Update 3/6/20: Rate has been decreased to 1.3% APY
Update 11/3/19: Rate has been reduced to 1.9% APY from 2.03%.
Account is now live and Credit Karma is actively promoting it. Reposting as people keep e-mailing us about it.
Offer at a glance
- Interest Rate: 1.9% APY
- Availability: Nationwide
- Hard/soft pull: Unknown
- ChexSystems: Unknown
- Credit card funding:
- Monthly fees: None
- Insured: FDIC
- Credit Karma has launched a high yield savings account offering 1.9% APY
This account has no monthly fees
According to the press release this uses a network of more than 800 banks. This is managed through their banking partner MVB Bank, Inc., Member FDIC. From my understanding Credit Karma moves funds in between these banks based on who has the best current rate and funds are insured by FDIC, based on discussions I’ve had with another financial institution that offers this type of accounts when funds are transferred between the network banks these funds also qualify for FDIC pass through insurance.
Credit Karma is claiming they aren’t taking any of the APY for themselves and the the full rate is being passed onto customers. That being said their are currently a lot of better high yield accounts currently available. I think this type of account will be a new trend and we will be seeing a lot of competition in this space. The idea behind a set and forget account like this is fantastic and I’d love to not have to rate transfer, but Credit Karma’s rate is currently 0.4% APY lower than the best rate and that gap is far too large currently.
Hat tip to reader Pete