Today’s small business owners operate differently than those from even a decade ago. Entrepreneurs are transforming their passions and interests into thriving full-time ventures. However, traditional banking services often fall short of meeting these modern business owners’ needs.
Fortunately, Oxygen Bank provides a tailored solution for freelancers who want to separate personal and business finances while managing them effortlessly through digital banking. This comprehensive Oxygen Bank review explores the platform’s benefits, drawbacks, and essential details you need before opening an account with this service.
Ready? Let’s dive in!
What is Oxygen Bank?
Oxygen Bank is a financial technology company providing banking services specifically designed for small business owners. Opening an account requires downloading the Oxygen bank app, available on both iOS and Android platforms.
CEO Hussein Ahmed established Oxygen Bank in 2018. The company has secured over $24 million in funding across two rounds to date.
While Oxygen isn’t technically a bank itself, it partners with The Bancorp Bank to deliver banking services and provide Federal Deposit Insurance Corp (FDIC insurance) protection to users. Account holders receive insurance coverage up to $250,000.
What does Oxygen Bank Offer?
Designed specifically for side hustlers, freelancers, and small businesses, Oxygen delivers an exceptional mobile banking experience. Here are the key features an Oxygen Bank account provides.
Business Accounts
Oxygen Bank organizes its business checking and savings accounts into four tiers, each named after natural elements. “Earth,” “Water,” “Air,” and “Fire” accounts each offer distinct perks and benefits.
Every bank account includes these standard features:
- $1 cashback on food and coffee
- Cell phone protection
- Extended warranty protection
- Mobile bill pay
- Early direct deposits (up to two days early)
- Lost luggage protection
- Baggage delay protection
- Auto rental collision damage waiver
- Hotel theft protection
- Send money to friends
- 40K fee-free Allpoint Network ATMs nationwide
Earth Business Account
This account has no annual fee, initial requirements, or ongoing qualifications. You’ll receive a PVC foiled card along with these benefits:
- 2% cashback
- Savings rate of 0.50%
- In app ACH pull from external accounts limit of $1,000/day or $10,000/month
- Up to 3 Savings goals
- 3 active virtual cards
Water Business Account
Features a $19.99 annual fee (waived in following years if you meet annual requirements). Initial qualifications require 30 consecutive days of qualifying deposit/spend ($1,500 month/$500 month).
Annual qualifications involve twelve cumulative qualifying deposits/spend per year. Your Visa debit card features embedded metal construction, plus these enhanced perks:
- 4% cashback
- Savings rate of 1.00%
- In app ACH pull from external accounts limit of $1,500/day or $15,000/month
- Up to 10 Savings goals
- Netflix 2 month reimbursement
- 15 active virtual cards
Air Business Account
Carries a $49.99 annual fee (waived in subsequent years when you meet annual requirements). Initial qualifications demand 30 consecutive days of qualifying deposit/spend ($3,000 month/$1,000/month).
Annual qualification requires twelve cumulative qualifying deposits/spending over one year. Your Visa debit card is constructed from all-metal materials, and includes these premium perks:
- 5% cashback
- Savings rate of 2.00%
- Unlimited savings goals
- In app ACH pull from external accounts limit of $3,000/day or $30,000/month
- 2 month Netflix reimbursement
- 2 month Peloton Digital reimbursement
- Unlimited virtual cards
- Priority Pass Annual Membership plus 5 visits
Fire Business Account
Commands a $199.99 annual fee (waived in subsequent years when annual requirements are met). Initial qualifications require 30 consecutive days of qualifying deposit/spend ($6,000 month/$2,000 month).
Annual qualification demands twelve cumulative qualifying deposits/spend over one year. Your Visa debit card features mechanically engraved all-metal construction, plus these exclusive perks:
- 6% cashback
- Savings rate of 3.00%
- In app ACH pull from external accounts limit of $6,000/day or $60,000/month
- Unlimited savings goals
- 2 month Netflix reimbursement
- 2 month Peloton Digital reimbursement
- Priority Pass Annual Membership plus 10 visits
- Global Entry Reimbursement/TSA Precheck Fee Credit
- Unlimited virtual cards
Oxygen Bank Account Features
Fee-Free Banking
Oxygen accounts eliminate monthly fees, minimum balance requirements, and minimum balance penalties. These bank accounts provide unlimited fee-free transactions including ACH transfers, direct deposits, mobile check deposits, and incoming domestic wire transfers.
Without physical branches, you can’t receive traditional paper checks. However, you can utilize their complimentary bill pay service to send mailed checks to businesses and individuals throughout the United States.
Cash back Rewards Program
Oxygen business accounts include a comprehensive rewards program that allows you to earn cashback when using your Visa business debit card for purchases.
You can browse and select cashback offers directly within the mobile app, while purchases at participating retailers are automatically tracked.
Once you accumulate at least $10 in earnings, you can redeem your rewards. All rewards are deposited directly into your Oxygen account.
ATM Access
For cash withdrawals, you gain access to over 55,000 Allpoint ATMs worldwide through unlimited fee-free transactions.
However, you cannot deposit cash at these ATM locations with your Oxygen bank account.
Cash deposits are available through over 90,000 participating Green Dot locations across the U.S. These deposits carry a service fee of up to $4.95.
Monthly cash deposit limits are capped at $10,000. This cash deposit feature surpasses what most online banks offer.
Mobile Tools
The Oxygen mobile app includes numerous tools designed for business account management. Features encompass check deposits, bill pay, account statements, cashback rewards, and cash flow projections.
