HM Bradley savings plan 3% APY

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rage_phish
Posts: 178
Joined: Thu Jan 31, 2019 4:27 pm

HM Bradley savings plan 3% APY

Post by rage_phish »

Anyone familiar with them? It seems like a good place to park our emergency fund which doesn’t get used for anything

That’s why we created Savings Tiers – our way of rewarding customers with different types of saving behaviors. Each of our four Savings Tiers represents the amount a customer saves every calendar quarter and rewards them with a corresponding rate, between 0.50 to 3.00% APY1

Customers who save 20% or more of their quarterly deposits will earn 3.00% APY in Tier 1.
Customers who save between 15% and 20% quarterly will earn 2.00% APY in Tier 2.
Customers who save between 10% and 15% quarterly will earn 1.00% APY. All new customers begin in Tier 3.
Customers who save between 5% and 10% quarterly will earn 0.50% APY.
Saving below 5% will result in no earned interest.
cowbman
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Re: HM Bradley savings plan 3% APY

Post by cowbman »

Opened an account and put some in. You do need to direct deposit and save money for 1-2 months until you get the 3%. Once I get the 3%, I'll move over most of the emergency fund.
MikeG62
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Location: New Jersey

Re: HM Bradley savings plan 3% APY

Post by MikeG62 »

Seems one could achieve the Tier 1 rate by simply directing a small $ amount of their paycheck (i.e., no need to deposit entire paycheck) to this HMB account and not withdrawing any or much of it. Then once qualifying for the Tier 1 rate (at end of first full calendar quarter after making the intial direct deposit), transfer in up to, but somewhat less, than $100K and leave it there. Earn 3.0% on your money.

So, for example, open an account on 9/15/20, with first semi-monthly direct deposit of $100 hitting before 9/30. By 12/31 you'd have $700 in the account (and you'd be earning 1.0% on your account balance for that quarter). On or about 12/31/20, ACH $90,000 in cash into the account. Begin earning 3.0% in Q1 2021 on the almost and growing balance of $91,000.

If a time comes where you need a chunk of the money sitting there, either accept you'd potentially earn nothing on the amount left in the account for the next quarter or just pull all funds from the account (for at least the next 3 months). Could always move funds back at the beginning of the quarter after making the withdrawal and start over again.

Having said all that, this requires someone to have a qualifying direct deposit (which they define as, "deposits made by the customer’s employer, a federal or state government agency, retirement benefits administrator, or alimony"). So doesn't work for me. Also, HMB is not a member of FDIC themselves. They "claim" on their web site that "all deposit accounts are provided by Hatch Bank, Member FDIC". Hatch Bank is a tiny ($80 million in assets) one branch California bank with 5 employees. I don't particularly like the sound of that, but I'm pretty risk averse.

Although I suppose the FDIC insurance takes the risk out, I'm not sure I'd want to put money into this account without reading reviews of lots of others who've done it before me and have been enjoying this rate for a while. Seems this structure was offered back in late 2019, but I've yet to read of many people who have jumped on the offer. I've read of people talking about it (on reddit), but not much of folks who have opened the account and documented their experience.
Real Knowledge Comes Only From Experience
MrJedi
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Re: HM Bradley savings plan 3% APY

Post by MrJedi »

I've had an account for a month now. Interesting concept but not without some kinks. A couple weeks ago they had an authentication outage where I couldn't login for half a day. Couldn't create an ACH link on their site, though I can push and pull money from external account. After starting the link, I couldn't remove the unfinished link, I had to contact CS to remove it. Site/app is very basic/minimalistic. Everything is just a bit unpolished. I would be very hesitant on using it as a workhorse type of account.
cowbman
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Re: HM Bradley savings plan 3% APY

Post by cowbman »

MrJedi wrote: Sat Sep 12, 2020 7:38 am I've had an account for a month now. Interesting concept but not without some kinks. A couple weeks ago they had an authentication outage where I couldn't login for half a day. Couldn't create an ACH link on their site, though I can push and pull money from external account. After starting the link, I couldn't remove the unfinished link, I had to contact CS to remove it. Site/app is very basic/minimalistic. Everything is just a bit unpolished. I would be very hesitant on using it as a workhorse type of account.
I don't see why it wouldn't be a good savings account paired with a good checking that you can push/pull from.
presto987
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Re: HM Bradley savings plan 3% APY

