T-Mobile Money launches as new banking service

tmobile_money_official

After ending its Mobile Money product more than two years ago, T-Mobile is getting back in the game with a new banking service.

T-Mobile Money quietly launched today with a new website as well as Android and iOS apps, though without any major announcements from T-Mo, it feels like this program is in a bit of a pilot stage right now. With T-Mobile Money, T-Mo says that there are no account fees, no maintenance fees, and no minimum balances. T-Mo also promises that customers will have access to 55,000 no-fee ATMs through Allpoint and that it won’t charge you if you use an out-of-network ATM, though you still may be hit with a fee by that ATMs owner and T-Mo won’t rebate those fees.

With the T-Mobile Money service, everyone will earn 1.00 percent annual percentage yield on all balances. T-Mo customers with a qualifying plan — like T-Mobile One, Simple Choice, and other postpaid plans — who deposit at least $200 per month can earn 4.00 percent annual percentage yield on checking account balances up to $3,000.

Another benefit for T-Mobile customers is Got Your Back, which offers up to $50 of spending in overdrafts with no fees. This feature is available to eligible T-Mobile customers on a qualifying postpaid plan who make a one-time deposit of $200 in a single month. With this feature, you’ll have 30 days from the date your account becomes negative to bring it back to a positive balance.

T-Mobile Money offers a physical debit card that’s associated with Mastercard. The service supports digital wallets, too, including Apple Pay, Google Pay, and Samsung Pay. Other notable features of T-Mobile Money include automatic bill pay, direct deposit, mobile check deposits. If you want to deposit cash, though, you’ll have to either get a money order, a cashier’s check, or make a deposit at another bank and then transfer that to your T-Mobile Money account.

T-Mobile has partnered with BankMobile for its T-Mobile Money service, and the company says that your account is FDIC-insured up to $250,000. As for why T-Mobile decided to get into the banking game, here’s what it has to say:

“Because fixing broken industries is a part of our DNA – it’s what we’ve done in wireless. And we heard over-and-over from our employees and customers their pain and frustration with their current banking options. So, we believe we can do more by partnering with a proactive bank, BankMobile. And that’s why the Un-carrier is disrupting banking by offering better MONEY through our partnership.”

You can find the T-Mobile Money app for Android here, and the iOS app is right here.

What do you think of T-Mobile Money?

Source: T-Mobile Money

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  • Eric A

    You have to add a line and trade in an iPhone in order to open an account.

    • tranceformer978

      Interest is paid in bill credits.

      • Josh Warfel

        **Bill credits may take up to 3 months to apply. Certain plan restrictions apply (but we won’t tell you what they are).

    • steveb944

      If you haven’t paid your bill, they just take the amount out of the account.

    • Alex Pilaia

      I read that you need to add a line, trade in a high end device, trade in a car with under 5,000 miles, make Tmo a beneficiary to your 401k, and inlcude Tmo on your Tombstone, in order to qualify to get this account set up… :/

      • Bklynman

        You didn’t read the fine,fine tiny print at the end,also you have give up your cat or cats to them,sign form stating you will not ever get another cat again,you your children and grand children,and great grandchildren!

  • steveb944

    4.00 percent annual percentage yield on checking is likely the highest around.
    That’ll net you $120 that Uncle Sam will want a cut of.

    • Yonatan Ben Magen

      yep and no hoops like 12 debit card transactions a month, Direct deposit etc.

      shame it’s limited to $3K

      • dl_crash

        Requires $200 / month direct deposit.

        • Yonatan Ben Magen

          Yes, but it is super simple to setup a reoccurring monthly push then pull off $200 ACH from another bank account over $3K you don’t get 3%.

          Talking with a local store mgr sounds like you can do it for multiple lines

        • dl_crash

          Yup, you can and I thought about it. 4% of 3,000 is $120 and I earn 2% now. So I can make 60 which will be taxed, so maybe $40. Not worth the leg work. No pain points solved here T-Mobile.

  • gmo8492

    In all honesty how good is this banking service compared to others.

  • francob911 .

    Do you have to add a line ?

    • David Davis

      I see what you did there!

  • Lord Kensington

    CashApp has the superior service right now. NOTHING beats it. You’ll try the others like Venmo or maybe half ass PayPal. None are better. Plus with CashApp you can buy Bitcoin directly from the app and MAKE money when the markets recover. I’m skeptical of this service because I don’t know how or who they’ll report your balances to (Which is why Crypto will one day delete all US currency and become the World Currency) so I’m going to wait until they get their first round of a million issues , see how they solve them and then maybe sign up.

    • disqus_u7J1D3ELeh

      Its a great app. now you can’t use a credit card to pay someone anymore. That’s the only downside, otherwise it’s my 2rd favorite way to send money

      • Yonatan Ben Magen

        you can but you pay 3% you have to remove debit card then add Credit card.

