Posted by Chuck on May 1, 2018
Checking Accounts

Published on May 1st, 2018 | by Chuck

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Mango Prepaid Switches Backing Bank for their Savings Account

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.



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TM
TM

Okay, does anyone have an idea how to ACH in the $800+$3 fee per month anymore? I used to use Schwab Investor checking, now not working…same with Aspiration…and multiple others I used to.

I’ve tried to go through the verification process again but it gets declined on all of my checking accounts. Any ideas folks? What do you use for your “hub” account nowadays for Mango?

Jeremy
Jeremy

I couldn’t login. I had to reset my password, but then everything was ok.

Dan
Dan

The $5,000 that was in my Savings Account + April’s earned interest of $24.05 was transferred to the spending account this morning (May 1). The savings account has a balance of zero. I assume at some point, a) they will reverse the transfer to the new savings account or b) I will receive an email informing me that I can deposit to the new savings account.

I’m not sure if I should initiate the transfer myself because I can’t tell if the transfer is to the old savings account.

icemule1
icemule1

You can’t transfer back to the savings at the moment – it gives an error: “DataNotFound – NA”

Mike
Mike

You can transfer $1700 of it.

Ben
Ben

Maybe the saving is not FDIC insuranced?

Mike
Mike

No mention of any sort in their terms on the website that the SAVINGS account is FDIC insured. Looks like the funds sitting on the debit card account might be protected by FDIC since those funds are managed by Metropolitan Commercial Bank (FDIC insured) but the savings account funds are at 100% risk of loss in the event Praxell, Inc. defaults since the savings account is sitting in Praxell, Inc’s accounts and no mention whatsoever about Praxell, Inc. being FDIC insured. If anyone knows anything different or if some sort of pass-through FDIC insurance is available please advise.

icemule1
icemule1

This sudden change severely screwed up my entire day. I was travelling two hours to meet with someone, then I got the text message that my entire balance was “transferred out” (I thought it meant someone ACH’d it out and my account got hacked!)

I tried logging in but it said login failed; that got me very nervous. I couldn’t reset my password because I didn’t have my card on me, so I had to cancel my plans and drive back home and get my card.

Tried calling Mango and was on hold for 2.5 hours before I was disconnected. When I finally got home I was able to reset my password and login and see my funds were still in my account, just moved to the card from savings.

Next thing I did was check DoC and here I see what they are doing. Thanks a lot Mango for ruining my whole day and causing me a lot of stress in the process.

Dukie02
Dukie02

Just goes to show, ALWAYS check DoC first!

captainsave
captainsave

Can’t even log in or reset my passsword. Knew i wasn’t crazy and my password was right.

Mike
Mike

LOL, now the password that I had to change to get into the account won’t work to get in again. I think I’m going to take a break from Mango until this is all sorted out.

anthonyjh21
anthonyjh21

Can’t log in but I think I’ll give it a day or two to cool off.

Mango is definitely becoming more of a hassle than it’s worth. Hopefully this change didn’t mess up the prepaid account as far as deposits/withdraws to get the 6%.

I might just fund a credit union (like Evansville Teachers FCU and do the 15 debit card transactions and get 3% on $20k. My blended APY for Mango is somewhere between 3-4% so I’m not losing out that much as it is. The biggest downside is I have mango automated with Ally Bank so it’s hands off.

Brandon
Brandon

I got a message last month saying they were switching my debit card provider and have yet to receive it. My ACH transfer in this month failed, but my savings is untouched. Is this related to the savings account switching?

Mr. PTM

Same here. They allegedly sent a second new card but that was weeks ago. 🙄

stacker
stacker

I called yesterday because I thought that I got hacked when they sent the text. Now, I cannot login again. This is BS. They should warn customers before and waive the $3 fee for this month.

Jim
Jim

Was able to log in after resetting the password. Per the first email from May 1, it sounds like we should just wait for Praxell/Mango to transfer the savings funds into the new savings account, so I’ll just leave it the spending account for now…

Odd that the routing number for DD/ACH instructions show the original Sunrise one of 091017138, hopefully a temporary bug

Jim
Jim

Just got text notifications from Mango_MCB and Mango of a full transfer out, then transfer in. Is this just migration over to the new bank?

I tried to login to my Mango account and it wouldn’t let me login, nor set a password — “UserBlocked – NA”

Guess will give it 24 hours

Jim
Jim

Finally managed to change my password and login. Looks like all funds transferred to my savings already.

Interestingly, the routing number in the DD instructions changed to 096001013, another Sunrise routing number…

eric
eric

I kept getting “UserBlocked – NA” when trying to reset pwd. How did you manage to change it? Did you call Mango to resolve it? I tried to call them yesterday but gave up after being on hold >20mins.

Jim
Jim

I just gave the system a break for a few hours before trying again. Wonder if I also tried to re-use a previous password. Regardless, it worked later on

anthonyjh21
anthonyjh21

Just checked and I’m still showing the correct routing number so no changes needed from Ally Bank.

Mike
Mike

Same here. Same routing and account number for me. Nothing seemed to change when I took a look at the direct deposit account instructions. For the other person that said they have a Sunrise routing number, that must be old cache in their browser. They should refresh their web page.

