One of the things I like doing is figuring out ways to get the maximum yield on my cash. Most people just accept whatever their bank offers them. The problem is that even your highest yielding savings account pays you just 1% interest these days.
What a lot of people don’t know is that there’s an entire world of super high yield savings accounts out there. These are savings accounts that pay way more than even your highest paying online savings accounts. The thing about these accounts is that you won’t find them at any normal bank. They’re sort of secret, and you can only find them “hidden” in prepaid debit card products.
I previously thought that it was only possible to get 5% interest on up to $10,000 by using all of the cards available from Netspend. However, a reader of this blog – Mr. PTM – reminded me that there are a few more super high yield options out there that allow you to put even more money away earning 5% guaranteed interest.
As a result, I finally pulled the trigger and snagged myself a couple of Insight Cards.
If you sign up for these in combination with the Netspend cards that I’ve talked about in a previous post, then you could put away a minimum of $20,000 and potentially as much as $50,000 earning 5% guaranteed interest per year.
For the vast majority of households, $20,000 to $50,000 is more than enough to serve as a massive emergency fund. And since you’re getting 5% interest each year, you won’t have to worry about the low returns that normally come with keeping a big pile of cash.
As a point of comparison, you would need to save $250,000 in your standard online bank account in order to get the same returns as you would get on $50,000 earning 5% interest. That’s a huge difference!
What turns most people away from these accounts is that they take a little bit of upfront work to set up. In reality, it’s not really as much work as you’d think. A lot of people spend way more time figuring out how to travel hack or clip coupons. This is just another way to optimize your finances.
Plus, once you understand how these savings accounts work, it’s possible to set them up and have everything fully automated in just a few minutes. Today, I only look at my accounts four times per year, but I could look at them 1 or 0 times per year if I wanted to.
*This post is the second part of a two-part series. Be sure to also read part one, Netspend Account: 5% Interest Savings and $20 Signup Bonus, if you want to learn how to fully maximize your 5% interest savings and snag a $20 signup bonus in the process.
What Is An Insight Card?
Briefly, an Insight Card is a prepaid debit card. These products generally come riddled with high fees and are designed primarily to prey on the poor and unbanked.
We’re not interested in the prepaid debit card. What we want is to gain access to the 5% interest FDIC-insured savings account that comes with each Insight Card. The good thing is that if you follow the steps in this post, you’ll earn 5% guaranteed interest and never pay any fees. I like to think that we’re fighting back in a way.
So how does an Insight Card work? It’s easiest to think of your Insight Card as having two parts.
- The first part is a prepaid debit card.
- The second part is a 5% interest savings account which allows you to earn 5% interest on up to $5,000 per card (you can generally get between 2 and 4 Insight cards per person).
The important thing to know is that you can’t get access to the savings account without first getting the prepaid debit card. Think of it as looking a bit like the below diagram:
In order to get money into your 5% interest savings account, you need to first send it over to the prepaid debit card. From there, the money then goes into the 5% interest account. The prepaid debit card acts sort of like a funnel, getting money from your bank into the 5% interest savings account.
How To Set Up Your Insight Card
First, if you haven’t already, you should start here. In that post, I explain exactly how I’m able to use my Netspend accounts in order to put away $5,000 earning a guaranteed 5% interest per year ($10,000 if you’re a two-person household).
If you want to maximize your 5% interest savings, you’re going to want to read both this post and the previous post on this topic. You’ll especially want to read the previous post in order to understand how to withdraw money from your prepaid debit card accounts (although I’ll touch upon it briefly below as well).
The process for setting up an Insight Card is largely the same as with Netspend.
1. Set Up A Bank Account With A Normal, Online Bank.
First, you need to have a bank account with a normal, online bank. I highly recommend using Ally Bank. It’s the only bank I’ve used with these accounts and the only one that I know will work perfectly with your Insight Cards.
The good thing is that Ally allows you to connect up to 20 external bank accounts. We’ll need to potentially link as many as nine external accounts if we want to max out our 5% savings. If you don’t have an Ally account, I highly recommend getting one. It only takes a few minutes and you can sign up for it all online.