Post by presto987 »

^ Agree. I just heard about this account and am surprised it's not getting more interest. That said, if it got a lot more interest, they would probably have to cut the rates.
Farmboyslim83
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Re: HM Bradley savings plan 3% APY

Post by Farmboyslim83 »

Lake Michigan Credit Union has had that same rate for several years, not hard to meet the reward criteria. Spend 5 minutes a month on 2 accounts.
presto987
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Re: HM Bradley savings plan 3% APY

Post by presto987 »

Farmboyslim83 wrote: Thu Oct 01, 2020 11:32 am Lake Michigan Credit Union has had that same rate for several years, not hard to meet the reward criteria. Spend 5 minutes a month on 2 accounts.
Thanks for the tip. But you have to use their debit or credit card 10x per month, right?
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batpot
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Re: HM Bradley savings plan 3% APY

Post by batpot »

presto987 wrote: Thu Oct 01, 2020 2:20 pm
Farmboyslim83 wrote: Thu Oct 01, 2020 11:32 am Lake Michigan Credit Union has had that same rate for several years, not hard to meet the reward criteria. Spend 5 minutes a month on 2 accounts.
Thanks for the tip. But you have to use their debit or credit card 10x per month, right?
yeah...just buy a few amazon credits throughout the month.

But HMB is attractive because it will take up to $100k; Michigan CU is capped at $15k.

I signed up, fully expecting the rate to get nerfed before I can really cash in...but I'm now Tier 1 after only a month of DDs, and already got interest posted (at 1%/ tier 3). Was assuming they'd only pay interest quarterly, so pleasantly surprised so far.
We'll see how long this lasts.
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whodidntante
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Re: HM Bradley savings plan 3% APY

Post by whodidntante »

presto987 wrote: Thu Oct 01, 2020 10:47 am ^ Agree. I just heard about this account and am surprised it's not getting more interest. That said, if it got a lot more interest, they would probably have to cut the rates.
It's because we think we know it won't last.
Farmboyslim83
Posts: 114
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Re: HM Bradley savings plan 3% APY

Post by Farmboyslim83 »

batpot wrote: Thu Oct 01, 2020 3:10 pm
presto987 wrote: Thu Oct 01, 2020 2:20 pm
Farmboyslim83 wrote: Thu Oct 01, 2020 11:32 am Lake Michigan Credit Union has had that same rate for several years, not hard to meet the reward criteria. Spend 5 minutes a month on 2 accounts.
Thanks for the tip. But you have to use their debit or credit card 10x per month, right?
yeah...just buy a few amazon credits throughout the month.

But HMB is attractive because it will take up to $100k; Michigan CU is capped at $15k.

I signed up, fully expecting the rate to get nerfed before I can really cash in...but I'm now Tier 1 after only a month of DDs, and already got interest posted (at 1%/ tier 3). Was assuming they'd only pay interest quarterly, so pleasantly surprised so far.
We'll see how long this lasts.
Well, I learned here that one can make 12 debit card payments online to cable or wireless providers. Make like $36 bucks a month interest at LMCU, so do 12 debit payments that total that. Works at verizon wireless and xfinity, for me.
MBB_Boy
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Re: HM Bradley savings plan 3% APY

Post by MBB_Boy »

I signed up when it was taking a waitlist, and then was turned off by how complicated it seemed. I can get 2.8% at Varo (capped at 10K per account) and 4% at T-Mobile (capped at 3K). Between my wife and I, that's all the cash in interested in holding (also have a 5 year unlimited add-on CD at over 3% that is funded with more).

I don't have a need for the HMBradley account so I kind of just let it go. Good to hear that it's easier to get to T3 than they indicated when the initial T&C's came out
bob1234
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Re: HM Bradley savings plan 3% APY

Post by bob1234 »

I signed up and it was pretty straightforward. I'm in the 3% tier now.

