Posted by William Charles on April 25, 2019
Savings Accounts

Published on April 25th, 2019 | by William Charles

129

TAB Bank 4% APY On Balances Up To $50,000 – Direct Deposit Not Required

Offer at a glance

  • Interest Rate: 4% 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% APY on balances up to $50,000 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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Dan
Dan

wow

The Man
The Man

Good find! Very tempting.

Monica Kim
Monica Kim

What is the best way to use the debit card 15 times a month? Amazon balance reloading counts?

joE
joE

make $5 payments to cable, electric, gas, water bill if they don’t charge you.

Brian
Brian

BB if your account is still active.

GMP
GMP

Will serve also work?

Mimi
Mimi

Yes, it’ll work the same way as BB.

Since I’m not a frequent amzn shopper, I will load WMgcs at SCO $5 or more at a time to fulfill the 15 POS requirement with DC. I’d avoid doing the same amount in one day so it’ll not be bunched together into one transaction.

enigma
enigma

Venmo – Sending money to a Family Member. For Provident credit union it works and counted as debit card transaction with no fees.

midas89
midas89

enigma, you don’t think that if TAB enforces the policy as stated in their Disclosure, sending a family member a lot of small Venmo payments every month in order to qualify for the 15 Debits would look suspicious?

Perhaps Venmo won’t report to TAB Bank who the recipient was, and TAB would just see a generic Venmo debit. The question is, for example, let’s say you do 10 Venmos and the other 5 are grocery and gas for the month. Ten Venmos spread out through the month at different amounts, might work. But if one does almost all 15 just at Venmo, that might not work. And if one just stops at 15, that also could trigger TAB to take a closer, especially if it’s just mostly Venmos month after month.

It’s a risk, and of course if it fails, one can simply transfer their money out and close the account.

enigma
enigma

Venmo used to work for Provident Credit Union in past when they wanted 10 debit transaction and now has moved to $300 a month and I use Sqaure Cash for that. But for Heritage bank which require 10 debit transaction, I use 5 transactions a day as debit card stops working after that and another 5 transactions the next day. Never been a problem with Provident Credit Union in the past and has not been problem with Heritage bank.

Until unless account goes for a manual review I think there is high chances computer will not catch it automatically.

Ethan
Ethan

Will Amazon reloads still work when it specifies PIN-based / signature-based transactions?

James
James

Sadly if you read the fine print, it says that if you essentially try to game the system with the debit transactions you won’t get the interest.

Dan
Dan

This is KASASA bullshit. Not everyone is eligible for that – UC citizens only.

Dan
Dan

What is UC?

Jobin johnson
Jobin johnson

United canada?

bo knows
bo knows

united countries

LC
LC

True, but most people that live in the US are US Citizens..

Alys Holden
Alys Holden

We’re all Americans here.

Sam
Sam

Where does it say that?

Sam
Sam

Doesn’t the screen say both Citizens and Resident Aliens, which is what these things generally say?

Dan
Dan

DP: Resident Aliens are also OK.

Dan
Dan

“This looks to be the new best high yield savings account” it’s actually a checking account.

missjenniferd1
missjenniferd1

i think orion is better. also 4%, only requires 8 card transactions, no $5 minimum, and you can have as many accounts as you want.

Chris C
Chris C

Orion HPs though. We are still determining whether TAB does.

missjenniferd1
missjenniferd1

true, but also not sure if tab has an account limit.

with orion having the option of multiple accounts, the hp becomes totally worth it, for me at least.

icemule1
icemule1

So there’s no limit to the number of accounts you can open up? I bet if you open too many they shut you down, that’s only a hunch, but doesn’t make sense they would allow unlimited accounts @ 4%. Now the question is who is going to be the guinea pig…

missjenniferd1
missjenniferd1

someone on the comments section opened 10 accounts no problem with them already. i dont have that much money, but i do have 2 accounts, and will be opening a few more down the road a bit when i get more money.

akjohnny
akjohnny

I have 2 open and saving half my paychecks so I can open a 3rd one… they got no problem taking our $$$ so they can lend it out for an even higher %%% and make $$$ from our deposits… got to love capitalism.

