HM Bradley savings plan 3% APY

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Escapevelocity
Posts: 1145
Joined: Mon Feb 18, 2019 7:32 am

Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

index2max wrote: Mon Feb 01, 2021 11:00 pm Late to the conversation, but I'll jump in. An acquaintance tipped me off to the HM Bradley 3% up to 100k savings account, which seemed too good to be true. Here's why

I am a big believer of high-interest, rewards checking accounts, especially with the Federal Reserve artificially damping interest rates, but only at credit unions!

Why credit unions an not banks?

1. Credit unions have no outside shareholders like banks do. The only capital they get comes from the depositors who are members with voting rights. Like mutual investment companies such as Vanguard, credit unions have only master to serve, YOU!

2. Credit unions in the US pay no corporate income taxes. This helps them afford the better interest rates on deposits.

So in my opinion, dedicated savers should stick with credit unions that have a decent track record for offering >= 3% interest checking accounts such as Lake Michigan Credit Union (3% up to $15,000 or Evansville Teachers Credit Union (3.3% up to $20,000). It's easy to meet their monthly debit card transaction requirements with $0.50 gift card balance reloads on Amazon. Or you can purchase tiny amounts of gasoline when you pay at the pump.

Ken Tumin at deposit account explains it pretty well here:

https://www.depositaccounts.com/blog/20 ... cking.html
Good info, but you haven’t provided any supporting reasons for the too good to be true comment on HMB. I’ve got around 80k now in my one account and am accruing a nice 200+ dollar monthly interest payment. Any credit unions where I can do that? I don’t need to make a single debit card purchase either. Pretty painless. If they drop the rate, so be it, but I’m enjoying so far.
index2max
Posts: 514
Joined: Mon Jan 21, 2019 10:01 pm

Re: HM Bradley savings plan 3% APY

Post by index2max »

Escapevelocity wrote: Tue Feb 02, 2021 3:48 am
index2max wrote: Mon Feb 01, 2021 11:00 pm Late to the conversation, but I'll jump in. An acquaintance tipped me off to the HM Bradley 3% up to 100k savings account, which seemed too good to be true. Here's why

I am a big believer of high-interest, rewards checking accounts, especially with the Federal Reserve artificially damping interest rates, but only at credit unions!

Why credit unions an not banks?

1. Credit unions have no outside shareholders like banks do. The only capital they get comes from the depositors who are members with voting rights. Like mutual investment companies such as Vanguard, credit unions have only master to serve, YOU!

2. Credit unions in the US pay no corporate income taxes. This helps them afford the better interest rates on deposits.

So in my opinion, dedicated savers should stick with credit unions that have a decent track record for offering >= 3% interest checking accounts such as Lake Michigan Credit Union (3% up to $15,000 or Evansville Teachers Credit Union (3.3% up to $20,000). It's easy to meet their monthly debit card transaction requirements with $0.50 gift card balance reloads on Amazon. Or you can purchase tiny amounts of gasoline when you pay at the pump.

Ken Tumin at deposit account explains it pretty well here:

https://www.depositaccounts.com/blog/20 ... cking.html
Good info, but you haven’t provided any supporting reasons for the too good to be true comment on HMB. I’ve got around 80k now in my one account and am accruing a nice 200+ dollar monthly interest payment. Any credit unions where I can do that? I don’t need to make a single debit card purchase either. Pretty painless. If they drop the rate, so be it, but I’m enjoying so far.
Ok, let me clarify. Based on the evidence other Bogleheads have gathered, it looks like a legit account, not a scam like Beam Financial. Hatch Bank appears to be running the show, but are marketing this account under a brand name or separate company called "HM Bradley", right?

Yeah, the credit unions I bank with all cap their high-interest account balances at $10k, $15k or $20k. Definitely annoying, especially with the transactions, but I don't mind too much. I am still curious to know how HM Bradley can afford paying 3% on a savings account without pulling in extra money from customers in the form card interchange fees. Will they commit to 3% for the next few years or is it just a marketing mirage?

I have seen one of my credit unions (Altra) go from 3.5% to 2.75% on $15,000, so I have been disappointed before. Because of their competitive advantages (no outside shareholders and no corporate income taxes) I think credit unions can afford higher deposit rates in the long run. HM Bradley is maybe pulling in venture capital funding of some kind, which is why they can afford this, right? Those investors will want their money eventually. Still I hope to see this HM Bradley high-yield account going strong, say, two years from now, then I'd be interested in jumping in.

Thanks for taking the plunge and report back to us in a year or so!
Retired1809
Posts: 508
Joined: Fri Feb 23, 2007 3:11 pm
Location: North Carolina, USA

Re: HM Bradley savings plan 3% APY

Post by Retired1809 »

How do you transfer part of your money OUT of your HM Bradley savings account without jeopardizing your 3% interest rate? It appears that any withdrawals greater than the amount "saved" (deposited?) during a given month will cause the interest rate to go back to 1%.
Escapevelocity
Posts: 1145
Joined: Mon Feb 18, 2019 7:32 am

Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

Retired1809 wrote: Tue Feb 02, 2021 10:21 am How do you transfer part of your money OUT of your HM Bradley savings account without jeopardizing your 3% interest rate? It appears that any withdrawals greater than the amount "saved" (deposited?) during a given month will cause the interest rate to go back to 1%.
It's not a requirement to avoid all withdrawals in order to maintain the 3% status. Check their website for details. Basically you need to save at least a net 20% of total deposits each quarter. Conversely, you can withdraw up to 79.99% of your total deposits without losing the rate.

https://www.hmbradley.com/blog/savings-tiers-explained
Escapevelocity
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Joined: Mon Feb 18, 2019 7:32 am

Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

index2max wrote: Tue Feb 02, 2021 10:07 am
Escapevelocity wrote: Tue Feb 02, 2021 3:48 am
index2max wrote: Mon Feb 01, 2021 11:00 pm Late to the conversation, but I'll jump in. An acquaintance tipped me off to the HM Bradley 3% up to 100k savings account, which seemed too good to be true. Here's why

I am a big believer of high-interest, rewards checking accounts, especially with the Federal Reserve artificially damping interest rates, but only at credit unions!

Why credit unions an not banks?

1. Credit unions have no outside shareholders like banks do. The only capital they get comes from the depositors who are members with voting rights. Like mutual investment companies such as Vanguard, credit unions have only master to serve, YOU!

2. Credit unions in the US pay no corporate income taxes. This helps them afford the better interest rates on deposits.

So in my opinion, dedicated savers should stick with credit unions that have a decent track record for offering >= 3% interest checking accounts such as Lake Michigan Credit Union (3% up to $15,000 or Evansville Teachers Credit Union (3.3% up to $20,000). It's easy to meet their monthly debit card transaction requirements with $0.50 gift card balance reloads on Amazon. Or you can purchase tiny amounts of gasoline when you pay at the pump.

