Consumer complaint received 2026-03-12 00:00:00
Product: Checking or savings account — Savings account
Issue: Opening an account — Confusing or missing disclosures
Company: AXOS FINANCIAL, INC.
State: NY

Complaint narrative:
To the Consumer Financial Protection Bureau, I am submitting a complaint regarding Axos Banks disclosure of eligibility requirements for the Axos ONE promotional savings Annual Percentage Yield ( APY ). Axos advertises a promotional savings APY of up to 4.21 % when customers meet certain requirements during a monthly qualification period, including receiving at least {$1500.00} in qualifying direct deposits. The promotional terms define a direct deposit as : An electronic ACH deposit of your paycheck or government benefits. The disclosure also lists certain excluded deposit types such as real-time payments, online banking transfers, ATM deposits, mobile check deposits, and person-to-person payments. However, after my previous complaint was filed, Axos Bank informed me in writing that the bank internally requires ACH deposits to be coded under the SEC code PPD ( Prearranged Payment and Deposit ) in order to qualify as a direct deposit for the promotional APY. Axos stated : Direct deposits received under the PPD ( Prearranged Payment and Deposit ) code are the only ones that qualify for the promotional rate increase. This requirement is not disclosed anywhere in the promotional terms. The promotional disclosure does not mention ACH SEC codes or indicate that eligibility depends on the specific ACH entry classification used by the sending institution. My account transaction records show that Axos Bank itself displays ACH SEC codes within transaction descriptions. For example, my payroll deposits from my employer appear as PPD entries and so was the initial trial deposit on XX/XX/year> from XXXX as payroll administrator for direct deposit set up, while somehow reimbursements processed through XXXX as my employers benefits administrator later appear as WEB entries. These examples demonstrate that Axos determines eligibility based on the ACH SEC code assigned by the sending institution. However, consumers generally can not control or determine how external institutions code ACH entries. Additionally, the promotional disclosure excludes online banking transfers, but the banks internal rule excludes all transactions coded as WEB entries. In the ACH network, WEB entries do not necessarily represent customer-initiated online banking transfers. WEB entries may also be generated automatically by employer payroll systems, benefits administrators, or integrated financial platforms. Because the promotional terms do not disclose the SEC code requirement or explain how Axos determines whether an ACH deposit qualifies as a direct deposit, consumers can not reasonably determine in advance whether their deposits will satisfy the promotional eligibility criteria. This issue also raises a concern under the Truth in Savings Act and Regulation DD, which require that material conditions affecting the advertised APY be clearly and conspicuously disclosed. If eligibility for the promotional APY depends on a specific ACH SEC code classification, that requirement does not appear to be clearly disclosed in the promotional terms. I respectfully request that the CFPB review whether the Axos ONE promotional terms clearly disclose the criteria used by the bank to determine whether an ACH deposit qualifies as a direct deposit for purposes of the promotional APY. Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation