Have you ever visited a bank that made you feel more overwhelmed than when you came in?
It only takes a few seconds to flip through their jargon-packed brochures to feel like you need an MBA to get through it.
Most of us equate having conversations about money management to visiting the dentist.
While your stomach does backflips as you browse through the brochure, you may be questioning what financial institution is the best fit for you. The bank tellers seem nice, and one gave you a little mint when you walked in, but how do you know where to begin?
Deciding not only how to manage your money but where to manage it can be tricky. In order to help you work through the overwhelm of all the options available to you, we decided to put together a comparison series that fully outlines the pros and cons of each option.
Today, we are focusing on how our Mimble savings account and digital app differs from what is offered at traditional banks. There is no clear winner or loser. We’re just here to provide you with enough information to help you make the decision that’s best for you, so let’s dig in!
The pros and cons of traditional banks
Many traditional banks have been around for decades, while some bank leaders are now centuries old. They have evolved their money management systems over time, but you don’t have to look too hard to see areas of improvement.
But before we talk about those, let’s cover the main benefits of banking with a traditional bank, credit union, or financial institution in your local area.
Benefits of traditional banks
Central place to collect your paychecks. One of the first things you are tasked with when starting a new job is giving a copy of your checking account information to the human resources department. Many people have a checking account with a traditional bank, allowing their employers to make direct deposits straight into their account on payday in a secure way.
Spend and receive money without having to carry cash. Hearing coins jingle in our pocket or overstuffing our wallet with dollar bills is (mostly) a thing of the past. With traditional banks, you are able to spend, transfer, and receive money digitally. No paper trail is needed.
Greater availability of ATM access. When you keep money in a traditional bank checking account, you can visit local ATMs on the street, at the mall, at the airport, or any other location that offers them. You may pay a fee, but it’s available to you. This can come in handy if you are looking to pay back a friend or any other scenario where you need quick access to cash.
Easier access to your money on-the-go. Not only do you have the opportunity to withdraw cash from your checking account, but you also have an opportunity to check on your account balance if the traditional bank has an app. Note that there are significant downfalls to many major bank apps, but we will talk about that next.
Downfalls of traditional banks
Some traditional banks charge extra fees. Before you sign up for an account with any traditional bank, it’s smart to look at the fine print. Some banks have hidden fees or setup costs associated with personal or business accounts. Do your research and ask a bank representative before you sign on the dotted line.
Pays little to no interest. We all know saving money in traditional banks is not going to be a money maker. With interest rates at an all-time low, you will want to create an investment strategy if you want to see higher interest return rates.
Your money doesn’t have a job. When you collect deposits in your account but don’t do anything with the money, it’s just sitting with a traditional bank. They are happy about it because they have access to more of your money, but you aren’t reaching any of your short-term lifestyle goals. We built our platform around intentional saving and spending instead.
Temptation to spend money on what you don’t care about. When your money doesn’t have a job or a purpose, you will be more likely to spend it on things that fall outside of your goals. This is the downside to having easier access to your money. If you want to take a vacation but don’t feel like you have enough money to go, look at your receipts to see if you have been spending on things you don’t need or even value. It happens to the best of us!
No additional guidance or resources on financial strategy. A traditional bank may help you set up a checking or savings account with them, but that is usually where the collaboration ends. What about helping you create a savings strategy or deciding how much money should be kept in each account? You’ll have to look to outside resources for more guidance on that.
Customer service is lacking. Traditional banks have a wealth of knowledge, but they rarely share how you can use your accounts to reach your goals. They don’t have the infrastructure to help you manage your own money based on your goals. When asked a question about personalized money management, they will often refer you to a financial advisor, but we believe the best manager of your money is you.
The pros and cons of Mimble
We’ve covered the benefits and downsides of traditional banks, but what about Mimble? We’re humble enough to share not only the benefits of our platform but also what’s not included. Just like we encourage our users to be intentional in their financial strategy, we were intentional about what the platform would and wouldn't offer. Here’s a brief look into what makes us unique.
Benefits of Mimble
Mimble connects with traditional bank accounts. If you choose to have your paystubs deposited in a traditional bank account, you can sync both accounts within the Mimble app. This is a great way for you to start saving toward your short-term goals from each deposit.
We have automatic depositing. Once you set a goal within Mimble, you can decide how much you want to save toward that goal and how often you want to save on a weekly, biweekly, or monthly basis. When Mimble is connected with your traditional bank account, it will automatically deposit money into your Mimble savings account so you won’t be tempted to touch it in your checking account. This is how our users have been able to save up for vacations, houses, and further education.
Customer service built into the app. One of the biggest downsides to traditional banks is that they sometimes have poor customer service reviews. When we built Mimble, it was important to us for our users to have direct access to our customer service team within the app. Instead of having to search for our email address or phone number, we have chat support in the app and our contact information listed in the same place.
More stress-free, guilt-free spending. Our built-in Financial Strategy feature helps you understand how much you need to set aside each month for your necessities like rent, utilities, insurance, and more. Once you understand what you need for the Essentials, you can allocate the rest of your money toward your short-term savings goals, retirement investments, or anything else that is a priority for you.
Focus on how the short-term fits into the long-term. You may have an idea of what your short-term goals are, like backpacking around Europe or buying a wakeboard, but how do your short-term goals get you closer to your long-term vision? We built Mimble to help you prioritize both for a more holistic approach to money management.
What’s not included in Mimble
No credit card is associated with Mimble. We are hyper focused on helping you reach your savings goals, so our platform doesn’t offer any credit cards. We recommend doing research on what credit card is your best fit while looking at the benefits of each. Some give cash back while others give you travel or airline points. It all depends on your priorities.
No BillPay feature is included. Just like the credit cards, allowing users to pay bills directly from our platform isn’t our primary purpose. We want to help our users set short-term goals and understand their long-term financial vision. We allow users to track how much they pay in Essentials through our Financial Strategy feature, but we don’t have functionality where they can pay from the app.
No tangible Mimble card. Unlike a traditional bank that gives you a debit card for your checking account, we don’t have a card associated with our Mimble savings account. We are listening to our users to see if cards are desired and needed, but for now we are sticking to a savings account through the app.
Why choose Mimble over traditional banks?
After reading through our comparison, we hope you have a better understanding of what makes us different. Many of our team members have banked with major traditional banks and began to see holes in what they could offer.
From there, we were inspired to create a unique savings account through our digital app to help users prioritize their long-term financial vision and save toward their short-term goals.
Experience Mimble for yourself, and start reaching your goal-based savings strategy today.
We can’t wait to hear how it helps you save and spend more intentionally!