Netspend 5% Savings Accounts on up to $5000

[Upadated 4/6/16]

We’ve written about various options of prepaid cards which offer high-interest rates. This post will be about the following prepaid accounts: Netspend, Brinks, Western Union, and Ace Elite. All four of these have the same details, as described in this post.

  • Interest Rate: 5% APY
  • Minimum Balance: None
  • Maximum Balance: $5,000 (any portion of the balance above $5k will get .50% APY)
  • Payments: Issued quarterly
  • Availability: Nationwide
  • Direct deposit required: No
  • Additional Requirements: Initial $500 ACH transfer (see below)
  • Hard/soft pull: Soft
  • Credit card funding: No
  • Monthly fees: None
  • Insured: FDIC
  • Length of promotion: Unknown

The Offer

Update 5/31/16: Netspend, Brinks, Western Union, Ace Elite, Control, H-E-B, and probably Paypal are lowering the 5% rate to just $1,000, effective July 1, 2016.

Direct link: Netspend, Brinks, Western Union, Ace Elite

  • Open any one of these prepaid accounts and you’ll be eligible to open a connected Savings account with 5% APY on up to $5000.

In order to be eligible for the Savings Account, some of the Netspend varieties require that you first upgrade the prepaid account to a Premier account by making a $500 direct deposit. In the past, any ACH transfer worked, but as of 1/22/16, a real payroll or government payment is required. This change does not affect those who were already upgraded under the old rules.

As soon as the money appears in your prepaid account, you’ll be upgraded to Premier and they’ll send you a new Premier debit card. Your account will be upgraded and eligible for the Savings Account immediately, even before you get the new Premier debit card.

[You can split up the $500 deposit into multiple transactions; so long as a total of $500 is directly deposited within one calendar month the account will be upgraded to a Premier account.]

Opening an Account

The process of opening an account with all of these Netspend options is to signup with your name and address, without giving your SSN and other personal info. After getting the card, you’ll give in this info at the time of activating the card.

A few points:

  • You may want to signup with a referral link, instead of signing up directly, so as to get a $20 bonus – see below.
  • At the time of the initial card signup, you’ll have the option of setting up an online login immediately.
  • Do not try to ACH funds into your account before receiving and activating the card. It needs to be activated first.

Loading Funds

The prepaid account has a routing number and an account number, same as any checking account, and you can transfer funds to it same as you would transfer between any two checking accounts.

All funds initially come into the prepaid account (via ACH or any other method such as cash loading) and are transferred to the attached Savings Account. There is no way to fund the Savings Account directly.

Things to keep in mind:

  • Since this is a prepaid card and not an ordinary checking account, some banks may not allow transfers to it. My experience so far is that my banks are treating the prepaid account as an ordinary checking account.
  • We don’t recommend trying to transfer from a CapitalOne360 account since they’ve been known to have problems with people making transfers to prepaid accounts in general. Some mention not to use Chase or Discover either.
  • There is one report that Bluebird/Serve/REDbird do not work.

Avoiding Fees

All these cards can be obtained online with no fees.

As far as monthly fees go, there are two plans available:

  1. Pay-as-you-go plan. Under this plan, you pay $1 per signature transaction and $2 per PIN transaction. You pay no fees if you don’t make any purchases with the card.
  2. Monthly fee plan. It’s $5 for Premier cardholders (more on being Premier below), and $9.95 for non-Premier cardholders. There are then no fees per transaction at all.

For those of us who just want the prepaid card for the 5% savings account benefit, the best option is to go with the pay-as-you-go plan. You’ll end up with no fees whatsoever, no signup/activation/monthly fees at all.

Other possible fees:

  • $.50 fee for checking the card balance with a CSR or at an ATM. (All online services are free.)
  • $3.95 card replacement fee.