I was wondering, has anyone done research into what happens if there is fraudulent activity. I see that there is a zero liability protection on the debit card, but I didn't sign up for the debit card, so I was wondering about the account itself. Does federal law cover all cases, or could there be cases that are not covered?
BV3273
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Re: HM Bradley savings plan 3% APY

Post by BV3273 »

MBB_Boy wrote: Fri Oct 02, 2020 8:28 am I signed up when it was taking a waitlist, and then was turned off by how complicated it seemed. I can get 2.8% at Varo (capped at 10K per account) and 4% at T-Mobile (capped at 3K). Between my wife and I, that's all the cash in interested in holding (also have a 5 year unlimited add-on CD at over 3% that is funded with more).

I don't have a need for the HMBradley account so I kind of just let it go. Good to hear that it's easier to get to T3 than they indicated when the initial T&C's came out
Never heard of Varo. Checked out their website. It’s showing 0.81% on savings accounts. Where are you getting the 2.8% from?
MBB_Boy
Posts: 195
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Re: HM Bradley savings plan 3% APY

Post by MBB_Boy »

BV3273 wrote: Mon Oct 05, 2020 6:48 am
MBB_Boy wrote: Fri Oct 02, 2020 8:28 am I signed up when it was taking a waitlist, and then was turned off by how complicated it seemed. I can get 2.8% at Varo (capped at 10K per account) and 4% at T-Mobile (capped at 3K). Between my wife and I, that's all the cash in interested in holding (also have a 5 year unlimited add-on CD at over 3% that is funded with more).

I don't have a need for the HMBradley account so I kind of just let it go. Good to hear that it's easier to get to T3 than they indicated when the initial T&C's came out
Never heard of Varo. Checked out their website. It’s showing 0.81% on savings accounts. Where are you getting the 2.8% from?
https://support.varomoney.com/hc/en-us/ ... s-Account-
BV3273
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Re: HM Bradley savings plan 3% APY

Post by BV3273 »

MBB_Boy wrote: Mon Oct 05, 2020 7:53 am
BV3273 wrote: Mon Oct 05, 2020 6:48 am
MBB_Boy wrote: Fri Oct 02, 2020 8:28 am I signed up when it was taking a waitlist, and then was turned off by how complicated it seemed. I can get 2.8% at Varo (capped at 10K per account) and 4% at T-Mobile (capped at 3K). Between my wife and I, that's all the cash in interested in holding (also have a 5 year unlimited add-on CD at over 3% that is funded with more).

I don't have a need for the HMBradley account so I kind of just let it go. Good to hear that it's easier to get to T3 than they indicated when the initial T&C's came out
Never heard of Varo. Checked out their website. It’s showing 0.81% on savings accounts. Where are you getting the 2.8% from?
https://support.varomoney.com/hc/en-us/ ... s-Account-
Thx
vbdoug
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Re: HM Bradley savings plan 3% APY

Post by vbdoug »

I am giving it a shot. I opened an account for $200. My SS will be direct deposited to them in December. I entered their plan to be offered a credit card; with their credit card I believe the rate goes up to 3.5%. After that I will transfer more cash. Their current lowest rate is 1% and their highest rate is 3.5%. I assume those rates will eventually be reduced but expect that their new lowest rates will still be highly competitive. It will last until it does not.
Escapevelocity
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Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

vbdoug wrote: Sun Oct 18, 2020 12:13 pm I am giving it a shot. I opened an account for $200. My SS will be direct deposited to them in December. I entered their plan to be offered a credit card; with their credit card I believe the rate goes up to 3.5%. After that I will transfer more cash. Their current lowest rate is 1% and their highest rate is 3.5%. I assume those rates will eventually be reduced but expect that their new lowest rates will still be highly competitive. It will last until it does not.
I also opened an account and am working on getting my direct deposit set up. Where do you see the offer of the rate going to 3.5% with the credit card?
Retired1809
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Re: HM Bradley savings plan 3% APY

Post by Retired1809 »

So a customer could have an electronic deposit in any amount directed to HMB and earn 3% on the entire of the account (including transfers or non-electronic deposits) ? I have a small monthly distribution from an annuity (less than $200 per month) that would meet the requirement?

