Posted by William Charles on July 1, 2018
Checking Accounts

Published on July 1st, 2018 | by William Charles

303

Insight 5% APY Account Will Officially End On July 1st & Your Best Alternatives

Reposting on July 1, 2018. If you need to call in, this number is probably best: 1-888-796-1516 or 855-355-8117. 

Last month Insight removed mention of the linked savings account that offers a 5% APY on balances up to $5,000. We had also heard rumors that existing account holders would be shut down on July 1st and unfortunately this has now been confirmed with all account holders receiving the following e-mail:

Contents

What You Should Do

Most banks can’t successfully ACH pull from Insight so you’d need to do their ridiculous Bill Pay method they mention above. That being said, some do work (Chase, Ally, Discover, Wells Fargo, Alliant, USAA, share more in the comments). They are paying the 5% APY until July 1st so I’d wait until June 30th and then do an ACH pull from one of the working banks if you can. Otherwise you’ll need to do the bill pay mentioned in their e-mail.

Alternatives

I know a lot of readers have taken advantage of this account and this will be a blow. That being said there are lots of other high interest APY accounts out there, none as good as Insight but there are some that offer 5% APY or higher balance maximums as well. We always maintain a list of the best savings accounts here. If this Insight shut down will affect you, I’d recommend having a read through that list and working out a plan on where you will move your money. RIP Insight, you will be missed.



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emergdoc67
emergdoc67

Press F to pay respects

Ann
Ann

I had no idea what that was a reference from. Link for anyone else who doesn’t know: http://knowyourmeme.com/memes/press-f-to-pay-respects

DaveinAZ
DaveinAZ

Thanks, I had no idea what “press F” meant, I don’t do Call of Duty or any games.

emergdoc67
emergdoc67

I don’t either, but it was a pretty well known internet sensation in some circles. I guess the DOC crowd is not the reddit crowd. I shot and i missed 🙂 Anyway, RIP to 5%

Ann
Ann

No problem. I do read Reddit quite a bit too (maybe not the same parts as you), but there are too many memes these days for them to all show up in enough places for everyone to be familiar with them.

Mike M.
Mike M.

I thought it was F7 lol.

anthonyjh21
anthonyjh21

Definitely will be missed. Wife and I had a total of 7 accounts and were adding to it as time went on. Was perfect for our emergency fund. If you posted somewhere like /r/personalfinance you were getting 5% on $35k with no risk they’d say you’re FOS.

Hopefully as rates climb we’ll see more opportunities pop up.

JV
JV

^^no offense, but this is probably one of the reasons they ended it

Ace Malik
Ace Malik

I agree but they could have simply closed all accounts and banned socials

anthonyjh21
anthonyjh21

I don’t take any offense. There’s no doubt they for whatever reason(s) felt it wasn’t financially feasible. No DoC reader was helping their bottom line. Not any different than any of the deals through DoC, DansDeals, forums, reddit, SD … you get the point. It’s the nature of these deals.

Insight wants poor folks who get nickled and dimed to death with fees, all while offering a shiny lure of a 5% savings account that they thought wouldn’t be used (see poor folks).

Further, if they felt this savings feature could be salvaged they’d do something like Mango does, effectively cutting the 6% rate in half and requiring more hoops. This tells me Insight just wanted to do away with this feature all together.

Dan
Dan

don’t waste your time on that sub…

anthonyjh21
anthonyjh21

Mostly lurk that sub and look for tidbits to help shape my financial views. I take everything in that sub with a grain of salt. Bogleheads on the other hand……

Jeff H
Jeff H

For about a year, I have been successful doing WF push to the Insight Card and will attempt to pull about July 5th given the holiday weekend.

Failing that, does anybody know if Insight Card will hit us with a fee to pay ourselves as instructed ??

Lawrence
Lawrence

Currently seeing if you can do an ACH pull with Alliant CU. Will update with results.

Ken
Ken

I’ve been using Alliant to do a small $1 push/pull every 2 months to keep all my accounts from going dormant.

Lawrence
Lawrence

I haven’t pulled from Insight yet, so I wasn’t sure if it would work. Thanks!

Tan Tran
Tan Tran

I’ve been using Alliant to pull interests out of Insight every 3 months.

Jim
Jim

That’s unfortunate — if you leave the interest in your savings, it continues to compound at 5%. There’s no cutoff at $5k

HarryTheFirstHarry
HarryTheFirstHarry

Not true for everyone. This has been beaten to death in other doc posts. Maybe it worked for some but not everyone.

Ken
Ken

Can you do a post on the best way to remove our funds from these accounts? Which banks work via ACH, any limits if there are any, etc. This would be great for all of us.

Gadget
Gadget

DoC can’t possibly cover all banks and limits, and some users have had issues whereas others have not using the same bank. Plus, after the 1st week of July, nobody will care. There is a hub account post that covers ACH limits in general. Insight doesn’t have an ACH limit, but they don’t advertise that as an option really because that’s not how they want you to use the account.

Worst case scenario, bill pay the money to yourself and wait for a check in the mail. Or call and ask to close the account, and I would think they would offer to mail a check. Just wait until July 1st or forfeit current quarter of interest.

Personally, I am going to be using VirtualBank and linked all 4 accounts via trial deposits w/o issue, but haven’t moved the funds yet. In the past, I have used a local credit union (NWFCU) and PNC.

If you haven’t linked a new external account up yet, be sure to have at least a $1 balance in the Insight card account. For some reason, sometimes Insight processes/rejects the ACH trial withdrawals before the before the deposits arrive, causing the issuing bank to mark Insight as fraudulent or unusable.

Ken
Ken

I was referring to Insight limits, so thanks for confirming there aren’t any. I’ve been using Alliant to keep all my Insight accounts active so I know they work. I just figured it could help others here.