        The Boost feature is 10% off at different locations.

  • Send Obama to Mars

    An interesting experiment in data-sharing and privacy. A single company could see exactly what you do with your money, and link it, to all that it knows about you (via your phone).
    Even Google doesn’t have that much power.

  • Derek

    The banking industry was fixed decades ago, and the answer is called credit unions. Honestly, NO ONE should be using a bank for ANYTHING. Credit Unions are non-profit, local, shared branching allows for just about any credit union to be used for free along with free atm’s the outnumber the largest banks in america.
    Outside of the “Simple Banking” app (that I use only for occasional online purchases), i haven’t used a traditional bank for anything in years.

    • Acdc1a

      Depending on where you are, credit union fees are just as bad as bank fees without the benefit of branches nationwide. Taking a loan is a much different story. Using a credit union can save you as much as 50% of interest.

    • Yonatan Ben Magen

      I use banks all the time, they pay handsome bonus for opening Checking, savings, MMA and keeping money for 30-180 days. Capital one MMA pays $1000 just for opening and depositing $150K within 10 days (no requirement to park but they do pay 2% on more than $10k -no fees or direct deposit needed). You can make a few grand a year off the “too big to fail – but we bailed them out banks”.

      They also offer CC with 0% for up to 21 months which can be put to good use.

      But a few banks pay better % than CU’s. CU normally have better APR% than banks for Credit cards, but honestly unless apr is 0% you shouldn’t carry a balance and have cash to pay off at end of intro period.

  • vrm

    Why does ANYONE want to operate a bank ? Simple- access to capital.

    All the deposits that come in are available to use for capex, without the co having to borrow at exorbitant market rates. T-mobile now has a healthy positive cash flow and maintaining the bank’s liquidity/holdings should not be a problem unless all customers come to withdraw and close their accounts on the same day- a highly unlikely scenario.

    Why aren’t more companies doing this ? Well, they used to. Even now, large corporations like the auto cos have their own financing and GE and sears had huge financing/banking divisions. What changed ? Dodd/Frank. Dodd/Frank not only destroyed smaller “neighborhood” banks but even some very large banks like Wachovia, NCNB etc.

    Earlier this year, Trump signed a bill amending Dodd/Frank that allows smaller banks to thrive again. Also, lot of regulations have been repealed to allow this. We may see more of this happening where smaller banks, often embedded in corporations or non-profit associations mushroom again, offering consumers more choice and lower interest rates. It will take time- Dodd/Frank REALLY hurt banking for the consumer.

    • Yonatan Ben Magen

      agreed this is cheap money compared to issuing bonds – which the rate of return for investor’s is higher and can’t be arbitrarily lowered at any time (and unlike this DDA account which T-mo could drop APR % to .03% if they decided to (unlikely) but they will also get breakage on over under $3K. As well it opens access to business credit lines with deposit assets.

      Looks like an easy $120 in interest a year – just schedule monthly ACH push /pulls of $200 for simple easy money. Just wish I could do it for each of my 6 family lines.

      Going to need access to cash for merger.

  • ibmps2it

    It’s a decent way to build up a $3k savings account and get some interest on it.
    However, it requires $200/mo deposits to maintain that 4% APY.
    Catch: After you get to a $3k balance, each new deposit actually earns just 1% (source: the fine print).
    Your first $3k still gets 4%.
    So, after that point, the APY on your overall balance actually starts dropping.

    • icwhatudidthere

      Nothing wrong with that. Just limit that account to $3000 and you’ve got a very liquid emergency fund that beats inflation.

    • the martian ambassador

      Not turning my nose up at 4 percent, but there should be an incentive to deposit more. How about a $2.00 Dunkin Donuts gift card each month you carry a $4000 minimum balance.

  • ibmps2it

    T-Mo wants in on the latest trends.
    Mobile wallets and person-to-person payments, such as Samsung Pay/Google Pay/Apple Pay/Chase Pay, are the new payment method for small pot purchases, especially in states that have legalized.
    My neighbor regularly uses Zelle when he runs out late at night. 30 min later, a driver pulls up with a bag of weed for him. No cash is exchanged.

  • tony77

    I just heard that T-Mobile is also entering the zoo business. If you want to join, you have to add a lion.

    • Seanjeep

      ok,,,, i chuckled..

  • dl_crash

    “They want to Fix broken industries”? Re-branding someone else’s phone app doesn’t fix anything. And you’re 5 years late. Ever heard of Ally Bank, Capital One 360. Simple, or, Alliant. They should go back to UnCarrier 1.0 where they simplified wireless plans. Now they ballooned back up to 100 plans that none of their TEX can keep up with. Hey T-Mobile stick to adding coverage and if you get a minute how about some phone updates? Android 9 has been out for months and you just got around to Android 8.