Ken Tumin at deposit account explains it pretty well here:

https://www.depositaccounts.com/blog/20 ... cking.html
Good info, but you haven’t provided any supporting reasons for the too good to be true comment on HMB. I’ve got around 80k now in my one account and am accruing a nice 200+ dollar monthly interest payment. Any credit unions where I can do that? I don’t need to make a single debit card purchase either. Pretty painless. If they drop the rate, so be it, but I’m enjoying so far.
Ok, let me clarify. Based on the evidence other Bogleheads have gathered, it looks like a legit account, not a scam like Beam Financial. Hatch Bank appears to be running the show, but are marketing this account under a brand name or separate company called "HM Bradley", right?

Yeah, the credit unions I bank with all cap their high-interest account balances at $10k, $15k or $20k. Definitely annoying, especially with the transactions, but I don't mind too much. I am still curious to know how HM Bradley can afford paying 3% on a savings account without pulling in extra money from customers in the form card interchange fees. Will they commit to 3% for the next few years or is it just a marketing mirage?

I have seen one of my credit unions (Altra) go from 3.5% to 2.75% on $15,000, so I have been disappointed before. Because of their competitive advantages (no outside shareholders and no corporate income taxes) I think credit unions can afford higher deposit rates in the long run. HM Bradley is maybe pulling in venture capital funding of some kind, which is why they can afford this, right? Those investors will want their money eventually. Still I hope to see this HM Bradley high-yield account going strong, say, two years from now, then I'd be interested in jumping in.

Thanks for taking the plunge and report back to us in a year or so!
It's hard to answer those questions without knowing someone in their management team. From what I can surmise, they want their customers to use this account as their everyday spending account which means lots of debit card transactions for the average account holder. Just like the credit unions, they can benefit from laws allowing for much larger transaction fees to merchants for debit cards because they are small bank. The simple fact is that this deal is valuable for as long as it lasts. With no friction to leaving, I am going to ride this horse as far as it will take me. Waiting around for the eventual dilution of the offer makes no sense. Take it while you can get it.

Also, those credit union requirements to make 10-15 debit card transactions per month are a PITA that I am not willing to endure.
aristotelian
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Re: HM Bradley savings plan 3% APY

Post by aristotelian »

Retired1809 wrote: Tue Feb 02, 2021 10:21 am How do you transfer part of your money OUT of your HM Bradley savings account without jeopardizing your 3% interest rate? It appears that any withdrawals greater than the amount "saved" (deposited?) during a given month will cause the interest rate to go back to 1%.
That's kind of the point. They are incentivizing people to be net adding to their funds, not withdrawing. If you withdraw (or save less than 20%) they knock you back. It is better as a set and forget account than an account you would pay bills with. If you do one big withdrawal a year, your net interest rate would be something like 2.3% which is still pretty good!
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Tamarind
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Re: HM Bradley savings plan 3% APY

Post by Tamarind »

I'm intending to try this as I have ~$70k earmarked for home reno where the project start date has been pushed back 18 months. So I have some cash to park and some time to put into bonus offers. I'll report back on any issues I experience.
Escapevelocity
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Joined: Mon Feb 18, 2019 7:32 am

Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

Tamarind wrote: Tue Feb 02, 2021 11:23 am I'm intending to try this as I have ~$70k earmarked for home reno where the project start date has been pushed back 18 months. So I have some cash to park and some time to put into bonus offers. I'll report back on any issues I experience.
Just make sure to set up your direct deposit right away (the amount doesn't matter but it has to be a real pay type from an employer or governmental income payer).

You won't start earning the 3% until April 1st since they work on calendar quarter basis for qualifying.
index2max
Posts: 514
Joined: Mon Jan 21, 2019 10:01 pm

Re: HM Bradley savings plan 3% APY

Post by index2max »

Escapevelocity wrote: Tue Feb 02, 2021 11:08 am
index2max wrote: Tue Feb 02, 2021 10:07 am
Escapevelocity wrote: Tue Feb 02, 2021 3:48 am
index2max wrote: Mon Feb 01, 2021 11:00 pm Late to the conversation, but I'll jump in. An acquaintance tipped me off to the HM Bradley 3% up to 100k savings account, which seemed too good to be true. Here's why

I am a big believer of high-interest, rewards checking accounts, especially with the Federal Reserve artificially damping interest rates, but only at credit unions!

Why credit unions an not banks?

1. Credit unions have no outside shareholders like banks do. The only capital they get comes from the depositors who are members with voting rights. Like mutual investment companies such as Vanguard, credit unions have only master to serve, YOU!

2. Credit unions in the US pay no corporate income taxes. This helps them afford the better interest rates on deposits.

So in my opinion, dedicated savers should stick with credit unions that have a decent track record for offering >= 3% interest checking accounts such as Lake Michigan Credit Union (3% up to $15,000 or Evansville Teachers Credit Union (3.3% up to $20,000). It's easy to meet their monthly debit card transaction requirements with $0.50 gift card balance reloads on Amazon. Or you can purchase tiny amounts of gasoline when you pay at the pump.

Ken Tumin at deposit account explains it pretty well here:

https://www.depositaccounts.com/blog/20 ... cking.html
Good info, but you haven’t provided any supporting reasons for the too good to be true comment on HMB. I’ve got around 80k now in my one account and am accruing a nice 200+ dollar monthly interest payment. Any credit unions where I can do that? I don’t need to make a single debit card purchase either. Pretty painless. If they drop the rate, so be it, but I’m enjoying so far.
Ok, let me clarify. Based on the evidence other Bogleheads have gathered, it looks like a legit account, not a scam like Beam Financial. Hatch Bank appears to be running the show, but are marketing this account under a brand name or separate company called "HM Bradley", right?

Yeah, the credit unions I bank with all cap their high-interest account balances at $10k, $15k or $20k. Definitely annoying, especially with the transactions, but I don't mind too much. I am still curious to know how HM Bradley can afford paying 3% on a savings account without pulling in extra money from customers in the form card interchange fees. Will they commit to 3% for the next few years or is it just a marketing mirage?

I have seen one of my credit unions (Altra) go from 3.5% to 2.75% on $15,000, so I have been disappointed before. Because of their competitive advantages (no outside shareholders and no corporate income taxes) I think credit unions can afford higher deposit rates in the long run. HM Bradley is maybe pulling in venture capital funding of some kind, which is why they can afford this, right? Those investors will want their money eventually. Still I hope to see this HM Bradley high-yield account going strong, say, two years from now, then I'd be interested in jumping in.

Thanks for taking the plunge and report back to us in a year or so!
It's hard to answer those questions without knowing someone in their management team. From what I can surmise, they want their customers to use this account as their everyday spending account which means lots of debit card transactions for the average account holder. Just like the credit unions, they can benefit from laws allowing for much larger transaction fees to merchants for debit cards because they are small bank. The simple fact is that this deal is valuable for as long as it lasts. With no friction to leaving, I am going to ride this horse as far as it will take me. Waiting around for the eventual dilution of the offer makes no sense. Take it while you can get it.

Also, those credit union requirements to make 10-15 debit card transactions per month are a PITA that I am not willing to endure.
Yeah, the 10-20 debit card transactions per month can be annoying for a credit union. A fellow Boglehead recommended just doing multiple reloads on an amazon gift card balance at $0.50 each. This way you keep your money. It's just that you're converting it from cash into amazon bucks. If you use amazon enough already, it's not so bad.

I got sick of amazon, so now I'm doing multiple transactions at the automated gasoline dispensers. Very easy to do at gas stations that aren't monitored 24/7 so you won't be pestered with questions, then I fill the rest of my tank up after that. The other day it took me about an hour to get al my transactions done, but I made more money in monthly interest for an hour of effort than I do at my 9-5 job.
MrJedi
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Re: HM Bradley savings plan 3% APY

Post by MrJedi »

Retired1809 wrote: Tue Feb 02, 2021 10:21 am How do you transfer part of your money OUT of your HM Bradley savings account without jeopardizing your 3% interest rate? It appears that any withdrawals greater than the amount "saved" (deposited?) during a given month will cause the interest rate to go back to 1%.
Personally I treat the account like a CD and just park low risk funds there without intending on withdrawing except for emergency or big future expense.
Escapevelocity
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Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

MrJedi wrote: Tue Feb 02, 2021 1:14 pm
Retired1809 wrote: Tue Feb 02, 2021 10:21 am How do you transfer part of your money OUT of your HM Bradley savings account without jeopardizing your 3% interest rate? It appears that any withdrawals greater than the amount "saved" (deposited?) during a given month will cause the interest rate to go back to 1%.
Personally I treat the account like a CD and just park low risk funds there without intending on withdrawing except for emergency or big future expense.
If you DO need to get money out, you're only going to get knocked down for the subsequent quarter to 1.0% which is still a very favorable rate. Then, the following quarter you can get back to 3% by meeting the requirements again. Also, you can earn rate "rewinds" which are sort of a get out of jail free card that would undo the lower interest rate setback for doing referrals.
MrJedi
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Re: HM Bradley savings plan 3% APY

Post by MrJedi »

Escapevelocity wrote: Tue Feb 02, 2021 1:28 pm
MrJedi wrote: Tue Feb 02, 2021 1:14 pm
Retired1809 wrote: Tue Feb 02, 2021 10:21 am How do you transfer part of your money OUT of your HM Bradley savings account without jeopardizing your 3% interest rate? It appears that any withdrawals greater than the amount "saved" (deposited?) during a given month will cause the interest rate to go back to 1%.
Personally I treat the account like a CD and just park low risk funds there without intending on withdrawing except for emergency or big future expense.
If you DO need to get money out, you're only going to get knocked down for the subsequent quarter to 1.0% which is still a very favorable rate. Then, the following quarter you can get back to 3% by meeting the requirements again. Also, you can earn rate "rewinds" which are sort of a get out of jail free card that would undo the lower interest rate setback for doing referrals.
Actually their 1% tier is only when you save between 10-15%. 0.5% when you save between 5-10%. I believe you get zero interest if you end up saving less than 5% in a quarter.
Escapevelocity
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Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

MrJedi wrote: Tue Feb 02, 2021 2:41 pm
Escapevelocity wrote: Tue Feb 02, 2021 1:28 pm
MrJedi wrote: Tue Feb 02, 2021 1:14 pm
Retired1809 wrote: Tue Feb 02, 2021 10:21 am How do you transfer part of your money OUT of your HM Bradley savings account without jeopardizing your 3% interest rate? It appears that any withdrawals greater than the amount "saved" (deposited?) during a given month will cause the interest rate to go back to 1%.
Personally I treat the account like a CD and just park low risk funds there without intending on withdrawing except for emergency or big future expense.
If you DO need to get money out, you're only going to get knocked down for the subsequent quarter to 1.0% which is still a very favorable rate. Then, the following quarter you can get back to 3% by meeting the requirements again. Also, you can earn rate "rewinds" which are sort of a get out of jail free card that would undo the lower interest rate setback for doing referrals.
Actually their 1% tier is only when you save between 10-15%. 0.5% when you save between 5-10%. I believe you get zero interest if you end up saving less than 5% in a quarter.
Yes, thanks for that correction. Any large withdrawals should be made inside of a given quarter as to only affect you for one quarter. If you're taking out large sums regularly, it's not going to work well unless you pile up the referral rewinds to get you "out of zero rate jail".
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anon_investor
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Re: HM Bradley savings plan 3% APY

Post by anon_investor »

index2max wrote: Tue Feb 02, 2021 1:09 pm
I got sick of amazon, so now I'm doing multiple transactions at the automated gasoline dispensers. Very easy to do at gas stations that aren't monitored 24/7 so you won't be pestered with questions, then I fill the rest of my tank up after that. The other day it took me about an hour to get al my transactions done, but I made more money in monthly interest for an hour of effort than I do at my 9-5 job.
The fact that this does not trigger any kind of fraud alert would scare me...
index2max
Posts: 514
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Re: HM Bradley savings plan 3% APY

Post by index2max »

anon_investor wrote: Tue Feb 02, 2021 6:45 pm
index2max wrote: Tue Feb 02, 2021 1:09 pm
I got sick of amazon, so now I'm doing multiple transactions at the automated gasoline dispensers. Very easy to do at gas stations that aren't monitored 24/7 so you won't be pestered with questions, then I fill the rest of my tank up after that. The other day it took me about an hour to get al my transactions done, but I made more money in monthly interest for an hour of effort than I do at my 9-5 job.
The fact that this does not trigger any kind of fraud alert would scare me...
Actually one of my credit unions stopped my purchases, shot me an automated call from their 3rd party fraud detection partner leaving a voice message about the first of three debits. Had to call it back to confirm my identity, then answer an automated question to confirm I initiated the purchases.

Then the second credit union simply texted me to confirm the charges were my own, so I replied 'y' to confirm and kept going.

