T-Mobile Launches Mobile Banking Offering 4% APY on Checking
Cell phone provider T-Mobile officially rolled out its mobile banking product on Thursday, touting high interest rates and a lack of fees. The announcement comes after the company had been piloting the service since November and adds to the list of unique benefits the carrier offers compared to traditional providers.
Eligible T-Mobile customers can earn a whopping 4% Annual Percentage Yield (APY) on checking account balances up to $3,000 – and 1% APY on every dollar over that.
That’s a great rate, but unfortunately you’ll only earn it on a relatively low balance, however you won’t find many other checking accounts with a high APY. Over the course of the year you can expect to earn around $120 if you keep an average of $3000 in the account. You’ll have to deposit $200 a month into your account to qualify for that rate.
Anything over $3,000 should be kept in a high-yield savings account if you want to maximize your returns. Bankrate has a list of accounts that offer interest rates north of 2% without any caps, like BBVA Compass which offers 2.4% as long as you have at least $25 in the account.
Another benefit is that no monthly fees are attached to the account regardless of balance — and if you’ve overdrawn your account, T-Mobile won’t hit you with an overdraft fee, in fact, they’ll cover the first $50 after you enter the red as long you pay them back within 30 days.
The best benefits like high interest rates are only available to T-Mobile customers, but anyone can open an account if they’d like. T-Mobile customers can also enroll in T-Mobile Tuesdays, a rewards program where customers get weekly prizes like discounts (or sometimes free) on movie tickets, gas, food and other items.
The account, powered by Bank Mobile, is FDIC insured up to $250,000, and you’ll have access to the Allpoint ATM network where you can withdraw cash without paying a fee at 55,000 ATMs around the country. You’ll have access to traditional banking services like mobile check deposit, bill pay and transferring money.
Featured image by Justin Sullivan/Getty Images.
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