Justin
Justin

Are you bouncing your $500 back and forth to a separate bank each month? I only have 1 account and haven’t reached 30k yet so no need to withdraw.

missjenniferd1
missjenniferd1

yes, i just ach $500 in, and do my 8 debits, then transfer the extra back to where it came from.

arizonapv
arizonapv

The person who opened 10 accounts said Orion was glad to have the money and encouraged more accounts. I have 3 Orion accounts. As long as you open them within 90 days of the last one you opened, there is no additional hard pull, so you don’t have to open them all at once like that other fellow did. icemule1

Shirley
Shirley

Under TAB’s additional information:

“Limit of 1 account per Social Security Number (SSN)”

edy
edy

Question: Do you have to do 8 debits on each Orion account you open? Therefore, 2 x Orion accounts equal 16 debits and 3 accounts = 24 transactions and so on?

Shirley
Shirley

Yes edy, 8 debits per account but the debits can be any amount, even less than a dollar.

arizonapv
arizonapv

yes, that’s how it works. Each account at Orion requires 8 debits, so 10 accounts = 80 debits

LC
LC

honestly this is just a good problem to have…

arizonapv
arizonapv

Once (or if) you have Orion, Orion is much better. Same 4% and less debit card transactions (8 instead of 15) with no dollar limit. Open as many accounts as you want and you don’t have to deal with the fine print restrictions someone else posted re Kasasa. It’s on their disclosure. See post https://www.doctorofcredit.com/high-interest-savings-to-get/#comment-751951 posted by midas89 @midas89

tribesman55
tribesman55

Until Orion drops the rate or starts actually enforcing their state restrictions and closing accounts because people on here have no concept of restraint.

missjenniferd1
missjenniferd1

if that happens, we will all just move to this TAB bank then. but until then, since i dont invest, i’m going to put all my money into the best bank possible. no restraint is necessary.

you have to grab what you can while when a bank starts offering these rates, you can bet i’m going to take advantage of it, because i dont do investments.

MOST people do, which is why wehn banks need money, they raise their rates and in turn, all the people move their money there. if they lower their rate, then people just move their money again… most people do. at least most DOC’ers, slickdeal’ers, fatwallet’ers (rip), etc…..

furthermore, if the bank didnt want you to do more than 1, then they would have put a limit on it, like first advantage did (max of 2 accounts — 4.5%)

stop tryna blow people’s high.

Andrew D
Andrew D

missjenniferd1 have you ever done cash app for first Advantage debit requirements? With low balance cancelation I get enough free amazon credit

missjenniferd1
missjenniferd1

no im not familiar with that

Bill
Bill

On the other hand, Orion requires $500/month ACH deposit, right?

missjenniferd1
missjenniferd1

yes, but you can just set up a recurring transfer from your bank or use paypal, i generally do enough ach’s into the account anyway that it isnt a big deal.

i have a small check list with columns on it.
bank name, calendar month and/or cycle date, ach, and debit card transactions.

i just place a checkmark in each column, as i complete each thing. then i’m set till the next month and/or stmt cycle. it’s very painless and streamlined.

arizonapv
arizonapv

ACH deposits in and out can be automated, so this is not a big ordeal to complete.

Jack
Jack

Are people still having issues with the Kasasa Cash back-end used by this and other banks? I haven’t looked into an account that uses that in some years, but I vaguely remember there being shutdown issues or quick terms changes or something like that.

joE
joE

What were the issues and how common were they?

arizonapv
arizonapv

joE, Not sure how common they were. You can read about them here or read their disclosure: https://www.doctorofcredit.com/high-interest-savings-to-get/#comment-751951 (as posted by midas89) joE

Arty
Arty

Easily opened online. No CC funding. Not sure if hard pull but I doubt it will be. Typically credit karma is 1 day delayed so will report in tomorrow if hard pull. Experian is typically real time and no report yet.

Chris C
Chris C

Interesting. Credit Karma is usually instant for me in notifying me of HPs.

Bill
Bill

Definitely NOT a hard pull. I opened easily without unfreezing my credit reports.