2. Sign Up For Your Insight Card.
Next, sign up for your Insight Card. On the main page, click the “Get A Card” button. It should then bring you to a page that looks like this:
Click the button that says “Click Here To Get Started” and then enter in all of the information requested. You’ll notice a section in the sign-up process that asks you what type of plan you want to sign up for. Make sure you select the “Pay As You Go” Plan. That way, you won’t pay any monthly fees.
3. Wait For Your Insight Card To Arrive, Then Activate It.
Once you sign up for your Insight Card, you’ll get a confirmation telling you to wait 7-10 days for your card. All of my cards have typically arrived within a week.
When the card arrives, call the number on the front of the card and follow the automated directions to activate your account. It shouldn’t take more than a few minutes.
Remember to also set up your online account with Insight. Just go to the Insight Card login screen and register as a first time user in order to set up your online account.
4. Link Your Insight Card With Your Normal Bank Account.
In the packet of stuff you received, there should be a voided check. This has your routing number and account number. Keep this information in a safe place. You’ll use that information to link your Insight Card as an external account with your normal bank, as shown below:
For me, I logged into my Ally account and entered in the routing and account number for my Insight Card. Ally then sent two test deposits that I needed to confirm in order to complete the link with my bank.
Once you’ve linked all of your 5% interest accounts, your external bank account screen should look something like this:
5. Move Money From Your Bank Account Onto Your Insight Card.
From your normal bank account, set up a transfer to your Insight Card. Since Insight allows us to have $5,000 earning 5% interest, I’d recommend transferring the full $5,000 onto your Insight Card.
6. Activate Your 5% Interest Savings Account and Transfer Money Into It From Your Prepaid Debit Card.
Once you’ve transferred at least $10 onto your Insight Card, you’ll get the option of activating your 5% interest savings account. The screen to do that should be in the savings tab of your Insight account and should look like this:
Once activated, transfer your money from your Insight Card into your 5% interest savings account. That screen should look like this:
7. Set Up An Automatic Transfer of $1 Every 2 Months Onto Your Insight Card In Order To Avoid Any Inactivity Fees.
The last step is to automate a $1 transfer onto your Insight Card, set for every two months. This is very easy to do in Ally. The screen to set up your automated transfers should look like this:
Once you’ve set up your automated transfers, you’ll avoid any inactivity fees and you’ll never even have to think about the account other than if you want to pull out any interest you’ve accumulated.
One thing to note is that if you’re automating transfers from your savings account, you’ll have to deal with the six transactions per statement limit that apply to savings accounts. Your choices are to either stagger your $1 transfers (i.e. do 5 transfers 1 month and 4 transfers in the next month), or a simpler solution is to create an Ally checking account and automate all of your $1 transfers from that account.
I used to stagger my transfers but after dealing with that, I decided to just open up an Ally checking account and set up all of my $1 transfers at once from that account. Every two months, all of my $1 transfers go out at the exact same time. I think it’s easier that way.
8. Open Up A Second, Third, and Fourth Insight Card For Yourself And Repeat The Same Steps With Your Spouse.
A little-known fact is that Insight allows you to open up at least two and possibly as many as four accounts per person (I currently have three active cards for myself and three for my wife). If you can open up four Insight cards per person, that’s $20,000 you can put away for yourself and $40,000 your household can put away into just these accounts. Combine that with the 5 accounts that you can open with Netspend and you’re looking at putting away as much as $25,000 per person or $50,000 per household.
In terms of how we did it, I first signed up for my Insight Card, funded it, and activated the savings account. I then signed up my wife, funded her card and activated her savings account. After that, I repeated the sign-up process for myself.
Oddly, when I tried to repeat the process for my wife, we received an error message saying that she couldn’t sign up for another Insight Card online and that it had to be done at a store. About a week later, the card randomly arrived. We’re not sure why that happened, but if you’re having issues with getting your second card, you could consider waiting a week or two just to see if your second card arrives.
