TABbank: 4% APY with this Checking Account

There’s two types of Checking Accounts out there. Ones offered by Banks with NO interest rates (APY – Annual Percentage Yield) and ones that do. TABbank has a lucrative offering which i think everyone will find useful.

Understanding the Basics

Most people do not realize this but when you keep money in your checking account (idle) for long periods of time, it depreciates in value ($100 in 2018 is worth $98.19 today thanks to 1.91% inflation).

Adjusted for inflation, $100.00 in 2015 is equal to $106.99 in 2019 however the Bank never gave you an interest on your deposits or even if it did because you parked your cash in a Savings Account (national average: 0.01% APY) you lost about $6.99 in value.

Now that you’ve realized the problem, here’s a potential solution for you: TAB Bank Kasasa Cash Checking Account which offers upto 4% APY on balances upto $50,000 with a little bit of work.

The Value Proposition

Here is a screenshot from the website (link here) which highlights the Benefits and Rewards offered with the Account.

There is however a bit of work that you need to do in-order to secure that high 4.00% APY. Each month, you need to have at least one direct deposit, ACH payment or bill pay transaction(s) AND at least 15 debit card purchases of $5 minimums.

The direct deposit is easy to set-up if you work part-time or full-time and isn’t really time consuming to do. However, making those $5 or greater transactions 15 times in a month is a bit of a chore. At the lower end you’re looking at $75 to spend on your debit card which isn’t so bad (even with the highest 5X cashback rate from a credit card, you potentially lose about $3.75 /month).

Additionally, you will receive reimbursements up to an aggregate total of $15.00 for nationwide ATM withdrawal fees incurred within your account each month. 

Repercussions

The only one being if you miss even one of the requirements you automatically default to a measly interest rate of 0.0499% resulting in a non-compounding annual percentage yield of 0.05% and the ATM withdrawal fees are not refunded. 

This means you need to actively track your finances every month to secure that 4% APY. If you feel like you can manage, then by all means create the account and enjoy that slick 4% on your balances. If you feel this isn’t a right fit for you, consider taking a look at our other Bank Account offers which can be found here.

Final Advice

Before you decide to take the leap, please READ ALL the fine-print to avoid any mistakes or “I didn’t know that” moments in the future. It is YOUR money and hence your financial responsibility to manage it. Other options to consider are: Redneck Bank, Wealthfront and All America Bank (lower APY but lesser work too).