Brandon
Brandon

Hey Doc – I was automatically approved in 1 minute upon signing up. The only option to fund the Bank account was bank ACH (no credit card option). Thanks for sharing this 4% bank account. Excellent for 0% APR transfers..

joE
joE

Do you have any credit monitoring services so you can check and see if they did a hard or soft pull? thanks for the info.

Michael
Michael

I have DiscoverCard and Credit karma alerts and have received no notifications since opening the account.

Michael
Michael

I just opened my account as well. Did they give you your account number? I finished funding my account, but I didn’t see the account number anywhere. I’m trying to download their app and sign up for online banking

Brandon
Brandon

The account number is via secured message to your personal email. A second email will come that shows your one time password to access the secured message.

Thomas
Thomas

Hi brandon

LC
LC

hows this banks health?

Gadget
LC
LC

Thank you, can always count on you inspector Gadget!

akjohnny
akjohnny

id rather have multiple Orion accounts… easier requirements

Pauline the Bean
Pauline the Bean

Yes and Tab only allows one account per social sec number, while Orion allows unlimited accounts (at least up to 10 per one person’s post).

anne
anne

I just wonder why a lot of online banks or bank-related deals are based from UT. Have they been growing with banking industry lately?

Dan
Dan

plural banking is big in UT

arihalli
arihalli

so is plural marriage

Curmudgeon
Curmudgeon

Bank, and businesses in general will set up wherever taxes and laws are most favorable to them.

Also, there are a lot of decently educated people who live there who have a very mild to non-existent regional accent. A lot of the people are also bilingual – not just Spanish but in one of dozens of other languages, so a lot of call centers set up shop there to take advantage of that.

Ann
Ann

“A lot of the people are also bilingual – not just Spanish but in one of dozens of other languages”

Oh, I bet that’s from Mormon mission training!

Ashley
Ashley

I wonder who they use for their debit card servicer, amex, visa, or mastercard. I don’t have tons of utilities now so it would be great to pay my student loan with the debit card using plastiq….

Slip6
Slip6

Very interesting!

1. It is a CHECKING account, which makes this rare to have such a high APR. In addition, on a $50K balance, that’s $750/yr vs. the 2.5% APR account I have with Northern Bank and Trust.

2. If Average Daily Balance is over $50K, is the entire balance subject to the 0.25%, or hopefully just the amount over $50K?

3. Fine print says “non-retail payment transactions” excluded. Someone posted about making $5 payments to cable, gas, electric, water. Are we sure those count as “retail”?

4. Why is this account better for 0%/$0 fee balance transfers?

5. Northern Bank only allows $5K or $10K max transfers OUT per day, or something along those lines. Does this bank have any max transfer limits?

Ashley
Ashley

That’s a good question, I want to know if plastiq would count for the debit card transactions.

missjenniferd1
missjenniferd1

4. because people take out a bt with no fee and 0% apr, and deposit the money into the acct and rcv 4% interest on it.

Mimi
Mimi

>>4. Why is this account better for 0%/$0 fee balance transfers?>>

this (and any of the high yield c/a offers) is great for those who get 0%/$0 fee balance transfers based on OPM(other people’s money) principle in doing business. This is for those who get the great balance transfers and are good with monitoring their accounts, thereby earning interest w/o using their own money.

LB
LB

I get the general idea of using money borrowed at 0% to earn interest elsewhere, but I’d like to learn more about how to maximize that strategy. Don’t expect anyone to lay it all out here in the comments section, but would much appreciate if someone could point me to more information on the subject (here on DoC or elsewhere). My web searches have only turned up ads for low interest loans.

Ann
Ann

Get a credit card that offers a 0% intro period on purchases or balance transfers. Use it to either fund a new high-interest bank account that accepts CC funding, or deposit the balance transfer check into your own existing high-interest bank account, or use it to delay the costs of normal expenses while you earn interest by keeping more money in your high-interest bank account until the 0% period ends. Just make sure you have enough liquid funds to pay off the card on time, and make the monthly minimum payments on time until them.

LB
LB

Thank you. I get the general idea, but I’m wondering if someone could direct me toward a more high-level discussion on the subject. I’m especially interested in the balance transfer check angle (as opposed to 0% APR cards).

