Zynlo Bank

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PizzaGrease
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Zynlo Bank

Post by PizzaGrease »

I had been banking with Bank of the West(BotW), which recently was bought by / changed to BMO. Like most banks, BotW/BMO had poor interest rates for saving and even less on checking accounts. Earlier this year not really being satisfied with my local BMO branch which had changed managers several times in the past few years, I started looking around. On Nerd Wallet (I think) I found Zynlo which offers 5% APY on savings and money market accounts and 2% on checking. A country wide no-fee ATM network.

Today, I couldn't recall if I had set up beneficiaries for my accounts, so I messaged Zynlo's customer service asking for forms. The response was " ZYNLO does NOT allow POD or beneficiaries to be added to an account". Isn't that a bit odd??? This is the first time I've had an institution that doesn't allow either. Just that is enough to prompt me to look for another bank. The only work around I can think of is having my adult children as co-owners, which I'm not found of or....probate.

The rates are great, I'm making more with Zynlo in one month than a decade with BMO ha. FWIW, Zynlo's parent company is Peoples Bank in MA.
NYCaviator
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Re: Zynlo Bank

Post by NYCaviator »

PizzaGrease wrote: Sun Oct 13, 2024 4:23 pm I had been banking with Bank of the West(BotW), which recently was bought by / changed to BMO. Like most banks, BotW/BMO had poor interest rates for saving and even less on checking accounts. Earlier this year not really being satisfied with my local BMO branch which had changed managers several times in the past few years, I started looking around. On Nerd Wallet (I think) I found Zynlo which offers 5% APY on savings and money market accounts and 2% on checking. A country wide no-fee ATM network.
If you were going into a physical bank branch frequently enough that you are interacting with management on a regular basis and a change in management affected you, why are you looking at an online only fintech bank? If we had a little more information about what services you need from a bank, that would be helpful.

There's not a chance I'd put any money in a FinTech like Zynlo. Sure, it's backed by a legitimate bank, but you're going to run into weird issues like this. Look at the recent problems with Fidelity or Synapse. If you need banking services, it's best to deal directly with a real bank.

This is where the mega banks shine. Wells Fargo, Chase, BoA, US Bank all have brokerages where you can trade for free. Unless you're keeping tons of money in checking (which you shouldn't), just open an account at one of these banks with a linked brokerage and invest in a money market fund.
Topic Author
PizzaGrease
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Re: Zynlo Bank

Post by PizzaGrease »

NYCaviator wrote: Mon Oct 14, 2024 5:38 am If you were going into a physical bank branch frequently enough that you are interacting with management on a regular basis and a change in management affected you, why are you looking at an online only fintech bank? If we had a little more information about what services you need from a bank, that would be helpful.
I wasn't going in to the bank on a regular basis. Just often enough that I knew that the branch managers had changed. The branch was small enough that the manager was usually behind the counter with the other tellers. I'm guessing that they were also the only bank officer too. The management didn't affect me, I left BMO due to low interest rates on savings and checking. Additionally they were charging service fees, when they hadn't previously. Bank services I need on a regular basis are online bill pay. Notary Public too, but those are not hard to find for a fee. Most banks offer that service for free to customers. Although what legal documents they can stamp varies. I have two adult children that I transfer funds to for expenses, so they'll need to be in the same bank as well.
NYCaviator wrote: Mon Oct 14, 2024 5:38 am There's not a chance I'd put any money in a FinTech like Zynlo. Sure, it's backed by a legitimate bank, but you're going to run into weird issues like this. Look at the recent problems with Fidelity or Synapse. If you need banking services, it's best to deal directly with a real bank.
I've had online banking for years ,some with physical office near me, some without. I have never dealt with an institution that did not allow PoD or beneficiaries. It is uncommon.
NYCaviator wrote: Mon Oct 14, 2024 5:38 am This is where the mega banks shine. Wells Fargo, Chase, BoA, US Bank all have brokerages where you can trade for free. Unless you're keeping tons of money in checking (which you shouldn't), just open an account at one of these banks with a linked brokerage and invest in a money market fund.
I do have an account with WF and am keeping it open for when/if I need a physical bank.
HomeStretch
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Re: Zynlo Bank

Post by HomeStretch »

PizzaGrease wrote: Sun Oct 13, 2024 4:23 pm … FWIW, Zynlo's parent company is Peoples Bank in MA.
That’s interesting as People’s Bank does allow POD on savings accounts (no idea about checking).
Topic Author
PizzaGrease
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Re: Zynlo Bank

Post by PizzaGrease »