Just following the advice from Doctor of Credit (think a Boglehead tipped me off on this website too)

https://www.doctorofcredit.com/bank-acc ... t_The_Pump

The problem with this method is exposing your debit card numbers, so you want to verify that the card readers don't look "off" and any tamper evident labels look fine. Plus I have alerts set up with my credit unions in case my account balance dips below the max they pay high yields on.
Last edited by index2max on Tue Feb 02, 2021 6:54 pm, edited 1 time in total.
Escapevelocity
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Joined: Mon Feb 18, 2019 7:32 am

Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

index2max wrote: Tue Feb 02, 2021 6:50 pm
anon_investor wrote: Tue Feb 02, 2021 6:45 pm
index2max wrote: Tue Feb 02, 2021 1:09 pm
I got sick of amazon, so now I'm doing multiple transactions at the automated gasoline dispensers. Very easy to do at gas stations that aren't monitored 24/7 so you won't be pestered with questions, then I fill the rest of my tank up after that. The other day it took me about an hour to get al my transactions done, but I made more money in monthly interest for an hour of effort than I do at my 9-5 job.
The fact that this does not trigger any kind of fraud alert would scare me...
Actually one of my credit unions stopped my purchases, shot me an automated call from their 3rd party fraud detection partner leaving a voice message about the first of three debits. Had to call it back to confirm my identity, then answer an automated question to confirm I initiated the purchases.

Then the second credit union simply texted me to confirm the charges were my own, so I replied 'y' to confirm and kept going.

Just following the advice from Doctor of Credit (think a Boglehead tipped me off on this website too)

https://www.doctorofcredit.com/bank-acc ... t_The_Pump
Those types of "manufactured spending" behavior could get your account closed depending on the policies of the bank.
index2max
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Re: HM Bradley savings plan 3% APY

Post by index2max »

Escapevelocity wrote: Tue Feb 02, 2021 6:53 pm
index2max wrote: Tue Feb 02, 2021 6:50 pm
anon_investor wrote: Tue Feb 02, 2021 6:45 pm
index2max wrote: Tue Feb 02, 2021 1:09 pm
I got sick of amazon, so now I'm doing multiple transactions at the automated gasoline dispensers. Very easy to do at gas stations that aren't monitored 24/7 so you won't be pestered with questions, then I fill the rest of my tank up after that. The other day it took me about an hour to get al my transactions done, but I made more money in monthly interest for an hour of effort than I do at my 9-5 job.
The fact that this does not trigger any kind of fraud alert would scare me...
Actually one of my credit unions stopped my purchases, shot me an automated call from their 3rd party fraud detection partner leaving a voice message about the first of three debits. Had to call it back to confirm my identity, then answer an automated question to confirm I initiated the purchases.

Then the second credit union simply texted me to confirm the charges were my own, so I replied 'y' to confirm and kept going.

Just following the advice from Doctor of Credit (think a Boglehead tipped me off on this website too)

https://www.doctorofcredit.com/bank-acc ... t_The_Pump
Those types of "manufactured spending" behavior could get your account closed depending on the policies of the bank.
And this, ladies and gentlemen, is why I don't have any checking or savings accounts at banks. They have outside shareholders and corporate income taxes to pay. Depositors like me annoy them, heh.

Credit unions can afford it a little better. Was doing this for month with one of my credit unions using penny transactions at a grocery store and never heard a peep out of them.
Escapevelocity
Posts: 1145
Joined: Mon Feb 18, 2019 7:32 am

Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

index2max wrote: Tue Feb 02, 2021 6:55 pm
Escapevelocity wrote: Tue Feb 02, 2021 6:53 pm
index2max wrote: Tue Feb 02, 2021 6:50 pm
anon_investor wrote: Tue Feb 02, 2021 6:45 pm
index2max wrote: Tue Feb 02, 2021 1:09 pm
I got sick of amazon, so now I'm doing multiple transactions at the automated gasoline dispensers. Very easy to do at gas stations that aren't monitored 24/7 so you won't be pestered with questions, then I fill the rest of my tank up after that. The other day it took me about an hour to get al my transactions done, but I made more money in monthly interest for an hour of effort than I do at my 9-5 job.
The fact that this does not trigger any kind of fraud alert would scare me...
Actually one of my credit unions stopped my purchases, shot me an automated call from their 3rd party fraud detection partner leaving a voice message about the first of three debits. Had to call it back to confirm my identity, then answer an automated question to confirm I initiated the purchases.

Then the second credit union simply texted me to confirm the charges were my own, so I replied 'y' to confirm and kept going.

Just following the advice from Doctor of Credit (think a Boglehead tipped me off on this website too)

https://www.doctorofcredit.com/bank-acc ... t_The_Pump
Those types of "manufactured spending" behavior could get your account closed depending on the policies of the bank.
And this, ladies and gentlemen, is why I don't have any checking or savings accounts at banks. They have outside shareholders and corporate income taxes to pay. Depositors like me annoy them, heh.

Credit unions can afford it a little better. Was doing this for month with one of my credit unions using penny transactions at a grocery store and never heard a peep out of them.
Interesting....it might be more a function of the fraud detection systems and resources at credit union are not as thorough. I do think they are poorly executed many times flagging transactions that seem innocuous and vice versa.
Pegasus_RPG
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HMBradley credit card requirement

Post by Pegasus_RPG »

In case anyone is looking to add the HMBradley credit card to boost the savings tier (0.5% above the highest too) and for its good cash-back offer, they just told me via chat that they need to see a minimum of $35K/year in direct deposits to offer someone the card.
caklim00
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Re: HMBradley credit card requirement

Post by caklim00 »

Pegasus_RPG wrote: Fri Feb 05, 2021 4:54 pm In case anyone is looking to add the HMBradley credit card to boost the savings tier (0.5% above the highest too) and for its good cash-back offer, they just told me via chat that they need to see a minimum of $35K/year in direct deposits to offer someone the card.
35k first? or just on track for 35k?
vbdoug
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Location: Palos Verdes, Cal‹

Re: HM Bradley savings plan 3% APY

Post by vbdoug »

I was just on chat with HMBradley and this is what I learned:
"Must have estimated gross annual income from direct deposits of at least $35,000 ".

My total direct deposit is $18,000 a year, but I asked them anyway if I would qualify:
"There is no way we can provide a specific direct deposit amount for a couple reasons - 1) each net income is grossed up using tax factors that are state-specific and not at the customer service rep's disposal, and 2) the $35k is just a minimum, it does not guarantee an offer".
??? I think the answer in all actuality is "No".

I asked them if this information is in their FAQ:
"It's not currently in the FAQ. Thanks for bringing this to our attention. We've passed this along to our marketing team so they can add it".

Until now I have been very pleased with HMBradley, but I I find these answers disingenuous. If you get their debit card they bump your interest rate up half a point. When you check to see if you have received a credit offer the response is:
"You have no available credit offers... yet. Check back soon to see if we have any offers for you".