I had no issues ordering my third or fourth card and neither did my wife.
Any Potential Cons With The Insight Card?
One potential con included reports that Insight only allowed folks to withdraw $1,500 per 24-hour period.
I can confirm that this is not the case, as both my wife and I have been able to withdraw well over $1,500 at once without any issues.
In What Order Should You Open These Accounts?
There are two ways you can go about opening up these accounts. Which route you take will really depend on what your goals are:
- If you want to get either $20 or $60 worth of signup bonuses (depending on whether you have a partner or spouse), then start with the Netspend cards first, then move onto the Insight cards until you have every card possible opened up.
- If you don’t care about the signup bonuses or only have a few thousand bucks that you’re trying to store away, then just go with the Insight cards.
When I signed up for these cards, I started with the Netspend cards first since my goal was to open every single 5% account that I could and because I thought it made sense to snag myself the Netspend signup bonuses too. Insight, unfortunately, doesn’t offer any signup bonus, so the way I see it, if you’re going to maximize your 5% interest savings, you might as well start yourself off with a free $20 first (you’ll actually end up with $60 in bonuses if you are working on this with your spouse).
If you want to start off with a $20 signup bonus, you’ll want to follow this order of opening up these cards:
- First, sign up for a regular Netspend card, fund it, and snag a $20 bonus. If you use my sign up link, you’ll get a $20 bonus once you deposit $40 or more (note, I’ll also receive $20 as a referral bonus). Make sure that the code 1450481187 is in the Referral Code section of the sign-up form in order to qualify for the $20 bonus. The process of opening up a Netspend card is almost exactly the same as with Insight and you can read more about how to set up your Netspend cards here. After you’ve completed this step, you’ll be able to put away $1,000 earning 5% interest.
- Second, use your Netspend referral code and refer your spouse or partner to Netspend. If you do that, you’ll get a $20 referral bonus for referring your spouse and your spouse will get a $20 signup bonus. Altogether, that’s a cool $60 for opening up two Netspend accounts ($40 for you and $20 for your spouse). You’ll now have a total of $2,000 earning 5% interest.
- Third, open up all of the Insight Cards you can. You should be able to open up a minimum of two Insight cards per person and possibly as many as four per person. Make sure to take it one at a time (i.e. open up one card first before opening up the next card). You shouldn’t have any trouble opening up your first Insight card, but check the troubleshooting section of this post if you find yourself having trouble getting your second or third card. If you’ve managed to open up all of the Insight cards you can, you should now be able to save a total of $42,000 earning 5% interest.
- Fourth, open up an Ace Elite prepaid debit card. You should now have $43,000 earning 5% interest.
- Fifth, open up the Western Union prepaid debit card. You now have $44,000 earning 5% interest.
- Sixth, open up the H-E-B prepaid debit card. The one thing to note about the H-E-B card is that it comes with a $2.95 activation fee. They deduct this right out of your account, so the account starts off in the negative once you sign up. The $2.95 activation fee is worth it, though, because we’re going to get much more back in interest. You should now have $45,000 earning 5% interest.
- Seventh, open up the Brinks prepaid Mastercard. There are reports that this card requires a real direct deposit to set up the savings account, but I found that when I transferred money from Ally, it activated the savings account with no problems. You’ll now have $46,000 earning 5% interest.
- Finally, repeat the Ace Elite, Western Union, H-E-B, and Brinks cards with your spouse. You now have $50,000 earning 5% interest.
If you don’t have a spouse, then just ignore the steps involving a spouse and do the steps that apply only to you.
If the $20-$60 signup bonus doesn’t matter to you, then you should start by opening up all of the Insight Cards that you can first, then move on to the Netspend cards in the order I’ve outlined above.
Remember, take it slowly. Don’t open up the next card until you have the previous card fully set up. If you have every account set up and maxed out, it should look like this:
Important Things To Remember About Your Insight Card
- Interest Is Paid Quarterly. Expect to see interest posted on January 1st, April 1st, July 1st, and October 1st of each year. If you ever plan to close these accounts (why would you though?), make sure that the interest posts first. Otherwise, you’ll lose the interest.
