Telecommunications and wireless network giant T-Mobile has just introduced a new service that is set to shake up the entire mobile banking industry.
The service, called T-Mobile Money, is a mobile banking application specifically made for the United States. As more and more Americans now use their mobile phones to manage their funds, T-Mobile's new app aims to make transactions easier and less expensive.
T-Mobile Money, which was officially announced this week, is a mobile checking account that can be managed through a smartphone app. The company is also offering quite a high annual percentage yield (APY) for eligible users, likely a strategy to attract depositors. Opening an account is available to everyone, but being a T-Mobile customer will grant additional perks such as the aforementioned high APY rate.
According to T-Mobile, new depositors with an account balance of up to US$3,000 will be getting an APY of 4 percent. Balances over that amount will be subject to a 1 percent APY. The rates are amazingly high considering that the national average for banks in the United States currently stands at around 0.06 percent APY.
T-Mobile's offer will surely attract a lot of visitors to open accounts, with some likely shifting most of their money into the mobile app. This type of checking account will also be perfect for those who typically just sit on their money. Customers are also protected by FDIC insurance of up to US$250,000.
To further attract depositors, T-Mobile has also announced that the app will have zero fees. However, there are some details in fine print to look out for. While the app does not charge any overdraft fees, it will charge fees if the overdraft is over US$50 and if the account does not have a positive balance within 30 days of the overdraft.
Additionally, there is apparently no monthly fee for opening a T-Mobile Money accounts and no minimum account balance is required. Accessibility to cash is also quite good given that T-Mobile currently has around 55,000 no-fee ATMs spread across the country. Accounts will be coming with their own T-Mobile Money debit cards, which can be used with the firm's ATMs without any transaction charges. Accounts will also work with several online payment systems such as Apple Pay, Samsung Pay, and Google Pay.
Unlike other traditional banks, T-Mobile offers its mobile bank users 24/7 customer service support through the dedicated T-Mobile Money app. This feature will especially be useful during unexpected transaction issues and mishaps while using the account.