Business checking accounts enable you to upload and categorize deductible expenses, monitor transactions, and integrate with your accounting software.
The app also provides virtual card creation capabilities. These cards can be temporary or reusable, linking to your bank account for online or phone purchases without requiring your physical Oxygen Visa business debit card.
You can generate up to 10 virtual cards simultaneously with a $1,000 limit per card. Additionally, you can control monthly spending limits and designate authorized merchants. Virtual cards can be frozen or canceled through the mobile app.
LLC Formation Services
A distinctive Oxygen Bank feature allows you to form an LLC directly through the mobile app. These nationwide LLC creation services are powered by CorpNet, Inc.
This feature demonstrates Oxygen Bank’s commitment to helping side hustlers and freelancers elevate their businesses. You must cover applicable state fees when utilizing these services.
This feature covers every state nationwide.
How does Oxygen Bank work?
Opening a personal or business account requires downloading the Oxygen Bank app. While Oxygen Bank primarily serves freelancers and business owners, you can open a personal account if you’re not yet ready to launch a small business.
Monthly fee requirements don’t exist.
Through its partnership with Bancorp Bank, your account receives FDIC insurance protection.
After downloading the app, you can establish either a personal or business account by completing your information and submitting an application.
Account review typically takes several business days.
Business account applicants must provide digital copies of required paperwork, including operating agreements and EIN letters.
Once you submit your documents, your account becomes active. You can fund through Stripe, establish direct deposit, generate virtual cards, deposit checks, and access additional features.
Oxygen Bank mails your physical Visa business debit card within several days. Card activation is required before use.
Oxygen Bank Pros and Cons
Pro: No Monthly Fees
Oxygen’s business checking accounts don’t charge monthly maintenance fees. This absence of monthly fees represents a valuable perk for business accounts.
Pro: Combines Savings and Checking
Whether using Oxygen Bank for personal or business purposes, you receive both checking and savings functionality. The savings goals feature helps users manage their finances more effectively.
Pro: Mobile App is Highly Rated
User reviews for both Android and iOS versions remain consistently positive. Users praise the app’s intuitive navigation and appealing interface.
Pro: High Savings Rate
Personal accounts benefit from above-average market rates. Even the basic account provides savings rates that likely exceed those of traditional financial institutions.
Pro: Account Perks are Nice
Higher-tier personal accounts from Oxygen Bank include attractive incentives. For instance, Oxygen Bank provides several months of Netflix and Peloton coverage.
Pro: ATM access and Cash
The Allpoint network delivers extensive ATM coverage worldwide. Unlike most fintech companies, cash deposits are possible through the Green Dot partnership.
Pro: Earn Cash Back on Debit card purchases
Oxygen debit card purchases can earn up to 5% cashback rewards.
Con: Annual Fees are High
While monthly fees don’t exist, Oxygen accounts include other charges.
Annual fees are particularly steep and unexpected. Additionally, first-year fee avoidance isn’t possible.
Con: No Access to Physical Branches
While the Oxygen app handles most daily banking needs, physical locations with available representatives don’t exist.
Con: Capped Savings Rates
The Fire account currently offers a 3% savings rate as of 3/27/2022, which is exceptionally competitive.
However, earnings are capped at $20,000, eliminating incentives to maintain larger balances with Oxygen Bank.
Con: Out of Network ATM fees
Using ATMs outside their network triggers a $3 Oxygen fee, plus any charges from the ATM provider.
Unlike competing banking apps such as Mercury Bank, Oxygen Bank increases fees for international ATM usage. International transactions carry a $5 charge plus a 1% international transaction fee from the ATM provider.
The first international cash withdrawal each calendar month receives a refund, though international transaction fees still apply.
Con: Can’t have Multiple Users
Oxygen business accounts restrict you to one authorized user, which may prove insufficient for larger businesses.
Alternative business accounts provide flexibility for adding multiple account users, customizable access levels, and the ability to order business debit cards for additional owners or employees.
FAQ: Oxygen Bank Review
Does Oxygen Bank charge account fees?
Oxygen Bank’s banking fees remain relatively modest. Monthly and overdraft fees don’t exist, and ACH bank transfer fees are eliminated.
However, their existing fees are substantial. Annual fees on higher-tier accounts are surprisingly high, and out-of-network ATM fees warrant careful attention.
Does Oxygen Bank have customer service?
You can contact Oxygen’s support team at supper@oxygen.us. They also provide a phone number, 866-287-7021, though service hours aren’t specified.
Their mailing address is 1700 Van Ness Ave., #1182, San Francisco, CA 94109.
The app includes a chat feature for connecting with support representatives.
How do the Oxygen Bank features measure up?
Oxygen business accounts provide valuable perks including the ability to utilize LLC services for business formation.
Through your deposit account, you can earn cashback rewards up to 5%, making it worthwhile to use your card for small business expenses.
How is the Oxygen Bank mobile app?
Since Oxygen’s financial products are exclusively accessible through their app, the company has prioritized creating a user-friendly experience.
User feedback supports this effort. For example, over 19,000 iOS user reviews average a 4.9-star rating.
Bottom line: Oxygen Bank
As an online-only bank, Oxygen requires comfort with digital account management and no access to physical locations. Certain small business owners could benefit significantly from opening an account—particularly those who don’t need multiple authorized users, deposit less than $10,000 monthly, and want a free business checking account without minimum requirements.