Perhaps I should not complain, I am still getting an APR of 3%. And thanks to Pegasus_RPG I will not waste any more time waiting for a credit offer that will never be.
Escapevelocity
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Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

vbdoug wrote: Mon Feb 08, 2021 5:28 pm I was just on chat with HMBradley and this is what I learned:
"Must have estimated gross annual income from direct deposits of at least $35,000 ".

My total direct deposit is $18,000 a year, but I asked them anyway if I would qualify:
"There is no way we can provide a specific direct deposit amount for a couple reasons - 1) each net income is grossed up using tax factors that are state-specific and not at the customer service rep's disposal, and 2) the $35k is just a minimum, it does not guarantee an offer".
??? I think the answer in all actuality is "No".

I asked them if this information is in their FAQ:
"It's not currently in the FAQ. Thanks for bringing this to our attention. We've passed this along to our marketing team so they can add it".

Until now I have been very pleased with HMBradley, but I I find these answers disingenuous. If you get their debit card they bump your interest rate up half a point. When you check to see if you have received a credit offer the response is:
"You have no available credit offers... yet. Check back soon to see if we have any offers for you".

Perhaps I should not complain, I am still getting an APR of 3%. And thanks to Pegasus_RPG I will not waste any more time waiting for a credit offer that will never be.
I bumped my direct deposit to 2500/month and that did the trick. The credit card offer came within 2 paychecks. The half percent bump will come April 1 when Q2 begins. By then I plan to have around 90k in the account.
vbdoug
Posts: 299
Joined: Mon Feb 26, 2007 11:44 am
Location: Palos Verdes, Cal‹

Re: HM Bradley savings plan 3% APY

Post by vbdoug »

It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
index2max
Posts: 514
Joined: Mon Jan 21, 2019 10:01 pm

Re: HM Bradley savings plan 3% APY

Post by index2max »

vbdoug wrote: Mon Feb 08, 2021 10:58 pm It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
Yeah so once you're a $100k. Can you change direct deposit to something like $0.01 per month so you don't dump a bunch of extra non-interest-bearing funds?
aristotelian
Posts: 12262
Joined: Wed Jan 11, 2017 7:05 pm

Re: HM Bradley savings plan 3% APY

Post by aristotelian »

index2max wrote: Tue Feb 09, 2021 8:05 am
vbdoug wrote: Mon Feb 08, 2021 10:58 pm It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
Yeah so once you're a $100k. Can you change direct deposit to something like $0.01 per month so you don't dump a bunch of extra non-interest-bearing funds?
I have my DD set to $100/month and they say I will qualify for top tier next quarter when they reset the rate. I don't see any language about a minimum but you might want to go a bit higher than .01 just in case!
index2max
Posts: 514
Joined: Mon Jan 21, 2019 10:01 pm

Re: HM Bradley savings plan 3% APY

Post by index2max »

aristotelian wrote: Tue Feb 09, 2021 9:53 am
index2max wrote: Tue Feb 09, 2021 8:05 am
vbdoug wrote: Mon Feb 08, 2021 10:58 pm It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
Yeah so once you're a $100k. Can you change direct deposit to something like $0.01 per month so you don't dump a bunch of extra non-interest-bearing funds?
I have my DD set to $100/month and they say I will qualify for top tier next quarter when they reset the rate. I don't see any language about a minimum but you might want to go a bit higher than .01 just in case!
Sacrificing $100/month in direct deposit once you hit the max isn't terrible. You can still pull out up to $80/month of it and still have a 20% savings rate, right?
Escapevelocity
Posts: 1145
Joined: Mon Feb 18, 2019 7:32 am

Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

vbdoug wrote: Mon Feb 08, 2021 10:58 pm It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
What is the benefit of doing that?
Escapevelocity
Posts: 1145
Joined: Mon Feb 18, 2019 7:32 am

Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

Couple pro tips on HM Bradley.

1. If you get their credit card, you will get an extra half a percent on your savings. That’s worth $500 per year on 100k deposited.

2. If you refer friends or family you earn “rate rewinds”. These allow you to reset your rate back to that of the prior quarter in the event that you don’t maintain your rate tier due to withdrawals exceeding their thresholds. With one of these, you could make a large withdrawal if necessary and keep your rate the same. Like a get out of jail free card.
Escapevelocity
Posts: 1145
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Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

aristotelian wrote: Tue Feb 09, 2021 9:53 am
index2max wrote: Tue Feb 09, 2021 8:05 am
vbdoug wrote: Mon Feb 08, 2021 10:58 pm It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
Yeah so once you're a $100k. Can you change direct deposit to something like $0.01 per month so you don't dump a bunch of extra non-interest-bearing funds?
I have my DD set to $100/month and they say I will qualify for top tier next quarter when they reset the rate. I don't see any language about a minimum but you might want to go a bit higher than .01 just in case!
Yeah I wouldn’t get too cute with the one penny thing. This is a small operation and if it’s obvious you’re gaming their system they might just close your account.
dru808
Posts: 1662
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Location: mid pac

Re: HM Bradley savings plan 3% APY

Post by dru808 »

I would use them in a heartbeat, I don’t have direct deposit, bummer :(
1 fund
Average Investor
Posts: 377
Joined: Fri Jul 13, 2012 11:27 am

Re: HM Bradley savings plan 3% APY

Post by Average Investor »

Anyone have success getting a bank transfer to qualify as a direct deposit? I made a transfer today from my sole prop business checking account in an odd dollar amount and am hoping it will work.

Possible Vanguard or Fidelity transfers also being considered.

Thanks.
Tomorrow never knows.
Escapevelocity
Posts: 1145
Joined: Mon Feb 18, 2019 7:32 am

Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

Average Investor wrote: Tue Feb 09, 2021 9:33 pm Anyone have success getting a bank transfer to qualify as a direct deposit? I made a transfer today from my sole prop business checking account in an odd dollar amount and am hoping it will work.

Possible Vanguard or Fidelity transfers also being considered.

Thanks.
It has to be a legit direct deposit from an employer or pension/government benefit. No bank transfers are counted for the direct deposits.
vbdoug
Posts: 299
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Location: Palos Verdes, Cal‹

Re: HM Bradley savings plan 3% APY

Post by vbdoug »

vbdoug wrote: ↑Mon Feb 08, 2021 11:58 pm
It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.

Escapevelocity: What is the benefit of doing that?

vbdoug: I believe that will allow me to make a major withdrawal in the second quarter if so needed.
index2max
Posts: 514
Joined: Mon Jan 21, 2019 10:01 pm

Re: HM Bradley savings plan 3% APY

Post by index2max »

Escapevelocity wrote: Tue Feb 09, 2021 9:16 pm
aristotelian wrote: Tue Feb 09, 2021 9:53 am
index2max wrote: Tue Feb 09, 2021 8:05 am
vbdoug wrote: Mon Feb 08, 2021 10:58 pm It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
Yeah so once you're a $100k. Can you change direct deposit to something like $0.01 per month so you don't dump a bunch of extra non-interest-bearing funds?
I have my DD set to $100/month and they say I will qualify for top tier next quarter when they reset the rate. I don't see any language about a minimum but you might want to go a bit higher than .01 just in case!
Yeah I wouldn’t get too cute with the one penny thing. This is a small operation and if it’s obvious you’re gaming their system they might just close your account.
Or they can just change the rules going forward. Depositaccounts.com mentioned some banks were closing down accounts of customers in 2011 who did the bare minimum to qualify for interest on their rewards checking accounts. Kind of childish, if you ask me.