Caryite
Caryite

I was just able to move the $24.05 from the new Savings Account to the Spending account. The $5K is now left in my Savings Account. I’ve had to reset my PW each time I’ve tried to login. Now to make sure the bank routing info has remained the same to get my $800 in.

Bearonthejob
Bearonthejob

I just opened my mango card last week, and just got through the process of linking it to my Ally account (The Ally external link to mango failed the first time). I transferred in $10 just to test if it works now, and then tried to transfer that $10 from my card to the savings account…Well that was this morning, and now, 8 hours later both my card and savings account say they have $0.00 balance. Did my $10.00 poof?

Also, do ACH pushes into the card account from Ally count toward the $800 direct deposit? I was going to set up actual direct deposits from my paycheck, but that makes me nervous with the recent stuff happening.

Caryite
Caryite

I would call Mango if you are not seeing immediate results of moving $ between the card and Savings. It should be immediate and you should get the text too (if you signed up?).

Yes, I move my $800 in from my Ally account each month and it works perfectly to get the interest. No need to do DD from an employer. Given how often and how the terms of the amount needed have changed over the years, that would be a total PITA.

Bearonthejob
Bearonthejob

I sent a support ticket into Mango, but have not heard back. I did get the text that the $10 was moved to the savings account. And if I look at the transaction history online, it shows that the spending account was debited $10 and transferred to Mango Money savings account. But when I check the savings account, it still says $0.00. That was Friday morning. It’s now Monday evening and still the $10 is missing. I dunno, maybe it’s in limbo because they switched backing banks?

John
John

Still cannot log in or change the password. Anybody has the same problem?

Mike
Mike

You should immediately call them if you still can’t reset your password. Good thing I looked at this thread and noticed others were resetting their passwords to get back in which I had to do myself just yesterday otherwise I was sitting around and waiting for another email/txt from them to notify me when I can log back in.

Nick
Nick

Yes, I still running into issues. Tried calling and they don’t recognize my card number anymore. WTF is going on with these guys.

John
John

They put a special notice on the website: “We are in the process of the service transfer to our new bank and are experiencing technical difficulties. We are aware of these issues and are actively working to restore normal service. If you have questions or concerns or require assistance, please call our service hotline but know that wait times may be longer than average. Thank you for your patience while we address these issues.”

Kimi
Kimi

Have you log in or change the password? I have the same problem.

John
John

You need to call them to reset the password

Matthew
Matthew

Does the account still offer the 6% savings account and have to account routing and account numbers changed?

Mike
Mike

According to the website it still does. After logging in, it still shows the same direct deposit information, so nothing changed.

Matthew
Matthew

Thank you

Doug
Doug

My ach of 800$ was refused by mango… please check if this has happened to other folks

Mike
Mike

I haven’t tried to ACH over funds this month so I can’t comment whether everything works after they moved the savings account on May 1st to Praxell, Inc.

Mike
Mike

I created a support ticket with Mango to find out if the savings account is still FDIC insured. No response from Mango yet and it’s been two days. I’m getting a bad feeling they are out to clean out our accounts. The movement of our 6% savings accounts from Metropolitan Commercial Bank to some no name and no history Praxell, Inc has me worried about the safety of the funds. If I don’t hear back in a two more days, I’ll close out the account entirely. If anyone knows whether our savings account is still FDIC insured after the move to Praxell, Inc. please advise.

Wilson
Wilson

That is a good point, it does sound like the “savings feature,” unlike the card balance, is not an account at a bank, in which case it can’t be FDIC insured. But I don’t think they have enough disclaimers in the terms to avoid legal trouble if customers lose money, though of course that doesn’t guarantee the money will be returned

Pablo
Pablo

Hi Mike, were you able to receive a response from Mango Customer Service whether or not the savings account is FDIC insured currently?

Thanks!

Sam
Sam

Just got this email today. I was not previously notified about any changes and I have not received any new debit cards. I logged into my account just now and my entire balance (card and savings) is at $0. I think I’ll wait for my check and call it the end for Mango.

Dear Cardholder,

As previously notified, we are closing your Mango Visa card at Sunrise Banks. If you had a balance remaining on your card or savings account, you will soon receive a check for your remaining balance. This check will be mailed to you at the address-on-record

The check should arrive within 4 weeks.

Please contact us with any questions at MangoSupport@praxell.com or at 1-855-687-2036.

Thank you,
Your Mango Support Team

Sa
Sa

I received the same email. In my case they had only emptied the saving and left the spend account as was.

Christine V
Christine V

Well you’ll be waiting a very long time for your check. I’ve only received my new card May 28th when they claimed to have sent it out on April 10th and then again on May 7th and just recently May 18th.
When I spoke to them on May 8th about a text message received April 25th stating my savings was “transferred out”, they claimed a check was being mailed to me. I get another text saying an “unload” was made on May 17th. When I spoke to them on May 18th they said the card and the check was sent out. At this time I threatened to report them if I didn’t receive my money this week. I have the card, but not the check. So, it’s been 5 weeks since I was supposed to “receive a check”. I wouldn’t hold my breath for that money.

FYI, I guess I was fortunate to have misplaced my original card and having to report it lost, I pressed 9 and spoke to someone about the entire situation within 1-3 minutes. The main extension for inquiries will leave you on hold for way too long.

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