Inactivity Fee

The one fee to be aware of is a 90-day inactivity fee of $5.95. To remedy this, you need to make sure there is some sort of activity on the debit card every 90-days. You can buy a $.50 Amazon gift card every 90-days, but that would cost you $1 for the transaction, or you can set up an ACH pull/push of $1 from your checking account into the prepaid every 90-days.

It’s likely that transferring money from the saving to the prepaid or vice versa will satisfy the inactivity requirement. Similarly, it’s likely that if there is no money in the prepaid account, the inactivity fee doesn’t apply and they won’t put your account into a negative balance. [Prepaid cards often have inactivity fees as a means of draining unused cards, not as a penalty for inactivity.]

Exclusion: In the Netspend Fee Schedule it mentions that NJ and CT are exempt from this fee (HT: Eric). I do not see this detail with regards to Brinks or any of the other above-mentioned accounts.

Referral Program

A popular aspect of these prepaid cards is the $20 referral bonus program.

  • Refer-a-friend and each of you will get a $20 bonus after the new member adds $40 to their account.

Some people have been opening these prepaid accounts just for the sake of the $20 bonus. That may not be worth it for many, but it is an added little perk to go along with the 5% Savings Account. You’ll only get the $20 bonus if you use a referral link, not if you open an account directly.

Referral Limits

There is a limit of one $20 referral for the recipient across all Netspend-and-clones cards within 180-days. This means that if you sign up for two of these cards on the same day (say – Brinks and Netspend), you’ll only get the bonus for the first one. After 180-days it resets, and you can get another bonus.

There is no limit as to how many people you can refer; you can refer as many people you want. So long as the referred member is eligible for the bonus, you’ll get the bonus as well.

Ace Elite Bonus

While all the other cards offer a $20 referral bonus, the Ace Elite card offers just a $10 bonus. All the other details are the same.

Please do not leave any referrals in the comments of this post. Instead, please visit our dedicated page for referrals on all Netspend-family products. You can pick up a referral there (to net the $20) or you can leave your referrals there. We also wrote more details there on the rules of the referral program.

Rewards Programs

All of these prepaid cards come with various rewards programs. Here are some of the offerings (which vary by the card):

  • Various ‘payback rewards’ which offer you cashback for using  your debit card at different merchants. These offers are loaded based on you spending history. If you don’t use the card for purchases, you won’t see any offers.
  • Prescription savings. They partner with this company to offer discounts on prescriptions. (I have no idea if this actually works or if the discounts are useful for someone who has insurance coverage.)
  • Phone refill discounts. Use your prepaid card to refill your phone balance, and get $1 back on each $25 of spend.
  • Virtual account number. You can get a one-time use account number for online purchases, similar to a benefit offered by Citi on their credit cards.

H-E-B Card

Direct Link

This is mentioned on Fatwallet as another card which can come with a 5% savings account on balances up to $5000. While the Cardholder Agreement doesn’t specify this option, reports indicate that the HEB indeed has the 5% savings option. I can attest to this as well.

The HEB/Netspend card appears as part of the Netspend website itself, and you’ll login to your account from the netspend.com website. The standard Netspend card is backed by MetaBank while the H-E-B version is backed by BofI. This card does not have the referral program like the other Netspend cards have.

The only different between this card and the other Netspend cards is that the H-E-B version comes with a $2.95 initial-ordering fee.

Our Verdict

These Netspend cards are, perhaps, the best option from all the 5% prepaid/savings accounts. These cards have no fees as all, while the Paypal and Control prepaid cards – also Netspend clones – have a non-waivable monthly fee of around $5 which eats into the total value of the cards.

While some of these accounts do need a one-time $500 ACH deposit to enable the Savings Account option, it should be smooth sailing afterward. This makes it arguably better than the Mango account which yields a similar interest rate but require a $500 monthly direct deposit. Also, the Netspend, Ace, and Western Union cards don’t even need the initial $500 deposit at all, as explained here.

Two downsides of these Netspend cards:

  • the interest is issued quarterly (versus the Mango monthly)
  • there is a 90-day inactivity fee which we have to be sure to avoid

See also Guide to 5% Interest Prepaid/Savings Accounts where we round up all the options for 5% savings accounts.