HomeStretch wrote: Mon Oct 14, 2024 6:41 am
PizzaGrease wrote: Sun Oct 13, 2024 4:23 pm … FWIW, Zynlo's parent company is Peoples Bank in MA.
That’s interesting as People’s Bank does allow POD on savings accounts (no idea about checking).
Yup. Odd. While People's Bank is the parent company, Zynlo is separate. I believe People's does allow PoDs and beneficiaries for savings and checking, but I haven't verified it.
volstagg
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Re: Zynlo Bank

Post by volstagg »

NYCaviator wrote: Mon Oct 14, 2024 5:38 am
There's not a chance I'd put any money in a FinTech like Zynlo. Sure, it's backed by a legitimate bank, but you're going to run into weird issues like this. Look at the recent problems with Fidelity or Synapse. If you need banking services, it's best to deal directly with a real bank.
Zynlo is a division of PeoplesBank and no more a FinTech then Bank of America, Chase, CitiBank, Wells Fargo are.
gotoparks
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Re: Zynlo Bank

Post by gotoparks »

Having beneficiaries is important to me and I check out before opening an account. I would never open an account if I could not name a beneficiary. I would close the accounts immediately and find another bank. I don't let a few hundred dollars in interest change how I do business.

I use Vio bank for high-yield saving account. They have good rates. They also offer checking. You might want to check it out. Alley is mentioned frequently.
3000
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Re: Zynlo Bank

Post by 3000 »

PizzaGrease wrote: Sun Oct 13, 2024 4:23 pm
Today, I couldn't recall if I had set up beneficiaries for my accounts, so I messaged Zynlo's customer service asking for forms. The response was " ZYNLO does NOT allow POD or beneficiaries to be added to an account".

FWIW, Zynlo's parent company is Peoples Bank in MA.
Perhaps it’s something with Massachusetts law because DCU (Digital Federal Credit Union) is the same way. I can add a co-owner or A Totten Account, also known as a "Pay on Death" Account, is an efficient way to bequeath funds in an account to someone when you die. The funds become the property of the beneficiary without going through probate. I asked DCU about this and they said adding a co-owner would be easier and set me an application to do that which isn’t something I was interested in doing. I wonder if the situation will change when DCU merges with First Technology FCU and moves their HQ to California. The new CU will use the First Tech name and operate under DCU’s charter.
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nisiprius
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Re: Zynlo Bank

Post by nisiprius »

ZYNLO Bank appears to be a real bank, not a fintech. To begin with, it would take some serious guts for them to give themselves the name "ZYNLO Bank" and the web address "zynlobank" and the flat statement "The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 of deposits you make at ZYNLO."* Personally, I would be happier if they said "Member FDIC" and not just "FDIC," but PeoplesBank is real enough. FDIC Bankfind finds me:

Image

In other words... people call fintechs "pretend banks," but in this case I think ZYNLO Bank is a pretend fintech!


*A (defunct) crypto exchange, Voyager Digital, claimed customer USD deposits were FDIC-insured, which turned out to be a plain baldfaced lie. So far, I haven't heard of any traditional-finance institution doing this.
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NYCaviator
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Re: Zynlo Bank

Post by NYCaviator »

PizzaGrease wrote: Mon Oct 14, 2024 6:37 am I do have an account with WF and am keeping it open for when/if I need a physical bank.
Why not just open a Wells Trade account and move your cash there?

You can buy Allspring, Vanguard, and Fidelity money market funds there and get an even higher yield than a savings account. Plus, if you have enough, it'll give you benefits at Wells Fargo like free ATMs etc.
NYCaviator
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Re: Zynlo Bank

Post by NYCaviator »

volstagg wrote: Mon Oct 14, 2024 6:53 am
NYCaviator wrote: Mon Oct 14, 2024 5:38 am
There's not a chance I'd put any money in a FinTech like Zynlo. Sure, it's backed by a legitimate bank, but you're going to run into weird issues like this. Look at the recent problems with Fidelity or Synapse. If you need banking services, it's best to deal directly with a real bank.
Zynlo is a division of PeoplesBank and no more a FinTech then Bank of America, Chase, CitiBank, Wells Fargo are.
I know there is a dispute about what constitutes a FinTech, and everyone has a different definition, but if Zynlo is truly just a "division of PeoplesBank" why doesn't PeoplesBank just offer the 5% interest on their regular accounts and free checking? Why do they have to have a separate division for this app-based product?

