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Nexus App Review [2023]: Checking Amplified by Wall Street


Nexus App

An Unexpected Marriage

Imagine a traditional checking account walking down a digital aisle, holding hands with a bullish robo-advisor. The result of this peculiar union? It's called Nexus, a banking mutant born in the futuristic year of 2023 in the heartland of tech innovation, Seattle. Now, while this might sound like the plot to the next Netflix rom-com, it's actually the reality of modern personal finance - and it's about as unpredictable as that movie you thought was a comedy but ends up making you sob into your popcorn.


Born from the minds at Evolve Bank & Trust and the number crunchers at Financial Choice Inc., Nexus sets out to do something rather audacious. It wants to eliminate the dreaded cash drag, which is not, in fact, the latest dance craze, but the underperformance of your investment portfolio due to idle cash.


So, Nexus is on a mission - a mission to get your cash off the couch, out of the low-interest doldrums, and into the glitzy, glam world of investments. Just a small amount of your money lounges in an FDIC-insured checking account, currently earning 2.5% APY (which, let's be honest, is as seductive as savings accounts get), and the rest is shipped off to Wall Street to rake in the big bucks.


The Nexus Experience: Trading Chips for Stocks

What does Nexus offer apart from a fresh plot for a finance rom-com? Well, let me paint you a picture. It's like a smartphone app that’s part bank, part broker, and full-time personal finance coach. The app encourages you to turn your back on cash, which has all the growth potential of a potted plant, and gravitate towards the wild, exciting world of assets like bonds, T-bills, and stocks.


Nexus holds any cash in an FDIC-insured, fee-free checking account, with the standard features of a debit card, online bill pay, check writing, and fee-free ATM withdrawals. You know, the kind of account your grandma would give a approving nod to.


But this is where the fun begins. As soon as your cash enters Nexus, it's handed a protein shake and put on a rigorous exercise routine, stretching into various high-yield assets like a financial yoga master. You select your target asset allocation, and Nexus, like a strict personal trainer, makes sure your portfolio sticks to the regimen.


This wild blend of financial services might sound like a recipe for chaos, but in the hands of Nexus, it becomes a well-choreographed ballet of personal finance. Watch as Nexus pirouettes from low-yield cash, seamlessly leaps into higher-yield assets, and twirls back again as needed. This financial dance-off is sure to keep even the most serious financiers entertained.


Stay tuned for the next acts of our review, where we'll dive into how Nexus measures up to its peers, and address whether it's the financial superhero it sets out to be, or just another player on the grand stage of personal finance.


Key Features and Offerings

Nexus: A Box of Financial Tools

At its core, Nexus is a bit like a Swiss Army Knife for personal finance, combining all the tools you need in one slick, handy package. It's not just the promise of a 2.5% APY on your checking account, which in the world of bank interest rates, is like stumbling across an oasis in the Sahara. Nexus offers a bunch of additional features that, if it were a Swiss Army Knife, would be the hidden cork-screw, bottle opener, and toothpick all rolled into one.


Let's unpack this further. Nexus ensures that your idle cash isn't just doodling on a notepad; it's kept in an FDIC-insured checking account. This insurance means that if Nexus suddenly decided to pack up and leave town, your cash is protected up to $250,000. That's a relief, right? No more sleepless nights thinking about your money's safety, which, let's face it, is as comforting as a warm blanket on a cold winter's night.


Nexus: The Fee-Free Fantasy

Now, onto the next feature that Nexus waves proudly like a magician's wand. Nexus says a big 'no' to all sorts of banking and advisory fees. It's as if Nexus hosted a party and specifically put 'NO FEES' on the guest list. Whether it's a monthly banking fee, advisory fee, or the universally dreaded ATM withdrawal fee, Nexus has banished them all. So, don't worry about dipping into your hard-earned money to foot these expenses. At Nexus, it's more like a perpetual "Happy Hour," but for banking.


Opening a Nexus Account: As Easy As Ordering Pizza

Let's delve into the process of opening a Nexus account. If you are at least 18 years old and a legal resident of the U.S., you're in luck. Nexus doesn't seem to care if you prefer dogs over cats, if you enjoy pineapple on your pizza, or even if you still use comic sans font – their doors are open to you.


The process of opening an account is as straightforward as ordering your favorite pizza online. You download the app from the App Store or Google Play, provide an email address, create a password (please, not "password123"), and voila – you've got yourself a Nexus account.


Then, you'll answer a series of questions – not about your favorite movie or secret superhero identity, but rather your legal name, address, date of birth, and details about your household income and net worth. You know, the usual stuff any robo-advisor worth its salt would want to know.


