When a Fintech Checking Account Goes Bad

It goes really bad

Andy Spears
3 min readMar 6, 2023
Photo by Joshua Hoehne on Unsplash

Seems easy, right?

You have your job direct deposit your money into an account you can easily access on your phone.

Everything integrates with your online/app-based payment system.

Sure, it’s not FDIC-insured -but, well, that’s an antiquated system based on Depression-era worries.


Well, Jason Mikula over at Fintech Business Weekly has some … news.

It’s not good.

Sure, you might lose out if you park your cash at a Big 5 bank — I mean, it’s not like they treat you well or pay decent interest.

But there are plenty of smaller banks and credit unions that treat customers well, pay decent interest rates, AND are insured by the FDIC or NCUA.

Anyway, here’s a story of fintech checking gone wrong.

Nonbank fintech account: Eco.

Facts from Jason: Not good.

Here we go:

Eco was offering 2.5%-5% interest on checking accounts IF you used Direct Deposit. That is, Eco got your cash right away and you got a damn good interest rate considering that pre-2021, inflation was basically zero and banks were paying almost nothing on…



Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .