5% interest rate sounds like a distant dream for many consumers. But it is in fact a very real possibility. There are certain financial institutions that offer 5% interest on savings account.
One of the best ways to get a high yielding interest rate is through opting for a savings account that is linked with a prepaid card. The prepaid card is just a pre-requisite to get the high-yielding savings account. Initially the minimum deposit for such attached savings account was $5000, but since July 2016 certain institutions have lowered the value to $1000.
Here are some of the popular companies that have a genuine 5% interest savings account with a prepaid card.
Brinks
Netspend
Western Union
Ace Elite
Control
Other than these Momentum, Vision, Purpose, Insight, Mango, etc. offer 5% interest rate on savings account. All of these mentioned cards can vary with respect to terms and conditions.
When you sign up for the 5% interest savings account you will receive a prepaid card. The prepaid card is imperative as it lets you move to the next step, i.e. completing the process for the savings account. In this particular program, apart from your basic details like name, address, date of birth, social security number, etc. there is no credit pull. So, no need to fret as the company won’t scrutinize your credit history.
Although you can get multiple 5% savings accounts, you should fulfill one process at a time. This is because many cards might have a different name but they might be monitored by the same company.
After your 5% interest savings account gets initiated, you won’t be able to use it instantly. You’ll have to pay a premium fee so that you can access it. This fee is usually up to $500, and are mostly required to be paid through direct deposits. Post activation when you start transferring the savings funds you will notice that they will first have to flow into the prepaid card. It is only then your money is eligible to be moved to the 5% interest savings account.
You are allowed to withdraw money from this account, but like the funds deposit process even here you’ll first have to transfer the money back to the prepaid card. Then you can transfer this money to your regular bank account for withdrawal purposes.
Since the deposit and the withdrawal procedure is a little extended, a 5% interest savings account can be a great idea to save up some finances for short term purposes. Depending on your company choice you might have an inactivity penalty. So, make sure that you use your account regularly.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.