Mango Money Review: Earn up to a 6.00% APY on Savings

posted in: Bank Reviews, Checking, Savings | 0

Many people are so discouraged with the abysmal interest rates offered for saving and checking accounts today, it seems impossible to think there could be a glimmer of hope on the horizon.  Gone are the days when a person might actually have earned enough monthly interest on their savings account to be noteworthy.

With this review, the average person will be pleasantly surprised to find it is still possible to have a savings account with a robust interest rate.  The online banking system at Mango Money offers a very attractive 6% interest rate that at least helps the average saver feel it is worth having their money in a savings account rather than stashing their extra cash under a mattress.

Mango Money: The Basics

Mango Money is an online bank affiliated with Sunrise Banks, N.A. of St. Paul, MN.  Savers can rest assured knowing their checking and saving accounts with Mango Money are FDIC insured.  Mango does offer toll-free customer service at 855-687-2036.  Inquiries can also be made in writing to:  Mango Customer Service, P.O. Box 315, New York, NY 10018.  Customers can either check their banking information on Mango’s website or download the Mango Money app, available both at Google Play and iTunes.

The Savings Account

This online bank does offer an astounding 6.00% yield on their savings account for balances up to $5,000.  This 6.00% yield is three times as high as most Certificates of Deposit. In order to receive this amazing interest rate, customers do need to have a checking account with Mango and they also need to have a direct deposit made into their checking account of at least $500 per month.  For saving account balances that go above $5,000, the interest rate will drop to .10%, so there is little incentive to go beyond a $5,000 account balance.  In addition, there is a $3 monthly service charge for the checking account which does slightly decrease one’s overall gain from any interest earned.  For those that are not able to have a direct monthly deposit into their checking account of at least $500, the savings interest rate does drop to 2.00%, therefore one has to consider whether the $3 service charge will outweigh any benefit received from the lower interest rate.

The Checking Account

The checking account is where most transactions will occur.  Customers can give Mango’s routing number and their own account number to their employer in order to activate a direct deposit.  In addition, any credit card payments and the like, are taken from an individual’s checking account, not their savings account.  Mango Money also issues a prepaid Visa card, connected to an individual’s checking account, that can be used anywhere a Visa debit card is accepted.

Best Practices

The best way to make the most of the accounts offered at Mango Money is to set up a direct deposit into a checking account as required.  Next, customers should fund their Mango savings account with $5,000 and simply allow that money to reside in the account to take full advantage of the 6.00% rate.  For those who are working toward the goal of $5,000 in savings, they need to understand any money deposited from an external account automatically goes into their Mango checking account. They must then manually transfer the amount they want to stash into their savings account.

The Drawbacks

For those that simply do not feel comfortable with online banking processes, Mango Money is probably not a good fit.  There is no brick and mortar building to walk into and no bank teller to manually process any transactions.  Their customer service phone number is not available 24/7 and if an individual does close their Mango accounts completely, it does take some time (several weeks) for an individual to receive any monies still left in their accounts.

All in all, Mango Money certainly offers a savings rate that is unheard of in today’s banking world.  For those who would like to have a savings account that is accessed only in emergency situations, Mango offers an incentive for the average person to beat the current rate of inflation eating away at most regular saving accounts.  For the savvy saver, Mango Money may be a viable option.

If you plan on having more than $5,000 in your savings, and wish to earn more than .10% on the balance above that amount, there are many higher interest rate options available.