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007
007 (@guest_1707993)
October 3, 2023 12:10

P2 had targeted offer on HEB Prepaid card to upgrade to HEB Debit card. p2 already has an HEB debit card but since we won’t be using HEB prepaid savings anymore went ahead and clicked to upgrade. We’ll see if it allows to activate the card when she receives it.

Zaustin
Zaustin (@guest_1555779)
February 13, 2023 17:47

It looks like Netspend has come out with something called “Netspend All-Access” card which gives a 6% rate on up to $2000 but there are conditions. Sounds kind of like the Ace Flare account. Can anyone tell if it is worthwhile to get? It sounds like a no-go to me since there is a $1000 per month deposit requirement to avoid a $5/month fee.

https://www.netspend.com/create-account/emvdi?aid=d_corp&siteid=2_home_middle_DDA&context_name=ns_aa_bravo_dd_emv_nmf

Davis
Davis (@guest_1312569)
January 10, 2022 14:03

Got an offer for $100 restaurant credit for a $50 direct deposit on my vanilla Netspend card. Sounds simple, I’ll send over some money from ETFCU which has worked in the past.

Enroll in no-cost direct deposit, receive a qualifying direct deposit of at least $50 by February 28, 2022 and we’ll email you a redemption code for $100 in dining certificates that can be used in participating restaurants all across the country.

To qualify for this offer you must be the named recipient of Netspend’s offer and an existing Netspend® Prepaid Card Cardholder. To redeem this offer, you must have at least $50 in government benefits direct deposited or payroll direct deposited to your Netspend® Prepaid Card Account no later than February 28, 2022. Direct deposit is subject to timing of payor’s funding; please allow enough time for direct deposit to be processed and received by the deadline. PayPal transactions and tax refund direct deposits do not qualify for this offer. Offer limited to one existing Card Account per individual that is in good standing and not currently enrolled in Direct Deposit. Limit of one (1) offer per Card Account. Offer may not be transferred, exchanged, or redeemed for cash. Offer void where prohibited. Restaurant certificates are administered solely by Restaurant.com and are not a product of Netspend, MetaBank®, National Association and Visa are not affiliated in any way with this offer and do not endorse or sponsor this optional offer. Restrictions apply. Offer code must be redeemed online at dine.restaurant.com for restaurant-specific certificates totaling $100. Minimum purchase required to redeem restaurant certificate. Certificates may not be combined or redeemed for cash. See dine.restaurant.com for full terms and conditions associated with restaurant certificates and for a list of participating restaurants.

killdozer
killdozer (@guest_1277326)
November 3, 2021 13:47

I am not sure how others are able to get 6 cards. I got my 6th card, tried activating it online, over the phone and via a CSR. All methods failed. CSR also said I have reached my 5 card limit for my SSN. How do you yall get around this?

Ry
Ry (@guest_871188)
January 10, 2020 10:38

Just got an email from HEB stating that they are switching from Axios bank to meta bank. How will this affect people, like myself, who already have 3 meta bank accounts…?

Natalia Vodianova
Natalia Vodianova (@guest_1151447)
February 27, 2021 02:21
  Ry

no idea Ryan

Dinarte
Dinarte (@guest_802386)
August 23, 2019 23:56

I believe the Brinks 5% savings account has been discontinued? I’ve tried DDing over $500 multiple times but it won’t allow me to open a savings account. I call Netspend and they told me Brinks does not offer the 5% savings account??

