T-Mobile Money: Earn 4% on Balances up to $3,000, 1% After That

Update (Feb. 20, 2021) – T-Mobile Money is actually a good option right now, even if you just earn 1%, But there’s something you should keep in mind if you plan to deposit large amounts into this account. Reader Lou pointed out that this account has a major downside that could be a deal breaker for some people. It does NOT allow a parent to name their adult children as beneficiaries at death. He notes that this is a big deal because it avoids costly probate and legal fees. Most other banks have this as an option.

Update (Feb. 19, 2021) – Requirement for the account have changed.

On March 31st, 2021, instead of the current qualifying $200 direct deposit requirements, we will require that at least 10 qualifying purchases (doesn’t seem to be a minimum requirement) using your T‑Mobile MONEY card have posted to your Checking Account before the last business day of the month. Qualifying purchases posting on or after the last business day of the month count toward the next month’s qualifying purchases. If you meet this purchase requirement in a given month, we will pay you this benefit in the subsequent month as an added value provided all other requirements are met. An email notification will be sent to you 30 days prior to the effective date of this change.

Original article (Nov. 29, 2021) – T-Mobile is launching a new venture called T-Mobile Money, a checking account service for T-Mobile customers. The service is run by a digital bank called BankMobile, which is a part of Customers Bank. T-Mobile Money is still a real checking account,  with FDIC insurance for balances up to $250,000, a Mastercard-powered debit card, and the ability to send paper checks directly from a smartphone app. You can also add a T-Mobile Money account card to Apple Pay, Samsung Pay, or Google Pay.

Offer & Requirements

Everyone earns 1.00% Annual Percentage Yield (APY) on all balances. T-Mobile wireless customers with qualifying service who deposit at least $200 a month can earn 4.00% APY on checking account balances up to $3,000.

As a T-Mobile MONEY customer you earn 4.00% annual percentage yield (APY) on balances up to and including $3,000 in your Checking account each calendar month when:

1. you are enrolled in a qualifying T-Mobile wireless plan;
2. you have registered for perks with your T-Mobile ID; and
3. you have deposited at least $200 in qualifying deposits to your Checking account within the current calendar month (10 qualifying purchases using your T‑Mobile MONEY card instead, starting from March 31, 2021.)

Offer Terms

• Promotional deposits and refunds are not eligible toward the $200 in deposits.
• Balances above $3,000 in the Checking account earn 1.00% APY.
• Customers who do not qualify for the 4.00% APY will earn 1.00% APY on all Checking account balances for any month(s) in which they do not meet the requirements listed above.

Fees

T-Mobile Money has no overdraft fees, no account fees, no maintenance fees, no minimum balances, and no fees at Allpoint^® ATMs.

Guru’s Wrap-Up

A weird venture from T-Mobile, but no reason to complain. This is a pretty good deal to earn 4% on $3,000. Must be enrolled in a qualifying T-Mobile wireless plan and deposit at least $200 every month to get that rate. You can automate the deposits and make $120 a year.