While it’s not quite a pivot, it seems more and more tech companies are straying out of their lane and into the finance world. T-Mobile has decided to join the collection of startups and legacy tech players that want to handle your banking with a new checking account product simply called T-Mobile Money.
Of course, checking accounts aren’t new, and technically neither is T-Mobile Money, as it’s been in available since it soft launched late last year. But today marks its official rollout and with it, T-Mobile is looking to upgrade the traditional checking account by offering its customers a four percent interest rate on the first $3,000 in their account, with a one percent return on anything above that.
If you’re not a T-Mobile customer, you can still sign up for Money, but you’ll only get a flat one percent return on everything instead of the four percent return on your first three grand.
For some, four percent might not sound like a lot, however, compared to the 0.05 percent to 0.5 percent returns you get from a typical checking account, four percent is a pretty huge improvement.
And just to make sure T-Mobile Money is super clear about what kind of returns and benefits you’re getting, the app has a perks page that tells you how much money you’ve made, and how you are generating that interest.
For Money, T-Mobile is also doing away with the banking fees sometimes associated with checking accounts and offers an overdraft limit that lets you go $50 into debt without penalty. However, if you don’t pay that $50 back within a month, you’ll lose that feature forever. And thanks to a partnership with Allpoints ATMs, the Money debit card will have access to over 55,000 no-fee ATMs, with the app including a map to guide you to the nearest machine.