3458349089
3458349089 (@guest_812435)
September 20, 2019 12:09

Only facts count, not believes.
Brinks still offers the 5% Savings Account to cardholders on the Preferred Plan ($5 a month). Pays-As-You-Go cardholders do not get access

kozak
kozak (@guest_965628)
April 27, 2020 09:13

The brinks 5% savings does still exist. I opened one after the date of both these posts.
My experience: $500.00 DD from payroll, activated 5% savings, and stayed as Pay-as-you-go. The Preferred Plan is NOT required for access to the 5%

Sly one
Sly one (@guest_983785)
May 20, 2020 17:25

If anyone knows please post back. What are the terms for the Brinks 5% savings account? I have seen a recent post where someone said that the 5% is up to $5,000 again not $1,000 but only if you are on the preferred plan with the $5 fee. I would gladly pay $5/mo. for access to another 5% on $5,000. Can anyone confirm the actual terms?

Hongbo Miao
Hongbo Miao (@guest_745765)
April 8, 2019 10:23

I was using ACH pull/push to transfer money with my checking account. It worked before, but recently, it does not count account activity any more. I recently got charged and got this message from the customer service:

I am sorry to hear that you are not aware of the Account Maintenance Fee.

Please be advised that the last transaction on your account is a preauthorized payment using your account and routing number and not using your card number.

The account maintenance fee applies if your account has no activity for 90 consecutive days. The fee is charged each a month until either your balance reaches $0.00, a purchase transaction, or a balance inquiry is made. This fee is waived as long as there is a transaction activity, including balance inquiries, made within a 90 day period.

ves
ves (@guest_745809)
April 8, 2019 12:33

Thanks for the DP.

WI
WI (@guest_1156864)
March 10, 2021 14:46

Thank you for the DP. I’ve just got done setting up saving accounts with 5 Netspend cards. Now I wonder what to do to avoid the inactivity fee???
I’d appreciate any suggestions and recent DPs.

Ian
Ian (@guest_734749)
March 14, 2019 11:11

What a nightmare this Netspend. My account has been locked repeatedly in less than 24 hours. When I call the customer service sometimes they are helpful and sometimes they aren’t. I have a feeling it is related to the “public records” questions they ask. I have had problems with those on other sites so it’s possible that it is not verifying me so they think I’m a scammer. They don’t tell me that and instead just keep giving me the run-around, putting me on hold endlessly etc.

If they tell you “wait 20 minutes before trying again” I think that’s a sign that their verification process failed even if you answered the questions correctly. They have the ability to unlock it immediately because they have done that twice for me. Further, at least one of those questions had 2 correct answers so that tells you how great their questions are in the first place.

Anyway I had to hang up and start over repeatedly until I got a different rep and different questions. Even then I went to bed and in the morning the account was locked again and I had to start the same frustrating process over again. They finally told me that the block is happening because I “tried to access three or more accounts within the same day from the same device” even though that can’t explain while it was locked again while I was in my bed sleeping…

So let that be a warning to you, once you get the main account set up, do not go too fast in creating the others. It looks like for me this is done, it’s going to be too much hassle, they just keep adding the block repeatedly. In addition my spouse tried to sign up using the same computer and different email, so that may have triggered something too.

I’ve set my bank to withdraw the money and I’m going to close the account. I sure hope I don’t have to go through this ridiculous process anymore but I suppose I will. I would not recommend this even if their interest were 500%.

Tom
Tom (@guest_742086)
April 1, 2019 17:37

I had this slight issue whenever I first set up all 5 Netspend accounts. I logged into each one at the same time in different tabs and then got logged out and locked. I had to call them up and (cannot remember what was asked or done) but I told them that I had multiple accounts and would be logging into them, they must have done something on there end to fix it. I havn’t had a problem since.

35345
35345 (@guest_812439)
September 20, 2019 12:11

Windows users. Enough said.

007
007 (@guest_706182)
January 14, 2019 23:44

I just received this message when I referred my SO to Brinks:

“We either weren’t able TO verify their IDENTITY WHEN they ordered a card, OR *** IS currently OR has been a Brink’s Prepaid customer IN the past.”

My SO has never been a Brink’s Prepaid customer. She does have a Netspend but bonus was received >6 months ago.

Anyone ever have this problem? Could it be due to my SO having their credit frozen?

Thanks!!!