Posted by Chuck on January 17, 2016
Checking Accounts

Published on January 17th, 2016 | by Chuck

87

Netspend Allows Savings Account without Direct-Deposit/Upgrade

Multiple readers report that some of the Netspend cards now allow opening the savings account to get 5% interest without the need to first ‘Upgrade’ the account the account with a $500 direct deposit. This is especially important given the fact that the Netspend cards will soon need a real direct deposit to trigger the Upgrade.

Under the new system, you can open the Savings without an upgrade and there’s no reason to upgrade your account or to get a direct deposit at all.

Not all of the Netspend varieties have this ability to open a Savings account without upgrading. Here is the info we have so far:

No Need for Direct-Deposit/Upgrade

  • Netspend (multiple readers and Milesforfamily)
  • Ace (reader Octavio)
  • Western Union (personal experience and readers mentioned this too)
  • HEB – as soon as your account has any amount of funds in it, you can open a savings account (reported by readers)

Requires Direct Deposit/Upgrade for Savings

  • Brinks (confirmed by readers and by Travelwithgrant via personal communication)

Unknown

  • HEB
  • Control
  • Paypal

It makes sense to do the Netspend, Ace, and Western Union cards first as those won’t need you to get a real direct deposit so as to enable the 5% Savings option.

ACH Pulls

On an unrelated note, a  reader mentions using the routing/account numbers on Netspend to ACH-pull money from the Netspend into their regular checking account (transaction initiated from the regular checking account). Netspend went on to the decline the transaction, saying that funds on the card are only meant for making purchases or paying bills.

The rep confirmed that you can use the routing/account numbers to pay credit card bills, and I’ve personally had success making a Barclays credit card bill payment of ~$1,500. It may be worth unloading by paying credit card bills instead of ACH transfer to your bank, although small amounts should go through to the bank without a hitch.

Update: Other reports indicate that ACH pulls are working fine, even to a bank.



87
Leave a Reply

avatar
 

  Subscribe  
newest oldest most voted
Notify of
Savemesf
Savemesf

Isn’t the ACH pull restriction a pretty major development? Sounds like there is no quick / fee-free way to access the $5,000 now???

Jake
Jake

Yeah, this is concerning as I use my NetSpend accounts as high-interest emergency savings, so not having access to the funds could be a problem. Is it even legal for them to allow unlimited ACH transfers in (I funded each of my NetSpend accounts with $5,000 via ACH and they had no problem with that) but not allow ACH transfers out?

For what it’s worth I’ve been doing ACH pulls from my main bank accounts to get the interest out of the NetSpend accounts and haven’t had problems yet, but I’m only pulling out about $60 per quarter from each account.

anthonyjh21
anthonyjh21

If true this is definitely a major issue for me. Like you, the funds used would be designated as emergency funds. Obviously implies I’d need relatively (ACH) fast access to the money. I have no issues with Mango thus far using ACH to get my money quickly.

Tory
Tory

Agreed, this is unsettling. Worst case I imagine you have to close the account if you *really* need the money…but then how long can they legally hold your money after you close the account?

007
007

Per the FAQ below, your check will be MAILED within 3-4 weeks.

https://www.netspend.com/help/frequently_asked_questions.shtml
Q: How do I close my NetSpend card account?
A: The easiest way to do this is to withdraw your money at an ATM. You can also request the funds be sent to you via check (mailed within 3 or 4 weeks). There is a $5.95 fee for receiving a check. To do this, call us at 1-866-930-9924, or log in to the online Account Center to close your account.

David
David

When I closed my Mango account after they temp locked down ACH pulls, I was told 4-6 weeks. It took 8 weeks for them to cut me a $5000 check.

JGriz
JGriz

For what it’s worth, I pulled $8000 (from multiple accounts) a week ago without a problem. I think the ACH pull restriction would be the biggest issue here if it turns out to be true.

JB
JB

Didn’t have any trouble so far to ACH pull out the interest income. We store almost $40k across eight accounts and to this day I was under the impression that it wouldn’t be an issue to partially or entirely liquidate those funds within a matter of days. That would be a major problem if I’m not able to get my money out of these accounts quickly if need be…

anthonyjh21
anthonyjh21

Someone should be the guinea pig and do a test ACH pull (something closer to $5k). Any takers? 😉

Matt
Matt

I just maxed out my IRA contributions for 2016 on Friday and need to pull around $3k from NetSpend to handle cashflow (like many here, it’s my emergency fund and I keep add much as possible in there). I initiated the transaction on Friday. Will report back how it goes. Needless to say, it will suck if I can’t get the money out when I need it.

Calvin
Calvin

Is it possible that the withdrawal reversal are bank specific? Please report the bank you used to make the withdrawal.

Matt
Matt

Same Matt as above here.

I’ve been doing all transfers through a Vanguard brokerage account (since my main checking account is Chase, and some have reported problems with them). There’s certainly a possibility that, since it’s a brokerage account it will look different from a normal bank ACH. So, as always, YMMV.

anthonyjh21
anthonyjh21

Thanks! Look forward to the outcome.

Akshay
Akshay

Can you confirm if you have transferred money back to Card from Saving a/c before doing ACH pull from you bank?

