[Update] Mango 6% Prepaid now only on Balances up to $2,500

Update 3/25/20: Mango has just sent an e-mail out and this new cap of $2,500 will now apply to legacy account holders as well (as well as the new debit card spend requirement). To make matters worse when sending out the e-mail they just sent it out to 20 account holders at a time in the same ‘to’ field meaning people’s e-mail addresses, addresses, full names etc are exposed.

Update: Existing members from 10/26/18 and prior will retain ALL of the old terms ($800 requirement and $5,000 limit and probably PIN purchase option).

The Mango prepaid card used to be one of the best options around with 6% back on balances up to $5,000 with a low monthly fee. It became largely irrelevant when they basically began requiring  $800 of spend on the debit card each month to get that rate (longer explanation here).

Over the past few days, they updated the website with three new changes:

Mango Link

  • They’ve now lowered the 6% rate to just $2,500 instead of $5,000 bringing down the value further.
  • They now require $1,500 in purchases (previously $800).
  • They now stipulate that the purchases be signature purchases (previously PIN purchases worked too).

Not sure if/when these changes will go into effect for existing users, but it’s certainly dead for new users. Anyway, with interest rates rising. the 6% is less appealing than before.

Hat tip to Mario G on Twitter

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Kevin
Kevin

Anyone still keeping their Mango accounts alive? I didn’t get any interest at all this month on my account and P2s… happen to anyone else?

MCT
MCT

So is better to close it or zero it out and leave it open?

Eric
Eric

I am not sure what the benefit of leaving it open is. Are you assuming that Mango might revert back to the old terms in the future if this backfires on them?

MCT
MCT

I don’t see any reason to keep it open, I just wanted to make sure.

Eric
Eric

Mango pulled some BS on the April 2020 interest even though the new terms don’t apply until May 1. I only received $8.18 on a 2.01% rate for the month of April instead of 6.02% and I even did a $800 DD to just ensure it would cover the month of April. It is time to get rid of this stupid card and move on.

Anyone else seeing this on their account or did Mango just screw this up?

Jim
Jim

Hmm, I received approximately my standard monthly amount of ~$24

Eric
Eric

Jim Eric Jimmy Deals Dammit I think I know what I screwed up on for the month of April. I think in the beginning of the month I screwed up and did an ACH withdrawal of $24.85 on 4/7 since I initially was planning to close the card in April.
However I did more research and then decided to hold on through April and I only did a DD of $800 on 4/10 and it wasn’t enough to cover the offset ($800 – $24.85 = $775.15) since in the eyes of the Mango system I only did a DD of $775.15 which is short of the $800 required for the 6% interest. What I should have realized now was that I needed to do a DD of $850 instead of just $800 on 4/10 to cover this offset and then I would have earned 6% on my savings. I will chuck this up to this being my fault and move on.

Jimmy Deals
Jimmy Deals

Ah glad you mentioned that. I did basically the same thing so I guess the “net ACH” for the month didn’t meet the $809 requirement even though I had $800 in new money come in.

Eric
Eric

I received the normal interest amount like Jim. Did you do anything different in April?

Jimmy Deals
Jimmy Deals

Same for me, received 2% APR for April vs ~5% I typically receive. Didn’t change anything on this account from prior months (still $800 DD). Contemplating if it’s worth my time to chase them for the missing $16…

Eric
Eric

Jimmy Deals Please see my response below on an explanation of why I think I was not given the 6% interest and it was my own fault.

Pablo
Pablo

So based on reading comments below, the best way is to just wait until end of April and make sure to meet the $800 direct deposit. And then make sure to zero out the balance by pulling all your funds out of the account and then let them know you want to close the account without getting hit with any sort of fee except for the $3 monthly fee from April. Not bad, I guess I’ll just wait until end of this month and do my usual thing but initiate some transfers on April 30th.

Mike
Mike

Your interest gets credited on the last day of the month. Starting May 1st they will charge a $10 fee to close the account. If doesn’t seem to indicate whether the fee will still be charged even if you manage to pull out your funds and zero out the account on the last day of April with your interest, but I’ll safely assume you will be charged. But for those that have more than $2,500 in the account you have to keep in mind it will take you MORE than 1-day to pull your funds via ACH since there is a daily ACH limit of $2,500 so you might need to pull 2-4 ACH transactions each separated a day apart, so you’re unlikely to pull your funds before the $10 FEE kicks in. Good luck but I’m bailing this month before the FEE.

RoamingRedPanda
RoamingRedPanda

I also bailed this month and am using the funds to chase down a bonus I couldn’t have completed otherwise. I was able to pull the full $5k + interest out in one transfer.

Tomtoo
Tomtoo

You also still have to do the $800 money order (or some form of $800 spend) to get the interest for April.

Eric
Eric

I didn’t have any spend in March and still received the full interest so April should be the same way.

Tomtoo
Tomtoo

So you just let your balance keep building up? Or maybe you didn’t have max in savings?

Eric
Eric

No, I didn’t buy a MO because I was planning on liquidating my account in early-April. Once Eric confirmed the $10 fee wouldn’t be charged I decided to keep it open until May. I don’t plan to buy a MO in May either.

icemule1
icemule1

Bye Mango it’s been fun

Eric
Eric

April Fools!!! We know you will be back =)

Pablo
Pablo

Fortunately wasn’t part of the fiasco where Mango was sending out emails to some members. Received their apology email though just an hour ago.

Amex Fangirl
Amex Fangirl

Is there any cheap way to sue them for exposing our sensitive information?

JT
JT

In the terms it says you can file an arbitration, I don’t know if this makes it forced. That would cost $200 minimum so not sure if cheap or not.

Eric
Eric

Amex Fangirl By the time you come up with a way to sue Mango, May would already be here and we should all be cancelling the card anyways. The spending requirements and the maximum amount to keep the 6% is just way more effort than it is to keep the card. The Mango card had its run but now it is time to retire the card.

Shalom
Shalom

What are the requirements to get the 6%? Are there any minimum spend or direct deposit requirements? Also, is there a monthly fee to that account, can it be waived? THANKS !

Millennial Outrage

Check out the links in the post.

wwseazy
wwseazy

What’s the cheapest way to zero out the account before closing it? Can I ACH pull fund out of Mango using another bank (I thought Mango didn’t allow ACH pull). If yes, any fee on Mango side?

Revil
Revil

ACH out works just fine. No fees from Mango, just initiate a pull from the bank that you normally use to push to Mango.

Eric
Eric

At this point you mind as well wait until April and get the March 2020 interest and take the $3 monthly fee. Yes ACH your funds and give it an extra day or 2 to let the transaction finalize at your bank first before trying to close the account. You have the whole month of April to do this so there is no need to rush. Just make sure you get your $5K and March interest safely to your bank before closing the account.

wwseazy
wwseazy

Excellent, thanks for the suggestion! Will wait till April 1.

pinkMango
pinkMango

Do they not pay interest if you remove the money before end of march? I made the mistake of removing my balance early and I did not get any interest for march. Is this mentioned in their terms?

Eric
Eric

pinkMango It looks like you must have the funds in the Savings account on Mar 31st in order to get the March interest. Not sure why you were so quick to pull out your funds when the terms are not effective until May 1st. You had all of April to safely transfer your funds out.

Erik
Erik

Neither P1 or P2 have received any E-mails yet so I have not experienced the privacy issue. However, this sounds like a clear violation of the law. Could be brought up in a Class Action lawsuit (if the Class is large enough to be worth it).
Alternatively, the affected persons could all individually sue Mango….
Mango is in New York, so anyone in New York could try Small Claims court.