Spruce Review: Fee-Free Mobile Banking With Cash Back

Spruce is a mobile banking app built by H&R Block.

Bank fees can be a real pain. But many Americans are stuck with bank accounts with fees that eat away at their funds.

If you’d rather avoid these inconvenient banking fees, check out Spruce, which is a mobile banking platform without hidden fees.

Plus, it offers enticing rewards like automatic cash back, and has a decent APY (annual percentage yield) on their savings.

Let’s take a closer look at what Spruce has to offer. 

What Is Spruce?

Spruce was built by H&R Block and designed to help users improve their financial situation. Spruce offers straightforward money management tools. But the banking services are provided by Pathward, a federally-chartered bank. 

What Does It Offer?

Spruce offers an easy-to-use mobile banking experience, complete with extra perks built-in. Here’s a closer look at the features that Spruce brings to the table.

Automatic Cash Back

Cash back is a great perk when you can get rewarded for purchases. While some cash back opportunities need to be tracked down, Spruce makes it easy to see how much you’re earning.  Each time you earn cash back, the funds will be deposited directly into your Spruce Extra Savings account. 

When you use your Spruce debit card, you’ll earn cash back from participating retailers. Thousands of retailers across the country, including hotels, grocery stores, and restaurants, offer cash back on your purchases.

Savings Goals

Spruce makes it easy to set savings goals. The first step is to set a savings goal target. For example, you might want to save for a road trip or new computer. Not only can you put a name to your goal, but you can also choose a picture that represents your goal. 

After setting up your savings goal, Spruce can help you make automatic progress through regular transfers from your checking to your savings account. You’ll also have the option to push your cash back rewards and spare change towards savings goals. 

Right now, Spruce offers 3.50% APY on their savings accounts. This is a good rate, but not as high as the top high-yield savings accounts.

Monthly Credit Score Updates

Your credit score is a three-digit number that has a big impact on your financial situation. A good score can help you attain relatively affordable financing options. But a bad one might prevent you from getting the best rates for big purchases, like a home or car. 

Within the Spruce app, you’ll have free access to your credit score. Each month, you can check to see any changes tied to your credit. If you are working to build your credit score, being able to keep up with your progress is helpful and motivational. 

Overdraft Protection

Spruce offers up to $20 of fee-free overdraft protection. If you accidentally spend more than you have available, Spruce offers this $20 cushion to avoid a fee. 

To get this protection, enroll in direct deposit. Direct deposit comes with other benefits, like potentially scoring a $50 bonus and getting paid two days early. You also have the chance to get your federal tax refund up to five days early. 

Are There Any Fees?

Spruce makes a point to avoid charging too many fees. The policy of no hidden fees is a big win for anyone seeking a new banking experience. Additionally, you can skip ATM withdrawal fees by sticking with one of the thousands of in-network ATMs. 

With Spruce, you won’t encounter any of the following:

• Monthly fee
• Sign-up fee
• Minimum balance fee
• Foreign transaction fee

However, there are fees for physical checks, out-of-network ATM withdrawals, and over-the-counter cash withdrawals.

How Do I Contact Spruce?

Spruce offers a support phone line at 855-977-7823. You can also contact support through a chat feature. 

So far, the customer reviews are mixed. The app has earned 3.4 out of 5 stars on the Apple App Store and 3.5 out of 5 stars on the Google Play Store.

How Does Spruce Compare?

Spruce isn’t the only fee-free mobile banking experience available. 

If you are looking for a platform that has been around long enough to work out any issues, Chime is a worthwhile option. It’s a fee-free banking experience complete with an opportunity to earn interest on your savings. 

How Do I Open An Account?

If you’ve decided that Spruce is the right fit for you, here’s how to open an account at Spruce.

• Provide basic information: Be prepared to provide your email address, name, and phone number. 
• Download the app: Spruce is a mobile-friendly platform. You can download the app for iOS and Android. 
• Transfer funds: If you have a funding account, be ready to provide that information. 

It shouldn’t take more than a few minutes to complete the process. 

Is It Safe And Secure?

Spruce takes security seriously. The platform uses bank-level encryption to keep your information safe. You can turn on multi factor authentication and Touch ID to add more layers of security. The platform also employs fraud monitoring to catch any issues. 

Additionally, your funds are FDIC insured, up to $250,000. All of these details go toward keeping your account safe and secure.

Is It Worth It?

Spruce is an easy-to-use mobile banking solution that doesn’t come with pesky monthly fees. The automatic cash back opportunities are certainly an enticing feature of the app. Also, the savings goal features are extremely helpful. 

The only drawback is that their savings APY is only average - you can earn 1-2% more with a high yield savings account.

Spruce Features