Highest Interest Rate Checking Account
You get 1% APY without doing anything, which is twice compared to any other savings accounts out there and it is a checking account, so you can write checks as well! If you have T-mobile wireless service you can get 4% APY on the first $3000 by doing 10 debit card transactions.
There are some drawbacks like no physical location and $3000 transfer limit when initiated from T-mobile MONEY. But you can work-around by initiating the transfer from an external bank. You only get 3 free checks, so you will have to order you own checks. I usually order from walmartchecks.com they are the cheapest.
T-mobile has basically allocated some of their wireless customer service staff to this checking account, so they don't have in-depth knowledge of the account. You won't get anything more out by calling the customer service than referring to the FAQ on the website.
They currently also don't support listing a beneficiary. This is my biggest hold back from depositing a large amount. Otherwise I would really like to use it as my main account to get the 1% interest rate on all my savings.
Tmo Money: Don’T Save Here
Yes, 4% is a crazy rate, and going forward, they’ll still offer it—but they are going to make you work for it.
10 debit transactions—rather than $200 deposited— will be required each month, and seems like a transparent attempt to say ‘don’t park money here’. Granted, over $3k its 1%, but using the excuse that its “too hard” for people to save $200/mo is silly.
Expect a hard time if you use your debit at month’s end to get to that magical 10th transaction. Banks are notorious for coming up with ways to do the wrong thing and quote fine print or the like.
SO Hard To Get Your Money Out After It Is Deposited
If you are thinking of using a TMobile bank account just be aware that they make it VERY hard to get your money out once it is deposited. There is a $3,000 limit to ACH transfers, going into or out of their bank. When I saw this account offer I thought "this is great, I can fund the account with the FDIC insurance limit and earn 1% on it, safely. One percent is nearly twice what the "real" online banks are now offering. But then I find that online transfers are limited to $3,000 per day, and you can only do a small number of transfers in each month. And unlike most banks, the limits are in force even if you initiate a transfer from one of your linked banks instead of through TMobile. And they accept ONLY incoming wire transfers, not outgoing. So if you put your money in, forget about transferring it out. Imagine putting in $250,000 and then only being able to get it back out by transferring $3,000 a day, and being limited to just a handful of monthly transactions. They get your money deposited, then make it too darn hard to get it out. I soooooo regret starting the account. I just made the assumption that like most online banks, TMobile would NOT limit the dollar amount of transfers that were initiated through the websites of linked banks. Do yourself a favor and don't get lured in by the 1% rate.
Unsurpassed Rates, Zero Issues, A Few Caveats
Since switching to Tmobile as a cell provider I've had nothing but positive experience and saved on my monthly bill. So I was incredulous that Tmobile could also offer rates that were the highest FDIC insured in the country - easily 8 times what any other institutions pay - but that's exactly what I've been getting since July of 2020. Free bill pay. Zero fees that I've encountered. A debit card. What's NOT to love?!? I think it's the best kept, small-time investor secret on the planet!
My complaints are few and I've had only one hiccup making deposits, transferring money out, and using bill pay. One recent bill pay didn't go through, but that might have been an issue on my end as I just recently set up the provider and transaction. The other 6 reoccurring transactions to providers have gone through just fine.
One caveat is that it takes a bit longer than typical for transfers to go through if initiated on the T-mobile side. About twice as long. I don't remember actually if transfers initiated from an outside institution have the same delay, but if not, this would be the solution to that hiccup. Even if that delay still exists? It's a small price to pay for such an unheard of, outstanding interest rate.
Another caveat is that in order to earn the 4% rate you have to make a deposit of at least $200 on a monthly basis in order to get this top tier rate. But Tmobile provides automated reoccurring deposits or direct deposit to help in that direction too. Or you can initiate the same from an external account from your outside institution. Since opening my account? I've never missed the 4% rate. Outstanding!
The high interest rate is limited to a balance of $3,000 or under. Rather than being an issue for me I see that as a bonus, especially for those of us who don't have that much money to throw around. Again, park that money elsewhere? You only get a fraction of that interest rate - you make beans actually - I think the next closest offered has been an AMEX savings account at a measly 1%? Hardly worth the effort if all you have is chump change in the account.
I've communicated to customer service twice through the mobile app add received two courteous and timely responses. Speaking of the app - I think it too, is outstanding. Simple, easy on the eyes - gets basic transactions done in a flash.
This account has totally changed my spending and saving thinking too. Here's a recent example. I'm considering purchasing a newer vehicle and in order to lower my monthly payment I was thinking of fronting $3,000 on the purchase. I can finance the vehicle at an attractive 2.89% interest rate. But wait...if I can take that same $3k and EARN 4% at Tmobile why the heck would I pay down the loan when I can make 1% plus otherwise on the difference?!?
I couldn't be much happier with my experience and especially my returns at Tmobile money!
Data as of Q1 2021
Health Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 34444 |
| Year Established | 1997 |
| Employees | 587 |
| Primary Regulator | FED |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 0.72% |
| Return on Equity - YTD | 10.67% |
| Annual Interest Income | $161.1MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q1 2021vs Q1 2020 | $18.81B$12.01B |
| Loans | Q1 2021vs Q1 2020 | $16.04B$10.17B |
| Deposits | Q1 2021vs Q1 2020 | $12.54B$8.49B |
| Equity Capital | Q1 2021vs Q1 2020 | $1.32B$1.08B |
| Loan Loss Allowance | Q1 2021vs Q1 2020 | $128.7MM$149.3MM |
| Unbacked Noncurrent Loans | Q1 2021vs Q1 2020 | $49.4MM$52.6MM |
| Real Estate Owned | Q1 2021vs Q1 2020 | $57.00K$131.00K |