Posted by William Charles on May 1, 2017
Prepaid Cards With High APY's

Published on May 1st, 2017 | by William Charles

204

Insight 5% Account Changes (Need To Move Funds & Open New Account)

Update: This seems to only apply to the cards issued by Axiom Bank. They were apparently already using Republic Bank of Chicago for some cardholders. If you have one of those cards as far as I know nothing will change. You can also signup for a new 5% card from Republic Bank now.

Insight has sent out the following letter to cardholders:

insight card changes

Basically it seems like they are changing card issuers and you need to request a new card and change your direct deposits and empty the account. Your current card/account will starting earning a 0% APY rate from July 1st and you’ll be sent a refund check on July 31st if the account still has funds in it. This seems like a huge hassle for cardholders and something that should have been avoided if possible.

If you do have an insight card, then it might make sense to transfer your funds over to Northpointe as they offer a 5% account on balances up to $10,000 now and are easily the best high interest savings account on the market.

Hat tip to reader Robert



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Chuck

So I guess the big question is whether the new card will have the 5% savings account option.

Chuck
Agnes

What’s this?
Is all this cards is mine?

Jake
Jake

Doesn’t say anything about the max balance that will earn 5%

Chuck

Says in the terms. Link in the post (added yesterday).

Dan
Dan

Sad news, just be exciting for Northpointe account for 1min!

Chris
Chris

So, how do we proceed? As it seems they will still offer 5% I am committed to stay with them. But not sure if we need to move the funds and order a new card and then transfer back the 5K? If I find time tomorrow I will give them a call, see what they say, and report back…

Chuck

The old card will stop working in a couple of months. Looks like the new card has the same 5% account so we’ll have to pull all money out of the old one and open the new one.

I just applied for the new one, we’ll see how it goes.

Chris
Chris

Not to sound unappreciative of your answer, but who cares really about the card itself? We all are interested in the 5% savings account that comes with it. So, after we all get the new card, we will need to set it up another account for the automatic ACH that is needed to keep it fee free, etc.? Basically doing it all over again it seems…

Chuck

Yup, we’ll have to start all over.

Tom
Tom

Chuck, regarding the new Insight card, did you use the same email address that you used for the still active Axiom card?

Gadget
Gadget

Got the same letter(s). Basically, yeah, you have to:

1. Sign-up for a new card(s).
2. Get it in the mail, activate. Setup online access.
3. Then, setup ACH to the new account from your “hub” bank.
4. Evacuate the old Insight account – their preferred method, of course, is to spend it. ACH or Bill Pay to your hub account/self would be the logical way to do so.

Pain in the ass. I imagine there are some legal reasons why they just didn’t issue new cards and transfer the funds. I would guess that would be more work for them and aren’t fully automated between the two banks to be able to transfer the accounts. Insight is just the middle man between the customer and the two banks.

My question is… will I be able to get at least two cards again? Ordered new one 4/28/17… and now waiting. I will be curious to see if my bank(s) will accept the RTN and want to get it working before I worry about multiples.

Dan
Dan

There does not seem to be any T&C on the new link. The real question is whether now you are limited to 1 card.

charles chang
charles chang

oh boy, I never thought about the second card in the past … How many cards were you able to get with Axiom bank?

Dan
Dan

2.

Ralph
Ralph

That should mean that if you already have your cards issued by Republic Bank of Chicago, nothing changes- correct?

Chuck

Sounds right. Ralph, how long ago did you get a Republic card? I’m wondering when this change happened.

Ralph
Ralph

Not long for either of them. The first one in October 2016 and the second in March 2017. In both instances, they said I would get a card from either Axiom or RBC and in both cases, they came from RBC.

Chuck

Interesting, so RBC has been around for at least 6 months already.

Ralph
Ralph

Seems so.

Nab
Nab

My card(s) were from RBC as well (last couple months) and I also didn’t get any letter about this change.

Harry
Harry

Does this mean that the new card will still earn 5% ? That is not clear from the letter. On the website it still says 5% but we cannot be sure unless there are DPs from someone or after July 31st.
Insight requirements (do nothing other than 1 transfer in/out +login occasionally) are still better than Northpoint’s 15 Amazon load requirement.
I am wondering the easiest way to do this would be to request the new insight card and then do an ACH transfer from current insight to new insight than to move money to Northpoint or elsewhere. In the long term, sure Northpoint could be an additional savings account for sure given that 5% APY up to 10K is still a good place to park.
For sure they make us go through the inconvenience because they would hate paying 5% to those who do not use the account and generate fees for them and want to get rid of people who think this is a hassle.

