If you still have a Netspend account (5% APY on balances up to $1,000) you will have noticed that when your interest credited (01/01/18 – 03/31/18) that a portion was taken out with the following message ‘Savings Interest Withheld’.
For whatever reason Netspend has decided to update everybody’s preferences and have backup withholding selected as default. To no longer withhold tax you’ll want to do the following: Login, click the upper left 3-bars icon, click Move Money->Savings Transfers, scroll down & click Tax Preferences, check the box ‘I am not subject to Backup Withholding’ click Continue. Personally I’d just recommend moving onto other accounts with bigger balance maximums at this stage but some people are happy to keep earning 5% on $1,000.
Hat tip to I P & Dylan
