With the Paypal Prepaid Mastercard, you can transfer money from your PayPal account to the card at no charge.Â Other features and rewards are pretty standard, but fees can add up. FDIC-Insured Offers vs. Non-FDIC-Insured Offers. As it may be difficult to qualify for a regular savings account, prepaid cards have the benefit of no separate application to qualify, so eligibility is simplified. 72 divided by 3 (for a 3% interest rate) gives us 24, meaning it will take 24 years for money you don’t touch in an account to double due to compounding. Initial Deposit $5000. This is a much higher APY than offered by traditional savings accounts. You get 2 interest options with Kotak Mahindra Bank. Practically speaking, the prepaid account acts as a basic checking account that is attached to the 5% savings account. Or you can save even more and choose the Reduced Monthly Plan for $5.95 by enrolling in direct deposit. Kathryn Pomroy is a professional freelance writer with many years of experience writing for the personal finance industry. When you get a prepaid card from an online bank or credit card company, you are opening an account held by a bank. Once you enter this info, you’ll be able to set up your username and password to access online banking. To earn the 5% APY, your savings balance must not exceed $1,000. One of the benefits of a savings account with your prepaid card is virtually no risk of loss. Savers must act now to take advantage of Nationwide’s 5% AER FlexDirect current account before its rate gets slashed to 2% on Friday 1 May. She is a ruthless researcher, a wiz at translating ideas into action, a hero of brand voice development and a maestro of content.Â, RatesÂ and fees are accurate as of Oct. 3, 2019, and are subject to change.Â, Kathryn Pomroy is a professional writer with expertise in personal and business finance. Minimum initial deposit. Net Spend is actually a banking system, a number of bank accounts are using their system. These cards work at any merchant that accepts prepaid cards, such as Mastercard and Visa. High APY only applies to balances of $1,000 or less.Â Â, Like other debit cards, Brinks Prepaid MastercardÂ allows people to spend only what is on the card — great for budgeting your money. The Pay-As-You-Go plan with no monthly fee is automatically applied to your account upon enrollment — although you’ll pay for every transaction you make. Compare for yourself, then choose the right one for your needs. All rights reserved. To avoid paying fees, you can opt for the Monthly Plan for $9.95. For example, junk bonds are bonds that pay high yields to bondholders — often 7% or more — but come with higher risks. Plus, Brinks Prepaid Mastercard is part of the PayBack Rewards program. Monthly deposit $1000. Western Union Netspend Prepaid Mastercard, Where To Get 5% Interest Savings Accounts. Higher interest rates for higher balances: Pensioner savings accounts often have a tiered interest rate structure, paying different interest rates depending on the balance of the account (e.g. Also, if you sign up using my referral link , you’ll get a $20 sign up bonus. Savings accounts tied to prepaid cards generally do not charge excessive fees — other than standard fees associated with some prepaid cards, which may include a fixed monthly fee, transaction fee, ATM withdrawal fees, paper statement fee and cash reload fee. Yet inflation means the shopping basket has increased in price to £10,500. Suppose inflation is at 5.0% and the best savings account pays 6.5%. Years (invested) Future value $ I wish to use this to compare different savings accounts. A 5% interest savings account sounds enticing, but you’ll want to read the fine print before you open an account. Sometimes online banks can offer much higher interest rates at many times the national average of 0.09%. You can also earn cash back on select purchases through the card’s PayBack Rewards program. Last Updated on June 27, 2020 January 28, 2017 589 Comments This post may contain affiliate links.Financial Panther has partnered with AwardWallet and CardRatings for our coverage of credit card products. The Pay-As-You-Go Plan charges fees for each transaction you make with your debit card. Kotak Mahindra Bank savings account interest rate – 5%. Are you saving for a house? A prepaid debit card — also known as a pay-as-you-go card — lets you spend only the money you load onto the card. Open a 5% Interest Savings Account With Service Credit Union Service Credit Union is another credit union that has a savings account that offers 5% interest. Then, choose the right account to meet your needs. The 5% APY can be earned on balances up to $1,000. With the Control Prepaid Mastercard, you can enjoy the convenience of paying and earning rewards with your card, even if you don’t qualify for a standard credit card. Most banks are, including the banks backing these savings account offers — but it’s worth checking out before depositing funds into a savings account. Western Union 4. Fees may apply, however, if your balance falls below the minimum balance, you go above the maximum allowed amount in your savings or your account is overdrawn. Once approved, you’ll get a welcome email with your member number. Paypal Prepaid 7. Find out more About Our Interest Calculations (PDF). Your pin number is the last four digits of your SSN. Some great apps to look into include Acorns, Chime, and Qapital. The 5% APY is only valid on the first $1,000 of the savings balance. For this, first you need to make your first deposit into your Netspend account of $40 or more. In fact, in light of some of the lowest savings rates offered by banks, stashing your extra cash under a mattress might seem like an acceptable option. Net Spend series savings accounts have 5% interest rate (APY)! That’s why taking a long hard look at savings accounts that offer 5% APY — and sometimes more — doing your research and putting in a little time and effort on your part is one way to grow your money at a faster rate. If you are looking for a low-risk way to save money over a long period of time, high yield savings accounts may be a good option for you. We don’t receive any sort of commission for any of these, and ALL banks are included in this list. The Western Union Netspend Prepaid Card lets you take control of your money and get paid faster with direct deposit. Finding the best high-interest savings accounts. With these 3 Savings Accounts With 5% or Higher Annual Percentage Yield (APY) you'll be saving money in no time PayPath provides personal finance and professional job advice, as well as economic and business news, investment tips, and guides for managing your money. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). You may be tempted to take advantage of higher rate investments —Â outside of a standard savings account or a prepaid card — which are not FDIC insured. Traditional savings account rates can only go so low, especially since many of them are already bottomed out at 0.01% APY. For a 6% interest rate, 72/6 = 12; your money would double in 12 years. Copyright © 2020 FinancialPanther.com. Many of these are actually prepaid cards which come with the benefit of an attached savings account with high-yield interest. The catch is that there are balance minimums and maximums that apply to qualify for the high APY. Take a look at general fees and features, withdrawals and reloading options, plus other services it may offer, like bill pay. You can access your account through its mobile app and get cash-back rewards from select merchants — or when you use the Refer-A-Friend program. The PayBack Rewards program is also offered with this card, which allows you to received cash back on everyday purchases. The interest rate the account reverts to after any introductory bonus rate. There was an unknown error. On the final application page, you can upload documents before submitting your application. These bank accounts are pretty much the same, the similarity is 99%. Netspend 2. The interest is compounded annually, and annual inflation is 2.35%. The good news is that 5% savings accounts do exist. Please try again later. 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