Gadget
Gadget

Insight doesn’t allow ACH out, from their side. Remember, it’s not a checking account. Unless they make a special exception this one time (highly unlikely), that isn’t going to work. Bill Pay or external bank ACH would be the wisest choices. Both of which take time and effort… and, loss of some interest.

Phong Chau
Phong Chau

So basically just pull the amount out of a connected bank account? (You just can’t push from insight to bank account, only pull from insight to bank account)???

Gadget
Gadget

Yes. Just be sure to move your savings balance to your “card” before trying to move the money via your external bank.

Steven
Steven

Correct, you can always initiate an ACH transfer from another bank. I’ve done this several times with Ally, but it does seem to take longer for funds to appear.

Ferris
Ferris

Should point out this only seems to apply to “Axiom Bank” and not the other bank they use, Chicago Bank of Republic.

Ken
Ken

I wonder if we currently have both cards if it’s possible to get a second Republic Bank card.

dax
dax

How does one find out if they are with Axiom or Republic? I have yet to receive a letter in the mail for both my account and my wifes. Thanks!

Ralph
Ralph

In the packets I received for both my cards, the name of Republic Bank of Chicago is all over the paperwork.

The information is also available when you logon to your account under the Add Money tab then choose Direct Deposit.

If you know the routing number, you can look it up at: http://routingnumber.aba.com/Search1.aspx

mk712
mk712

Check the back of your card.

captainsave
captainsave

Got this message
We are sorry but we are unable to issue you an Insight Card at this time. Please visit any of our partner locations to apply for your Insight Card.
Anyone else?

Gina
Gina

My husband and I both got 2 of the old cards in the last 3 months and we both just applied for the new one and got the congratulations message. I received a letter and he didn’t yet but we both were still approved.

007
007

I did. I also got an email and text message making me think I failed ID verification.

I’m pretty sure I answered the questions correctly (there was a pesky hospital closest to you question and I actually did Google maps to compare distances as two are fairly close to me), anyway emailed support@insightcards.com.

007
007

I did. I also got an email and text message making me think I failed ID verification.

I’m pretty sure I answered the questions correctly (there was a pesky hospital closest to you question and I actually did Google maps to compare distances as two are fairly close to me), anyway emailed support at insightcards.com.

007
007

FYI, I called 888-796-1516 at their suggestion.

Spoke to a nice lady who could see that apparently one of my several attempts to open a new Republic Bank of Chicago account was actually successful.

Also did identity verification again (this involved answering 5 questions exactly the same type as the website ones except literally she would read them to me and read every answer choice and I would answer, which was kind of a strange way to verify my identity).

Once the above was done, she stated that a new card would be sent.

Also, lots and lots of questions about direct deposits and whether Ally was my employer. I was honest but tried to deflect/not answer as much as possible although apparently there may be a $10 bonus for having a direct deposit post (didn’t ask about this as I really just prefer the 5% interest and don’t want to rock the boat somehow).

Just FYI. Seems to be that I am getting a card even though the online application always told me that they are unable to issue an Insight card at this time …

Blake
Blake

Got the same message. It’s a sad day.

007
007

@captainsave

Please see my post https://www.doctorofcredit.com/insight-5-account-changes-need-move-funds-open-new-account/#comment-400627

Even though I got the message every time I tried online, apparently I actually succeeded one of the 3-4 times but had to do identity verification via 888-796-1516.

David
David

Like 007, I found that getting approved/denies isn’t consistent. I tried once and got the same message you got. I tried again a week later and got an approval.

Al
Al

I am pulling the plug. But the Credit Union that I used to ACH funds from, doesn’t have option to pull those same funds back 🙁
What bank do you guys use to pull money from Insight back into your checking account?
I really don’t want to go any other route..

Gadget
Gadget

Hub account: I used to use Discover, until they booted me. Now I use my secondary hub account at Northwest FCU. Haven’t tried to sync up my back-up to the back-up, tertiary account.

You could just bill pay yourself from Insight, or bill pay directly to your bank and use your checking account number as the biller account. But that is slow… but easier than opening another bank account.

Al
Al

Bill pay, what a great idea! It’s free, according to their terms. I have large cc spend, great way to drain the funds.
Thanks 🙂

Dan
Dan

Just curious, why did Discover boot you?