Gadget
Gadget

I’ve pulled and pushed a full 5K-ish before, so AFAIK no limit. If they change things, they will just bring a lot of attention from pissed off customers. Never say never, but pretty sure they want us to just go away, except for the fools/uninformed that don’t pull the money from the card account. I wonder what the stats will look on that… of course they won’t tell us. I’d guess 25% is already being pulled, another 50% in the beginning of July… and the rest flows at a slow pace throughout the year.

Mike
Mike

In my experience the Schwab brokerage account was able to ACH with the Insight card without difficulty.

Bobby
Bobby

Anyone else not receive this email from Insight?

Anita
Anita

I have not received the email, nor has my S.O. We both opened ours In February 2018 over the phone since the online application process wasn’t working that day…

Jeff Bauer
Jeff Bauer

I just tried an ACH test transfer from USAA:

“Your transfer request has been successfully completed Jun. 1, 2018 at 2:33 p.m. CT.”

Charlie
Charlie

I have used USAA to ACH push and pull from Insight regularly.

Ann
Ann

At least now we know it’s officially dead. 🙁

“some do work (Chase, Ally, Discover”

It’s risky to mess with Insight with Chase. There have been numerous reports in previous Insight threads of Chase not only failing to link up with Insight, but getting the whole Chase account locked for trying. If I had managed to get mine set up before the wheels fell off, I was going to try any account I have except Chase! Some credit unions have worked, at least to send money in; pulling money out remains to be seen, but it’s a lower-risk option to try if you have a CU account.

Dan
Dan

It’s risky to link up ANY account in Chase banking…

Ann
Ann

Certainly not in my experience. Maybe if you’re doing it on a brand-new Chase account? Only the prepaid card accounts are universally risky. I vaguely recall 6 months being the minimum preferred aging before linking regular bank/CU accounts in Chase.

ada
ada

What is the account number when asked to fill out the biller form?

Scott
Scott

I have the same question. Isn’t it confusing?

Vince Wang
Vince Wang

Same question. Very confusing. Anyone?

storm
storm

Leave it blank or make up a number. It doesn’t matter if you are just paying yourself.

Lloyd Robinson
Lloyd Robinson

I can pull from my PNC checking account.

jpaglier
jpaglier

The email only specifically calls out cards opened online. Further, one of my three cards was opened in person and I only received two emails about this.

I think cards opened in person (check cashing places) might survive. Guess we’ll see.

Ann
Ann

Hmmmm. That would be nice, but the fact that mention of 5% savings was taken off their website entirely makes me doubt that (vs keeping it in the list of benefits with an asterisk). Anyone dare to ask customer service for clarification on the in-person cards?

Andrew
Andrew

Exactly my thought when I got the email. Would be totally worth it to open one in person if need be, please let us know since you only got 2 emails for your 3 accts

docfan
docfan

I think at this point, even if the benefit remains on in-person or over-the-phone cards, new ones won’t have savings accounts.

DY
DY

I opened my account by phone. I didn’t receive this email.

Anita
Anita

same with me.

Rene
Rene

Interesting. I didn’t give it too much thought that this qualification might actually have any meaning but just stating the fact that I opened it online.

Personally, I doubt that they make that separation and you just read too much into that word. If I had to guess, you’ll get a snail mail notification for the one that you opened off-line.

Ann
Ann

Good point, Rene. I bet you’re right that a snail-mail notice is on the way. They may have some customers who got their card in-person who never set up online access and maybe don’t even have a computer or email account.

Anita
Anita

I opened mine over the phone and have not received this email. Only time will tell if the shut down is indeed ONLY ofr online applications or if it also applies to other accounts as well. I’ll post if/when I get snail mail…

Gadget
Gadget

Wishful thinking. I like it. However, I am realistic. I have two online cards and two in person. I only got two e-mails. But, I am thinking that the online accounts were firmly tied to the e-mail, and the in person cards were generic. It’s always been strange that Insight had two systems of issuing new cards, so maybe the in person cards are more profitable and more deserving of the savings account? I hope you’re right, but highly skeptical and will monitor the situation!

Bob
Bob

I have used Discover Bank to remove funds from Insight. Just remember you must remove it from the “checking” side and not the “savings” After July 1st that won’t be a problem of course.
I, too, will miss Insight. I am sure we will see more. My first high interest checking was 6 percent at a credit union years ago. We’ll see it again.

Ferris
Ferris

Will be a long time if ever. Treasury rates were 4-6% at that time. We are in year 9 of expansion and they are only 1.75-3.2% on the yield curve. Actually the 30 year bond is only 3.05% currently. Keep dreaming.

Jacob
Jacob

Doc, what steps are there to take to completely close out the accounts after July 1st?

Thanks!

Thomas
Thomas

did you read the post?

Dan
Dan

You can just wait until July 1st when savings accounts are closed and $$ are transferred in the CARD, then do ACH pull.

anthonyjh21
anthonyjh21

I was going to pull $15k worth of funds out of our Insight accounts (Chase $200 savings) but it appears that its an all or nothing based on the wording of the email. Waiting until July 1st now.

Gadget
Gadget

E-mail states CLOSED account forfeits interest. Zero balance is not a closed account. But, if you want to start moving out, you still should get your interest as long as YOU didn’t close it. Just leave a few bucks, and they have to calculate on the average daily balance. They don’t just kick you out because you took some money out. If they did that, they would be asking for legal issues. Personally, I will ride it out until July 2nd because my balance is going into a 2% account, for now.

anthonyjh21
anthonyjh21

I 100% agree with your rationale but in the end my distrust of Insight (and prepaids in general) is such that it’s just not worth monitoring it and fighting back if they don’t issue the correct interest.

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