A 3% APY high-yield savings account?! My honest review of HMBradley.

Link to open an HMBradley account: https://hmb.to/ThinkingIsCool

I am not sponsored by or affiliated with HMBradley or Thinking is Cool. This is my review of HM Bradley’s 3% savings account.

HMBradley is a startup company that has partnered with Hatch Bank, which is FDIC-insured, to provide this new hybrid high-yield checking/savings account. If you're saving up to buy a house or investment property, or need a place to park your emergency fund, HMBradley is a great option. To get HMBradley’s 3%, all you have to do is 1) set up a direct deposit of any amount and 2) save 20% or more of the amount of your deposits. The 3% will apply to your entire balance, up to $100,000, not just the amount of the direct deposit. HMBradley does not pay interest on account balances above $100,000. To qualify as a direct deposit, the deposit has to be made by your employer, a federal or state government agency, or retirement benefits administrator like the Social Security Administration. The amount used in the calculation includes all account transfers from your other banks, if any, not just your direct deposits. For example, if you had $1,000 deposited for the quarter and you withdrew or spent less than $800 of that $1,000, HMBradley will consider that to be a savings of over 20 percent and place you in Tier 1. Here are the tiers:

Tier 1 - 3.00% APY - Saving at least 20%
Tier 2 - 2.00% APY - Saving at least 15%
Tier 3 - 1.00% APY - Saving at least 10%
Tier 4 - 0.50% APY - Saving at least 5%

If you have less than 5% in savings, you don’t earn any interest. Interest is compounded daily and paid monthly. The tier that you’re in gets reset on the first day of every quarter, which are January 1st, April 1st, July 1st, and October 1st. On those dates, called Tier Days, your new tier rate will start applying for that new quarter based on your savings rate from the previous quarter. There are no monthly service fees to have an account with them and you get a debit card that gets free access to more than 55,000 ATMs in the STAR and MoneyPass networks.

CONS: They are a startup so there is no phone support, only email and chat support, but they are pretty prompt with their responses. You’re limited to $400 per day in ATM withdrawals and no more than that. It’s a security feature, but you should plan in advance if you will need more cash than that. I’m not sure how sustainable a 3 percent interest is in the long run.

Music: www.bensound.com
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