T-Mobile Money Review — Still Worth it in 2021? - YouTube

Have you heard about some recent  changes to T-Mobile Money and are  

wondering if the digital banking account  is still worth it? Well in this video,  

we’re going to be taking a closer look  at the update and what you should know.

Hey everyone this is Kyle from Money@30 and  on this channel we look at personal finance  

from a millennial perspective, including  app and tool reviews like this one.

Last year, I finally got around to reviewing  the digital banking account T-Mobile Money.  

Well, since then, the offering has made a  significant change to its most appealing feature.  

So, what’s different about T-Mobile Money in  2021 and is still worth opening an account?  

Let’s take a look at what  to know and what I think,

Before we get to what’s different with  T-Mobile Money, let’s review what’s the same,  

including 1% APY, ATM access, and more.

Starting with the basics, despite the name,  T-Mobile Money is available T-Mobile wireless  

and non T-Mobile customers alike. Thanks to a  partnership with Customers Bank, customer deposits  

are FDIC insured up to $250,000. As for the perks,  all customers can earn 1% APY on their funds,  

have access to more than 55,000 fee-free ATMs that  are part of the Allpoint network, can, get paid up  

to 2 days early with payroll direct deposit, and  more. Plus. T-Mobile Money has no monthly fees,  

minimum balance requirements, overdraft fees,  or the like. Also notable is that customers  

can deposit cash into their account at select  Walmart, CVS, 7-Eleven, and other locations,  

although there may be fees associated with  this that are charged by the merchants.

As for the changes, while T-Mobile and  Sprint customers can still earn up to 4% APY,  

the way they unlock this  enhanced rate has been overhauled

Previously, T-Mobile and Sprint post-paid wireless  customers could increase their APY to 4% on  

up to $3,000 by depositing at least $200 a  month in their account. However, in April 2021,  

T-Mobile Money changed its requirements and  now requires that customers make at least 10  

qualifying debit card purchases per month in  order to unlock that 4% APY on up to $3,000.  

These 10 transactions will need to post to  your account before the last business day in  

the month — which means that, even though there  are 31 days in August, the final day to meet this  

requirement for the month is August 30th. The good  news is that you can keep track of your eligible  

transactions in the T-Mobile Money app so you’ll  know once you’ve unlocked your increased APY.

By the way, T-Mobile and Sprint  customers can also unlock Got Your  

Back overdraft protection by making at least  10 qualifying purchases in a month. However,  

unlike the requirement for APY each  month, once Got Your Back is unlocked,  

it will remain available as long as your  don’t run afoul of the program’s terms.

So given this big shift, is T-Mobile Money  still worth it? Personally, I think so - but  

you’ll want to be strategic about it. While I was definitely disappointed by  

this switch up, I think it’s still pretty doable  for most people and could still prove rewarding.  

Let’s say you hold a balance of $3,000  in your T-Mobile Money account in order  

to max out the 4% APY perk. If achieved,  you’d earn about $10 a month in interest.

So, if you made 10 debit card purchases of around  $10 during the month in order to unlock the  

enhanced interest, you’d essentially be getting a  10% return — which is far better than what you’re  

likely to get from any rewards credit card.  Of course, since you’d earn 1% anyway, the 10  

purchases really only earn you an additional  7.5%, but that is still pretty lucrative.

Overall, I see the downside as being the need  to actually remember to use your card for these  

small purchases and ensuring that you accrue 10 of  them with plenty of time for them to post before  

the month’s end. But, if you can get yourself  into the habit of using your card for smaller,  

strategic purchases and can sock away  enough cash to make the 4% APY count,  

then you can still make the most of this offer.

Meanwhile, even if you’re not  a T-Mobile or Sprint customer,  

the 1% APY this account offers by default is  still currently one of the better options.

Although there was once a time then 1% APY  was ho-hum, it’s actually pretty strong by  

today’s standards even if you may be able  to find higher among some FinTechs. Plus,  

lest we forget, T-Mobile Money is a  checking account, making the high APY  

all the more impressive. Because of this, I  still think that the account is a good idea  

even if you don’t want to jump  through hoops to earn the higher rate.

Hopefully this gives you a better idea about what  T-Mobile Money is all about in 2021, but for much  

more on the account, I’ll have a link to my full  written review in the description box down below

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So thanks again for watching and I’ll  see you next time here on Money@30.