And then earn 3% on the HMB account balance that would include, say $50,000 deposited or transferred from another of my accounts?

Is this true?
BV3273
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Re: HM Bradley savings plan 3% APY

Post by BV3273 »

Yup. Looks like that will work.
Retired1809
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Re: HM Bradley savings plan 3% APY

Post by Retired1809 »

Simple question: Is HM Bradley a bank?

I cannot find HM Bradley as a member institution of FDIC either searching for its name or its website.

If they are merely a depositor at Hatch Bank, would the FDIC insurance limit of $250,000 apply to the total account balance that HMB has on deposit (on behalf of its customers)? And if that's the case, how much insurance would an individual HMB depositor have? How much does HMB have on deposit at Hatch? Assuming HMB had just $2,500,000 and failed, does this mean that HMB's depositors would get no more than 10% of their funds under the FDIC coverage for the one HMB account?

I would want an answer from the FDIC before making a deposit with HMB.

Remember, in a near-zero-rate world, a 3% yield makes ones heart beat a little faster. I won't compare this to skimpy bathing suits but sometimes you have to just sit down and remember to "investigate before you invest."
Auream
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Re: HM Bradley savings plan 3% APY

Post by Auream »

https://faq.hmbradley.com/hc/en-us/arti ... C-insured-

HMBradley is just the “marketer” so to speak. Your money is on deposit at Hatch bank. HMBradley is not the depositor, you are, so you’re covered up to $250,000 like any other bank account.
Retired1809
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Re: HM Bradley savings plan 3% APY

Post by Retired1809 »

Thanks, Auream. This still seems a little squishy. HMB may be the "marketer" as you say and not the bank. I can see a lot of fingers being pointed at "the other guy."

Who will issue the 1099-INT? Will it be HMB, Hatch or Hatch's parent, Firstrust? I'm still not convinced that my money will be deposited in an account in my name at a FDIC member institution. It isn't unrealistic to expect an iron-clad guarantee of FDIC insurance.

And perhaps the biggest question is still, "In a near-zero interest rate world why, if HMB is as you say a "marketer," why would they have to pay 3% to be in a marketing business? Really? Does this pass the "smell test?"

I can imagine uninformed savers being attracted to deals like this and risking 100% of their capital to gain just 3% if it's not really insured, in the event HMB fails.

Edit: HMB appears to carefully avoid the term "bank" at their website. As a prospective customer, I would feel better if they would clearly state that each HMB customer would have a FDIC-insured account at Hatch Bank. Without that, I would feel compelled to walk away.
Auream
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Re: HM Bradley savings plan 3% APY

Post by Auream »

I would expect the 1099-INT to come from Hatch bank, since that’s where the money is actually deposited. There’s plenty of other accounts (mostly reward checking accounts) paying in the vicinity of 3%. Most have limits of 10-20k, however, and require debit card transactions to qualify. 3% really isn’t highly unusual, although I’d expect the 100k cap on the high interest tier to go away sooner rather than later.

Once they have a critical mass of deposits, I can totally see them capping the 3% tier at 10K and paying 1% on amounts beyond that. That’s probably still just good enough to keep most people from moving everything out.
patrick
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Re: HM Bradley savings plan 3% APY

Post by patrick »

Retired1809 wrote: Sun Oct 18, 2020 9:26 pm Thanks, Auream. This still seems a little squishy. HMB may be the "marketer" as you say and not the bank. I can see a lot of fingers being pointed at "the other guy."

Who will issue the 1099-INT? Will it be HMB, Hatch or Hatch's parent, Firstrust? I'm still not convinced that my money will be deposited in an account in my name at a FDIC member institution. It isn't unrealistic to expect an iron-clad guarantee of FDIC insurance.

And perhaps the biggest question is still, "In a near-zero interest rate world why, if HMB is as you say a "marketer," why would they have to pay 3% to be in a marketing business? Really? Does this pass the "smell test?"

I can imagine uninformed savers being attracted to deals like this and risking 100% of their capital to gain just 3% if it's not really insured, in the event HMB fails.

