Posted by William Charles on October 31, 2019
Savings Accounts

Published on October 31st, 2019 | by William Charles

33

Credit Karma Savings Account Review – 1.9% 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

The Offer

Direct link to offer

  • Credit Karma has launched a high yield savings account offering 1.9% APY

Avoiding Fees

This account has no monthly fees

Our Verdict

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



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security
security

It’s great for an emergency fund imo

Will
Will

Thank you Chuck and Will for your blatanThank you Chuck and Will for your blatant arrogance and racism. Will stop supporting this blog from now on.

This is based on the censored conversation in the plastiq post where comments have been disabled.

Rick
Rick

There was nothing racist at all about shutting down comments in that Plastiq post. The situation got overtly political due to astroturfing by the 50 cent party. If you want someone to blame, then blame the 50 cent party goons.

Matthew
Matthew

Wow. How mainlanders come to the US, enjoy the freedom of speech, freedom of using the internet but blindly support the CCP? All the wealthy Chinese are obtaining citizenships from US, Australia, UK, etc. Wake up!
Byw, I am not white

missjenniferd1🦉 🦁

bye felicia!

Michael Taylor
Michael Taylor

Hong Kong uses a different currency than the rest of China. It makes perfect sense to list it separately from China when discussing money issues.

Doggo
Doggo

We’re here to discuss/learn about CC points and bank bonuses, not to parrot Chinese gov/Xinnie the Pooh’s propaganda lines…

Jeff H
Jeff H

With the decline of CK’s CC recommendation quality and the slow progress on their tax service, I would avoid this musical chairs game. I want to know where the money if if a serious need arises.

Mike
Mike

I liked the CK offer and decided to set it up until they wanted my bank user name and password. Is this usual?

Arthur
Arthur

Tried to apply for the savings a couple hours ago and just now, first time seemingly got denied (was not a very explicit language) and second time the system says it “hit a snag on our side” and not able to proceed. Possibly Chex sensitive? Anyone having similar issues?

Finally Out of Debt
Finally Out of Debt

Thanks for the info, guys. I just finished paying off my non-mortgage debt, and now I’m seriously saving up my emergency fund and starting to think about investments. I decided to sign up for CK to let my emergency savings build a little bit of equity rather than just sitting in a stagnant bank account.

If there are better (non-investment) options to consider, I’m all ears.

Justin
Justin

Check out the Heritage Bank post here. Rate is 3.3% and they’ve been great to work with.

CGID
CGID

The best way to make money off of savings and checking accounts is to chase bonuses for opening accounts. A 3% rate on $5000 is still only $150, whereas a person could easily make $1000 per year from a few bonuses. DoC is one of the best places to learn about the hobby of bonus chasing.

Josh
Josh

In your linked list, TAB bank is only 2.10 btw.

Bob
Bob

1.90% APY now

Jacob
Jacob

Yup, today 11/3 it was 1.90%

John
John

And just like that it dropped .13% not long after it debuted.

superflare
superflare

Warning: According to this support article there is no way to change the external account after linking for the first time. A post on reddit’s PF sub has one user’s struggles trying to get it changed after closing the linked account, effectively trapping their money in CK savings.
https://support.creditkarma.com/s/article/How-do-I-change-the-external-funding-account-linked-to-my-Credit-Karma-Savings-account
https://www.reddit.com/r/personalfinance/comments/drzyv5/credit_karma_savings_issues_advice_needed_beware/?utm_medium=android_app&utm_source=share

Joe
Joe

There is a significant problem with Credit Karma’s savings account – you cannot add co-owners OR beneficiaries! This is a key requirement for ALL BANKS! If my wife doesn’t have my login info handy and I go into a coma, how does she get the money? Or if we both die how do my heirs get the money? I’ve deposited a substantial sum for the interest benefit but only discovered this flaw AFTER the account setup and deposit. The deposit has cleared, but even after several days the available balance is still $0.00 now that I want to withdraw it back and close the account. There is no support number or even chat to talk to a live person – all help is done via email and it takes usually until the next business day before responses are sent. When I finally get my deposit back I will be closing this account. Credit Karma has been great for helping me monitor my credit, but because of the flaws in this new savings system I would think twice about using it again.

Morgan
Morgan

Now down to 1.75% APY

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