Last week I introduced the new online savings marketplace called SaveBetter. As I mentioned in the SaveBetter review, this new marketplace has potential, but the current products are disappointing. The main reason now to give this marketplace a try is the new account bonus being offered. One of the three banks that has partnered with SaveBetter is Ponce Bank, and it's offering an online savings account (its rate is 0.50% as of 2/10/21).
Since the rate alone isn’t much of an incentive, Ponce Bank is also offering a cash bonus for new customers who open and fund the account via SaveBetter. New customers can earn up to $150. Here are the details:
Once you complete your account registration at SaveBetter.com, transfer the required funds to qualify for the following bonuses:
- Receive a $50 bonus when you deposit $25,000+
- Receive a $100 bonus when you deposit $50,000+
- Receive a $150 bonus when you deposit $75,000+
To view the details and to register, visit the bonus landing page at SaveBetter.com by clicking on the “learn more” button at the DA Bonus Offers page.
Offer is valid through 2/28/2021. The following is a copy of the important small print of this offer:
Customer must maintain the minimum daily deposit amount for each level of bonus for a period of at least 90 days (e.g., a minimum balance of $25000USD daily to be eligible for a $50USD bonus cash). Bonus cash to be deposited by SaveBetter LLC into customer’s Customer Account within 30 days after customer qualifies for the offer. Offer valid from 01/21/21 to 02/28/21. US customers only. Not open to SaveBetter or Deposit Solutions employees. SaveBetter reserves the right to terminate this offer at any time and to deny Customer bonus cash for any reason.
In last week’s post, I reviewed SaveBetter and the features of the savings accounts offered by Ponce Bank and the other two banks. The savings account has several nice features such as no monthly fees and no balance requirements to qualify for the top rate. However, it also has several noteworthy limitations as I described in last week’s post. Two of the noteworthy limitations are that joint accounts can’t be opened and you can’t initiate ACH transfers from your other bank.
At the home page of SaveBetter.com, another bonus offer is listed. This bonus allows new customers to earn a bonus with just a $5k deposit ($25 bonus). However, the maximum bonus is only $125, and that requires a deposit of $105k. Another plus is that new customers can qualify by opening any of the SaveBetter products.
To earn a bonus in the amounts of $25 to $125, new customers must make deposits as listed below by 2/28/2021:
- Receive $25 on your first $5,000 deposit
- Receive an additional $5 for every $5,000 deposit thereafter, up to $125
The small print is very similar to the small print of the $150 bonus. One important difference is that the deposit amount required for the bonus only has to be maintained for 30 days. Below is a copy of the important details.
Customer must maintain the minimum daily deposit amount for each level of bonus for a period of at least 30 days (e.g., a minimum balance of $5000USD daily to be eligible for a $25USD bonus cash; or a minimum deposit of $10,000USD daily to be eligible for a $30USD bonus). Bonus cash to be deposited by SaveBetter LLC into customer’s Customer Account within 30 days after customer qualifies for the offer. Offer valid from 01/26/21 to 02/28/21. US customers only. Not open to SaveBetter or Deposit Solutions employees. SaveBetter reserves the right to terminate this offer at any time and to deny Customer bonus cash for any reason.
Since both bonus offers are only open to new customers, I doubt one person can qualify for both bonuses. If you do try, be aware of the last sentence of the small print: “SaveBetter reserves the right [...] to deny Customer bonus cash for any reason."
Headquartered in Bronx, New York, Ponce Bank is offering its High Yield Savings Account nationwide through the platform SaveBetter.com. This online platform provides the account application and ongoing account management.
To fund an account, SaveBetter will allow you to establish a link to your existing bank or credit union account. According to the SaveBetter website:
Your funds move from your financial institution to SaveBetter’s custodian bank, where it’s held safe and secure.
From start to finish, your money will be with an FDIC-insured bank, guaranteed for up to $250,000 per depositor per bank.
Currently, the custodian bank is Central Bank of Kansas City.
Regarding a hard credit inquiry in the application, the CSR said that they do not check your credit. They only confirm your identification in order to comply with federal law.
Applying for the Ponce Bank High Yield Savings Account must be done at the $150 bonus landing page at SaveBetter. To visit this page, click on the “learn more” button at the DA Bonus Offers page.
Bank and Platform Overview
Ponce Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 7.04% (excellent), based on September 30, 2020 data. In the past year, Ponce Bank has increased its total non-brokered deposits by $187.7 million, an excellent annual growth rate of 25.93%. Please refer to our financial overview of Ponce Bank (FDIC Certificate # 31189) for more details.
Ponce Bank is one of three banks that have partnered with Deposit Solutions to be listed at SaveBetter. Deposit Solutions is a German financial technology company (fintech) that has become a high-profile fintech in Europe. This Reuters article reported on the U.S. launch of SaveBetter platform in September 2020:
The nine-year old startup’s platform will enable savers to build a portfolio of deposits, while banks can broaden their funding sources without having to go through a broker.
For more discussion of the safety of banking via SaveBetter, please refer to my SaveBetter review.
For those who have enough savings to qualify and don’t want to worry about direct deposit, it should be an easy $150 bonus. If you maintain the deposit for the required 90 days plus an extra 30 days to play safe, you will earn a $150 bonus on a $75k balance in about four months. That comes out to an interest rate of 0.60%. Add that to the current rate (0.50%) and that’s like a 4-month CD with a 1.10% rate (assuming the 0.50% rate holds).
When interest rates are low, these savings account bonuses are more impactful.
As I mentioned in my SaveBetter review, Deposit Solutions is a major German financial technology company with significant resources. They appear to be in the deposit business for the long haul. So their product offerings may grow and become more competitive. Thus, this might be an account you’ll want for the long term.
Check out our full list of the best savings and checking account bonus offers.
The information above is accurate as of 2/10/2021.