I'm just very skeptical of these new startup apps claiming to shake up the banking industry. There has to be a reason they are able to offer these absurdly high interest rates and no fees.
PersonalFinanceJam
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Re: Zynlo Bank

Post by PersonalFinanceJam »

PizzaGrease wrote: Mon Oct 14, 2024 6:37 am I have two adult children that I transfer funds to for expenses, so they'll need to be in the same bank as well.
I'm not sure how much you are needing to send and how often but this is far less true than it used to be. Zelle/Venmo/ Cash App/ Apple Pay Cash them the money when you need to. If they are adults, they can make their own decisions on where to bank.
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runr
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Re: Zynlo Bank

Post by runr »

I would use https://www.depositaccounts.com/ to find a decent bank, if you don't want to hold VUSXX.
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Re: Zynlo Bank

Post by PersonalFinanceJam »

NYCaviator wrote: Mon Oct 14, 2024 8:13 am I know there is a dispute about what constitutes a FinTech, and everyone has a different definition, but if Zynlo is truly just a "division of PeoplesBank" why doesn't PeoplesBank just offer the 5% interest on their regular accounts and free checking? Why do they have to have a separate division for this app-based product?

I'm just very skeptical of these new startup apps claiming to shake up the banking industry. There has to be a reason they are able to offer these absurdly high interest rates and no fees.
That's easy, to reach a different audience/market segment compared to where they traditionally do business. Also lets them segment out the market to offer different terms fairly easy. An internet only division of a bank might offer higher rates because there is no access to a physical branch as appears in this case. They might want to try and shield their existing name for some reason. Goldman launched consumer banking under a completely different name and website.

There is lots of precedent for this in industry where the parent company launches a different division for online only/different segment of the market. They may or may not fold it into the parent later.
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PizzaGrease
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Re: Zynlo Bank

Post by PizzaGrease »

gotoparks wrote: Mon Oct 14, 2024 7:06 am Having beneficiaries is important to me and I check out before opening an account. I would never open an account if I could not name a beneficiary. I would close the accounts immediately and find another bank. I don't let a few hundred dollars in interest change how I do business.

I use Vio bank for high-yield saving account. They have good rates. They also offer checking. You might want to check it out. Alley is mentioned frequently.
It's never been an issue, so I hadn't had to ask beforehand. I have always been able to designate beneficiaries on everything I've ever had. Period. Until now. I'll be doing that moving forward.

A co-worker uses Ally and likes it, and the rates for savings are good (4%), .1% on checking. I'll look at Vio, thanks.

I'm getting out of Zynlo as soon as I can. My wife and I are co-owners on the accounts, but if both of us go...the accounts will have to go into probate which I want to avoid.
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nisiprius
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Re: Zynlo Bank

Post by nisiprius »

NYCaviator wrote: Mon Oct 14, 2024 8:13 am
volstagg wrote: Mon Oct 14, 2024 6:53 am

Zynlo is a division of PeoplesBank and no more a FinTech then Bank of America, Chase, CitiBank, Wells Fargo are.
I know there is a dispute about what constitutes a FinTech, and everyone has a different definition, but if Zynlo is truly just a "division of PeoplesBank" why doesn't PeoplesBank just offer the 5% interest on their regular accounts and free checking? Why do they have to have a separate division for this app-based product?

I'm just very skeptical of these new startup apps claiming to shake up the banking industry. There has to be a reason they are able to offer these absurdly high interest rates and no fees.
It's very confusing.

But there is a long history of real banks creating online-only banks that call themselves banks, claim FDIC protection, have slightly different or very different names from the parent bank, and very different rates (e.g. good online, lousy in the physical branches).

People get annoyed at me when I make a point of saying "XYZ is not a bank." But to tell the truth it's not easy to tell and both banks and non-banks are doing their best to confuse the issue. All of the things I think are "fintechs" will say "XYZ is not a bank, services provided by partner bank QRS, member FDIC." ZYNLO doesn't say anything like that. I think they're a bank. They're just using a goofy name to appeal to Gen Z or something.
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Nuestroro
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Re: Zynlo Bank

Post by Nuestroro »

NYCaviator wrote: Mon Oct 14, 2024 8:13 am
volstagg wrote: Mon Oct 14, 2024 6:53 am

Zynlo is a division of PeoplesBank and no more a FinTech then Bank of America, Chase, CitiBank, Wells Fargo are.
I know there is a dispute about what constitutes a FinTech, and everyone has a different definition, but if Zynlo is truly just a "division of PeoplesBank" why doesn't PeoplesBank just offer the 5% interest on their regular accounts and free checking? Why do they have to have a separate division for this app-based product?

I'm just very skeptical of these new startup apps claiming to shake up the banking industry. There has to be a reason they are able to offer these absurdly high interest rates and no fees.

Zynlo is a division of PeoplesBank, not a startup. Zynlo is a form of price discrimination. The bank wants to attract new customers with great rates but not provide those rates to existing customers. Providing these rates through a different brand reduces the chance traditional bank customers realize they’re getting fleeced.
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