Tier Availability
Premium OnlyWhat is Bank Synchronization?
Bank synchronization (bank sync) is a Premium feature that automatically imports transactions from your financial institutions directly into Purpose Budget. Instead of manually entering every transaction, your purchases, deposits, and transfers appear in your budget automatically - usually within 24 hours.
How it works: Purpose Budget uses Plaid, a trusted financial technology company used by millions of people through apps like Venmo, Acorns, and Betterment. Plaid securely connects to over 12,000 banks and credit unions using bank-level encryption.
Benefits of Bank Sync
- Save time: No more manual entry for every transaction
- Never miss a transaction: All spending and income automatically captured
- Auto-detect recurring bills: Purpose Budget identifies patterns in your transactions
- Accurate balances: Always know your real account balances
- Reconciliation made easy: Compare budget vs. actual spending effortlessly
- Better insights: Reports and analytics based on complete transaction history
How Bank Sync Works
The Technology Behind It
Purpose Budget partners with Plaid, an industry-leading financial data aggregation service. When you connect your bank, here's what happens:
- You authenticate with your bank: Enter your online banking credentials through Plaid's secure interface
- Plaid establishes connection: Creates a secure, read-only connection to your financial institution
- Data flows to Purpose Budget: Transactions are imported and matched to your budget categories
- Daily syncs: New transactions automatically appear each day
Security First: Purpose Budget never sees your bank login credentials. Plaid uses the same 256-bit encryption that banks use. Your connection is read-only - we can see transactions but cannot move money or make changes to your accounts.
Connecting Your First Bank Account
Ready to set up bank sync? Here's the complete step-by-step process:
Step-by-Step: Connect a Bank Account
- 1. Navigate to Accounts: Click "Accounts" in the sidebar menu
- 2. Click "Add Account": Look for the button in the top-right corner
- 3. Choose "Connect with Plaid": Select this option instead of manual account creation
- 4. Search for your bank: Type your bank's name in the search box (supports 12,000+ institutions)
- 5. Enter credentials: Provide your online banking username and password (Plaid's secure form)
- 6. Complete MFA if required: Enter security code from SMS, email, or authenticator app
- 7. Select accounts: Choose which accounts to connect (checking, savings, credit cards)
- 8. Confirm connection: Review permissions and click "Connect"
- 9. Wait for import: Initial import may take 1-5 minutes
- 10. Review transactions: Categorize imported transactions in your budget
Supported Financial Institutions
Major Banks (Fully Supported)
- Chase, Bank of America, Wells Fargo, Citibank
- Capital One, US Bank, PNC, TD Bank
- American Express, Discover, Barclays
- Ally Bank, Marcus by Goldman Sachs, SoFi
Credit Unions
Most credit unions are supported through Plaid. Search for your credit union by name during connection.
Online Banks
- Chime, Varo, Current, One Finance
- Simple (now part of BBVA), Aspiration
- Discover Bank, Synchrony
Investment Accounts
- Fidelity, Vanguard, Charles Schwab
- Robinhood, E*TRADE, TD Ameritrade
- Betterment, Wealthfront, Acorns
Can't find your bank? If your institution isn't available through Plaid, you can still use Purpose Budget with manual transaction entry or CSV imports. Many smaller regional banks are adding Plaid support regularly.
Managing Connected Accounts
Account Sync Status
In the Accounts section, you'll see sync status for each connected account:
- 🟢 Synced: Connected and up-to-date (last sync within 24 hours)
- 🟡 Syncing: Currently fetching new transactions
- 🔴 Needs Attention: Connection error - re-authentication required
- ⚪ Manual: Not connected to bank sync
Manual Sync
While accounts sync automatically daily, you can trigger a manual sync:
- Go to Accounts page
- Find the account you want to refresh
- Click the refresh icon next to the account name
- Wait for sync to complete (usually 10-30 seconds)
Disconnecting an Account
If you need to remove a bank connection:
- Navigate to Accounts
- Click on the connected account
- Click "Account Settings" or gear icon
- Select "Disconnect from Bank"
- Confirm disconnection
Note: Disconnecting stops new transactions from importing but doesn't delete existing transactions or the account itself.
Troubleshooting Connection Issues
Common Issues and Solutions
Error: "Invalid Credentials"
Your bank login failed. This usually means:
- • Incorrect username or password
- • Password was recently changed
- • Bank requires additional security verification
Solution: Try logging into your bank's website directly. If that works, try reconnecting in Purpose Budget with the same credentials.
Error: "MFA Required"
Your bank needs additional verification (security code).
Solution: Check your phone for SMS, email for code, or use your authenticator app. Enter the code when prompted by Plaid.
Error: "Institution Not Available"
Plaid is temporarily unable to connect to your bank.
Solution: Wait 30 minutes and try again. If issue persists, your bank may be undergoing maintenance. Check Plaid's status page or contact support.
