Traditional bank requires tedious paperwork and documentation to get approved for loans. Not to mention the pesky fees associated with every transaction.

However, with more neobanks making revolutionizing the way we do our banking, it became more convenient and flexible for a digital banking experience.

Thanks to the Financial Technology (FinTech) industry that continues to expand and niche down to serve and meet specific market needs.

One of them is the Oxygen Bank.

Oxygen is not your regular bank. Why is that?

Well, because it prides itself in being the neobank, entirely online, and zero-fee bank dedicated to freelancers and entrepreneurs.

It steps up the digital banking experience with zero monthly maintenance fees, overdraft fees, or minimum balance fees.

Moreover, Oxygen focuses on serving entrepreneurs on-the-go, and those who are having a hard time finding an online-first banking solution. For instance, freelancers also have variable earning capacity, making getting approved bank loans more challenging.

In this Oxygen bank review, let’s discover what makes it unique. Moreover, we will share its pros and cons plus special features.

One unique feature of Oxygen that will benefit small business owners is those who want to form a limited liability company (LLC) because they can do so within the app! (More on this later!)

More significantly, let’s answer the question, is it the right bank for you?

So breathe in and read on to find out.

Related: What does pending deposit mean? Here's what the bank isn't telling you.

Is Oxygen bank a real bank?

Let’s get into technicalities. 

Oxygen is not a physical bank. They have no branches anywhere as they only operate online.

Contrary to the traditional bank, which requires an in-person appearance for account opening, with Oxygen, every banking-related transaction is done over the internet and managed within their mobile app.

Indeed, it’s one of the many rising neobanks that have entered the fintech scene.

Furthermore, Oxygen is associated with its partner bank, The Bancorp Bank, and the Federal Deposit Insurance Corp. insured customers’ deposits up to $250,000. 

So in this oxygen bank review, you can be assured of your account security.

Core Features

The Oxygen bank offers two main accounts: Personal and Business Accounts. Let’s get over them one by one.

Personal Account

The Oxygen’s personal account is ideal for solo entrepreneurs and freelancers. 

It is an interest-bearing account that offers both a savings and checking account.

Aside from that, it also comes with an Oxygen Visa debit card with 0 minimum balance requirement.

Therefore, forget about hidden charges. Oxygen offers no monthly fees, overdraft fees, and even zero transfer fees. 

Virtual Cards 

With Oxygen’s personal account, you can also access virtual debit cards. You can use it whenever you want. It can be used as a single or one-time use card, helpful if you’re on free trials or subscriptions.

Merchant Lock Feature

A virtual card for one merchant only. This is useful to mask your card details. You can use this if you only buy from one store or merchant, so it won’t be a hassle thinking about how to pay. This helps in categorization plus your safety.

Single-use cards and merchant locked cards can keep your physical card details from the public eye.

Elements

This is part of Oxygen’s loyalty program, where it categorized each personal account into four “Elements,” namely – Earth, Water, Air, and Fire.

Each of these elements comes with different benefits that may suit you. For instance, cashback rewards, varying savings APY, retail, travel, stream perks, and more. Plus, don’t forget the annual fees. 

If you’re starting, you’ll have the Earth account tier. Once you meet the minimum deposit and spending requirements, you can level up to another element tier. It is optional, by the way. 

However, if you level up to another element tier, you’ll have to be mindful of the annual fee that you have to pay upfront. In the subsequent years, you can avoid not paying for it.

The details of each element account perks, plus details on how to qualify for an upper-level tier if you want to move up, can be found here. 

Keep in mind the qualification requirements and the details of how you can avoid the annual fee.

Business Account

If you want to be treated as a business, Oxygen’s business account is appropriate for you. This is also ideal for budding start-up entrepreneurs, freelancers with businesses on the side, and growing companies.

They even offer a service to help you get LLC (limited liability company) for an existing business or newly formed and your business name. All of these, plus you can open a business bank account simultaneously.

For individuals wanting to form an LLC, Oxygen made it possible to partner with CorpNet Inc. Moreover, you can do it all through the app quickly and easily. 