Edit: HMB appears to carefully avoid the term "bank" at their website. As a prospective customer, I would feel better if they would clearly state that each HMB customer would have a FDIC-insured account at Hatch Bank. Without that, I would feel compelled to walk away.
They aren't going to claim to be a "bank" themselves because they aren't. However, their page at https://www.hmbradley.com/about/#security seems to come pretty close that that:
Every deposit account is opened and maintained with Hatch Bank, Member FDIC, and is insured up to $250,000 per depositor.
soxfan10
Posts: 67
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Re: HM Bradley savings plan 3% APY

Post by soxfan10 »

patrick wrote: Mon Oct 19, 2020 1:22 pm
Retired1809 wrote: Sun Oct 18, 2020 9:26 pm Thanks, Auream. This still seems a little squishy. HMB may be the "marketer" as you say and not the bank. I can see a lot of fingers being pointed at "the other guy."

Who will issue the 1099-INT? Will it be HMB, Hatch or Hatch's parent, Firstrust? I'm still not convinced that my money will be deposited in an account in my name at a FDIC member institution. It isn't unrealistic to expect an iron-clad guarantee of FDIC insurance.

And perhaps the biggest question is still, "In a near-zero interest rate world why, if HMB is as you say a "marketer," why would they have to pay 3% to be in a marketing business? Really? Does this pass the "smell test?"

I can imagine uninformed savers being attracted to deals like this and risking 100% of their capital to gain just 3% if it's not really insured, in the event HMB fails.

Edit: HMB appears to carefully avoid the term "bank" at their website. As a prospective customer, I would feel better if they would clearly state that each HMB customer would have a FDIC-insured account at Hatch Bank. Without that, I would feel compelled to walk away.
They aren't going to claim to be a "bank" themselves because they aren't. However, their page at https://www.hmbradley.com/about/#security seems to come pretty close that that:
Every deposit account is opened and maintained with Hatch Bank, Member FDIC, and is insured up to $250,000 per depositor.
HM Bradley is an affiliated entity of Hatch Bank with non bank operations. They aren’t paying 3% to be in the marketing business - hatch is paying 3% to get the deposits to get its capital way up and quickly and they decided HM Bradley was a better marketing name than Hatch.
vbdoug
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Re: HM Bradley savings plan 3% APY

Post by vbdoug »

Escapevelocity stated and asked:
"I also opened an account and am working on getting my direct deposit set up. Where do you see the offer of the rate going to 3.5% with the credit card?".

From their web site, if I am interpreting it correctly.
"Boosting the Savings Tier on Your HMBradley Deposit Account: You can boost the Savings Tier on your HMBradley Deposit Account by one level if you:
Spend at least $100 on your Card Account every Billing Period with a closing date in the calendar quarter in which we determine the Savings Tier pursuant to the HMBradley Deposit Account Agreement and Disclosures;
Remain current and not in default on your Card Agreement; and
Maintain an open HMBradley Deposit Account.
If you already are in Savings Tier 1, we will add 0.5% annual percentage yield bonus to your HMBradley Deposit Account."
JBTX
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Re: HM Bradley savings plan 3% APY

Post by JBTX »

If you thought that you may need some of the cash along the waywould it make sense to:

Oct-Dec $100 a month DD. Dec 31=$300.

Start earning 3.0% January 2

Move $50k in January 2.

DD $300 JAN- MAR

Pull out $40k Mar 31

Mar 31 balance $10,600, which exceeds 50,300times 20% so next quarter still qualifies.

April 1, put in $40k

Rinse repeat

This way you lose a few days of interest, but if you needed $10k -$20k cash you would still get the rate next quarter :dollar
Buffetologist
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Re: HM Bradley savings plan 3% APY

Post by Buffetologist »

Honestly this seems too good to be true. I'm trying to see through the scam. Is the hatch bank account registered in your name or does the money go through HM Bradley into the FDIC account? What evidence do you get that you actually have an account? What would happen in the event of an HM Bradley bankruptcy. Hatch bank only has 5 employees; Who handles customer service. On 100K it's an annual return of more than 2K over any other account. It's intriguing but I'm passing for now.

Good luck to those who try it.
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