Is Rocket Money Safe? The Complete Truth
Rocket Money seems like a great idea to scan your accounts and find out if you’re spending too much on subscriptions and find better rates on some of your accounts. But, it’s a risk – you’re giving an app full access to some of your most sensitive information. You need to know if it’s safe.
Here, I’ll tell you all about the company, the technology they use, and the agreements you make when you sign up. Then, I’ll answer a few frequently asked questions. After you’re fully informed, you can decide whether this app might be right for you.
This is what’s in store:
Now, lets get to it!
What is Rocket Money?
Rocket Money is a consumer money management app to help you take control of your finances – With over 5 million members, it aims to simplify the complexities of personal finance.
The platform’s most advertised features are:
- Subscription tracking
- Cancellation services
Nobody wants to pay for two Netflix® accounts…
Moreover, Rocket Money provides insights into your spending patterns to encourage you to make informed decisions and improve your financial health. The app also offers an autopilot feature to automate savings based on your habits, reducing the risk of overdraft fees.
While the free version includes essential tools like account linking through Plaid®, spend tracking, balance alerts, and subscription management, the premium plan provides additional benefits including:
- Concierge services
- Net worth & credit score tracking
- Shared accounts
- Unlimited budget creation
- Bill negotiation
- Cancellation services
It’s worth noting that the declared, app-wide $1 billion in savings is based on bill negotiations, subscription cancellations, and smart savings account deposits. However, individual net savings may vary.
Before I tell you about my experience, let me just say that I am not affiliated with Rocket Money in any way, and I won’t receive compensation for sharing this.
I tried the app, and there were three notable, immediate improvements to my finances:
- Rocket Money suggested I switch auto insurance companies to save over $100 per month, and accommodated the swap.
- For $9, Rocket Money saved me $30 (so, $21) on one month’s Verizon® bill.
- I gained clear insights into the interest I pay on revolving debts (it was way more than I thought), so I was motivated to transfer the debt into a lower-interest account.
I pay $4 per month to use the app. So, my 12-month projected savings is well over $1,200 for about $48 not including the benefits of a new, clear, flexible monthly budget – So, for less than 50 bucks, I might have saved a couple thousand dollars this year.
On the face of it, I’d say it’s definitely been worthwhile for me. But, is Rocket Money safe to use? Let’s look at the technology they employ, the company itself, and the agreement you make with Rocket Money in exchange for potential savings.
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Technology Rocket Money Uses to Connect to Your Bank
To connect to your bank account and other financial accounts, Rocket Money uses Plaid®, more specifically Plaid Link. Plaid Link is used by over 8,000 financial apps and services, connecting to more than 12,000 US financial institutions, as well as institutions in Canada, the UK, and Europe.
The tool acts as a secure platform for you to connect your financial accounts to different applications with efficiency. Unlike traditional methods that may take several days, Plaid Link streamlines the process to a matter of seconds.
Security measures are implemented to safeguard your data – A unique token is generated each time you connect a financial institution, which ensures a secure connection. The ‘automatic institution list’ feature tailors options based on your location. And, the returning user experience allows you to easily verify previously-connected accounts with a security code – this streamlines the process.
Designed for straightforward integration into the onboarding flow of apps, Plaid Link offers customization options to align with the app’s branding.
Features such as account filtering, configurable copy and design, and comprehensive documentation contribute to a secure and user-friendly connection experience – Overall, Plaid Link facilitates a secure and user-friendly connection between financial apps and users’ accounts, supporting a seamless onboarding experience while prioritizing data protection.
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Can You Trust RocketMoney as a Company?
Rocket Money® is a private equity-backed branch of Rocket Companies® a publicly-traded, for-profit conglomerate that’s been around since the 80s. In 2021, Rocket Companies acquired and rebranded TrueBill®. The Company’s other brands include Rocket Mortgage®, Rocket Loans®, Amrock®, LenDesk®, ForSaleByOwner.com®, and several others.
Their brands are primarily consumer-facing technology, finance, and real estate companies, led by CEO, Varun Krishna. Krishna has only been in his current position since September 2023. Previously, he spent eight years at various high-level positions at Inuit® — the parent company of Quickbooks® and TurboTax ® — and has been a Fellow at Tidemark® for nearly three years.
Rocket Money has been accredited with the Better Business Bureau (BBB) since 2020, and they maintain a B rating on the platform. The reason they’re not rated higher is because of the high number of complaints, though all of the grievances have been addressed.
Rocket Money’s Trust Score™ on Trustpilot® tells a slightly different story, with 88% of their reviewers giving 5 stars. For a financial offer, 4.6 stars is a good rating (consumers are especially hard on brands that deal with money matters).
