Many readers were alarmed today when they got a text from Mango indicating that their entire savings account had been transferred to the prepaid card. Some also had trouble logging into their Mango account.
Mango has belatedly sent out an email indicating that they are switching the backing bank on the savings account:
Important Mango Update: Savings Account Transfer
We are in the process of transitioning the Mango Savings account from the old bank to the new bank. If you receive a text message stating that your balance has transferred to your card this is the reason. We will update you with more information shortly.
Mango used to be with First Bank & Trust, then switched to Sunrise in 2015, then switched to the current backer Metropolitcan Commercial Bank in December. Seems they are keeping the prepaid card under MCB, only switching the 6% savings account.
According to the Mango user agreement, the prepaid card is under Praxell, not under MCB. This is pretty weird because Praxell isn’t even a bank. I’d guess Praxell has some bank backing which makes it FDIC insured, but we don’t know much at this point.
Presumably, old members have their savings account under MCB and are now getting shifted to the new Praxell backer.
