Credit Karma, the consumer technology platform with more than 100 million members in the U.S., Canada and U.K., is strategically taking steps towards assets with Credit Karma Savings, free high-yield savings accounts in the U.S. Now, Credit Karma members can see their savings grow directly within the app and once opened they won’t need to monitor rates in order to ensure that they are getting a great rate. When it launches this year, Credit Karma Savings’ high-yield rate will move competitively and help members optimize their money.
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Savings Homescreen (Graphic: Business Wire)
“We spent the first 12 years focusing on helping Americans manage their debt. With more than 100 million members around the globe, it made sense for us to jump across the balance sheet with Credit Karma Savings,” said founder and CEO Ken Lin. “We want to make savings accessible to every American in the same way we have with credit scores. We look forward to helping our members grow their money with Credit Karma Savings.”
How it works
Credit Karma members can take advantage of a high-yield savings rate delivered through a network of more than 800 banks. Credit Karma Savings is designed to help consumers save faster with a great interest rate. Down the line, the company will work to get more banks added to the partner’s network so it is even more robust. This allows Credit Karma to provide members with a high-yield APY, 20 times higher than the national average at the time of launch. This distributed deposit network approach provides members with FDIC insurance for up to $5 million.
Credit Karma has built its business on trust and over 80 percent of its members trust Credit Karma’s tools to best manage their finances. In fact, more than 30 million members already come to Credit Karma weekly to improve their financial health. Because existing members have already shared their financial picture with Credit Karma, signing up is seamless with minimal clicks to open an account. There are no fees and no minimums to open — many competitive rates come with a catch of a minimum to open or recurring deposit requirements.
“The thought of opening a new account or downloading another app can feel overwhelming — and we know inertia is one of the biggest barriers to financial progress. When we built Credit Karma Savings, we wanted to develop a product that made opening a savings account as easy as possible for our members,” said Jagjit Chawla, general manager of Savings and Tax for Credit Karma. “We’re also making it possible for members to see the power of high-yield savings with our savings simulator, which shows how your money could grow over time.”
Credit Karma is not becoming a bank. Instead, the Credit Karma platform facilitates the opening and managing of high-yield savings accounts offered through our bank partner MVB Bank, Inc., Member FDIC.
For more on Credit Karma Savings, visit https://www.creditkarma.com/savings/announcement.
1Bank services provided by MVB Bank, Inc., Member FDIC. No minimum balance required to open account. Maximum balance of $5,000,000 and transfer limits apply.
2Source: FDIC’s national average savings rate as of 10/03/19.
3The balance in your savings account may be moved to one or more network banks where it is eligible for FDIC insurance up to $5,000,000 once the funds arrive at a network bank. Actual insured amounts may be lower or adversely affected based on any balances you hold at a network bank. Learn more at: https://www.fdic.gov/deposit/deposits.
About Credit Karma
Founded in 2007 by Ken Lin, Credit Karma is a consumer technology company with more than 100 million members in the U.K., United States and Canada, including almost half of all U.S. millennials. While best known for pioneering free credit scores, the company’s members turn to Credit Karma for everything related to their financial goals, including helping them with free tax preparation, identity monitoring, applying for credit cards, shopping for loans (car, home and personal) and now high-yield savings accounts — all for free.
About MVB Bank, Inc.
Headquartered in Fairmont, West Virginia, MVB Bank, Inc., and the bank’s subsidiaries, MVB Mortgage, the MVB Community Development Corporation and Chartwell Compliance, the company provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond. MVB Financial Corp. (“MVB Financial” or “MVB”), the holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® under the ticker “MVBF.”