Credit Karma Savings review
A free account with up to $5 million in FDIC insurance — but only one way to access funds.Credit Karma released its first banking product in October 2019 — the Credit Karma Savings account. It boasts a whopping $5 million in FDIC-insured deposits. But there’s only one way to deposit and withdraw money.
Minimum deposit to open
Cassidy Horton is a writer for Finder, specializing in banking and investments. She has a Bachelor of Science in Public Relations and a Master of Business Administration from Georgia Southern University. Cassidy enjoys educating people about financial services, exploring the Pacific Northwest and watching endless reruns of The Office.
The Credit Karma Savings account is a good choice for almost anyone. It has absolutely no fees or required minimum balance requirements. Plus, it comes with up to $5 million in FDIC insurance. The interest rate you’ll earn — 0.4% APY — is also higher than the national average.
But you’ll find better rates at other banks and there’s only one way to deposit and withdraw money — and that’s through a linked bank account. If you want a savings account that supports mobile check deposits, direct deposits or wire transfers, you’ll want to keep looking.
What are the benefits of a savings account with Credit Karma?
The Credit Karma Savings account is provided by MVB Bank and has unique features such as:
- 0.4% APY. Watch your savings grow with a rate that’s higher than the national average.
- Minimal fees. You won’t pay monthly maintenance, statement or inactivity fees.
- No minimum balance. There are no minimum balance requirements to open your account or earn interest.
- Larger FDIC-insured deposit coverage. Most bank accounts are FDIC-insured up to $250,000, but the Credit Karma Savings account is insured up to $5 million.
What should I look out for?
While the Credit Karma Savings account has its perks, it also has a few downsides:
- For members only. Credit Karma is completely free, but you must have an existing account to open a Credit Karma Savings account.
- No check or direct deposits. You’ll have to link an external bank account if you want to transfer funds because Credit Karma doesn’t support direct deposits or check deposits.
- Limited customer support. The only way to reach customer support is by filling out the contact form on its website. You can’t call or live chat with anyone.
- Withdrawal complaints. Customers say making deposits is easy, but it often takes longer than the advertised three to five days to withdraw money. Customer reviews also mention that customer service has provided little help in getting withdrawals processed quicker.
Compare with other savings accounts
How do I open an account?
After you create your Credit Karma account, follow these steps to open the savings account:
- Go to the Savings tab and click Start saving.
- Log in to your Credit Karma account.
- Enter the mailing address, Social Security number, email address and phone number associated with your Credit Karma account to verify your identity.
- Review and agree to the disclosures and terms.
- Link an external bank account and fund your Credit Karma Savings account.
You’re eligible for the Credit Karma Savings account if you meet these requirements:
- US citizen or permanent resident
- At least 18 years old
- Social Security number
- Active Credit Karma membership
- An external bank account to fund the account
Provide the following information when you open your account:
- Social Security number
- Date of birth
- US residential address
- Email address
- Phone number
How do I deposit or withdraw my money?
Unlike other online banks that allow direct deposits, mobile check deposits and wire transfers, there’s only one way to deposit and withdraw money from your Credit Karma Savings account.
It can take three to five days for withdrawals to clear your account, which is something to keep in mind if you’re using it as an emergency fund and may need money right away.
- ACH transfer from an external bank account
- ACH transfer to an external bank account