Posted by Chuck on September 11, 2017
Prepaid Cards With High APY's

Published on September 11th, 2017 | by Chuck

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Ace Flare Prepaid: 6% APY up to $2,000 [$5 Monthly Fee]

  • Interest Rate: 6% APY
  • Minimum Balance: None
  • Maximum Balance: $2,000 (after that .5% APY)
  • Availability: Nationwide
  • Direct deposit required: Yes (one-time $500)
  • Additional Requirements: None
  • Hard/soft pull: Soft
  • Credit card funding: No
  • Monthly fees: $5-$10 (non-waivable)
  • Insured: FDIC

The Offer

Direct Link to offer

  • The Ace Flare prepaid card earns 6% APY on balances up to $2,000; any portion of the balance above $2,000 earns a lower .5% APY rate

You do need to first receive a $500+ direct deposit in order to be able to open the saving account which has the 6% rate. I believe you’ll only need one direct deposit or ACH transfer of $500 within a single calendar month, and then you’ll be eligible for the 6% account even without subsequent direct deposits.

Ace is one of the various prepaid cards that run under the Netspend brand and backed by MetaBank (FDIC insured). This specific variety called the Ace Flare has this special 6% APY account on up to $2,000.

Avoiding Fees

There is a $9.95 monthly fee. However, if you receive a $500 direct deposit, your fee will be then lowered to just $5 per month. You only need one direct deposit and thereafter your monthly fee will be just $5 forever.

Our Verdict

Back in the good old days, some of us had multiple Netspend accounts and were earning 5% APY on each one, up to $5,000 each. That ended when Netspend capped the 5% at $1,000. Some people still maintain their accounts for the $50 interest yearly, personally I dropped them to simplify my life.

This is interesting as the interest rate is even excellent at 6%, and the limit is double at $2,000. This could have been a worthwhile option…if not for the fees. Most Netspend cards offer the option to choose the Pay As You Go plan which has no monthly fees. Unfortunately, this cards seems to have a minimum $5 monthly fee. The fee essentially cuts the earnings on the account in half to 3% as you’ll get $120 in earnings per year and pay $60 in fees. Worse yet, you might end up paying taxes on the the entire $120, the amount which will show on the Form 1099 INT.

We’ll add this to the list of Best High-Interest Savings Accounts, though to my mind this card is not not worth getting for it’s interest rate. Check that list for more worthwhile options.

Hat tip to reader T.



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anthonyjh21
anthonyjh21

As always I appreciate everything you all do to keep us informed of the best HYS accounts but I was a bit surprised you’re adding this to the best of list. I just don’t see how this is worth the time or effort. There’s so many other options in the 3% range without a $2k cap.

Phill
Phill

+1

Steve
Steve

What are some examples of “other options in the 3% range without a $2k cap”? (other than reward checking accounts that require a bunch of transactions, and CDs)

DD
DD

+1

Charles Chang
Charles Chang

The only catch is they may lower the limit at anytime.

anthonyjh21
anthonyjh21

I guess the upside is there’s only so much they can lower it to!

jason
jason

6% rate but $5 per month, that’s a joke! You might end up less than $60 per year as interest rate.

With Blue Fed Credit Union’s checking account, I can do Bluebird/Serve load or Google Wallet payment at $0.01 each time, Blue Fed pays me $0.05 per POS. I can do a maximum of 25 transactions a day, and I can get at most $25 a month, non-taxable. No min. balance required at checking account.

Joe
Joe

Wow, forreal? I am thinking of signing up for this now!

anthonyjh21
anthonyjh21

I can’t be interpreting this correctly… are you telling me you do 25 transactions per day, spread out to your cap of 500 per month, to get your monthly $25?!?

Never mind the amount of time required. How long have you been able to do this without getting your accounts flagged?

Joe
Joe

I’m interested in this for I could just automate it through Serve and let it accumulate. Not much of a time requirement that way. Also interested in how long they have been able to do it, for once it’s set up I’ll take an easy $25 a month I’m broke anyways.

