Published on September 11th, 2017 | by Chuck22
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 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.
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.
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.