Credit Karma Money Save review
A free account with up to $5 million in FDIC insurance — but only one way to transfer funds.
finder.com’s rating: 4.0 / 5.0
The Credit Karma Money Save account, previously called the Credit Karma savings account, boasts a whopping $5 million in FDIC-insured deposits. But there’s only one way to deposit and withdraw money, which might be a deal-breaker for some.
Minimum deposit to open
Michael Benninger is a staff banking writer at Finder. He is a former credit analyst and longtime freelancer whose articles have been published by Intuit, Business Insider and the Los Angeles Times. Michael is passionate about all facets of personal finance and has written hundreds of articles about money management during the past decade.
I started using Credit Karma’s savings account when it launched in 2019. Back then, the APY was 2.03%, which was among the highest interest rates around. Now, however, the APY is a fraction of what it once was.
There are still some things I like about this account, including its lack of fees and ease of use. Unfortunately, those incentives aren’t enough for me to use Credit Karma Money Save as my primary savings account. There’s only one way to move money in and out of this account, and other high-yield savings accounts, like Axos High Yield Savings, offer a better interest rate.
My Credit Karma Money Save account is still open, but I only transfer $1 into it each month so I have a chance to win the monthly sweepstakes. I even use the automated deposit feature so I don’t miss my chance to win. I haven’t had any luck yet, but maybe I’ll hit the jackpot one of these days.
If you want a savings account that supports mobile check deposits, direct deposits or wire transfers, and offers a higher rate, look at other savings accounts that offer a higher yield and more features.
How do I open a Credit Karma Money Save account?
You need to create a Credit Karma account, before you follow these steps to open the savings account:
- Go to the provider’s site and follow the steps to apply.
- Select Money then Save from the navigation menu on Credit Karma‘s website.
- Log in to your Credit Karma account if not already logged in.
- 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 Money Save account.
You don’t need to be a US citizen to open a Credit Karma Money Save account, but you do need a Social Security number to use any of Credit Karma‘s services. Here are the complete requirements:
- At least 18 years old.
- An 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
What are the benefits of a Credit Karma savings account?
The Credit Karma Money Save account is provided by MVB Bank and has unique features such as:
- 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 Money Save account is insured up to $5 million. That’s 20x the amount of coverage most banks offer.
- Monthly sweepstakes. For each month you deposit at least $1 into your account, you are entered into a monthly drawing to win a grand prize of $20,000 or one of 30 $400 prizes.
What should I look out for?
While the Credit Karma Money Save 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 Money Save account.
- Low APY. While it’s higher than the national average of 0.06%, you’ll find meatier rates with other savings accounts like Chime Savings or Axos Bank High Yield Savings, which earns 0.61% APY.
- No check or direct deposits. You must 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.
- No joint accounts. Credit Karma doesn’t support joint accounts, so you can’t share access to your savings with anyone else.
- Linked-account limit. Curiously, you can only link one external bank account to your Credit Karma Money Save account, and you can only change that account up to four times. Many other savings accounts let you link multiple external banks and change them whenever you’d like.
- Limit on deposits. Effective December 23, 2021, this account will have a maximum deposit limit of $1,000 per transaction when transferring funds from a linked bank account. Other types of transactions, including direct deposits and check deposits, are not subject to this limitation.
Compare Credit Karma Money Save with other savings accounts
Use this table to compare other savings accounts by interest rate, monthly fee and minimum opening deposit.
How do I deposit or withdraw my money?
Unlike many other online banks that allow direct deposits, mobile check deposits and wire transfers to saving accounts, there’s only one way to deposit and withdraw money from your Credit Karma Money Save account, and that’s by transferring funds to or from a single external bank account. Currently, this account doesn’t support direct deposits, check deposits or wire transfers.
It can also 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.
How to contact Credit Karma about my savings account
The only way to contact Credit Karma is by sending a secure message through its online help center.
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