If a bank is unsatisfied with how a customer is using their account while following the rules as written, they should at least make the effort to reach out to the customer first.

This is why I personally stick with credit union accounts since they are squeezed less than banks, but I am rooting for any Boglehead using this as their emergency savings account. I might even join in eventually.
Escapevelocity
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Re: HM Bradley savings plan 3% APY

Post by Escapevelocity »

vbdoug wrote: Tue Feb 09, 2021 10:29 pm vbdoug wrote: ↑Mon Feb 08, 2021 11:58 pm
It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.

Escapevelocity: What is the benefit of doing that?

vbdoug: I believe that will allow me to make a major withdrawal in the second quarter if so needed.
Not sure it would help you in that regard. Basically you would still be limited to the same 20% withdrawal. What would actually help though is a rate rewind credit that you could earn with a referral. Or just take the hit for one quarter.
SnowBog
Posts: 4680
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Re: HM Bradley savings plan 3% APY

Post by SnowBog »

vbdoug wrote: Mon Feb 08, 2021 10:58 pm It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
Did you actually try this? Did it work?

I recently started my HMB account, only had a single DD hit the account (at intro Tier 3), but have transferred in some funds from other accounts. Was surprised that the account still only "shows" the DD amount as "deposits". Was curious if your idea worked and/or if something has recently changed.

For clarity - all funds are showing up in the account. But when I look at "next tier" it says "Based on $X in deposits and $0.00 in withdrawals your next Savings Tier would be Tier 1" where $x is only the amount via direct deposit - not inclusive of the non DD funds I've transferred into the account.
MrJedi
Posts: 3538
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Re: HM Bradley savings plan 3% APY

Post by MrJedi »

SnowBog wrote: Mon Apr 19, 2021 9:53 pm
vbdoug wrote: Mon Feb 08, 2021 10:58 pm It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
Did you actually try this? Did it work?

I recently started my HMB account, only had a single DD hit the account (at intro Tier 3), but have transferred in some funds from other accounts. Was surprised that the account still only "shows" the DD amount as "deposits". Was curious if your idea worked and/or if something has recently changed.

For clarity - all funds are showing up in the account. But when I look at "next tier" it says "Based on $X in deposits and $0.00 in withdrawals your next Savings Tier would be Tier 1" where $x is only the amount via direct deposit - not inclusive of the non DD funds I've transferred into the account.
How soon has it been? I've found that those numbers usually don't update until the next business day after a deposit/withdrawal posts. I do see interest and transfers count toward the quarterly calculation. DD has to be present to qualify in the first place though. Kinda confusing at first but easy to follow once you've been through it for a quarter.
SnowBog
Posts: 4680
Joined: Fri Dec 21, 2018 10:21 pm

Re: HM Bradley savings plan 3% APY

Post by SnowBog »

MrJedi wrote: Mon Apr 19, 2021 10:25 pm
SnowBog wrote: Mon Apr 19, 2021 9:53 pm
vbdoug wrote: Mon Feb 08, 2021 10:58 pm It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
Did you actually try this? Did it work?

I recently started my HMB account, only had a single DD hit the account (at intro Tier 3), but have transferred in some funds from other accounts. Was surprised that the account still only "shows" the DD amount as "deposits". Was curious if your idea worked and/or if something has recently changed.

For clarity - all funds are showing up in the account. But when I look at "next tier" it says "Based on $X in deposits and $0.00 in withdrawals your next Savings Tier would be Tier 1" where $x is only the amount via direct deposit - not inclusive of the non DD funds I've transferred into the account.
How soon has it been? I've found that those numbers usually don't update until the next business day after a deposit/withdrawal posts. I do see interest and transfers count toward the quarterly calculation. DD has to be present to qualify in the first place though. Kinda confusing at first but easy to follow once you've been through it for a quarter.
DD was last week. Account was created in March, but missed March DD.

I had a small amount transferred over previously in the quarter, that isn't showing up.

I also transferred over another small amount after DD, thinking maybe the DD needed to be present first... (But it's possible that's still within the 2 day transfer window...)

Do you see the "total" of quarterly deposits (not just DD) when you look at the "next tier" info?

I don't... Assuming others do, then maybe my account is too new and I just need to be patient.
MrJedi
Posts: 3538
Joined: Wed May 06, 2020 11:42 am

Re: HM Bradley savings plan 3% APY

Post by MrJedi »

SnowBog wrote: Mon Apr 19, 2021 11:39 pm
MrJedi wrote: Mon Apr 19, 2021 10:25 pm
SnowBog wrote: Mon Apr 19, 2021 9:53 pm
vbdoug wrote: Mon Feb 08, 2021 10:58 pm It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
Did you actually try this? Did it work?

I recently started my HMB account, only had a single DD hit the account (at intro Tier 3), but have transferred in some funds from other accounts. Was surprised that the account still only "shows" the DD amount as "deposits". Was curious if your idea worked and/or if something has recently changed.

For clarity - all funds are showing up in the account. But when I look at "next tier" it says "Based on $X in deposits and $0.00 in withdrawals your next Savings Tier would be Tier 1" where $x is only the amount via direct deposit - not inclusive of the non DD funds I've transferred into the account.
How soon has it been? I've found that those numbers usually don't update until the next business day after a deposit/withdrawal posts. I do see interest and transfers count toward the quarterly calculation. DD has to be present to qualify in the first place though. Kinda confusing at first but easy to follow once you've been through it for a quarter.
DD was last week. Account was created in March, but missed March DD.

I had a small amount transferred over previously in the quarter, that isn't showing up.

I also transferred over another small amount after DD, thinking maybe the DD needed to be present first... (But it's possible that's still within the 2 day transfer window...)

Do you see the "total" of quarterly deposits (not just DD) when you look at the "next tier" info?

