Posted by Chuck on August 25, 2015
Checking Accounts

Published on August 25th, 2015 | by Chuck

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Changes to Mango Prepaid 6% Interest Account (take 2)

Transition Process

We’ve written about the numerous options of high-interest savings accounts, including the 6% interest rate earned with the Mango prepaid/savings account. Mango recently announced that their account will switch from being backed by First Bank & Trust to Sunrise Bank. While that sounds very boring, there are numerous things to be aware of here.

  • The prepaid card is being reissued in the form of a Visa in place of Mastercard.
  • You need to go into your Mango account to process the switch to the new account.
  • If you don’t process the switch, be sure to stop any direct deposits to the account as after 8/31/15 they’ll go on to be rejected. Any remaining funds will be sent to you via check sometime in October if you don’t empty the account before then.
  • As before, the Mango account comes with a monthly fee of $3, charged on the last day of the month.
  • I assume that we won’t get the $3 fee on both accounts after transitioning. Since it has a zero balance after the transfer, it would be hard for them to collect the fee, in any case.
  • Unclear if the $20 direct deposit promo (for new card members) is still around. It’s not mentioned anymore on the site.

New Account Details

Most importantly, the Mango prepaid is now open again for new applicants – it had been closed temporarily – and the 6% savings account is still being offered. (The Union Plus prepaid card is still apparently unavailable for signup.)

Two important caveats:

  • The new offer has a requirement of a monthly direct deposit of $500 in order to be eligible for the 6% savings account. While we expect that any ACH transfer will qualify as a direct deposit (it has in the past), this does make the card more intrusive as you’ll have to set up monthly deposits. Easiest would be to automate this and have $500 pushed and pulled from/to your regular checking account.
  • There’s also a requirement that there remain a $1 balance in the account at the end of the month in order to qualify for the 6% interest rate. Since there is a $3 monthly fee, you want to make sure that $4 remains at the end of the month, which will leave over the $1 amount. To automate this, push $500 and pull $497 each month, after ensuring there will be a $1 balance left.

Because of the new $500 direct deposit requirement, some may prefer the Netspend accounts which offer a 5% interest rate (just about the same as Mango’s 6% with a $3 monthly fee) and don’t have the monthly maintenance.

UPDATE: FreequentFlyer notes that the new Mango accounts are incapable of getting ACH pulls from them. This is hugely important; aside from the fact that it’s nice to have easy access to you money (i.e. you don’t need to pull out the money be purchasing a money order), we need a way to pull out the $500 monthly that goes into the account. This is not possible and this really kills the value of the Mango card, in my view. You can still deal with pulling out the $500 monthly via money order or ATM, but it adds a lot of hassle to the account.

Update #2: ACH withdrawals seem to be back on now.

My Impressions

I just got the new card and completed the transfer, here’s what I saw:

  • The new site looks much more outdated than the old one.
  • When you activate the new card, at that time the funds are officially transferred from the old account under First Bank & Trust to the new one under Sunrise Bank.
  • Both the prepaid balance and the savings balance gets automatically transferred at the time of activating the new card.
  • It shows up in the account as ‘Mangotransition’.
  • There’s some sort of rewards program on the new site which I don’t believe was there on the old one. I haven’t gotten any offers yet; it could be it’s like the Netspend rewards program which only targets you with offers based on your spend.

Account/Routing Number

The other important thing to note is with regards to the account and routing numbers on the account. (You’ll need these to process the required direct deposit.)

The account number remains the same apparently. Oddly, the routing number is also showing up in the online account as the same (114994196). It’s hard to understand how that’s possible being that it’s routing to a different bank now. Possibly, Mango has their own routing number and they are able to transfer it over.

Note: In the mailing they send out, it states a new routing number (091017138), contradicting what it shows online. According to a Mango rep who I spoke to, the new routing number (091017138) is only for new card members. Those who had the old Mango Mastercard and transitioned over should continue to use the old routing number. This means that if you have Mango attached to your checking account, you don’t have to change your ACH/direct deposit setup and you can just change the amount to $500 to make you eligible for the 6% interest.

The rep told me that the new routing number won’t work for old card members and this is being reported by someone who attempted such a thing as well.

  • Old routing number: 114994196
  • New routing number: 091017138



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wwllmm
wwllmm

Just read on FW you can no longer ACH out? Can you confirm? If so, this is dead…

Octavio
Octavio

I can confirm that I can still push money with no problems (using the old routing number after the new routing number fiasco) – I’ve done it with Paypal and Consumers Credit Union. However, 2 attempts to do ACH out have failed – one, was funding my Paypal account and the other was a bank pull. I can agree that not having ACH out puts a damper on things, but we just have to adapt – transfer the $500 in and get them out by loading Serve/Bluebird/Redbird or buy a money order.

