Hi Everyone --
My mother recently asked me about Aspiration Bank and whether I thought their 1% checking account was a good idea for her to use. I had never heard of the bank. When I looked into it, it seemed legitimate. Also, I didn't see the usual small maximum account value that these kinds of deals tend to be associated with. As I looked over their site, I was surprised by their unusual business model and mission.
The investment part of the company has a "pay what is fair" policy, which it seems applies to their mutual funds:
"At Aspiration, you decide how much to pay us. We’re confident enough in our products and confident enough in the honor of our customers to trust you to make this decision. We call this “Pay What Is Fair” because this fee model is fair to you and because we’re counting on you to be fair to us. We will not earn a cent from you other than the fee you select."
The banking part offers no-fee checking. I wonder if it would be a good idea to bank or invest with them. How will they survive?