It seems that nowadays more and more tech companies are marching into the financial world. Following Apple, Inc.’s (NASDAQ: AAPL) introduction to its Apple Card, T-Mobile (NASDAQ: TMUS) is now launching its very own mobile-first checking account called T-Mobile MONEY.
T-Mobile says that traditional banks are not keeping up in this digital age where most money management is done on your phone. Furthermore, banks take advantage of customers with high fees and offer nearly zero percent interest on the balance. It is reported that in 2017 alone, Americans paid 34 million in overdraft fees, not counting any other additional fees they may have been charged.
On the contrary, T-Mobile MONEY has many advantages. It has no fees and up to 4.00% Annual Percentage Yield (APY) on balances up to $3,000 for postpaid T-Mobile customers, and 1.00% APY interest on every dollar over that amount, as long as the users sign up with their T-Mobile ID and deposit at least USD 200 each month.
“Traditional banks aren’t mobile-first, and they’re definitely not customer-first. As more and more people use their smartphones to manage money, we saw an opportunity to address another customer pain point,” said John Legere, CEO of T-Mobile. “You work hard for your money … you should keep it … and with T-Mobile MONEY, you can!”
If users can stick to the required minimum deposit, they can also opt-in for the Got Your Back overdraft. That gives them a USD 50 overdraft protection. However, if users don’t pay that USD 50 back within a month, they’ll lose that feature forever.
The app also gives them a way to transfer money, make mobile check deposits, pay bills, send checks and even pay with mobile wallets, including Apple Pay, Google Pay and Samsung Pay.