Is the flavor of your new savings account … mango?
In this review of Mango’s high yield savings account we will look at more than just the eye popping APY of 5.10%. With the national average for savings and money market account rates a dismal .23%, how in the world does a relatively new online entity offer such an incredible return to their depositors?
If you have not compared savings rates in awhile but are looking to open an account in the near future think about downloading our rate tracker application so you can monitor money market rates, savings account rates, and CD rates right from your desktop.
Details of the Mango Savings account (the fine print)
There are some important details in regards to a Mango savings account. Be aware that the high savings APY of 5.10% is only calculated on your savings balance of $5,000 or less. You can have up to $10,000 in your account, but only $5,000 of it will earn at the rate of 5.1% per year. Please note that the 5.1% APY is a promotional rate that you have to qualify for. The standard APY is still a hefty 3%. Whether your rate of return is the promotional or standard, you only receive interest on your deposited amount up to $5,000 and nothing for any amount over $5,000. This is a savings account and so you are limited to 6 outgoing transfers per month. With Mango’s online banking services you can check balances and transfer funds 24/7 on the internet or through your mobile phone.
Mango Savings Account Setup
The set up of your Mango savings account is a three step process.
Step 1 – In order to set up a Mango high rate savings account, you first need to apply for a Mango prepaid debit Mastercard. There are no credit checks for this card since you are not applying for credit. There are no overdraft fees because you are simply spending what you have loaded onto the card. To apply for Mango prepaid debit card you only need your basic personal information (including social security number). You will be asked for your e-mail address as well as your cell phone number. Your cell phone information is needed to enroll you in YAP. YAP is the mobile phone application that allows you to transfer money or check balances on your mobile device. When you send money using YAP there is a 50 cent charge. There is no charge to check your balance or to receive money except your mobile phone service provider’s messaging charges. YAP charges are directly withdrawn from your prepaid Mango debit card. There are no activation or transaction fees when you use the Mango debit card.
Step 2 – Then you need to enroll in Mango’s recurring direct deposit program. This is where you have funds directly deposited to your Mango prepaid debit Mastercard. If you would like to avoid the $5 monthly service fee, then you need to make sure that your monthly, recurring direct deposit is $500 or more.
Step 3 – Once you have competed steps one and two, then you can open a Mango high yield savings account with a minimum initial deposit of only $1. Mango will have to verify your identity prior to opening your high yield savings account.
Summary of the Mango High Yield Savings Account
The Mango Savings account is really engineered for those who cannot qualify for credit. The amount of hoops that you have to jump through to qualify for the 5.10% may not be worth it for the investor with a balance of more than $5,000. This is a great prepaid card and high interest savings account for those who are looking to carefully manage funds and who do not have established credit. The easy access to funds, make this high yield savings account comparable to a money market account in that you have a debit card linked to the savings account. This set up may be ideal for college students or high school students who are just starting to build their own investment funds and credit.
Visit the official Mango Money website here.