There might be fees to get your money out every month depending on what Amex product you carry, etc. so whether Mango is still a viable option depends on what options you have available.

jim
jim

My transition has been totally botched. I ordered the new card through the old website and I’ve received the new card. First the new card simply would not activate. After talking to a CSR at the new mango, they basically said someone would call me. No one has ever called me. I got a text that said the new card was activated like 2 days later. But it still will not let me register it on the new website. Meanwhile my old mango account still works, so at least there’s that. I guess I should just figure out a way to cancel the new mango card, since it’s clear that it has not processed as a transfer.

David
David

Has anyone else been able to do ACH pulls from their main bank since the switch? Between the routing number confusion, the crappy downgrade in the site’s layout, and (at least on my end) the refused ACH push/pull abilities, I closed my account. They said it’ll be 4-6 weeks for them to cut me a check for my $5k. Good thing it’s savings and I don’t need it any time soon.

Dan
Dan

Did you try initiating pushes/pulls from a different bank to see if it was just an issue between your bank and the new Sunrise Bank?

Steve
Steve

I’m trying that, but so far the trial deposits aren’t going through with the new routing number.

As I posted below, the ACH pull is successful, but’s it’s withdrawn\reversed ~2 days later.

Steve
Steve

I completed the MC to Visa transfer. Since then, I am able to login to both the MC and Visa sites, and am able to ACH Push to the old routing number. Funds appear in the old site, then are immediately transferred to the new one. I am NOT able to ACH Pull using the old routing number, probably because the account associated with that number has no funds. (The ACH transfer completes, but is reversed and funds are withdrawn ~2 days later.) So far I have not been able to connect my accounts using the new routing number. I’m using CapOne 360, and am trying to connect with both 360 and Chase.

As an aside, the new website is worse than the old one.

Eric
Eric

Do old account members now need to do direct deposit of $500 monthly to get the 6% rate?

Steve
Steve

According to the CSR I spoke to: Yes. And he said the new T&C’s are effective Aug 31, regardless of when you activate the Visa card. I specifically asked about that.

Dan
Dan

Someone mentioned on a Reddit forum that:

“Apparently they are switching issuing banks now and will require 10 debit card uses and some form of login count”

Anyone know anything about this?

Souce: https://www.reddit.com/r/churning/comments/3fjtmk/mango_prepaid_with_6_apr_savings_on_first_5k_300/

Steve
Steve

Haven’t seen anything about that in the T&C’s and wasn’t mentioned to me when I called them

Octavio
Octavio

I think the posters on the other forum got confused…the posters on dansdeals were initially talking about Mango and someone piped in and said he was doing LMCU instead – the information he was providing was about LMCU and not Mango, even though it was a Mango topic and then the person who posted it on reddit did not realize how the conversation stated – this was the convo:

Re: 6% apy Savings acct
“Probably. I’m doing 3% in lake Michigan with no dd minimum”
“Don’t you also have to make 10 debit card purchases.”
“Yup. Not a big deal.”
“Also login four times a month?”
“Should take thirty seconds.”
“Just more hoops.”
“None of them a big deal, though. Amazon purchases count for debit, and serve dd counts.”
“But you still have to make one + the 10 dc charges+ 4 logins. And if you do them one after the other, you get the security questions. it’s a pain for only 3%”

Dan
Dan

Nice reconnaissance, thanks for clearing that up!

Jus
Jus

Old Mango had a bill pay option, never used it myself, but I wonder if it would let you create your own biller than you could mail your self a check every month or few months. If not, then maybe just pay your CC bills using that to get the money out. Have not received my new card yet, so will see what happens

Octavio
Octavio

The bill pay option on the old Mango was more of a gimmick than an actual functionality (at least in my experience). When you clicked on it, it would take you to a page that explained that you could pay your bills by providing your Mango card either online or by phone directly to the biller – LOL – and we all know that not all billers take debit cards directly.

These were the 3 “easy” steps:
1) Find your biller
2) Contact them online or by phone
3) Pay bill with your Mango Card

Kirk
Kirk

Is there a limit to the amount of money that can earn 6% interest? Thanks!

Dan
Dan

I have 2 Mango and 1 UnionPlus. I noticed that I earned interest regardless of the DD. I did however do a DD the first month. I received my interest for all my accounts for July and am curious now to see if August will post

I just tried to transfer from Savings to Prepaid on UnionPlus though and it wouldn’t let me, gave an obscure error:
“An unexpected error has occurred. Sorry for the trouble. If this problem persists, please contact customer service.

