What Upgrade is and how it works
Upgrade is a real financial technology company that offers checking accounts, savings accounts, and personal loans. It is not a scam, but it is also not a traditional bank — it is a fintech platform that partners with actual banks to hold your money. Your deposits are held at Cross River Bank or Customers Bank, both of which are FDIC-insured, meaning your money up to $250,000 is protected by federal insurance.
Upgrade makes money by charging monthly subscription fees for premium features and by earning interest on the money you deposit. The company has been operating since 2017 and is backed by venture capital investors. You can verify the company's legitimacy by checking the Better Business Bureau (BBB), where it holds an A+ rating, and by searching the company name on the Federal Trade Commission (FTC) website to see if there are unresolved complaints.
The checking account itself is straightforward: you get a debit card, online banking access, and the ability to send and receive money through ACH transfers and wire transfers. There is no monthly fee for the basic checking account, though Upgrade offers a paid tier called Upgrade Plus that costs $9.99 per month and includes features like higher savings rates and cash back rewards.
Key Takeaways
- Upgrade is a licensed fintech company founded in 2017 that holds your money at FDIC-insured partner banks, so your deposits are federally protected.
- The basic Upgrade checking account has no monthly fee, but the company offers a paid premium tier for $9.99 per month with additional features.
- You can verify Upgrade's legitimacy by checking its A+ rating with the Better Business Bureau and searching for complaints on the FTC website.
- Upgrade's main business model relies on subscription fees and personal loans, not on selling your data or running hidden charges.
- The company does collect personal financial information as part of its underwriting process, so read its privacy policy before signing up.
How to check if Upgrade is legitimate
Start by looking up Upgrade on the Better Business Bureau website. The company holds an A+ rating there, which means it has resolved complaints and meets BBB standards for transparency. This is not a may provide of perfection, but it is a sign that the company responds to customer issues rather than ignoring them.
Next, search for "Upgrade fintech" on the FTC website to see if there are any unresolved complaints or enforcement actions against the company. The FTC publishes complaints from consumers and tracks whether companies have settled violations. As of now, Upgrade has no major FTC enforcement actions, though individual complaints may exist.
You can also verify that Upgrade's partner banks are real by visiting the FDIC's Bank Find tool on the FDIC website and searching for Cross River Bank and Customers Bank by name. Both will show up as active, insured institutions. This confirms that your money is held at a real bank and covered by federal deposit insurance.
What Upgrade collects and how it uses your data
When you sign up for an Upgrade account, the company asks for your Social Security number, income information, employment history, and banking history. This is standard for fintech companies because they use this data to decide whether to offer you a loan and at what interest rate. Upgrade's main profit driver is personal loans, not checking accounts, so the company is primarily interested in whether you are a good candidate for borrowing.
Upgrade's privacy policy states that it does not sell your personal information to third parties for marketing purposes. However, it does share information with its partner banks, credit bureaus, and service providers that help run the platform. If you take out a loan through Upgrade, the company will report your payment history to credit bureaus, which can help or hurt your credit score depending on whether you pay on time.
Before you sign up, read Upgrade's full privacy policy on its website. Pay attention to the sections on data sharing and third-party access. If you are uncomfortable with how the company uses data, you have other checking account options available.
Common complaints about Upgrade and what they mean
The most frequent complaints about Upgrade fall into a few categories: customer service delays, unexpected loan denials, and confusion about fees. Some users report waiting days for customer support responses, while others say they were offered a loan during signup but denied when they actually tried to borrow. These are real issues, but they are not signs of fraud — they are operational problems that many fintech companies face.
A smaller number of users report being charged fees they did not expect. This usually happens because they signed up for Upgrade Plus (the $9.99 monthly tier) without realizing the charge would recur, or because they triggered an overdraft fee by spending more than their balance. Read the fee schedule on Upgrade's website before you open an account so you know exactly what costs you might face.
Some complaints also mention that Upgrade's customer service is harder to reach than a traditional bank's. Upgrade does not have physical branches or phone support in the traditional sense — you contact the company through its app or website. If you need to speak to a human immediately, this may be frustrating, but it is how most fintech companies operate.