All you have to do is download the app, create a login, scan your valid IDs, and ready your documents such as:

• Articles of Incorporation
• Name Registration
• Resolution of Authority
• Operating Agreement
• Business License
• Certificate of Good Standing (from a governmental entity)
• 501(c)(3) Letter
• Assumed Name Certificate
• Articles of Formation
• Articles of Organization

After five business days, Oxygen representatives should notify you of the outcome of your application for existing businesses. On the other hand, it can take between 2-4 weeks for LLC formations.

Take note also that fees for LLC creation differ by state and services selected.

If you want to learn more about Oxygen’s business account, you can read more details of it on their website.

Oxygen Bank Review: Other Features

Security

Oxygen offers safety features to instantly lock and unlock accounts within the app.

In addition, the app will also send you alerts and notifications for any suspicious or unusual activities.

Lastly, Oxygen has received PCI DSS certification, the highest degree of security in the payment industry.

PCI DSS stands for Payment Card Industry Data Security Standard for additional information. It assures that businesses safely process, store, and transfer debit and credit card data.

Mobile App and Website

Oxygen bank review has 4.8 stars out of 5 from Apple Store with 18,000+ ratings. On the other hand, for Android users, Google Play Ratings of Oxygen is 4.6 stars out of 5 with 25,000+ reviews.

Overall, the mobile app is easy to use, and it looks fantastic. However, you can only download the mobile app since it offers a digital banking experience. You can't transact on its website.

The user interface is in dark mode, very creative, and looks aesthetically pleasing, especially if you see their website.

It has a great overview page, and you can expect all the modern features of a modern-day banking app. 

Categorization Feature

Another cool feature in this Oxygen bank review is the app can automatically scan and categorize receipts for you.

You can use the app to take a photo of the receipt; then, the Oxygen app will automatically categorize the receipt for you.

This is a convenient feature, especially if you're dealing with expenses that come with many receipts.

Free ATMs + Cash Deposits

Because Oxygen is a member of the Allpoint ATM network, you can access over 50,000 money pass fee-free ATMs nationwide if you have an Oxygen bank account.

However, if you use an ATM outside of this network, you will be charged a fee. Unfortunately, Oxygen does not reimburse for out-of-network ATM fees.

Moreover, you can't make deposits at any ATMs because Oxygen is a mobile-only bank. 

However, you may make mobile check deposits using the Oxygen app. Hence, you can also deposit cash at any Green Dot location (merchants like 7-Eleven, CVS, Walgreens, and Walmart). However, take note that you'll have to pay fees if you choose this option.

But, this is what makes Oxygen stand out as it is better than other neobanks that offer 0 options for cash deposits.

You can also connect your paycheck, so your fund can be deposited into your Oxygen account.

Cashback Features

Not many debit cards offer cashbacks, and they are not that high. Hence, Oxygen offers varying cashback rewards from select merchants such as Walmart, Trader Joe’s, Whole Foods, to name a few.

Keep in mind that cashback deals may change over time. Moreover, be mindful because if you’re generally spending just for a bit percentage of cashback, you might be spending a lot rather than saving money, or you’re just getting a tiny amount of your money back.

Read more: Stores that do cashback ($100+) on Debit, Credit, and Personal Checks.

Line of Credit

This feature allows you to connect all your financial accounts to the Oxygen app. Through this, the app can see your current financial situation and base insights from it to offer you a line of credit that they think fits you.

Therefore, this can be a handy feature, especially for people who have the most challenging time accessing various lines of credit, such as personal loans or any loan in general.

Of course, you’ll be paying a flat monthly fee if you take a line of credit with Oxygen. 

However, bear in mind that, like any other type of debt, take it with a pinch of salt. Use a line of credit when you need to.

For instance, if you need additional capital to fulfill your product order.

If having an available line of credit is something you look forward to, Oxygen could be a great option. It could be helpful in more significant credit amounts or not so great for only small amounts.

Related: What is a Counter Credit on a Bank Statement?

Fees

Now, we’ve been talking about in this Oxygen bank review how it’s one of those remarkable fee-free banks, but here’s the caveat. Although they ditch the traditional bank transaction fees, it isn’t a completely free platform. 

For instance, annual fees. It could add up if you're not careful, especially on the elements-tier personal account.

Each time you go outside the Allpoint ATMs network, there are also ATM fees. You'll also be responsible for any fees charged by the ATM, which Oxygen will not reimburse. 

