Credit Karma to jump into the high yield savings account market
- Almost 100 million Americans use Credit Karma to help manage their debt.
- Now, the firm is launching its own free high yield savings account.
Credit Karma’s 100 million members in the US will how have access to Credit Karma Savings, a free high yield savings account.
- What is it: When it launches later this year, Credit Karma Savings will have a high-yield savings rate 20 times the national average and FDIC Insurance of up to $5 million, with no fees or minimum deposits to open.
- How it works: Credit Karma members can save via a network of more than 800 banks. The company plans to add more banking partners down the line.
- “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 Credit Karma 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.”
Credit Karma isn’t becoming a bank.
- It’s partnered with MVB Bank to open and manage high yield savings accounts for its members.
- MVB Bank is headquartered in Fairmont, West Virginia and provides financial services to individual and corporate clients across the Mid-Atlantic.
- Credit Karma joins a growing number of financial firms launching new high yield savings accounts through partnerships with banks. European challenger bank N26 launched in the US this summer with a partnership with Axos Bank. Robo-adviser Betterment’s new Everyday checking and savings accounts are powered by nbkc. Robinhood famously botched the launch of its high yield product, but still intends to launch a similar product soon.
- Tearsheet Outlier members have access to a growing list of technology firms and banks powering new fintech products.