Transactions Not Appearing
Connected but new transactions aren't showing up.
Solution:
- • Check sync status - may need re-authentication
- • Try manual sync refresh
- • New transactions can take up to 24 hours to appear
- • Pending transactions may not import until posted
Security and Privacy
How Your Data is Protected
Encryption:
- 256-bit SSL encryption (same as banks use)
- Data encrypted in transit and at rest
- Purpose Budget never stores your bank credentials
Read-Only Access:
- Plaid connection can only view transactions
- Cannot transfer money, pay bills, or modify accounts
- No access to perform any account changes
Compliance:
- Plaid is SOC 2 Type II certified
- Compliant with banking regulations (GLBA, FCRA)
- Regular third-party security audits
Who Can See Your Banking Data?
Purpose Budget sees: Transaction amounts, dates, merchant names, account balances
Purpose Budget does NOT see: Your bank login credentials, account numbers, routing numbers, or any personally identifiable information beyond what's in transaction descriptions
You control: Which accounts to connect, when to sync, and you can disconnect at any time
Revoking Access
You can revoke Purpose Budget's access to your bank data at any time:
Method 1: Through Purpose Budget
- Go to Accounts
- Select connected account
- Click "Disconnect from Bank"
Method 2: Through Plaid
- Visit my.plaid.com
- Find Purpose Budget in connected apps
- Click "Remove"
Method 3: Through Your Bank
- Log into your bank's website
- Find "Connected Apps" or "Third-Party Access" in settings
- Remove Plaid/Purpose Budget authorization
Best Practices for Bank Sync
Initial Setup
- Connect all active accounts: Include checking, savings, and credit cards you use regularly
- Review historical imports: Plaid usually imports 30-90 days of transactions initially
- Categorize everything: Take time to properly categorize imported transactions
- Set up transaction rules: Create rules to auto-categorize future transactions from common merchants
Daily Workflow
- Check for new transactions: Review imports daily or every few days
- Categorize promptly: Don't let uncategorized transactions pile up
- Verify amounts: Ensure imported amounts match receipts for important purchases
- Monitor sync status: Re-authenticate if connection errors appear
Maintenance
- Update credentials: If you change your bank password, update connection in Purpose Budget
- Reconcile monthly: Compare your budget to bank statements to catch any missed transactions
- Remove closed accounts: Disconnect accounts you've closed at the bank
- Monitor for duplicates: If you manually entered a transaction and it also imported, delete the duplicate
Bank Sync vs. Manual Entry
| Feature | Bank Sync | Manual Entry |
|---|---|---|
| Time Required | Minutes per month | 30-60 min per month |
| Accuracy | Exact bank data | Depends on diligence |
| Completeness | All transactions | Easy to forget some |
| Cost | Premium ($8.99/mo) | Essential ($4.99/mo) |
| Privacy | Shares data with Plaid | Complete control |
| Recurring Bills | Auto-detection | Manual templates only |
When to choose bank sync: You want to save time, have many transactions, or want automatic recurring bill detection
When to choose manual entry: You prefer privacy, have few transactions, or want to be extremely intentional about recording spending
Frequently Asked Questions
Q: How often do transactions sync?
Purpose Budget syncs with your bank once per day, usually overnight. You can also trigger manual syncs anytime from the Accounts page. Most transactions appear within 24 hours of posting at your bank.
Q: Do pending transactions show up?
It depends on your bank. Some banks share pending transactions through Plaid, others only share posted transactions. If you see pending transactions, they may change amounts or disappear if cancelled before posting.
Q: Can I connect international banks?
Plaid primarily supports US and Canadian financial institutions. Support for UK, European, and other international banks is limited but growing. Check if your institution is available during the connection process.
Q: What if I have multiple accounts at the same bank?
You can select multiple accounts during the connection process. All selected accounts will sync together under one Plaid connection. You can add or remove specific accounts later if needed.
Q: Will connecting my bank affect my credit score?
No. Connecting your bank through Plaid is not a credit inquiry and has zero impact on your credit score. It's a read-only connection to view transactions and balances.
Q: Can I use bank sync with Essential tier?
No, bank synchronization is a Premium-only feature ($8.99/month). Essential tier users can still import transactions via CSV files or enter them manually.
Q: What happens if my bank's connection breaks?
You'll see a "Needs Attention" status on affected accounts. Usually you just need to re-authenticate (re-enter your password). Your existing transactions and budget data remain safe - only new syncing is paused.
Q: How far back does the initial import go?
Most banks provide 30-90 days of historical transactions on the first import. Some banks provide up to 2 years. The amount varies by institution and is controlled by what they share with Plaid.
Ready to Connect Your Bank?
Upgrade to Premium and experience the convenience of automatic transaction imports. Bank-level security, zero effort transaction tracking, and auto-detected recurring bills await!