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Thread: Anyone have experience with Netspend?

  1. #11
    Senior Member bae's Avatar
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    Quote Originally Posted by frugalone View Post
    Why would that be difficult? I know of a credit union that pays 3%.
    The WSJ prime rate is 4.25% today, the Federal discount rate is 1.75%, and the Fed funds rate is 1.25%.

    I'd look very very carefully into the details of any "savings" account that is offering 5%. Banks aren't in the business of losing money.

  2. #12
    Senior Member jp1's Avatar
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    Quote Originally Posted by bae View Post
    The WSJ prime rate is 4.25% today, the Federal discount rate is 1.75%, and the Fed funds rate is 1.25%.

    I'd look very very carefully into the details of any "savings" account that is offering 5%. Banks aren't in the business of losing money.
    I looked into the account she suggested. Yes, it does actually pay that much but with a few caveats. First, it's for a maximum of $15,000. That I can live with. The second I can also live with. Electronic statements. The third is also a hassle that I would put up with. Have to do direct deposit into it each month. The last is the one that is probably a deal breaker, at least for me. Having to do a certain number of debit card transactions each month. That one throws chaos into what could otherwise be an automated system of dealing with the hoops one has to jump through. Yes I could probably make it work by using the debit card every time I go to safeway and then tweak fund transfers at the end of each month to maintain the maximum amount in it, but I'm just not sure that the hassle is worth $450/year in interest.

  3. #13
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    You'd be better off putting your money into index funds. They are pretty liquid and returns can be good too.

  4. #14
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    The only thing is, OP is talking about a 5000 emergency fund, so there is more risk in index funds.
    I like having my emergency fund in a money market savings, at least that much of it.

  5. #15
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    It does seem kind of complicated. I'm already dealing with a number of different bank accounts. But at the same time, I wanna make money (of course)!

    Quote Originally Posted by jp1 View Post
    I looked into the account she suggested. Yes, it does actually pay that much but with a few caveats. First, it's for a maximum of $15,000. That I can live with. The second I can also live with. Electronic statements. The third is also a hassle that I would put up with. Have to do direct deposit into it each month. The last is the one that is probably a deal breaker, at least for me. Having to do a certain number of debit card transactions each month. That one throws chaos into what could otherwise be an automated system of dealing with the hoops one has to jump through. Yes I could probably make it work by using the debit card every time I go to safeway and then tweak fund transfers at the end of each month to maintain the maximum amount in it, but I'm just not sure that the hassle is worth $450/year in interest.

  6. #16
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    Oh, I should mention re: the credit union (lmcu.org). Somebody on the MMM forum says they get around the multiple debit card transactions by automatically transferring something like 50 cents to 10 different Amazon gift cards, and the direct deposit by depositing $5 a month into the account.

  7. #17
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    Also found this through MMM forum. The maximum is higher (I know jp1 mentioned this).
    https://www.oldmissouribank.com/pers...-checking.html

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