Dave Banking financial app review
- Fee
- From $0 per month
- APY
- 4.00%
- Minimum deposit to open
- $0
Our verdict
Cash advances, budgeting and high APYs - but the FTC isn't happy.
Dave Banking is an all-in-one financial app that provides deposit accounts, budgeting, cash advances and much more. The Dave Spending Account offers early direct deposit, up to 4% APY, rewards and savings round-ups and Goals. And if you need extra cash, Dave features a side hustle board where you find quick work, and it offers cash advances to qualifying users with a $1 monthly membership. However, as an online banking option, you won't get access to physical branches, and Dave doesn't offer as many products and services as traditional brick-and-mortar institutions. On top of that, Dave is in hot water with regulators.
Best for: Those who prefer online banking with earning opportunities.
Pros
-
$0 monthly fee for basics
-
High 4% APY
-
Savings round-ups and budgeting features
-
Side hustle board and cash advance options
Cons
-
No physical branches
-
No joint accounts
-
Doesn't accept wire transfers
-
Paid membership required for some features
MUST READ: FTC taking action against Dave
The Federal Trade Commission (FTC) has taken action against Dave for charging undisclosed “tips” for its cash advance service and has found many other issues with the app. The FTC has issued a complaint for permanent injuction, monetary judgment and other consumer relief. The fintech is said to be violating the FTC Act and the Restore Online Shoppers’ Confidence Act, as reported by the agency in November 2024.
Reportedly, Dave is not living up to its promises, such as the app claiming consumers can get cash advances up to $500. However, multiple consumers report not ever being offered amounts that high.
Additionally, Dave used to clearly advertise the $1 monthly fee to its consumers — we’ve known about the fee because we’ve reviewed the app in the past. But as of late, Dave is failing to clearly list its $1 monthly fee which it debits directly from consumer accounts.
And perhaps one of the most shocking findings comes from Dave’s claim that it donates a percentage of all consumer tips for its cash advances to help feed hungry children. The app clearly states, “We also provide a meal for every % you tip.” However, it was found that Dave donates just 10 cents for each percentage and it keeps the rest. And reportedly, if you reduce the tip amount to $0, Dave shows a picture of a cartoon child with an empty plate.
Who is Dave best for?
Dave offers a spending account, cash advances, side hustle job board and more. The checking and savings accounts don’t require any monthly fees or opening deposits. But if you want access to cash advances and budgeting external accounts, you’ll need to sign up for the $1 monthly membership.
If you want to bank with a traditional bank that can offer things like joint accounts, certificates of deposit and financing, you’ll have to look elsewhere. Also, Dave uses Plaid to connect to external accounts, so if your external account isn’t compatible, it may not be a good fit if you want to budget your current accounts.
What we like about Dave
Dave is a fintech with banking services provided by Evolve Bank & Trust, Member FDIC. It uses the MoneyPass ATM network, giving you free access to over 40,000 ATMs nationwide. It was founded in 2016 and was originally focused on its cash advance feature called ExtraCash. It now offers more products, including its checking and savings accounts.
Spending Account earns 4% APY and cashback
One of the best perks is the 4% APY you earn on your Dave Spending Account — with no requirements at all. The national average rate for interest checking is 0.08%(1), so Dave wipes the floor with that rate.
The Spending Account has no monthly or overdraft fees, no opening deposit minimums and offers early direct deposit. However, you must request to get your Dave debit card, as it won’t be sent out automatically upon opening.
Dave also offers a cashback program, which are limited-time offers by select merchants. You can also earn rewards through a program called “Free Months,” which lets you earn credits to cover the Dave membership fee at qualifying merchants.
Goals accounts
Dave also has a saving product called Goals, which lets you set up individual savings goals with timelines to help you stay on track. You’ll earn 4% APY on each goal you create, which is much higher than the 0.43% national average for savings accounts. Opening a Goals account doesn’t require the paid membership plan and has no monthly fees or opening deposit requirements.
To start, you’ll create a Goal from your Dave app by inputting how much you want to save, what you’re saving for and the date you want it achieved. You’ll then be prompted to set up recurring transfers or deposits and use the savings roundup feature if you have the Dave Spending Account, which sends rounded-up amounts from purchases. And like most savings accounts, you can withdraw from a Goals account up to six times per month.
Cash advances up to $500
Cash advances are Dave’s original flagship product. You’ll need to join Dave’s $1 membership plan to get cash advances up to $500 instantly with ExtraCash. These cash advances don’t charge any interest or late fees, there’s no credit check, and tipping is optional. Repayment is due by your next payday or the nearest Friday from when you took the advance if your pay schedule can’t be determined.
However, know that multiple customers are reporting they have not qualified for the maximum $500 amount, despite having a good repayment history on past cash advances.
Side hustle board to find quick cash
A unique feature we haven’t seen anywhere else: Dave has a Side Hustle board where you can find quick jobs for quick cash. It features anything from seasonal and temp positions, work-from-home opportunities and more. There’s also Survey, which is a service that pays you for completing questionnaires, up to $5 per survey.
Where it falls short
Dave falls short in the same way other fintechs do: it lacks physical branches. But if you’re switching to Dave because you’d rather not go to a branch, then this won’t be too big of a deal for you, and Dave does have a customer phone line.
As an online fintech, Dave lacks many of the typical products you’d find with a full-fledged bank. You can’t get personal loans, credit cards or CDs. Also, Dave doesn’t support joint accounts, and it doesn’t support incoming or outgoing wire transfers. And while it supports cash deposits at MoneyPass locations, you’ll pay $4.95.
On top of all that, Dave is having issues with regulators. It’s under fire for not disclosing the $1 monthly membership fee, for not offering $500 cash advance amounts as promised and for fasley stating that its tip program donates a whole meal to a hungry child.
Dave’s fees and access
| Type of fee | Fee details |
|---|---|
| Monthly service |
|
| Opening deposit | $0 |
| ATMs |
|
| Debit card fees |
|
| Overdraft or nonsufficient funds | $0 |
| Wire transfers | Doesn’t support wire transfers |
| Other fees |
|
Compare Dave to other account options
Narrow down bank accounts by APYs, monthly fees and benefits. For a closer comparison, you can select Compare on multiple accounts to see features side by side.
What is the Finder Score?
The Finder Score crunches over 300 checking accounts from hundreds of financial institutions. It takes into account the product's monthly fees, overdraft fees, opening deposit, customer support options, ATM network and features — this gives you a simple score out of 10.
To provide a Score, Finder’s banking experts analyze hundreds of checking accounts against what we consider is the best option: no monthly fees, no overdraft fees, a large ATM network of 50,000 or more, additional features outside of typical banking services, and the optional perk of earning interest. Accounts that are nearly free to maintain and use are scored the highest, while accounts with costly fees and few features are scored the lowest.
Customer experience
Dave is a relatively newer fintech but has a decent amount of user feedback. It has over 1,500 customer complaints filed with the Better Business Bureau (BBB) and holds a B rating.
The majority of the negative reviews and complaints have to do with the ExtraCash advance service. Some users state they ended up accidentally tipping the advance service, while others report that advances were incorrectly sent out. Other reviews mention difficulties reaching customer support, accounts being closed without notice, and getting double-charged payments for the cash advances.
On Reddit, Dave’s reception is very mixed. Many customers state they’ve used Dave primarily for the ExtraCash feature with no issues, and others corroborate the struggle of speaking with a live
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Your reviews
Bethany Finder
Editor, Banking
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