The big news today in the world of prepaid credit cards comes from one of our favorite cards, the Mango MasterCard. Mango has released details on its high interest savings account it now offers those who carry the Mango MasterCard. On balances up to $5,000, Mango currently pays an eye-popping 5.1% APY.
So what’s the catch? There really isn’t any, but there are a few things to note.
First, the 5.1% APY is a promotional rate that applies to balances up to $5,000. Second, to open an account, you must set up direct deposit to the Mango MasterCard. Setting up direct deposit is free, and Mango even offers a $20 bonus when you sign up for direct deposit. Third, the standard interest rate is currently 3.0% APY, and there is no indication yet as to how long the promotional 5.1% rate will last. Still, even a 3.0% APY beats every other high interest rate savings account available.
Here are the details on the promotional rate from the Mango website:
This interest rate will remain in effect as long as you maintain your eligibility for the promotional rate. (See the Website for more details on promotional rate eligibility.) However, we may change the promotional interest rate at any time.
If your average daily balance is $5,000.00 or less, the interest rate paid on the entire balance in your Savings Account will be 4.99 % with an annual percentage yield of 5.10%.
If your average daily balance is greater than $5,000.00, an interest rate of 4.99% will be paid only for that portion of your average daily balance which equals $5,000.00. No interest will be paid on the remainder of your average daily balance. The annual percentage yield for this tier will range from 5.10% to 2.55%, depending on the balance in your Savings Account.
Your interest rate and annual percentage yield may change.
And here are the details on the standard interest rate:
If your average daily balance is $5,000.00 or less, the interest rate paid on the entire balance in your Savings Account will be 2.96% with an annual percentage yield of 3.00%.
If your average daily balance is greater than $5,000.00, an interest rate of 2.96% will be paid only for that portion of your average daily balance which equals $5,000.00 USD. No interest will be paid on the remainder of your average daily balance. The annual percentage yield for this tier will range from 3.00% to 1.50%, depending on the balance in your Savings Account.
Your interest rate and annual percentage yield may change. You may become eligible for the promotional rate at any time. (See the Website for more details on promotional rate eligibility.)
One important thing to note is that the savings account is FDIC insured. This is important because it ensures you’ll get your money even if the bank failed. Also, there are no fees associated with the savings account. Here are details on the card:
(Hat Tip: Get Debit)