Joe7
Joe7

It’s pretty simple really. Let’s say you hit up the Chase Slate for the 0% BT offer with 0% BT fee. Simply request a balance transfer “convenience” check, then write out said check to yourself. Deposit check into high yielding savings or checking account. Make minimum payments on the slate for 15 months. Pay off the Slate as soon as the intro period ends. You’ll generally need to be playing with at least $10k earning 4-5% to mark it worth the hassle, but some will gamble with less.

You will potentially take a credit score hit from high utilization if you completely max the card out, but with a strong enough file this won’t be too much of an obstacle. I’ve hit both the Slate and used a Chase Freedom promo. Been credit card kiting for years now, no issues. 0% Intro offers are literally a dime a dozen now, practically every entry level card offers them. It’s a great way to sweeten an otherwise mediocre SUB.

Jay
Jay

Lots of rewards checking accounts earn better than 2.5% on smaller amounts of money, and they all have these kind of debit card requirements or other types of requirements to deal with versus regular savings accounts. But it might be worth it for this rate on this quantity of money if you have a lot of liquid funds. It’s $750 extra per year if you have 50k parked in this versus a 2.5% account ($2000 versus $1250) very nice.

It’s usually just the amount over the limit that earns at a lower rate.

If you do a pull from another bank IE ALLY you don’t have to deal with small transfer limits with NBaT, and most banks.

GMP
GMP

3. Wonder if this means no BB or Serve reloads either

arizonapv
arizonapv

someone will have to try it and let us know if Tab disqualifies and doesn’t count them.

Emporio
Emporio

The maximum transfer limit for both inbound and outbound transfers initiated through TAB Bank is: $3,000.00.

There is no inbound/ outbound transfer limit for transfers initiated from an external bank.

Emporio
Emporio

In response to your question #2 “If the average Daily Balance is over $50K, is the entire balance subject to the 0.25%, or hopefully just the amount over $50K?”:

“Average daily balances over $50,000 earn an interest rate of 0.25% on the portion of the average daily balance over $50,000 resulting in a non-compounding range from 4.00% to 1.50% APY depending on the account’s average daily balance.”

The Man
The Man

Quick to open and create online access. No hard pull (Have all my reports frozen).

joE
joE

nice ty for the dp!

Richard G
Richard G

Also opened the account. No hard pull for me during the process.

midas89
midas89

Warning regarding TAB Bank for those who “game the system” regarding completing the monthly debit card transactions requirements: There is a chance it won’t be successful. Read their disclosure, I pasted in (there are people below commenting on how you can just make $5 debit card transactions to utilities or Amazon reloads):

“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”

Mimi
Mimi

great reminder!

For MSers who go to WM frequently, it’s easy to load WMgcs at SCO with $5 or more w/o doing the same amount per day so it looks like a regular purchase. For MSers already there to load their prepaids and/or buy MOs, this would maximize your visit while getting higher interest rate.

Stan
Stan

such bullshit.
“you must use debit to qualify for this rate.”
me: uses debit.
“we accuse you of using debit to qualify for this rate.”

Ann
Ann

It’s not that you used debit, it’s that you used it “in a calculated and limited fashion”. 😉

midas89
midas89

It would be so much easier if they would just come up with a minimum total dollar amount of the 15 combined debit card purchases they want per month. Obviously, if they do enforce the “rules” as listed in their disclosure, doing just 15 x $5 or close to $5 ($75) debits per month ain’t gonna cut it, and they might not count them at all to qualify you for the 4% interest, etc.

Ann
Ann

Basically anybody not legitimately making this their primary checking account and using its debit card for most purchases (i.e. not people who like using credit cards) is at risk of getting denied under these terms.

bax
bax

TL;DR translation: Don’t you dare try to make money off of our profits via this account.

Richard G
Richard G

I think it would be helpful if the original post included this information.

Richard G
Richard G
midas89
midas89

Did you notice that TAB underlined “will not” to make sure they emphasize this important point in the sentence: “…will be deemed inappropriate transactions and will not count toward earning the account’s rewards.”

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