T-Mobile US, Inc., an American wireless network operator, has reportedly announced that it is launching an innovative venture called T-Mobile Money, a smartphone-based checking account service.
Reports cite, the cell carrier has teamed up with US-based consumer banking services provider, Customers Bank. T-Mobile Money service would operate as a front for Customers Bank’s digital banking platform, BankMobile. According to a report by 9TO5Google, the service, presently operating as an early pilot-program, works similar to a conventional bank which allows the online-service to have a presence across ATMs through the Allpoint ATM locator. The new service does not charge its patrons any fees such as the overdraft fee and account fee which traditional banks charge their customers.
Moreover, the T-Mobile Money service reportedly still qualifies as an actual checking account that comes with the Federal Deposit Insurance Corporation (FDIC) insurance for account balances of up to $250,000, the capability of sending out paper checks through the smartphone app directly and a debit card powered by Mastercard. As the smartphone app was released for both iOS and Android, T-Mobile customers could also add the T-Mobile Money card to Samsung Pay, Apple Pay as well as Google Pay for their convenience.
Furthermore, the company is reportedly also offering up to 4% APY (Annual Percentage Yield) on balances of nearly $3,000 inside the T-Mobile Money checking account of customers that make at least $200 worth of monthly deposits. If the customers go over the $3,000 limit, then the APY rate would be scaled down to 1%.
The service would also offer other features like the $50 overdraft protection which would cover the customer’s account for free when they go over, given that they pay back within 30 days.
According to reports, in addition to charging no maintenance and account fees, the accounts would not have a minimum balance requirement condition and also would not charge ATM fees across the 55,000 Allpoint ATMs.