- Each Insight Savings Account Is Limited to $5,000. You can’t put more than $5,000 into each savings account. Notably, however, it appears that any interest you accumulate above $5,000 in each account still earns 5% interest. In other words, you can just leave the accumulated interest in each savings account if you want, even if it takes the savings accounts above a $5,000 balance.
- You Can Open At Least 2 And Potentially As Many As 4 Cards Per Person. It isn’t advertised, but every person in your household can have at least 2 and possibly as many as 4 different Insight cards. This effectively allows each person to save as much as $20,000 by saving $5,000 into each Insight account. Due to recent changes, it seems that Insight might limit you to 2 or 3 cards. From my experience and reader experiences, it seems that, at a minimum, everyone should be able to get 2 Insight Cards per person, and many people should be able to get at least 3 cards. Your mileage may vary, but read the comments at the bottom of this post for other reader experiences.
- There’s No Hard Credit Check. Opening an Insight Card does not result in a hard credit pull. As far as I know, there isn’t even a soft credit pull. There’s also no Chex Report inquiry.
- No Minimum Balance Requirement. You don’t need to keep any minimum balance in the savings account. The only fee you’d ever need to worry about is the inactivity fee. However, if you’ve automated the periodic $1 transfer onto the Insight Card (as described above), then you shouldn’t have to worry about the inactivity fee either. Any usage fees don’t matter because we’ll never use the card for anything.
- Make Sure You Understand How To Withdraw Money From Your Insight Card. Just remember that if you’re withdrawing money, you need to have the money on the Insight Card first. Then, when you want to withdraw the money, you initiate the ACH pull from your normal bank account. Be sure to check out Part 1 of this series to get a full explanation on how to withdraw your money.
- Your Money Is Liquid. Any money in your 5% accounts can be withdrawn within 1 or 2 business days. It’s just a matter of moving your money from your savings account to the debit card (this is instant), then doing an ACH transfer from your debit card to your regular bank account. In other words, if you need the money, you’ll get it in however long it normally takes you to ACH money from one bank to another (1 or 2 days typically).
- Don’t Use The Card And Don’t Call Insight Customer Service Unless Absolutely Necessary. Remember, this is a product meant to prey on the poor and unbanked. We’re not using it for that – we’re using it just for the 5% interest account, essentially striking back by not using the card at all and collecting our interest from them. If you do call Insight, you’ll get hit with a $1 fee for calling them. It’s not the end of the world, but it’s a reason why you shouldn’t call them for anything unless absolutely necessary.
To quickly recap the process of setting up your Insight 5% interest savings accounts:
- Set up an online bank account with a bank like Ally.
- Sign up for your first Insight Card.
- Get your Insight Card in the mail and activate your account.
- Link your bank account with your Insight Card.
- Transfer money from your bank account onto your Insight Card.
- Activate the 5% interest savings account.
- Transfer money from your Insight Card to your 5% interest savings account.
- Automate a $1 transfer to the Insight Card for every 2 months.
- Sign up for a second, third, and fourth Insight Card and repeat the same steps.
- If you have a spouse, follow the same steps with your spouse.
Answers To Common Troubleshooting Questions With Your Insight Account
I didn’t have any issues when I signed up for my Insight Cards, but we did have some issues with setting up the second card for my spouse. Here are the most common issues that you might encounter when setting up your Insight Card and how to resolve them.
1. Issues Linking Your Insight Card With Your Ally Bank Account.
Some people have reported issues with linking their bank account with Insight. We actually had this same issue when we attempted to set up my spouse’s second Insight Card.
