Mango prepaid debit card customers have a unique opportunity to earn high interest yields by opening a savings account separate from their prepaid card account. This savings account is for those enrolled in recurring direct deposit onto their debit card. Think of Mango’s debit card and savings account as the new generation of checking and savings. A paycheck or other income is direct deposited with Mango, and a designated amount is loaded onto the debit card, and a designated amount is deposited into the savings account.
“So…” you may ask, “Other than the online aspect of banking, what is so different about Mango?” The differences are significant as will be outlined below. The two most important differences are 1) the convenience of online banking and using a debit card instead of paper checks, and 2) the high APY of the savings account, usually over 5%, making it one of the best savings rates in the industry.
First you will need to apply for a debit card. Application is relatively simple since it is a debit not a credit card, and you can only spend the amount that has been loaded onto the card.
Next you should set up an automatic direct deposit to MangoMoney to recur at least monthly. There is a five dollar monthly service fee, though customer service states the fee will not deduct the fee if you deposit at least $500 the month before.. There is no fee for direct deposit or bank deposit. Read the service agreement to find out about other fees for alternate deposit methods or cash withdrawal.
Once you have set up a personal debit account your next step will be to open the savings account. A savings account can only be opened if you are enrolled in recurring Direct Deposit. You should also have a prepaid card account in good standing, in other words no over drafts and a balance left after the money is transferred to your savings account. It is actually possible to set up the savings account with only $1.
You may be asked to provide more personal information than requested when opening the debit account. Make sure your personal information is correct and up to date. If Mango has requested any further information, it must be provided before opening the account.
The APY or Annual Percentage Yield for Mango Savings is a whopping 5.1% for a balance of up to $5000 This high percentage is a promotional rate, meaning you will not earn that amount on anything over $5000. If you do not qualify for the promotional rate, the interest rate is still 3% which is well above national average for savings account. You do need to be aware that you will not be earning interest on any balance over $5000.
How can it be that Mango can consistently offer rates better than most banks do on savings accounts? Mango has taken a risk, and the high road of complete customer satisfaction. They want card holders to use their Mango Master Card more often than they do other cards, and to refer business to them. They are also not taking the risk of most banks that make credit loans.
Money can be added to your savings account by an online transfer or by using the YAP app on your mobile phone. MangoMoney helps you enroll in YAP and download the YAP application and register your account so that your banking is literally at your fingertips. YAP will guide you through the process. All transfer, deposit and withdrawal procedures are available online. You simply login to mangomoney.com and follow the intuitive procedure menu provided on the website.
If you have been unable to qualify for credit, then the Mango prepaid debit card is a great way for you to gain convenient buying power. If you can qualify for the 5.1% high interest savings account, it is also a good way to get started on the road to financial stability. For those who have over $5000 dollars to deposit, you might want to consider a money market account. You will have the same ease of access to your money and earn a better interest. As with any savings plan, be sure to read the fine print, and compare Mango Savings to other savings plans. If you are a student or just starting out, it may just be what you need.