TAB Bank 2% APY On Balances Up To $25,000 – Direct Deposit Not Required (Rate Reduced)

No longer accepting new applications

Update 7/1/20: Rate has been reduced from 3% APY to 2%. For the best current high yield accounts click here.

Update 4/28/20: Limit seems to have been reduced from $50,000 to $25,000.

Update 3/29/20: E-mails have been sent out stating the rate will be reduced from 4% APY to 3% APY

Offer at a glance

  • Interest Rate: 2% APY
  • Minimum Balance: None
  • Maximum Balance: $50,000
  • Availability: Nationwide
  • Direct deposit required: No, ACH payment or bill pay also works
  • Additional requirements: 15 debit card transactions of $5+
  • Hard/soft pull: Soft pull
  • ChexSystems: Unknown
  • Credit card funding: None
  • Monthly fees: None
  • Insured: FDIC

The Offer

Direct link to offer

  • TAB Bank is offering 4% 3% 2% APY on balances up to $50,000 $25,000 when the following requirements are met:
    • At least 1 direct deposit, ACH payment, or bill pay transaction(s)
    • At least 15 debit card purchases of at least $5 each

The Fine Print

  • To earn your rewards, the following enrollments must be in place and all transactions and activities must post and settle to your Kasasa Cash account during each Monthly Qualification Cycle: (1) At least 1 direct deposit, ACH payment (use of routing number and account number to complete a transaction), or bill pay (using TAB Bank’s mobile app or online banking portal) transaction. (2) At least a combined total of 15 pin-based / signature-based debit card purchases.
  • Account transactions and activities may take one or more days to post and settle to the account and all must do so during the Monthly Qualification Cycle in order to qualify for the account’s rewards.
  • The following activities do not count toward earning account rewards: ATM-processed transactions, transfers between accounts, debit card purchases less than $5.00, debit card purchases processed by merchants and received by our bank as ATM transactions, non-retail payment transactions and purchases made with debit cards not issued by our bank.
  • Transactions bundled together by merchants and received by our institution as a single transaction count as a single transaction for the purpose of earning account rewards. “Monthly Qualification Cycle” means a period beginning one (1) banking day prior to the first day of the current statement cycle through one (1) banking day prior to the last business day of the current statement cycle.
  • Commensurate with the spending activities identified above, we expect the account’s debit card to be used frequently throughout each month and for transaction amounts to reflect a wide dollar range. Small debit card transactions conducted on the same day at a single merchant and/or multiple transactions made during a condensed time period particularly near the end of a Monthly Qualification Cycle are not considered normal, day-to-day spending behavior. These types of transactions appear to be conducted with the sole purpose of qualifying for the account’s rewards and thus will be deemed inappropriate transactions and will not count toward earning the account’s rewards. TAB Bank reserves the right to determine if the account is being maintained for a purpose other than day-to-day, primary use. Accountholders who persist in making debit card transactions in a calculated and limited fashion in order to meet their monthly qualifications may have their accounts converted to a different checking account or closed altogether. We also reserve the right to convert the account to a different checking account if the account does not have consistent active use over 3 consecutive Statement Cycles
  • All bank account bonuses are treated as income/interest and as such you have to pay taxes on them

Avoiding Fees

This account has no monthly fees to worry about

Our Verdict

Update: Given the restrictive debit card language, I think Orion is actually still a better option for most people.

This looks to be the new best high yield rewards checking account, Orion offers 4% APY but only on balances up to $30,000. Although this account requires more debit card transactions and those transactions need to be at least $5. Big question will be how long these banks are able to manage such high interest rates. These high rates with high maximum balances also make other things such as dealing with 0% APY $0 fee balance transfer offers, allowing you to park funds in this account.

We do still need to know if opening an account is a hard or soft pull, although I’d argue even if it was a hard pull it would still be worth considering for some people. In addition we need to know if you can fund with a credit card, if you know then let everybody else know in the comments below.

 

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Jason
Jason

Drop to 1.5% rate effective 2/1/2021

Lia
Lia

Got the following email from Tab today: “Dear Valued Customer,
We are reaching out to you today to make you aware that the Annual Percentage Yield (APY) for the qualifying rate on your Kasasa Cash account will be reduced from 2.00% APY to 1.50% APY. The new APY is effective as of 02/01/2021. Please see your account disclosures to review the details of this account.”

So the rate will be reduced to 1.5% starting from February.

Ian
Ian

They’ve been calling me non-stop every day including Sundays “about recent transactions on your debit card.” I do Amazon and Walmart gift cards because I’m not going to stores due to Covid. I’ve also been getting numerous calls from different numbers that never leave a message. All of this started about the same time the calls supposedly from TAB. I’m going to call them next week from the number inside my dashboard and find out if it’s them calling or if they had some data break. Well what should I say if they ask about all the small reloads? I guess the worst can happen they kick me out of the kassassa?

Nick
Nick

How do I get money out of this account? Checks? The transfer option is limited to $3000 per day, I’m wondering whether there are fees for each transfer?

Ian
Ian

Pull from another account.

raekwon
raekwon

This account is no longer taking new applications, fyi.

SamL
SamL

How is everyone closing this account? What method?

sg77

Is there any reason to close it? I pulled all my money out, but I wasn’t going to bother closing it (and there’s a small chance that I’d want to use the account later).

SamL
SamL

Closed by secure message.

AndreyD
AndreyD

FYI, I just learned that domestic wire transfers have $0 fee with your Kasasa cash account. You just need to ask for and fill out the transfer request form and email it to the bank.

Redd
Redd

Now 25k @ 2%, I’m done with this account.

John
John

It’s now 1.5%. You’re right….I should have left sooner. Definitely leaving now.

Mike
Mike

Time to close this account.

bivespi
bivespi

in june I got like $120 in interest for my $50K-that’s 3% on the $50K. But I thought they limit it to $25K already for last month??

Johnz
Johnz

Maybe they goofed in setting up the computer to lower the cap to $25K even though they said it was effective 5/29/20. Your June statement will corroborate it.

Jenny
Jenny

They do limit it to 25K
Called them yesterday

SamL
SamL

So you thought the cap was $25k, but you left $50k in there anyway?