Once you've spilled your financial beans, you fund the account by transferring money to Nexus or setting up a direct deposit. Nexus then ships you a debit card - just think of it as your personal finance superhero cape. So go on, feel free to save the financial day. The next stop in our Nexus journey: Comparisons with other players on the field. Buckle up!


The Nexus Arena: Clash of the Financial Titans

Betterment: The Old Guard

The reputable Betterment is no newbie in the robo-advisory sphere. Distinguished for its tailored portfolios, automatic rebalancing, and tax-loss harvesting, it serves as the knowledgeable financial big brother.

Pros:

  • Offers an array of account types including IRAs, 401(k)s, and trusts

  • Employs sophisticated tax-saving strategies

  • Premium users have access to human advice

Cons:

  • No provision for direct indexing

  • Charges a 0.25% to 0.40% annual fee

  • Absence of standalone checking or savings account

Betterment vs. Nexus: Though Betterment might not exhibit the same level of innovation as Nexus, its offering of a diverse range of account types sets it apart. However, unlike Nexus, Betterment levies an annual fee. While Nexus seamlessly integrates checking and investing, Betterment treats them as two separate entities, arguably providing a safer cash cushion.


E*TRADE: The Financial Goliath

Renowned E*TRADE, established in 1982, stands as a trustworthy full-service broker proffering an extensive variety of investment choices. Consider it a financial supermarket for those preferring a one-stop shop.

Pros:

  • Broad and comprehensive research and educational resources

  • Offers a wide range of investment choices

  • No account minimums for most accounts

Cons:

  • Trade commissions are higher compared to discount brokers

  • Broker-assisted trade fee is on the high end

  • The platform might be daunting for beginners

ETRADE vs. Nexus:* E*TRADE shines with its exhaustive research resources and wide array of investment options, potentially providing a richer field for seasoned investors. In contrast, Nexus, with its simplistic, unified portfolio approach, may serve as a more inviting option for newbies. Furthermore, Nexus provides a fee-free experience, unlike the potential trade commissions at E*TRADE.


SigFig: The Data-Driven Prodigy

The tech-savvy SigFig is a robo-advisor that offers customized financial solutions with a unique data-driven approach.

Pros:

  • Offers personalized investment advice

  • Manages your first $10,000 for free

  • Automated portfolio rebalancing

Cons:

  • No tax-loss harvesting for portfolios below $10,000

  • No fractional shares

  • Limited account types

SigFig vs. Nexus: The main difference between SigFig and Nexus is their management approach: SigFig's data-driven techniques vs. Nexus' aggressive investment strategy. For first-timers, SigFig offers a more cost-effective solution with its free management for the first $10,000. However, Nexus's unique merger of checking and investment may offer a more simplified approach to finances.


Wealthfront: The Autopilot Ace

Wealthfront shines bright as a robo-advisor that takes your finances on autopilot. Armed with daily tax-loss harvesting and automatic portfolio rebalancing, it's like having a personal finance drone.

Pros:

  • Daily tax-loss harvesting

  • PassivePlus® investment features

  • Fee-free cash account with high APY

Cons:

  • No human advisors available

  • $500 minimum deposit to start investing

  • Limited asset classes

Wealthfront vs. Nexus: When it comes to the battle of automation, Wealthfront and Nexus are neck and neck. However, Wealthfront's daily tax-loss harvesting is a unique feature that Nexus lacks. Plus, Wealthfront offers a higher APY on its cash account. But, Nexus' distinctive approach to merging checking and investment services may attract those looking for a more integrated financial solution.


Nexus: To Infinity or Bust?

Security Measures and Safeguards

Nexus might be the new kid on the block, but it knows a thing or two about security. The cash portion of your account is FDIC insured up to $250,000. Moreover, your investment account is SIPC-insured, which means your cash won't get up and leave in case of a hack or theft. However, the stock market is about as predictable as a toddler with a drum set, so your investment account's value may vary.


Customer Support: There When You Need It (Mostly)

Need to get in touch with Nexus? Just shoot them an email at support@nexushq.com. They're as prompt as a cat with a laser pointer. And for the traditionalists, there's always snail mail. You can pen them a letter to P.O. Box 19792, Seattle, Washington, 98109.


Final Verdict: The Future or a Fumble?

When it comes to the Nexus app, its "boldly go where no one has gone before" approach is both its strength and its weakness. On the one hand, Nexus is bringing something fresh to the finance table, merging your checking and investment needs into one app. It's like the Swiss Army Knife of finance! On the other hand, its "cash? Who needs cash?" attitude can seem like a wild ride.


Ultimately, if you're a financial daredevil who laughs in the face of cash safety, Nexus might be the platform for you. But if you like to keep your finances closer to the vest, it's probably better to stick with a separate checking account and a more traditional robo-advisor. After all, you wouldn't want the guacamole at Chipotle to break your bank, would you?

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