I don't... Assuming others do, then maybe my account is too new and I just need to be patient.
Yes. The total sum of direct deposits, bank transfers, and interest add into that number for me. I've had an account since October. If a transfer shows up in my HMB account on Monday, I don't usually see it added into that number until Tuesday.
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CardinalRule
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Location: United States

Re: HM Bradley savings plan 3% APY

Post by CardinalRule »

rage_phish wrote: Fri Sep 11, 2020 7:42 pm Anyone familiar with them? It seems like a good place to park our emergency fund which doesn’t get used for anything

That’s why we created Savings Tiers – our way of rewarding customers with different types of saving behaviors. Each of our four Savings Tiers represents the amount a customer saves every calendar quarter and rewards them with a corresponding rate, between 0.50 to 3.00% APY1

Customers who save 20% or more of their quarterly deposits will earn 3.00% APY in Tier 1.
Customers who save between 15% and 20% quarterly will earn 2.00% APY in Tier 2.
Customers who save between 10% and 15% quarterly will earn 1.00% APY. All new customers begin in Tier 3.
Customers who save between 5% and 10% quarterly will earn 0.50% APY.
Saving below 5% will result in no earned interest.
I'm only familiar with HM Bradley because of this forum. Seems legitimate, based on other posts, in the sense that the "bank" does pay the 3.00% on relatively large ($80,000) balances. But I don't see how this rate is sustainable in today's interest rate environment.
MrJedi
Posts: 3538
Joined: Wed May 06, 2020 11:42 am

Re: HM Bradley savings plan 3% APY

Post by MrJedi »

CardinalRule wrote: Tue Apr 20, 2021 11:54 am
rage_phish wrote: Fri Sep 11, 2020 7:42 pm Anyone familiar with them? It seems like a good place to park our emergency fund which doesn’t get used for anything

That’s why we created Savings Tiers – our way of rewarding customers with different types of saving behaviors. Each of our four Savings Tiers represents the amount a customer saves every calendar quarter and rewards them with a corresponding rate, between 0.50 to 3.00% APY1

Customers who save 20% or more of their quarterly deposits will earn 3.00% APY in Tier 1.
Customers who save between 15% and 20% quarterly will earn 2.00% APY in Tier 2.
Customers who save between 10% and 15% quarterly will earn 1.00% APY. All new customers begin in Tier 3.
Customers who save between 5% and 10% quarterly will earn 0.50% APY.
Saving below 5% will result in no earned interest.
I'm only familiar with HM Bradley because of this forum. Seems legitimate, based on other posts, in the sense that the "bank" does pay the 3.00% on relatively large ($80,000) balances. But I don't see how this rate is sustainable in today's interest rate environment.
They've gotten multiple rounds of venture capital. I totally expect to see the rate or eligible balance get slashed when that starts drying up. Right now it seems their only real source of income is the credit card.
SnowBog
Posts: 4680
Joined: Fri Dec 21, 2018 10:21 pm

Re: HM Bradley savings plan 3% APY

Post by SnowBog »

MrJedi wrote: Tue Apr 20, 2021 5:52 am
SnowBog wrote: Mon Apr 19, 2021 11:39 pm
MrJedi wrote: Mon Apr 19, 2021 10:25 pm
SnowBog wrote: Mon Apr 19, 2021 9:53 pm
vbdoug wrote: Mon Feb 08, 2021 10:58 pm It is important to remember that the interest one receives in excess of 100k is 0. I am currently @ 84k. To go through the HMBradley hoops I plan on withdrawing the max I am allowed [to keep the 3% rate] at the end of the first quarter and depositing most of it right back at the beginning of the second quarter.
Did you actually try this? Did it work?

I recently started my HMB account, only had a single DD hit the account (at intro Tier 3), but have transferred in some funds from other accounts. Was surprised that the account still only "shows" the DD amount as "deposits". Was curious if your idea worked and/or if something has recently changed.

For clarity - all funds are showing up in the account. But when I look at "next tier" it says "Based on $X in deposits and $0.00 in withdrawals your next Savings Tier would be Tier 1" where $x is only the amount via direct deposit - not inclusive of the non DD funds I've transferred into the account.
How soon has it been? I've found that those numbers usually don't update until the next business day after a deposit/withdrawal posts. I do see interest and transfers count toward the quarterly calculation. DD has to be present to qualify in the first place though. Kinda confusing at first but easy to follow once you've been through it for a quarter.
DD was last week. Account was created in March, but missed March DD.

I had a small amount transferred over previously in the quarter, that isn't showing up.

I also transferred over another small amount after DD, thinking maybe the DD needed to be present first... (But it's possible that's still within the 2 day transfer window...)

Do you see the "total" of quarterly deposits (not just DD) when you look at the "next tier" info?

I don't... Assuming others do, then maybe my account is too new and I just need to be patient.
Yes. The total sum of direct deposits, bank transfers, and interest add into that number for me. I've had an account since October. If a transfer shows up in my HMB account on Monday, I don't usually see it added into that number until Tuesday.
Thanks! I can confirm I see the total of monthly deposits now (just took a few days longer than I'd expect)
peke9898
Posts: 187
Joined: Thu Mar 05, 2020 12:19 pm

Re: HM Bradley savings plan 3% APY

Post by peke9898 »

I have DD set up from my paycheck and also processed a wire transfer from my brokerage account in to HMBradley account for additional deposit. I will be using this account as a CD. When I want to withdraw from HMBradley account and transfer back to my brokerage account at Fidelity what is the process? TY!
MrJedi
Posts: 3538
Joined: Wed May 06, 2020 11:42 am

Re: HM Bradley savings plan 3% APY

Post by MrJedi »

peke9898 wrote: Thu Apr 22, 2021 8:08 am I have DD set up from my paycheck and also processed a wire transfer from my brokerage account in to HMBradley account for additional deposit. I will be using this account as a CD. When I want to withdraw from HMBradley account and transfer back to my brokerage account at Fidelity what is the process? TY!
I would set up an ACH/EFT link on Fidelity side to pull from HMB. The daily limits to push out from HMB side are rather low. You can go much higher when initiating from Fidelity.
peke9898
Posts: 187
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Re: HM Bradley savings plan 3% APY

Post by peke9898 »

MrJedi wrote: Thu Apr 22, 2021 8:52 am
peke9898 wrote: Thu Apr 22, 2021 8:08 am I have DD set up from my paycheck and also processed a wire transfer from my brokerage account in to HMBradley account for additional deposit. I will be using this account as a CD. When I want to withdraw from HMBradley account and transfer back to my brokerage account at Fidelity what is the process? TY!
I would set up an ACH/EFT link on Fidelity side to pull from HMB. The daily limits to push out from HMB side are rather low. You can go much higher when initiating from Fidelity.
MrJedi, Thank You!
index2max
Posts: 514
Joined: Mon Jan 21, 2019 10:01 pm

Re: HM Bradley savings plan 3% APY

Post by index2max »

