doesn't do that, remember? The catch is that Bank Simple isn't open yet. The plan is to launch sometime this year, though there is no firm date yet. You can request an invite, however.

It's OK to be leery of a new bank. But I really like Bank Simple's vision. I like their business model. This is a company I'd like to do business with, and I look forward to doing just that.