Easy ~5% return on $20k cash (for couples)

[GTFan]

Yes I know the title looks like something pitched by a telemarketer, but this is a relatively easy way to make a grand or so a year with short-term money.

For you and the spouse/SO, open up 2 of these prepaid cards:

https://www.mangomoney.com/
https://www.myunionprepaid.com/

Then open the linked savings account for each card and deposit $5k to each.
Finally, set up an automated direct deposit (ACH push) from your bank/CU to each for $50 a month - you have to do this to get the promo APYs.

Note that there is a $3 fee/mo. for the Mango and a $2 fee/mo. for the Union Plus so your net interest won't be the full APY, but it's still around 5% net for all four accounts - Mango pays 6% and Union pays 5%. Also note that you don't have to be a union member for the Union Plus card.

You have to transfer money from the savings account to the card and then ACH it out back to your bank/CU to pocket the interest - you'll want to do this at least yearly because the promo APY only applies to the first $5k in each account. Also, these accounts are backed by First Bank & Trust and are FDIC-insured.

If interested in an extra ~4%, you can also get the Paypal Prepaid card which is linked to your Paypal account (backed by Bancorp and also FDIC insured), then open a savings account for that and deposit $5k. You can have 2 PP accounts per person, one personal and one business. This pays 5% on up to $5k but there is a $4.95 fee/mo. so it is not as lucrative as the first two above. Same deal as above, you have to transfer money via your PP account to/from the card and then to/from the savings account. But you don't have to do a monthly deposit to get the promo rate.

https://www.paypal-prepaid.com/

[daylatedollarshort]

Thanks. I will look into this. I always keep an eye for little deals like this to make a few extra thousand a year.

[robertf57]

Quote:

Originally Posted by GTFan Yes I know the title looks like something pitched by a telemarketer, but this is a relatively easy way to make a grand or so a year with short-term money. For you and the spouse/SO, open up 2 of these prepaid cards: https://www.mangomoney.com/ https://www.myunionprepaid.com/ Then open the linked savings account for each card and deposit $5k to each. Finally, set up an automated direct deposit (ACH push) from your bank/CU to each for $50 a month - you have to do this to get the promo APYs. Note that there is a $3 fee/mo. for the Mango and a $2 fee/mo. for the Union Plus so your net interest won't be the full APY, but it's still around 5% net for all four accounts - Mango pays 6% and Union pays 5%. Also note that you don't have to be a union member for the Union Plus card. You have to transfer money from the savings account to the card and then ACH it out back to your bank/CU to pocket the interest - you'll want to do this at least yearly because the promo APY only applies to the first $5k in each account. Also, these accounts are backed by First Bank & Trust and are FDIC-insured. If interested in an extra ~4%, you can also get the Paypal Prepaid card which is linked to your Paypal account (backed by Bancorp and also FDIC insured), then open a savings account for that and deposit $5k. You can have 2 PP accounts per person, one personal and one business. This pays 5% on up to $5k but there is a $4.95 fee/mo. so it is not as lucrative as the first two above. Same deal as above, you have to transfer money via your PP account to/from the card and then to/from the savings account. But you don't have to do a monthly deposit to get the promo rate. https://www.paypal-prepaid.com/

Doesn't seem to be worth the effort as the 5% is limited to 5k ( in essence limited to $250 minus the fees and the hassle)


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[RunningBum]

Quote:

Originally Posted by robertf57 Doesn't seem to be worth the effort as the 5% is limited to 5k ( in essence limited to $250 minus the fees and the hassle)

To be fair, that's how he presented it. 2 different cards, and if you have a spouse or partner you can each do it, 2x2x5000 = 20K. That said, I haven't been motivated enough to look at this much more closely.

[daylatedollarshort]

I haven't looked closely at what is involved yet but a lot of these little online deals take maybe a few hours to set up, so I look at how long I would have to work to make an equivalent amount of money after tax.

If you have a part-time job making more than $7,000 per hour then these kind of little side gigs are probably not worth your time.

[GTFan]

Not to mention that from what I've read elsewhere it's actually possible to get more than one Mango and Union card per person, just need a different email address and phone number. That makes it possible to go to $40k or so at 5% net.

Yes it's not as easy as dumping into CDs but it sure pays a lot better, could be $150/mo. or more with no risk and no withdrawal cost. If your short-term money is just laying around in MM/savings anyway it's something to think about.