Gadget
Gadget

They wouldn’t tell me… I suspect it was because I setup ACH transfers to two different accounts within about a month that would not return the trial deposits. The accounts did not return the micro deposits because they were ACH IN only accounts. (Schwab & NFCU Savings) Well, around that time they also pulled my Chex, I now know too. Nothing bad on the Chex, just has a lot of inquires. You can read more about it here:

https://www.doctorofcredit.com/hub-accounts-ach-transfers-capabilities-fees-limits-across-financial-institutions/#comment-352979

Dave
Dave

Schwab checking or brokerage? Discover Checking was able to pull the test deposits from Schwab checking last fall.

John
John

FYI you lose your April, May, June accrued 5% interest in the Axiom account if you close it before July 1.

The terms on the savings account say “If you close your Insight Savings before interest is credited, you will not receive the accrued interest.”
Interest has posted on 1st of new quarter, July 1 in this case.

Dave
Dave

Was going to mention that as well…

Dan
Dan

Good catch.

Peter
Peter

So would it be best to wait for this quarter’s interest to post and get the full balance check in the mail? Or pull funds now? Would like to still get the maximum interest, but not at the risk of losing the $5k in the mail.

Ken
Ken

Interest will post July 1st. Pull funds once interest posts. Wait for account to close with $0 balance.

John
John

Peter,
You will maximize your 5% interest by leaving your $5K in Insight until the interest posts on July 1. If you pull the funds now you lose May 3 thru June 30 interest on $5K (assuming you leave Axiom savings account open with zero balance until July 1, else lose all accrued interest). You can’t avoid the time lost (cost) moving the $5K by mail or ACH pull, whether done now or after July 1. But you can maximize the interest on the $5K by leaving it in Insight until July 1.

Derek
Derek

Noticed that for my accounts I had Axiom bank linked to the card, for my Spouses she has “Citizens Bank & Trust of Chicago”. Any idea if she needs to close her accounts to and reopen or is she basically on the new card already?

007
007

Per https://www.fdic.gov/bank/individual/failed/citizens-bank.html

Citizens Bank & Trust of Chicago was closed by State of Illinois and acquired by Republic Bank of Chicago.

Nothing to do.

(Ally also calls one of my cards “Citizens Bank & Trust of Chicago” even though it is a Republic-backed Insight card per customer service.)

L T
L T

Have not gotten the letter yet, but I do have one Axiom bank one (oldest one)
Second one is from Republic Bank of Chicago, so no change needed to that one.

So it seems like the modus of operation for Axiom cards would be:

0) Remove any transfers coming in after July 1
1) Transfer to checking after interest posts in early July
2) Bill pay yourself and/or pull funds out via hub bank
3) Close the Axiom account after 0 balance, making sure there are no more auto-transfers — step 0.
4) Apply for new account at the direct.insightcards.com link
5) Get new card, activate, transfer money in again and re-add automated transfers to keep fee free

Pain in the rear, but there’s nowhere else that lets me keep $5k earning 5% APY without doing anything else… but if I am incorrect, please point me in the right direction. (Northpointe needs a lot of transactions, so not really useful)

Harry
Harry

Good summary and totally agree. I would also add that you could just ACH pull into your new account from your old account making it less of a hassle. I would apply for the new card soon as I get the letter and then wait until July interest posting and all ACH setup completed in the new account and then transfer in to new account soon as interest posts.

Ben
Ben

I agree with waiting until July 1st (so that we receive the Apr, May, Jun interest), but from my understanding of the letter, they are going to close accounts on July 1st if you still have $ in it. Therefore, I think if we want the interest for Q2 then we will just have to wait to get a check rather than being able to ACH out/bill pay on July 1st.

Dan
Dan

I think you’ll just stop earning interest on July 1. Looks like they will shut down the account and mail a check on July 31, which lets you collect the interest for the quarter and still gives you a month to get your money into a new account. Of course, you lose interest during that time but it could be worse. This isn’t so bad.

Ben
Ben

You’re right. I misread it.

Peter
Peter

Answered my question, thanks!

Rob
Rob

If the limit is one Insight account per person, how exactly am I supposed to order a second card?

Went to order a new card and after the identity verification questions, I got an error saying to go to a store to pick up a card. I’m certain I got the questions right but I also used the exact same information (address, email, phone number, etc.) as my existing account.

Dan S
Dan S

It didn’t seem to be well known but you were able to get two Insight Prepaid Cards and have them both linked to a 5% savings account. When I applied for the first one, it linked to either Axiom or Republic Chicago. When I applied for the second one, the linked savings account was to the bank not associated with the first prepaid card. So I had one saving account with Axiom and one savings account with Republic Chicago. I had $10,000 earning 5% between the two prepaid credit cards.

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