Just noticed this savings account described at the NYT Bucks blog
The savings account pays 5.1% APY, BUT there are important catches:
- 5.1% APY applies only to the first $5,000 balance
- It's attached to the new Union Plus prepaid card
As you can see in the Bucks blog, there are potential fees.
There have been other prepaid cards that provide a high-yield savings account. NetSpend has been offering a 5% savings account for its prepaid card since 2008. I reviewed this NetSpend account in this thread
, and the history of NetSpend in this thread