Comparing Upgrade to traditional banks and other fintech options
Upgrade's main advantage over traditional banks is that it has no monthly fee for the basic checking account and no minimum balance requirement. Traditional banks often charge $10 to $15 per month for checking, or require you to keep $500 or more on deposit to avoid fees. Upgrade also offers faster account opening — you can be set up in minutes through the app.
Upgrade's main disadvantage is the lack of in-person support and no physical locations. If you need to deposit cash, you cannot walk into a branch. You can deposit checks through the app's mobile check deposit feature, but cash deposits require a third-party ATM network or a transfer from another account. Upgrade does offer access to a large ATM network, but not every ATM is free.
Other fintech checking accounts worth comparing include Chime, SoFi, and Ally Bank. Chime has no fees and offers early direct deposit, but it is primarily a spending account with limited savings features. SoFi offers checking, savings, and loans all in one place, similar to Upgrade, but charges $0 monthly and offers higher savings rates. Ally Bank is a full online bank with better customer service reputation than most fintechs. Your choice depends on whether you value loan options, savings rates, or customer service most.
Red flags that would mean Upgrade is not legitimate
If you see any of these things, do not open an account: Upgrade asking you to pay money upfront to open an account, Upgrade claiming it can may provide you a loan or credit card, Upgrade asking you to wire money to verify your identity, or Upgrade sending you unsolicited emails asking you to "confirm" your account details by clicking a link. These are all signs of fraud or phishing, and Upgrade does not operate this way.
Legitimate fintech companies never ask for upfront fees to open a checking account. They also never ask you to verify your identity through email links — if they need to verify you, they do it through the app itself or by asking you to answer security questions. If you receive an email claiming to be from Upgrade asking you to click a link and enter your password, that is a phishing attempt. Forward it to Upgrade's support team and delete it.
Another red flag is if Upgrade's website looks unprofessional, has spelling errors, or uses a domain name that is slightly different from the real one (like "upgradee.com" instead of "upgrade.com"). Scammers often create fake websites that look similar to real ones. Always type the company name directly into your browser or search for it on Google to find the official website.
What to do if you have a problem with your Upgrade account
If you open an account and run into an issue, start by contacting Upgrade through its app or website. Most problems — missing deposits, incorrect fees, lost debit cards — can be resolved through the support portal. Upgrade typically responds within one to three business days, though some users report longer waits during peak times.
If Upgrade does not resolve your problem, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB is a federal agency that investigates complaints against financial companies and can force them to refund money or change their practices. You can also file a complaint with your state's banking regulator or the Better Business Bureau.
If you believe Upgrade has committed fraud or stolen your identity, report it to the FTC at reportfraud.ftc.gov and to your state's attorney general. Keep records of all communications with Upgrade, including screenshots of your account, emails, and dates of transactions. This documentation will help if you need to dispute charges or prove your case to a regulator.
Frequently Asked Questions
Is my money safe if Upgrade goes out of business?
Yes. Your money is held at Cross River Bank or Customers Bank, both of which are FDIC-insured. If Upgrade shut down tomorrow, your deposits would still be protected up to $250,000 per account type. The FDIC would ensure you could access your money even if Upgrade disappeared.
Does Upgrade sell my personal information?
Upgrade does not sell your personal information to marketers or data brokers. It does share information with its partner banks, credit bureaus, and service providers that help operate the platform. Read Upgrade's privacy policy to see the full list of who has access to your data.
Can I get my money out of Upgrade quickly if I want to close my account?
Yes. You can transfer money out of your Upgrade account to another bank through ACH transfer, which usually takes one to three business days. You can also withdraw cash at ATMs in Upgrade's network. There is no penalty for closing your account.
What happens if I dispute a charge on my Upgrade debit card?
Upgrade handles debit card disputes the same way traditional banks do. Contact Upgrade through the app or website and report the unauthorized charge. Upgrade will investigate and typically refund the money within 10 business days while it looks into the claim. You are protected by federal law against unauthorized charges.
Is Upgrade a good choice if I want to build credit?
Upgrade's checking account alone will not build your credit because checking accounts are not reported to credit bureaus. However, if you take out a personal loan through Upgrade and make on-time payments, that will help your credit score. If credit building is your goal, you might also consider a secured credit card or becoming an authorized user on someone else's account.