These days, consumers are looking for convenience and simplicity when it comes to banking. If you’re in the market for a new, straightforward savings account, why not take a look at the high-yield savings account offered by Credit Karma? There’s no minimum balance required to open an account and they are offering a higher than average APY worth 2x the national average (according to the FDIC).
What is Credit Karma and What is Their Savings Account?
Founded in 2007, Credit Karma is a personal finance company that operates within the United States, United Kingdom as well as Canada. Credit Karma has been best known for its financial management platform offering free credit reports, tax prep and unclaimed property database. Their primary competitors over the years have been companies such as H&R Block, Turbo Tax and TaxAct.
Credit Karma’s Savings just launched in 2019, and is a simple, straightforward high-yield account with no minimum balance required to open and no fees. It is available online nationwide and comes with free credit monitoring and personalized recommendations for ways to use your credit more wisely. Right now, Credit Karma is also offering a competitive and higher-than-average APY on any balance amount, with daily compounding interest, and FDIC insurance on balances up to $5 million.
Furthermore, Credit Karma says it will leverage technology to keep their rates competitive in the market, so their customers will be getting the most for their money.
How Can I Deposit and Withdraw Money from a Credit Karma Savings Account?
Here are the ways Credit Karma says you can deposit or obtain money from your online savings account:
Deposits
- Direct deposits
- Online transfers
- Mobile check deposit
- Wire transfers
Withdrawals
- Online transfers
- Wire transfers
- Request a check be mailed to you
What are Credit Karma’s Savings Account Fees?
Here’s a list of common account fees associated with a Credit Karma Savings account:
Type | Fee |
Monthly Fee | $0 |
Minimum Deposit to Open Account | $0 |
Stop Payment | $0 |
Domestic Wires (In or Out) | $0 |
International Wire In | $0 |
International Wire Out | $0 |
Returned Item Charges | $0 |
Account Research | $0 |
Paid Non-Sufficient Funds | $0 |
Foreign Item Collection | $0 |
Expedited Debit Card | $0 |
Inactive/ Dormant Account | $0 |
Daily Overdraft Charge | $0 |
Canadian Item Collection | $0 |
Deposited Item Reversal | $0 |
What Are The Benefits of a Savings Account at Credit Karma?
- Higher than average APY.
- No minimum deposit or balance required.
- No monthly or annual account fees.
- Easy application process for opening an account.
What Are The Disadvantages of Opening a Savings Account with Credit Karma?
- No physical branches or ATM access (you’ll need to link another bank account to your Credit Karma Savings in order to gain access to the ability to transfer and withdraw your money).
- Maximum 6 withdrawal/transfers per monthly statement cycle.
Additionally, while Credit Karma seems to be the total package for consumers wanting a “no-frills” savings experience, we’d also suggest that you check out other online-only banking experiences if you are wanting to earn a higher than average return on your investment and are comfortable with banking over computer or mobile device…
As of November 2022, here are some rates from competitors that you may want to check out:
- Aspiration Bank – 3.00% APY
- TAB Bank – 3.00% APY
- Citi Accelerate – 3.10% APY
- First Foundation Bank Online Savings – 3.60% APY
- Barclays Bank – 3.00% APY
- CIBC Bank – 3.27% APY
- Goldman Sachs – Marcus Account – 3.00% APY
- Synchrony Bank – 3.00% APY
- TIAA Bank – 0.80% APY
- Ally Bank – 0.75% APY
- Citizens Access – 0.75% APY
- Capital One 360 Performance Savings – 0.70% APY
- Discover – 0.70% APY
- American Express Personal Savings – 0.65% APY
- CIT Bank Savings Builder – 3.25% APY
- MySavingsDirect – 0.50% APY
- Vio Bank – 0.50% APY
- HSBC Direct – 0.05% APY
Is Credit Karma Savings FDIC-Insured?
Yes. Credit Karma is a FDIC member, which means that funds deposited into their accounts are insured up to the maximum allowed by law.
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions. The FDIC insures deposits according to ownership category (such as individual, joint or accounts with beneficiaries). The balance in your savings account may be moved to one or more network banks where it is eligible for FDIC insurance up to $5,000,000 once the funds arrive at a network bank. Actual insured amounts may be lower or adversely affected based on any balances you hold at a network bank. Learn more at: https://www.fdic.gov/deposit/deposits.
How Do You Open A Savings Account with Credit Karma?
Opening a savings account with Credit Karma is a simple and straightforward process. You just need to be a US citizen, over the age of 18, have a social security number in order to sign up.
In fact, Credit Karma states it will take consumers just “four clicks” to get started.
- The first step is to open your web browser to Credit Karma Savings
- Next, click “Start Saving”
- Then, sign up for an account
- Proceed to the application
- Fund your account with your initial deposit
- And finally — you’re all set to start using your Credit Karma Savings Account!
How To Access Your Credit Karma SavingsAccount:
Online: Access your account by logging in with your username and password on their website: CreditKarma.com
Mobile Device: Bank on your phone/tablet through their mobile app.
Contact Credit Karma About Your Account:
- Online Help Request:
- Submit a help form on Credit Karma’s website by logging into your account or by using the form here.
Bottom Line
If you are looking for a free, no-frills, online-only, interest-bearing account that offers a competitive APY, Credit Karma’s Savings is certainly one to check out. The account does come with “extra” FDIC protection up to $5 million. The downside is that it does not offer you the ability to easily withdraw your money, but after all, it is a savings account – so why not let your money “work for you” while it sits in the account and earns steady interest.
Banking Health Score
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Bank Health Scores
Bank Professor’s Bank Score = ⭐⭐⭐ 3 stars out of 5 stars
Additional Information
- FDIC: Actively insured
More about the rating system:
- BankProfessor rates banks monthly on a one-to-five scale based on revenue, net income, total assets, total equity, capital ratio, customer reviews, rating agency scores, profitability, and troubled asset ratio.