In the financial technology realm, company leadership is as experienced as it gets. Rocket Money isn’t a scam company that’s only out to steal your data…But, before we get ahead of ourselves, let’s find out what they do with your identifiable info they collect.
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Rocket Money Data Privacy Agreement
When you connect your financial institutions to Rocket Money, your data is collected and processed in accordance with the Rocket Family of Companies Privacy Policy – This policy outlines how information is handled when collected through websites, applications, or online interactions.
Rocket Money provides state consumer data rights, which allow you to request information about the personal data collected, request its deletion, seek correction, and not face discrimination for exercising these rights.
Information collected includes details you provide when creating a Rocket account, such as:
- Name
- Email address
- Social security number
- Financial information
- Other identifiable details
Note: I don’t recall sharing my whole social security number in the Rocket Money app – if I remember correctly, they only asked for the last four digits to provide credit monitoring. Your social security number is probably only required if signing up for a savings account or loan through the app.
And, Rocket Money automatically collects some data, including:
- Transactional details
- Device and usage information
- Your content
- Location information
- Data collected through cookies and similar tracking technologies
Rocket Money may also obtain information from third-party sources, such as:
- Identity verification services
- Credit bureaus
- Integrations with third-party services like Plaid Technologies
Information derived from collected data may be used to make inferences about you and is reportedly meant to enhance the user experience.
The Privacy Policy outlines various reasons for collecting information, like:
- Fulfilling service requests
- Improving products
- Personalizing experiences
- Sending notices and alerts
- Monitoring trends
Rocket Money does share your data, in a limited capacity for purposes like marketing, analytics, and regulatory reporting. They actually have to share some of your information to provide the service they do…To negotiate lower payments, for example, their reps will need your applicable account information.
Sharing of information occurs among:
- The Rocket Family of Companies
- Affiliates
- Third parties
While aggregated or de-identified information may be shared, your personal data is also shared with third parties based on circumstances outlined in the policy, such as for services, marketing, legal compliance, and business transactions.
Furthermore, Rocket Money utilizes cookies, web beacons, and device identifiers for advertising purposes. You do have the option to opt out of behavioral advertising purposes through relevant features on your devices.
In summary, Rocket Money collects, processes, and shares your data for various purposes outlined in its Privacy Policy. It also emphasizes your rights in controlling your data and provides mechanisms for inquiries or requests related to privacy.
While it would be wonderful if you could remain anonymous at all times, that isn’t the case with this offer. However, the way your data is collected, stored, and shared is pretty standard for an offer like this.
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Frequently Asked Questions
Is Rocket Money Savings safe?
Yes, Rocket Money takes security seriously. It uses standard security protocols and encryption to protect your financial information.
Does Rocket Money loan you money?
No, Rocket Money doesn’t loan money. It’s more for managing and optimizing your finances, offering features like subscription tracking and spending breakdowns. However, Rocket Money is affiliated with Rocket Loans®, which is a popular lender.
Does Rocket Money charge a fee?
Possibly. Rocket Money has different plans, including a free version and a premium one. The premium plan is currently priced on a sliding scale, so you “pay what you can afford.”
What bank does Rocket Money use?
Rocket Money doesn’t operate as a bank. It connects to your existing bank accounts using Plaid Link, a secure platform facilitating these connections. However, Rocket Money Savings is powered by NBKC Bank®. Now, Rocket Money is affiliated with Rocket Loans® (Cross River Bank®) as well as Rocket Mortgage® (multiple banking partners).
Does Rocket Money affect your credit?
No, connecting your accounts shouldn’t impact your credit directly. Rocket Money focuses on financial management, but mindful actions taken because of the app’s insights could indirectly affect your credit.
Conclusion: How Safe is Rocket Money?
While no sharing of your personal financial information is 100% safe online or off (even Equifax suffered a data breach), Rocket Money takes appropriate, proactive steps to protect your data. They use a trusted service to connect their app to your accounts. Their company’s legitimate with informed leadership. And, while they do share your data, Rocket Money gives you the right to access and control how your information is shared.
Personally, I was comfortable sharing my information with Rocket Money…and I’m satisfied with the results! You’ll have to weigh the risk with the potential payoff and decide for yourself whether this app might be right for you.
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Ashley Kimler
Ashley Kimler is your friendly Credit Secrets wordsmith. With a knack for turning complex money matters into easy-to-digest advice, Ashley has been a trusted voice in the world of finance. With writing credits from Pangea Money Transfer, Centier Bank, Performio, and more, she's here to help you navigate the financial jungle with a dollop of wisdom. Let's turn sense into dollars together!