Reference code: K43GH”

JamaicanReefer
JamaicanReefer

This has triggered my curiosity and I tried to transfer from Savings to Prepaid in Union Plus. The same unexpected error was received in 3 browsers, each with a different code. About a week or two ago I sent an email to their customer support asking if there are any account changes planned. I said my friend received some notice and I did not and wanted to verify. I indeed have never received any notification from Union Plus. The answer was that such sensitive information cannot be revealed in email and encouraged me to call. I have not called yet.

Calvin
Calvin

UnionPlus has placed a block on all incoming transfers to the prepaid, including the savings account. You can call UnionPlus to move funds from savings to prepaid.

JamaicanReefer
JamaicanReefer

Thanks that makes sense I will do so Sept 1.

Tuck
Tuck

The new Mango product is super sketchy. Poor website, unclear changes to the product, and unreliable behavior. I called tonight and asked how long it takes to receive a check if I close the account and I was told 30-45 days! That’s horrible.

I’m looking for ideas how to get the cash out more quickly. If anyone has any luck please share. Thanks!

Octavio
Octavio

If you have Serve/BB/RB, you can load up to $2500.00 per day onto them, coincidentally $2500.00 is also your daily purchase limit with Mango. Alternatively, you can buy money orders using your Mango card – perhaps, the fastest and most cost-effective way to do it would be to buy 5 money orders for $1000 each (if you have the full $5000) at Walmart over the course of 3 days (since you cannot exceed $2500.00 per day with Mango) – they would cost you $.70 each, for a total of $3.50.

Do keep in mind that like most banks, Mango may temporarily suspend your account if they feel the transactions are unusual/excessive. This is even in their terms and conditions:

Purchase Limitations. You may not make purchases that in the aggregate exceed $2,500.00 per day. If a merchant attempts to process a transaction for more than the value available on your Card Account, or if the transaction will cause the daily limit of $2,500.00 to be exceeded, then the transaction will be declined. Unusual or multiple purchases may prompt a merchant inquiry or card suspension to allow us to investigate such unusual activity.

Tuck
Tuck

Hey Octavio thanks for the great suggestions. RB is an option but I’d prefer not to use it because that will limit my MS strategy for this month. RB limit is $5k per month

Money orders are good idea, but I’m worried that buying 6 money orders (since I have a little over $5k) will be suspicious, and could risk suspension. It’s also a PITA.

I’m leaning towards canceling account and waiting 30-45 days for check to arrive. Anyone else have thoughts?

Win
Win

A new Mango Money account was linked to Chase earlier in August and to USAA a day later (where the ACH debit for the trial deposit was first declined then retried and successful). After a Fidelity ACH form was processed the Mango Savings account funding was increased.

Subsequently a $500 ACH load from a Chase business checking account was made and partially unloaded ($498) to a USAA personal checking account. The ACH unload appears to have worked, as the Mango card balance is $4, leaving funds for the monthly fee and a $1.00 balance at month end.

While it is still possible for this unload to be reversed, that seems unlikely given that Mango could have declined the transaction yesterday.

Steve
Steve

Did you use the new or old routing number? Have you activated your Visa card yet?

Win
Win

The new routing number (ending 7138) was used, and yes, the Visa is active (I do not have a Mango Mastercard).

Calvin
Calvin

My ACH transfer to my Ally account has now been blocked twice. As Octavio noted, bill pay isn’t really an option here.

Anybody have any ideas on how to liquidate without BB/Serve/Redbird?

Also, are there ATM fees to withdraw cash from the account? I’m inclined to keep the account for another month before closing to see if things change.

Tuck
Tuck

Octavio had some good suggestions above

Jus
Jus

The routing number I got with my new Mango card is different than First Bank and says Sunrise on it. I wonder if using that will allow the ACH capabilities that we have now. When I log in the routing number is First Bank, so its really weird and unclear which is real one

Maysam
Maysam

My ACH withdrawals to my Chase checking is finally approved. It got blocked a couple of times but after I deleted my mango (with old routing number) from the list of external accounts in my Chase and added it again, it worked!
It might be because of change in the name of the bank that messes up everything (considering that the name is changed but the routing number is the same)!

Calvin
Calvin

Is this a personal chase account or buisness chase account?

Maysam
Maysam

Personal Total Checking.

Eric
Eric

Can you confirm that I am understanding what you wrote correctly? You used to have the MC Mango linked to Chase but now have the Visa Mango linked to Chase. You removed the old routing info and added the new routing info and was able to remove funds from the new Mango account. If so, do you know why so many other people say that you can’t ACH out of the new Mango account?

Maysam
Maysam

No! I used to have the MC Mango linked to Chase but now I have the Visa Mango linked to Chase (basically the same account). I removed the old routing info and added the Visa Mango with the SAME routing info and was able to remove funds from the Visa Mango account (I didn’t even know there is a new routing). The only reason I can think of is their system is not yet properly set up… even their mobile app is a disaster now. Hopefully everything is gonna be fixed!

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