Netspend Allows Savings Account without Direct-Deposit/Upgrade

Multiple readers report that some of the Netspend cards now allow opening the savings account to get 5% interest without the need to first ‘Upgrade’ the account the account with a $500 direct deposit. This is especially important given the fact that the Netspend cards will soon need a real direct deposit to trigger the Upgrade.

Under the new system, you can open the Savings without an upgrade and there’s no reason to upgrade your account or to get a direct deposit at all.

Not all of the Netspend varieties have this ability to open a Savings account without upgrading. Here is the info we have so far:

No Need for Direct-Deposit/Upgrade

  • Netspend (multiple readers and Milesforfamily)
  • Ace (reader Octavio)
  • Western Union (personal experience and readers mentioned this too)
  • HEB – as soon as your account has any amount of funds in it, you can open a savings account (reported by readers)

Requires Direct Deposit/Upgrade for Savings

  • Brinks (confirmed by readers and by Travelwithgrant via personal communication)

Unknown

  • HEB
  • Control
  • Paypal

It makes sense to do the Netspend, Ace, and Western Union cards first as those won’t need you to get a real direct deposit so as to enable the 5% Savings option.

ACH Pulls

On an unrelated note, a  reader mentions using the routing/account numbers on Netspend to ACH-pull money from the Netspend into their regular checking account (transaction initiated from the regular checking account). Netspend went on to the decline the transaction, saying that funds on the card are only meant for making purchases or paying bills.

The rep confirmed that you can use the routing/account numbers to pay credit card bills, and I’ve personally had success making a Barclays credit card bill payment of ~$1,500. It may be worth unloading by paying credit card bills instead of ACH transfer to your bank, although small amounts should go through to the bank without a hitch.

Update: Other reports indicate that ACH pulls are working fine, even to a bank.
    Chuck
  • On January 17, 2016, 14:55

View Comments (85)

  • So I signed up for all 5 netspend cards and have gotten two in the mail already. Just yesterday I signed up for the Ace elite, HEB and Brinks card. Now I have run into a big problem.

    All my accounts are locked. I can't login to any of them. The only good news with this is I don't have any money sitting in any of these accounts, so the risk to me is minimal. I sent an email a couple of days ago complaining about it, but they never responded.

    What to do now?

  • Brinks automatically upgraded me to 5% savings after a $500+ ACH from Santander Bank. Same for my wife's account.

  • Can we use these prepaid account to pay for Auto Loan or will it face the similar issue mentioned above for ACH pulls?

  • I opened NetSpend account around March 1st and wasn't able to open savings account immediately.
    Transferred $600 from BoA as ACH push and the option opened to me.
    So - no need of salary ACH but there is a need of a ACH push.

    • thanks but looks like BOA is charging $3 for external ach transfer for each transaction. waiting for my netspend card. once received will have to see whether to use boa or discover to push

  • Is it too late to open netspend now? does it still working to get savings a/c without direct deposit requirement? I have a BOA checking a/c. would that be ok to fund the $5000? thanks in advance!!

  • I tried a $60 ach initiated by Amex personal savings. Reversed. Netspend rep said I must transfer to debit card and spend to get my money out.

    This 5% on 5k has not been worth the hassle.

  • Chuck or anyone else - I received 2 cards from Netspend. Not sure what the difference is, and whether this is intentional, or a mistake on NetSpend's part? The first to arrive was the "Black NetSpend Visa Prepaid Debit Card". Then, a few weeks later, I received a "Netspend Premier Visa". Was this card automatically issued once the account was upgraded to Premier with the $500 direct deposit? Is it intended to replace or supplement the Black card? I haven't activated the Premier one yet because I don't really have a need for 2 cards (like most others I'm just looking for a place to earn 5% on $5K) I ask my questions here because I have not yet had a positive experience contacting NetSpend's customer service directly (half the time they have no idea what I'm even asking about, and always give conflicting info). Thank you!

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