JASON
JASON

I’ve been doing that for months. I didn’t know this credit union until i read the post banks/credit union that allows to fund with a credit card. I already wrote a comment like this when I realized it, but guess it didn’t catch too much attention. After I funded Citi Double Cash $2000 I thought I got what I wanted which was just $40 cash back from the card. But then I began to study their rewards checking account. You can search back the post about Blue Fed Credit Union. Long story short, you have one DD into the account (can be simply a paypal deposit, or transfer from other banks, and I go with the amount $10 just to be safe) they pay you $0.05 per POS at the end of the month up to a max of $25. $25/$0.05=500 transactions.That being said, you need to do 500 transactions in a calendar month to get that $25. It sounds crazy to many people as you got to do more than like 500/30=16 transactions a day. But with google wallet or Bluebird/Serve debit card loads, it’s just too easy to meet. I used to do it on google wallet but changed to Bluebird/Serve now. And I use the apps rather than doing it on the web because when you hit the amount $0.01 you basically just need to hit 1, and then submit. But trust me, you really got to do that every day. If you don’t have that patient or time then forget about what I said. I’ve been seeing ppl driving to a supermarket on weekend and deposit those plastic bottles packed in bags to get back their 5 cents each bottle/can. I don’t know but I do one click and I will have 5 cents deposit into my account. Do they recycle to get $25 from cans/bottle at the machine in a supermarket? Fed Blue Credit Union doesn’t care my behavior. I never got any call or things like fraud emails unless the purchase amount is large enough. But what I do is $0.01 each time. I can do it while I am at work, I count it myself, about 12 mins non-stop to finish 25 transactions, I don’t have to do it at a time. In some months I max out but most don’t because as I said before, it’s time assuming and I sometimes don’t… Read more »

Joe
Joe

Thanks for the very detailed reply! I will for sure follow your tips. A follow up question: Could I automate my serve loads? I see you can automate them, say I schedule 17 daily reloads with my debit card. What’s your thoughts on that?

JASON
JASON

You can automate your serve loads, however I don’t think you can schedule 17 daily reloads. They allow us to schedule daily loads for a set period of time, in the past let’s say I scheduled the reload with my paypal business debit card, so I did $200 scheduled to load from 10/1 – 10/5. (By the way, that was really a good time that paypal my cash card was live and could be purchased with credit card in CVS, if paired with Wells Fargo CC, you earn 5% within 6 months and cash out the money by paypal business debit card that gives you 1% back for loading bluebird/serve. Your fee $3.95 is less than 1% of $500 value so even with Citi Double Cash, I still got $6.05+$5=$11.05 per $500 card) That being said, for the 1 cent loads, you can schedule it from 1st to 30th of the month, but not like you can schedule 17 transaction in one day I believe. I don’t know. Log in to you serve account and just play with it. I always manually add. I sometimes do that when I am using the bathroom lol (you just sit there any click!)

Keep in mind that previously Blue Fed Credit Union allows to fund with CC but I forgot the max. amount, please check other post in case you need to meet min. spending on your new CC and please always lower Cash Advance limit to as lower as possible unless your CC like TD or HSBC doesn’t allow you to lower CA.

Ali
Ali

Do you automate this somehow? $0.05 each for a total of $25 = 500 transactions/month to only get $25…doesn’t seem worth the effort if you have to do each transaction manually.

JASON
JASON

There is a way to automate this but I always manually add it. Of course, sometimes I forgot to do so and sometimes I am even tired of doing that so just not do it at all for days. It’s good that if you are bored sometimes. And my case is that, I do that in office when I am placed on hold over the phone so I upload it through app during the wait.

Blue Fed 5 cents rewards checking account (forgot the exact name) doesn’t have min. balance anyway so I don’t need to worry about it. Just keep in mind that you do need one DD or transfer per month to qualify for that 5 cent per POS.

Joe
Joe

Thanks for the very detailed reply! I will for sure follow your tips. A follow up question: Could I automate my serve loads? I see you can automate them, say I schedule 17 daily reloads with my debit card. What’s your thoughts on that?

JASON
JASON

See my above comment. But you can always play with your serve loads so maybe you can figure it out doing it automatically unlike me.

Joe
Joe

Thanks for the info, it was worth a try. Denied Checking account at BFCU due to 11 Chex inquiries in last 12 months, 8 in last 6.

Emil
Emil

if you already own 5 different netspend accounts, will you be able to open this one?

Emil
Emil

also, can anyone confirm that an ach transfer did the job to lower the fee to 5$ per month?

Steve
Steve

After tax and fees, this account seems to be worse than the regular 5% on $1000 (which gives $50 interest per year). 6% on $2000 gives $120 interest per year. With a 30% tax rate (which is probably lower than my actual rate), that’s $84 for 6%, so $24 after $60 fees, vs. $35 for 5%.

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