The reason for this has to do with Ally sometimes being unable to pull back the trial deposits from Insight. This can happen because Ally sometimes attempts to pull back the trial deposits before they’ve actually made it onto the Insight card, which leads to the link being rejected. I’ve found there are two solutions to this problem:
- Wait a week, unlink your Ally account from Insight, and then relink your Ally account again. You should be able to confirm your account the second time around; or
- Fund your Insight card with a bank that doesn’t require trial deposits or that doesn’t withdraw the trial deposits. Discover Bank is a good one to use for this – you can link your Discover Bank account to Insight, put a few bucks on your Insight card, then link your Ally account to Insight. That way, you’ll avoid any issues with Ally not being able to pull back the trial deposits. Discover Bank has no fees and usually has signup bonuses when you open an account, so it makes it a worthwhile bank account to have anyway.
The other option is to go somewhere and load the card in person. It’ll cost a small fee to load the card in person, but you’ll make it all back with the interest you’ll earn. I’d personally recommend going with one of the first two options I mention above.
2. Getting An Error Message When Attempting To Order Your Second Card.
This probably won’t happen when you’re ordering your first Insight card, but it can happen with your second card. When you attempt to order your second Insight Card, you might receive the following error message:
I didn’t get this error myself when I ordered my second Insight Card, but my wife did. There are three solutions here from what I can tell.
- Wait to see if a card comes anyway. The first is to just wait and see if the card comes anyway. When we got this message for my wife’s second card, I went ahead and kept trying to resubmit the information each day. Every day, I received the same error message. For some reason, the card randomly came about a week later. I’m not sure why it arrived since I kept getting the same error message, but it seems possible that, even with the error message, your second Insight Card will eventually arrive in a week or two.
- Go to a check cashing place to get a card in person. The second solution is to go to a store that carries the Insight Card and get it in person. I haven’t tried to get the card in person, so if anyone is ever successful in doing that, let me know. From what folks have told me, it seems like the best places to find these cards in person are at payday loan and check cashing places.
- Order a card over the phone. The third is to call Insight directly and order a card over the phone. There is a phone number in the comments that folks have used with success. The important thing to do here is, if you call them, make sure you confirm that they put you in the “Pay As You Go” Plan. Seriously, hassle them over and over to make sure that they put you in that plan. Otherwise, you’ll end up getting put in some monthly fee plan and then you’ll have to call them to get them to switch it.
Maximize The Yield On Your Cash
If you follow my steps, you’ll be able to get yourself $5,000 earning 5% interest in an FDIC insured savings account.
If there are two people in your household, you’ll be able to put away another $5,000 more, for a total of $10,000 earning 5% guaranteed interest.
Continue to open up as many Insight Cards as you can for each person, plus open up every Netspend card you can, and a household can put away as much as $50,000 earning 5% guaranteed interest.
That’s good for as much as $2,500 of interest per year. You’d have to save $250,000 if you wanted to get that same interest from a normal high-yield savings account! That’s a significant difference that makes doing this all well worth it. And the good thing is that once these accounts are set up, they require no time on your end. Everything is fully automated and you won’t even have to think about these accounts other than if you want to withdraw money.
Your cash doesn’t have to earn just 1% interest. Follow these steps and you can increase the yield on your cash savings to a point where you won’t be worried about holding your money in cash.
So many people spend time travel hacking and figuring out how to save money in other areas. Why not spend a little bit of time figuring out how to maximize the interest on your cash too? I think you can agree that 5% interest in an FDIC-insured savings account is nothing to sneeze at.
Make sure that you don’t read this post just by itself. Go back to Part 1 of this series – Netspend Account: 5% Interest Savings and $20 Signup Bonus, in order to maximize your 5% interest savings and snag a $20 signup bonus in the process.
**UPDATE (9/6/17): It looks like Insight might be limiting folks to three cards per person. Assuming the limit is now three Insight cards per person, that’s still a total of $30,000 that a household can put away in just these cards. Add another $10,000 in 5% interest savings if you open up all of the Netspend cards as well and things are still looking good for folks like us who want to earn good rates of return on our cash.
Let me know if you’re taking advantage of these 5% interest savings accounts. It’s always helpful to hear from as many people as possible.