Open Bank is a real financial institution, but it operates as a neobank—not a traditional bank with physical branches

Open Bank is a legitimate online banking platform regulated by the Office of the Comptroller of the Currency (OCC) as a national bank. That means it holds a real banking charter and your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account category, the same protection you get at any brick-and-mortar bank.

The key difference is that Open Bank operates entirely online. You won't walk into a branch, talk to a teller, or deposit a check at a counter. Everything happens through their mobile app or website. This model lets them offer higher interest rates on savings accounts and checking accounts because they don't pay for physical locations or large staff.

Open Bank is owned by Megalith Financial Company, a holding company that also operates other financial products. The bank has been in operation since 2018 and serves customers across the United States.

Key Takeaways

  • Open Bank holds a national bank charter from the OCC and FDIC insurance covers deposits up to $250,000, making it a legitimate regulated bank.
  • All banking happens through the mobile app or website—there are no physical branches, which is how they keep costs low and offer competitive interest rates.
  • You can link external bank accounts to transfer money in and out, and the bank supports standard features like bill pay and direct deposit.
  • Customer service is available through the app and email, but response times and support depth vary compared to larger national banks.
  • Read the fee schedule and account terms before opening an account, because some neobanks charge unexpected fees or have minimum balance requirements.

How to verify Open Bank's legitimacy yourself

You don't have to take anyone's word for it. The OCC maintains a public database of all national banks it regulates. You can search for Open Bank directly on the OCC website (occ.treas.gov) and confirm its charter number, which proves it is a real bank subject to federal oversight and regular audits.

You can also check the FDIC's Bank Find tool (bankfind.org) to confirm that Open Bank deposits are insured. Enter the bank name and your state, and the tool will show you the exact coverage limits for each account type you hold there.

If you see reviews online claiming Open Bank is a scam, cross-check those claims against these official sources. Neobanks often attract negative reviews from users who expected a different experience or didn't understand the fee structure before signing up—that's different from the bank being fraudulent.

What Open Bank accounts actually offer

Open Bank offers checking and savings accounts with no monthly maintenance fees. The checking account typically comes with a debit card, online bill pay, and the ability to set up direct deposit. The savings account earns interest, though the rate changes based on market conditions and the bank's current offerings.

You can transfer money between your Open Bank accounts instantly. To move money in from another bank, you link an external account and initiate an ACH transfer, which usually takes one to three business days. You can also receive direct deposits from your employer or other sources.

The bank does not offer credit cards, loans, or investment accounts. If you need those products, you'll have to go elsewhere or use a different bank alongside Open Bank.

Fees and costs to watch for

Open Bank advertises no monthly maintenance fees, which is accurate. However, read the full fee schedule before you open an account. Some neobanks charge fees for things like overdrafts, wire transfers, rush card replacement, or international transactions. Open Bank's specific fees vary by account type and change over time, so check their current terms.

If you need to withdraw cash, you can use ATMs, but not all ATM networks are free. Some neobanks offer fee reimbursement for out-of-network ATM charges, while others don't. Confirm whether Open Bank reimburses those fees or charges you for them.

There are no minimum balance requirements to open an account, but some account features or interest rates may require you to maintain a certain balance. Check the account terms to see what applies to you.

How Open Bank compares to traditional banks

Open Bank typically offers higher interest rates on savings accounts than traditional banks because it has lower overhead costs. A traditional bank might offer 0.01% APY on savings; Open Bank might offer 4% or higher, depending on the current rate environment. That difference adds up if you keep money in savings.

The trade-off is customer service and convenience. If you need to deposit a check by hand, speak to someone in person, or get immediate help with a problem, a traditional bank is faster. Open Bank's support is available through the app and email, but you won't reach a person by phone at most neobanks.

Both are equally safe for your money because both are FDIC-insured. The choice comes down to whether you value higher interest rates and lower fees (neobank) or in-person service and a wider range of products (traditional bank).

Red flags that would mean a bank is not legitimate

A real bank will always have a charter number you can verify with the OCC. If a bank claims to be regulated but you can't find it in the OCC database, that's a serious warning sign. Scam operations sometimes claim to be banks without actually holding a charter.

Real banks are insured by the FDIC and will tell you that clearly. They'll also show you the FDIC insurance limits for each account type. If a bank promises your money is "safe" but doesn't mention FDIC insurance, be skeptical.

Legitimate banks never ask you to send money upfront to open an account or activate a card. They don't ask for your Social Security number or passwords via email or text. If you see those requests, you're dealing with a scam, not a real bank.

What happens to your money if Open Bank fails

If Open Bank were to fail—which is extremely unlikely for a regulated national bank—the FDIC would step in. The FDIC insurance covers up to $250,000 per depositor per account category. That means if you have $100,000 in a checking account and $100,000 in a savings account at Open Bank, both are fully covered.

The FDIC doesn't take weeks to pay you back. In most cases, you'll have access to your insured funds within a few business days of the bank's closure. The FDIC has a track record of protecting depositors this way, and it has done so for decades.

This protection applies only to deposits held at the bank itself. If you invest money through Open Bank in stocks, bonds, or other securities, those are not FDIC-insured. But Open Bank doesn't offer investment accounts, so this doesn't apply to you unless you use a different service.

Frequently Asked Questions

Can I use Open Bank as my main bank?

Yes, many people do. As long as you're comfortable banking entirely online and don't need in-person services, Open Bank can be your primary account. You'll receive direct deposits, pay bills, and transfer money the same way you would at any other bank. Just confirm that the features you need—like bill pay or ATM access—are available before you commit.

What if I have a problem with my account or a transaction?

Contact Open Bank through the app or email. Response times vary, but most neobanks aim to respond within one to two business days. If you dispute a transaction, the bank will investigate the same way a traditional bank does. FDIC insurance doesn't cover transaction disputes, but the bank's fraud protection policies do.

Can I deposit checks with Open Bank?

Most neobanks, including Open Bank, offer mobile check deposit through the app. You photograph the front and back of the check and submit it. The funds typically appear in your account within one to three business days. You cannot deposit checks in person because there are no branches.

Is my money safe if I keep it in Open Bank?

Yes. Your deposits are protected by FDIC insurance up to $250,000 per account category. Open Bank is a regulated national bank subject to federal oversight and regular audits. The only risk is that you lose access to your money temporarily if the bank experiences a technical outage, but that's rare and not unique to neobanks.

What should I do before opening an account?

Read the fee schedule, account terms, and interest rate disclosures on Open Bank's website. Confirm that the features you need are available and that you understand how to use the mobile app. Check whether the current interest rate meets your expectations. Then verify the bank's charter on the OCC website if you want extra peace of mind.