2% Checking At Simple - Paid On Entire Balance?

unagi
  |     |   27 posts since 2018

Has anyone used Simple for checking and knows if their new 2% rate would apply to the entire checking balance (if greater than the $2,000 threshold) or does it apply only to balances greater than $2,000 inside one of the goofy savings goals you set in the app? Their promotional material suggests it's the latter. Their terms describe a "base account" vs the savings goals and it's not clear that this rate applies to the base account. The only way you are allowed to message them is to ask is by signing up for an account or by sharing your social media details to ask via FB or Twitter. At this 2% rate, with no debit card requirements, I'd consider using this bank as my primary checking account -- but if the rate doesn't apply to money in the main balance, it wouldn't be worth it to set this up, I think.



Answers
NoviceInvestor
  |     |   5 posts since 2018
It appears they want you to maintain a minimum of $2000 in a "Protected Goals" savings account at all times, while you bank mainly from the checking account. They want the $2000 untouched, similar to a CD deposit where they have access to it while you don't - hence the higher interest. I've inquired if the interest rate also applies to checking.

" Rates are variable and are subject to change after the account is opened." This is from their 'fine print'.
High rates offered for checking and savings accounts are teaser rates, they drop dramatically. CD's offer high rates because you essentially lose access the money for the term.. I would be weary of 2.02% APY on your account lasting indefinitely.
NoviceInvestor
  |     |   5 posts since 2018
I sent a message on Simple's Facebook page and they responded: "The 2.02% only applies to the Protected Goal account, not the regular checking account. ^SG"
unagi
  |     |   27 posts since 2018
Yikes, good thing I didn't set that up - thanks!
unagi
  |     |   27 posts since 2018
Thanks. I'll stick with my 1.6% MemoryBank checking account linked to the 2.25% Memory Bank Money Market and beat both of Simple's rates.


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