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NetSpend Savings Account Gives 5% Interest + $20 Sign-Up Bonus

NetSpend Savings Account Gives 5% Interest + $20 Sign-Up Bonus
Jason Wuerch Nov 28, 2015
Want to Earn Some Extra Money?

These days you’re lucky to get a savings account with an interest rate of 1%.

With a NetSpend Savings Account, you can earn 5% interest with a $20 sign-up bonus. There’s no monthly fee and no minimum balance required to maintain your account.

What’s The Deal?

NetSpend is a prepaid debit card account that can be used at any retailer that accepts either Visa or MasterCard. Funds are deposited via your bank account, and you can make purchases at various retailers, pay your bills over the web, or withdraw cash at ATMs worldwide. Not only that, but it also offers a free and convenient way to transfer funds to another person.

Attached to this debit card account is a savings account that offers 5% in interest along with a $20 bonus just for signing-up for the debit card account. This offer is only available to those who have not opened a NetSpend account within the past 180 days.

Unfortunately, there is a maximum of $5,000 allowed in your savings account, but after doing some research, forums indicate that you can have up to a maximum of 3 accounts, making the total amount earning 5% interest at $15,000.

Aside from this, there is nothing incredibly unique or special about the NetSpend debit card account that you wouldn’t get anywhere else. NetSpend is FDIC insured up to account values of $250,000.

How Do I Get The 5% Interest And $20 Bonus?

There are quite a few steps that you will need to take in order to get the 5% interest, and we’re here to walk you through it in just easy steps.

1. Get the $20 bonus. In order to get the 5% savings account, you first have to sign-up for a debit card account. Doing so will automatically get you $20 once you make an initial deposit of $40 or more. You can sign-up for an account by using this  referral link here. If you don’t use a referral link, you won’t get a $20 bonus.

2. Wait for the debit card. You should receive the debit card within 7 – 10 business days in the mail. Once it arrives, follow the instructions in the mail and activate your online account.

3. Transfer $40. Link your external bank account to your NetSpend account and deposit $40. This will allow to receive the $20 bonus, and you should receive it immediately. Transferring money from your bank account is 100% free. You can find out how to do this by clicking on the “Move Money” tab found on the navigation bar. A PayPal deposit will work as well.

4. Get the premier account. You’ll need to upgrade to a NetSpend Premier Account in order to receive the 5% interest rate. There are no costs to do so and no monthly fee. In order to qualify for this account, you’ll need to make a deposit of $500 from your bank account. After doing so you’ll be upgraded automatically.

5. Get the 5% savings account. Once your debit card is upgraded to a Premier Account, NetSpend will allow you to open up a savings account. This account is linked to your debit card, so you won’t need to move it around. Since you already have $500 deposited in your account, go ahead and deposit $4,500 more to start earning 5% on $5,000. Any portion above $5,000 will receive .50% interest. Enjoy!

Things To Be Aware Of

There are a few things that we want to point out about your NetSpend account. We’ll show you how to maximize your savings and avoid fees.

Multiple Accounts

There have been tales spread across multiple forums mentioning that you can open up multiple NetSpend accounts, but this information has yet to be confirmed. If you’re looking for a great way to earn more interest on your money, you could try asking a family member or your spouse to open up an account.

No Hard Pull

Opening a NetSpend account should not affect your credit score since you will be doing what is called a “soft pull.”

Transfers Are Free

Each time you initiate a bank or PayPal transfer, there are absolutely no fees involved. That is why NetSpend is so great for sending money to friends or family who also have an account.

How Money Is Withdrawn

You cannot withdraw money from a NetSpend account directly. Instead, you’ll have to use the money directly from your account by either withdrawing it from an ATM, transferring it to a friend’s NetSpend account, or spending the cash. If you wish to withdraw it form an ATM, you’ll be charged a $2.50 service fee plus a percentage fee from the ATM owner. Read the option below to avoid all of this hassle.

Another Way To Get Your Money Into Your Bank

If you followed the steps above and currently have $5,000 in your account, you can walk into your local bank and ask them to charge your NetSpend Debit Card to your bank account for $5,000. It will cost you a $2.50 convenience fee, but it’s a great way to withdraw all of your money.

Using an ATM will only allow you to withdraw a maximum of $300 at a time and once per day. Each time you do this, $2.50 will be charged with your account, which is why we recommend that you use the method mentioned above and go ahead and have your bank teller make the transfer for you.

An Easy Way To Avoid The Fees

When you initially sign-up for a NetSpend Debit Account, they’re going to ask which of two options you’d like:

  1. Pay-as-you-go. This option charges you $1 each time you make a transaction. If you never use the card for any purchases, you won’t ever have to pay a fee. This is why we suggest getting this option.
  2. Monthly fee. You can also choose to pay a $9.95 monthly fee and in return make as many transactions as you wish without any convenience fee.

There is also a 90-day inactivity fee which charges your account $5.95 if there is no activity whatsoever. In order to avoid this, we suggest making a free transfer of $1 to your account every 90 days, or to buy an Amazon Gift Card for as little as $.50 cents. At the current moment, both New Jersey and Connecticut are exempt from the inactivity fee.

Other than that, you won’t encounter any fees. There’s no fees for deposits, no fees for sign-up, and no monthly charges.

Refer A Friend For Extra Cash

This is an easy way to make a quick $20 bucks. Mention the above steps to your friend, and when they use your referral link, they get $20 in their account after depositing $40, and you get a bonus of $20 in your NetSpend account. The best part? There’s no limit on referrals. If your friends don’t use a referral link, they don’t get a $20 bonus, so they might as well use yours. You can support FFL by using our link here. Thank you!

Final Thoughts

You will need to make an initial deposit of $500 in order to activate your NetSpend Savings Account and to start earning 5% interest on up to $5,000. By doing so, you’ll also receive a $20 bonus provided that you used a referral link to sign-up. This is why we suggest to not go to NetSpend’s homepage directly.

If you use your card responsibly, you’ll end up paying little to nothing in terms of fees. With bank accounts offering interest rates at 1% or lower, this is one of the best deals that we’ve offered here on FFL. Interest rates are made quarterly, and after compounding you’ll receive an extra $254 per year. Have questions? You know where to leave them. Happy holidays.

Jason Wuerch

My name is Jason Wuerch and I'm currently located in Madrid, Spain running a personal finance blog called Frugal For Less. My goal is to help everyone and anyone willing to make and save money through easy and simple ways that don't require much effort. Just because you're frugal doesn't mean you have to give up life's luxuries.

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