Lastly, there are international fees. You should be aware of the fees if you plan to use your Oxygen card outside of the United States. You'll get charged 1% of the transaction amount for each foreign transaction (including ATM withdrawals).

Furthermore, overseas ATM withdrawals are charged a flat fee of $5 for each transaction.

Aside from that, these fees can add up quickly when traveling across Europe.

Oxygen Bank Review: Pros and Cons

Pros

• Well-rated mobile banking app.
• No monthly fee.
• Zero overdraft fees.
• Without minimum balance fees.
• $55 bonus for every successful referral.
• Has account lock and unlock feature, categorization, and safety.
• Cashback rewards.
• Competitive APY on personal accounts.

Cons

• No physical locations- all transactions are done via mobile app.
• Limited customer service and support- can be hard to reach out to if there are complaints, but you can contact them via in-app chat, email, or telephone number 866-287-7021. 
• Deposit limits.
• Fees if you use out-of-network ATMs.

Oxygen Bank Review: Alternatives

Indeed, Oxygen is not the only fintech company or neobank that has offered these perks before. You can also check out other similar services provider such as:

• Chime
• Revolut
• Novo
• Lending Club

These also offer similarly low up to no-fee and online-only personal plus business banking apps.

Is Oxygen a good debit card?

In this Oxygen bank review, we mentioned that Oxygen bank does offer debit and even visa cards. In addition, you can also get access to virtual cards.

It is a great feature, primarily if you only use it once or have a specific retailer you usually purchase from. 

Indeed, Oxygen's debit cards offer convenience, safety, and added flexibility. However, be mindful of fees associated with it, significantly if you upgrade your account tier from one personal account element to another.

Who owns Oxygen bank?

The founder, Hussein Ahmed, found a need for better banking for freelancers as he was a freelancer himself at that time.

More specifically, he found out that it’s very challenging for freelancers to get loans or a personal line of credit.

He said that he tried joining Lending Club, but they couldn’t verify his income, plus they required him over ten pages of documentation because he was a freelancer. 

You know how a freelancer works. They are not an official employee; they can have multiple clients working simultaneously. Furthermore, freelancers' income varies.

With that experience, he solved the problem most independent contractors like himself faced. 

The solution? He founded the Oxygen Bank.

How much can you withdraw from the Oxygen bank?

According to the Oxygen’s FAQs site, you can withdraw up to $500.00 per day at any ATM up to 3 times a day.

Take note that it will not incur a fee as long as you transact with any Allpoint ATMs. However, you will have to pay outside of this network. Moreover, Oxygen does not reimburse ATM fees.

Is Oxygen bank for you?

In this Oxygen bank review, we shared how the online-only bank caters to most freelancers and how it can ultimately benefit solo entrepreneurs who are always on the go.

It looks promising, especially the zero-fee transactions you would get to most traditional banks. Not to mention the physical cards and virtual cards it has to offer, plus the competitive savings APY.

Furthermore, the ability to open an LLC for business accounts is one of the major perks too.

However, as personal finance is something that you must be familiar with personally, opening an account with the Oxygen bank is a matter of personal preference. 

It may or may not work for you, but the Oxygen bank is indeed best for freelancers and entrepreneurs looking for a streamlined digital and mobile banking experience.

Oxygen Bank Review- Final thoughts

Oxygen positions itself as the bank for freelancers, small business owners, and entrepreneurs. They offer cool and really unique features suited for the level-up digital banking experience. 

If you’re a freelancer, your income may fluctuate from time to time, and banks don’t like that. Hence, if you opt for a personal loan or a line of credit, it could be a hassle.

Thankfully, apps like Oxygen exist to serve these unique market needs.

With more and more niche banking platforms emerging today, it’s incredible to know that we have many options to choose from. Not to mention that they are built upon the solid solutions that we need. 

So, do we recommend Oxygen bank? Yes, we do, but only for specific people. It’s really the best for the self-employed and freelancers.

The Oxygen bank built their entire experience around these niches, dedicated to serving these types of markets with products and services that suited them well.

So what do you think of this Oxygen bank review? Do you have an account with Oxygen? Share your thoughts and experiences below; let’s chat!