Green Dot online savings account is 3% APY - what?

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Ryanm66
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Joined: Fri Mar 27, 2020 9:19 am

Green Dot online savings account is 3% APY - what?

Post by Ryanm66 »

I've looked on the Green Dot website and must have overlooked something or maybe it was in print to small for my aging eye sight. How can an online bank offer a 3% APY in a period where most online banks are only offering half that APY?

Ryan
benne77
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Joined: Sun Apr 26, 2015 12:55 pm

Re: Green Dot online savings account is 3% APY - what?

Post by benne77 »

Most of these online banks have special requirements like certain amount of debit transactions, amount deposited, or certain spend each month. I was recently with Orion Federal credit union at 4% for up to 30k. But like all of these offers it slowly got worse and worse. Check doctor of credit website before signing up to see other reviews. They lowered it to 3% up to 15k, now 1% on all balances. They all start off with high rates to get money in and then lower it. I’m done jumping through the hoops of these and leaving my money at cap 1 with a 1.5% rate. Too much work for something that always gets ruined.
Lastrun
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Joined: Wed May 03, 2017 6:46 pm

Re: Green Dot online savings account is 3% APY - what?

Post by Lastrun »

3% up to a balance of $10,000. 0% on amounts above $10,000.

https://www.greendot.com/content/dam/g ... ed3daa.pdf
FoolMeOnce
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Re: Green Dot online savings account is 3% APY - what?

Post by FoolMeOnce »

Here are a few ways how:

"Green Dot Bank, Member FDIC. Interest paid every 12 months based on the average daily balance of the prior 365 days, up to a maximum balance of $10,000. Annual Percentage Yields (APYs) are accurate as of 7/16/19 and may change before or after you open an account."

https://www.greendot.com/for-people/our ... count.html
patrick
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Location: Mega-City One

Re: Green Dot online savings account is 3% APY - what?

Post by patrick »

Don't forget the $7.95 monthly fee on this card, which adds up to $95.40 annually. If you kept the full $10,000 in there, your net interest rate after subtracting the fee would be more like 2.05% (and it's worse when you consider that the full 3% is taxable income).

I'd suggest looking at https://www.doctorofcredit.com/high-int ... gs-to-get/ if you want to find the best deposit accounts. Right now you can get 1.85% - 1.90% on plain money market accounts depending on your balance. If you are willing to accept limits, there are even better accounts listed. For instance DCU will pay 6.17% on the first $1,000 in your account (but a low rate on any excess). The Evansville Teachers Federal Credit Union offers 3.3% on their rewards checking accounts if you make 15 debit card purchases per month. Be warned that all of these could be lowered in the future.
SwampDonkey
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Joined: Sun Dec 26, 2010 8:49 pm

Re: Green Dot online savings account is 3% APY - what?

Post by SwampDonkey »

I listened to a Motley Fool podcast with the CEO of this company when they began this promotion. While he wouldn’t provide specific numbers, he did acknowledge the bank loses money on these accounts and they justify it as the cost for acquiring new customers.
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Cubicle
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Re: Green Dot online savings account is 3% APY - what?

Post by Cubicle »

Chasing savings accounts is always iffy to me. Rates can change at any time.
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dratkinson
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Re: Green Dot online savings account is 3% APY - what?

Post by dratkinson »

Search forum for "ABP by CC technique". After I learned it, I stopped chasing teaser rates.

Example. 2% tax-free---from using ABP by CC techniques---is close enough to my fed+state after-tax return on 3% APY taxable, that it's not worth the effort.

Besides. Never, not once, while chasing rated, did uncle sugar or his nephews at state, every thank me for my work and the windfall I was provide to them.
d.r.a., not dr.a. | I'm a novice investor, you are forewarned.
am
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Re: Green Dot online savings account is 3% APY - what?

Post by am »

Cubicle wrote: Fri Apr 03, 2020 9:11 pm Chasing savings accounts is always iffy to me. Rates can change at any time.
Agree. And the actual absolute dollar amounts involved after taxes always makes me reconsider chasing.
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watchnerd
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Re: Green Dot online savings account is 3% APY - what?

Post by watchnerd »

Lastrun wrote: Fri Apr 03, 2020 7:01 pm 3% up to a balance of $10,000. 0% on amounts above $10,000.

https://www.greendot.com/content/dam/g ... ed3daa.pdf
LOL.

I knew it was TGTBT.

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lakpr
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Re: Green Dot online savings account is 3% APY - what?

Post by lakpr »

Lake Michigan Credit Union is still offering 3% on its Max Rewards checking account up to $15k. You need to sign up for electronic statements only (one time election), then login at least 4 times during a calendar month and run at least 10 debit card transactions.

The latter two requirements sound onerous but really are not. I login logout 4 times in succession on a Sunday, takes 5 minutes. I also pay my xfinity bill with 10 micro payments ($1.00, $1.05, $1.10, etc.) at the same time to meet the 10 debit card transactions per month requirement. That is it.

Other precautions I take is to not use the debit card at any place else. If I do see a transaction from any where other than xfinity, I know it is immediately fraud and ask LMCU to stop the transaction and issue a replacememt debit card. Making you login 4 times per month actually helps both you and LMCU catch fraud early.

This is where my emergency fund is.
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