007
007

For what it is worth, one person seems to have been able to ACH out 5k+ from Paypal Prepaid (a NetSpend account) into Alliant, and their transaction cleared on January 12th.

http://www.fatwallet.com/forums/finance/1434408/m19364146/#m19364146

007
007

Also, I just logged into my Netspend account, then went to Move Money -> Pay Bills -> Automatic Payments & eChecks, and they list the following instructions on setting up ACH Debit:

“Use your NetSpend Visa Card account and issuer bank’s routing numbers to automatically set up recurring or one-time payments with your biller.

Your Account Information

Bank Name: MetaBank
Account Type: Checking
Routing Number: xxx
Account Number: xxx

Getting started with Automatic Payments & eChecks is easy; just follow the simple instructions below to get set up.

Contact your biller or visit your biller’s Web site.
Ask to set up a recurring or one-time payment that is automatically withdrawn from your account. (This is also called an ACH Debit, eCheck, eBill, pre-authorized payment, or automatic payment—terms may vary by biller.)
Provide your biller with your account information.”

How exactly would they block ACH Debit from a bank that is initiated by you vs from a bank that is initiated as a bill payment (e.g., to pay a credit card bill or some other bill)?

Matt
Matt

Update: Withdrawal (of $3,300) is showing up on NetSpend side as posted with description “Debit: Preauthorized Payment to VANGUARD BUY for INVESTMENT” – so it looks like it worked.

Recall, I initiated an ACH pull from a brokerage account, not a bank, so YMMV.

Victor
Victor

I can confirm that I did NOT have to do a $500 DD to open a savings account with Western Union and Ace, but I DID have to do the DD for Brinks as of last week. HEB is in the mail so will report when I receive.

Jay
Jay

Can you please link me to where I can sign up for heb? I am not able to find it on the web,

Jack
Jack

Follow

Octavio
Octavio

For HEB, you don’t need an upgrade either as I did it 4 days ago. However, you cannot have a negative balance. Since you start with a -$2.95, you get a message saying something along the lines of ‘deposit some money before opening the savings account.’

I sent some money via flashpay and was able to open it right away.

Mark Zhang
Mark Zhang

An interesting activation process and one DP for HEB.

Got my HEB card yesterday. I was trying to activate it on my phone browser first, but was told that I must sign in to activate because the card “was registered for online access”. Of course, I did so when I ordered the card. But I was somehow confused and went to my phone app and logged in. When attempting to activate, the same message appeared, so I continued – the app opened an inner-app browser, so basically I was repeating the step earlier.

Then it got interesting: I was asked whether I am a US citizen, and then was asked to choose an ID, so I was “forced” to provide my complete SSN. After that, three questions prompted up, as I experienced whenever SSN verification is done. I answered them, but the last page failed to appear. Some error code was there, so I quit and called to activate.

Now that I think about it, probably that was a step to get the savings started! But I did not finish the process, so as I logged into my account yesterday, the savings option is grey, asking me to deposit more to get eligible.

Now, the DP: I just logged into my account a moment ago, just out of curiosity. NOW the savings options is available!! Weird, since I haven’t done any transfers yet, and only launched the linking process on my Alliant. I did not continue with enrollment only because of the uncertainty of certifying that “I am a US person”. But if I am courageous enough to cheat on that, I can actually provide the W9 certification and get enrolled!

Jerry
Jerry

Any body experienced difficulty opening Brinks saving account? Didn’t have problem with Netspend, WU, ACE and HEB, but cannot open brinks.

I have already put $5K through ACH push, but the website says I have to activate the card before opening saving account, while I have already activated, and if I activate it again, it will say I have activated.

Called customer rep, but no luck.

Dax
Dax

So I have been a little slow to sign up and just ordered my card from NetSpend. I have been trying to get caught up with this entire process but was curious if anyone had some answers to the following: Is there anyway to sign up faster so that I can activate the savings account before the deadline? I have a HEB just down the street, is it possible to signup faster by going to the grocery store?

physixfan

HEB doesn’t require DD. My personal experience.

TooManyKids
TooManyKids

Does anyone know if minors can have accounts? I have five kids and could put away some serious moola.

TooManyKids
TooManyKids

I am pretty sure kids can make around $1200 tax free a year as well. it could be sweet!

John
John

Any updates if you can pull money from Netspend via ACH?

Wyle
Wyle

I push/pull minimal amounts every couple months to avoid the inactivity fee. No problem. Saw a post recently of someone pulling $3k and another one for $5k pulls, so it doesn’t look like Netspend is imposing any ACH pull limit. Things may vary based on receiving institution.

Joe
Joe

Maybe I’m missing something really obvious, but where do I go to sign up for the Netspend savings that gives 5% on $5,000? I’m not seeing a link anywhere…

Jack
Jack

Joe: if you log into your account, you’ll see features / move money option. You should use that to move it to the savings

Joe
Joe

Ahh okay, thanks Jack!

Dabe
Dabe

Has anyone had any issues getting money from NetSpend to your PayPal account via ACH? I need to have a plan to get my money out of NetSpend and was hoping I could make it go to my paypal, but I heard a rumor that PayPal doesn’t like metabank (even though thats how I got the funds into NetSpend).

Sean
Sean

With the recent popularity of the deal and massive influx of funds, I foresee this deal being dead within the next few months.

Alex
Alex

I seem to be dumb, but how exactly do I open the savings account with Netspend? I opened a Netspend card last month and don’t have a savings account yet, but I don’t seem to see any option for me to open this savings account when I log in.

Octavio
Octavio

Hey, Jack answered that very same question 5 days ago. “Joe: if you log into your account, you’ll see features / move money option. You should use that to move it to the savings”

Back to Top ↑