MrJedi wrote: Thu Apr 22, 2021 8:52 am
peke9898 wrote: Thu Apr 22, 2021 8:08 am I have DD set up from my paycheck and also processed a wire transfer from my brokerage account in to HMBradley account for additional deposit. I will be using this account as a CD. When I want to withdraw from HMBradley account and transfer back to my brokerage account at Fidelity what is the process? TY!
I would set up an ACH/EFT link on Fidelity side to pull from HMB. The daily limits to push out from HMB side are rather low. You can go much higher when initiating from Fidelity.
That’s a cool trick! So you can initiate an ACH transfer to bring in funds from an account you linked up, rather than pushing out funds to an account you have linked up?
MrJedi
Posts: 3538
Joined: Wed May 06, 2020 11:42 am

Re: HM Bradley savings plan 3% APY

Post by MrJedi »

index2max wrote: Thu Apr 22, 2021 5:29 pm
MrJedi wrote: Thu Apr 22, 2021 8:52 am
peke9898 wrote: Thu Apr 22, 2021 8:08 am I have DD set up from my paycheck and also processed a wire transfer from my brokerage account in to HMBradley account for additional deposit. I will be using this account as a CD. When I want to withdraw from HMBradley account and transfer back to my brokerage account at Fidelity what is the process? TY!
I would set up an ACH/EFT link on Fidelity side to pull from HMB. The daily limits to push out from HMB side are rather low. You can go much higher when initiating from Fidelity.
That’s a cool trick! So you can initiate an ACH transfer to bring in funds from an account you linked up, rather than pushing out funds to an account you have linked up?
Yup. I have a plethora of bank accounts and also Fidelity. I do all my transfers through either Fidelity or Ally. Ally is my main hub bank. I find that many banks have fairly low daily limits like 5 or 10k when initiated from there. But Fidelity and Ally have much higher limits. The limitation that applies for these transactions is generally from the initiating entity.
pitseleh12
Posts: 4
Joined: Fri Apr 23, 2021 7:19 am

Re: HM Bradley savings plan 3% APY

Post by pitseleh12 »

Hi All,

I am terrible at math and would greatly appreciate advice.

I now finally have $100,000 in HMBradley.

My job sends my paychecks every 2 weeks there as direct deposits.

This is the first time I've gone over $100,000 because of the direct deposit of $1,937.99.

If I'm not mistaken, I can transfer 80% of that first deposit to another online bank like Sterling Brio or Ally to get ~.5% interest.

And I'll have to do that every 2 weeks.

But as the 20% of these direct deposit checks add up, then the value of the 3% on the initial $100,000 goes down, right? In other words, if I'm making 0% on the amount over $100,000, then my overall interest is really lower on the aggregate amount.

So, could someone please explain at what point is hmbradley not a good deal anymore?

I.e., at some point, the aggregate interest rate could go down to as much as ally bank or sterling brio because I'm going to have to keep so much money in hmbradley from the 20% i can't remove.

(My job can't break up my direct deposit into two separate accounts to lower my transfers to hmbradley, btw).

Any advice would be greatly appreciated.
Last edited by pitseleh12 on Fri Apr 23, 2021 7:57 am, edited 1 time in total.
index2max
Posts: 514
Joined: Mon Jan 21, 2019 10:01 pm

Re: HM Bradley savings plan 3% APY

Post by index2max »

MrJedi wrote: Thu Apr 22, 2021 5:45 pm
index2max wrote: Thu Apr 22, 2021 5:29 pm
MrJedi wrote: Thu Apr 22, 2021 8:52 am
peke9898 wrote: Thu Apr 22, 2021 8:08 am I have DD set up from my paycheck and also processed a wire transfer from my brokerage account in to HMBradley account for additional deposit. I will be using this account as a CD. When I want to withdraw from HMBradley account and transfer back to my brokerage account at Fidelity what is the process? TY!
I would set up an ACH/EFT link on Fidelity side to pull from HMB. The daily limits to push out from HMB side are rather low. You can go much higher when initiating from Fidelity.
That’s a cool trick! So you can initiate an ACH transfer to bring in funds from an account you linked up, rather than pushing out funds to an account you have linked up?
Yup. I have a plethora of bank accounts and also Fidelity. I do all my transfers through either Fidelity or Ally. Ally is my main hub bank. I find that many banks have fairly low daily limits like 5 or 10k when initiated from there. But Fidelity and Ally have much higher limits. The limitation that applies for these transactions is generally from the initiating entity.
Yeah, I can only move out $5000/day with my main credit union through its external ACH transfers. Maybe I should try out the pull feature instead of just pushing money out. Read someone said you can use the sane trick with those 5% netspend credit cards too from Ally bank
SnowBog
Posts: 4680
Joined: Fri Dec 21, 2018 10:21 pm

Re: HM Bradley savings plan 3% APY

Post by SnowBog »

pitseleh12 wrote: Fri Apr 23, 2021 7:30 am Hi All,

I am terrible at math and would greatly appreciate advice.

I now finally have $100,000 in HMBradley.

My job sends my paychecks every 2 weeks there as direct deposits.

This is the first time I've gone over $100,000 because of the direct deposit of $1,937.99.

If I'm not mistaken, I can transfer 80% of that first deposit to another online bank like Sterling Brio or Ally to get ~.5% interest.

And I'll have to do that every 2 weeks.

But as the 20% of these direct deposit checks add up, then the value of the 3% on the initial $100,000 goes down, right? In other words, if I'm making 0% on the amount over $100,000, then my overall interest is really lower on the aggregate amount.

So, could someone please explain at what point is hmbradley not a good deal anymore?

I.e., at some point, the aggregate interest rate could go down to as much as ally bank or sterling brio because I'm going to have to keep so much money in hmbradley from the 20% i can't remove.

(My job can't break up my direct deposit into two separate accounts to lower my transfers to hmbradley, btw).

Any advice would be greatly appreciated.
Simple (but not exact) math would be:

[up to] $100,000 * 3% = $3,000 per year [max] interest

(on a calculator that would be 100000 * 0.03)

You won't make more than that (unless you have their credit card which adds another 0.5%).

Now take $3000 in max interest and divide by your total year end balance. Let's assume you have exactly $100k today, and sounds like you have 17 more paychecks for $1937.99, which will end up with a total of $132,845.83). Let's round up to $135,000 for simplicity (and because you'll have the remaining months interest added).

So that would be $3000 / $135000 = 2.22% "effective" interest by the end of the year.

If your paycheck is unchanged, and you don't withdraw anything, and rates don't change, you'd have roughly $188,000 by end of next year. Again $3000 / $188000 is roughly 1.6%.

Personally, my plan is to not keep anything over $100k in the account. If you have a spouse, have them open an account, or open a joint account. But since 3% is much higher than other rates, you may still come out ahead just leaving it there.
Last edited by SnowBog on Fri Apr 23, 2021 3:57 pm, edited 1 time in total.
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