HM Bradley savings plan 3% APY
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HM Bradley savings plan 3% APY
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.
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.
Re: HM Bradley savings plan 3% APY
Opened an account and put some in. You do need to direct deposit and save money for 1-2 months until you get the 3%. Once I get the 3%, I'll move over most of the emergency fund.
Re: HM Bradley savings plan 3% APY
Seems one could achieve the Tier 1 rate by simply directing a small $ amount of their paycheck (i.e., no need to deposit entire paycheck) to this HMB account and not withdrawing any or much of it. Then once qualifying for the Tier 1 rate (at end of first full calendar quarter after making the intial direct deposit), transfer in up to, but somewhat less, than $100K and leave it there. Earn 3.0% on your money.
So, for example, open an account on 9/15/20, with first semi-monthly direct deposit of $100 hitting before 9/30. By 12/31 you'd have $700 in the account (and you'd be earning 1.0% on your account balance for that quarter). On or about 12/31/20, ACH $90,000 in cash into the account. Begin earning 3.0% in Q1 2021 on the almost and growing balance of $91,000.
If a time comes where you need a chunk of the money sitting there, either accept you'd potentially earn nothing on the amount left in the account for the next quarter or just pull all funds from the account (for at least the next 3 months). Could always move funds back at the beginning of the quarter after making the withdrawal and start over again.
Having said all that, this requires someone to have a qualifying direct deposit (which they define as, "deposits made by the customer’s employer, a federal or state government agency, retirement benefits administrator, or alimony"). So doesn't work for me. Also, HMB is not a member of FDIC themselves. They "claim" on their web site that "all deposit accounts are provided by Hatch Bank, Member FDIC". Hatch Bank is a tiny ($80 million in assets) one branch California bank with 5 employees. I don't particularly like the sound of that, but I'm pretty risk averse.
Although I suppose the FDIC insurance takes the risk out, I'm not sure I'd want to put money into this account without reading reviews of lots of others who've done it before me and have been enjoying this rate for a while. Seems this structure was offered back in late 2019, but I've yet to read of many people who have jumped on the offer. I've read of people talking about it (on reddit), but not much of folks who have opened the account and documented their experience.
So, for example, open an account on 9/15/20, with first semi-monthly direct deposit of $100 hitting before 9/30. By 12/31 you'd have $700 in the account (and you'd be earning 1.0% on your account balance for that quarter). On or about 12/31/20, ACH $90,000 in cash into the account. Begin earning 3.0% in Q1 2021 on the almost and growing balance of $91,000.
If a time comes where you need a chunk of the money sitting there, either accept you'd potentially earn nothing on the amount left in the account for the next quarter or just pull all funds from the account (for at least the next 3 months). Could always move funds back at the beginning of the quarter after making the withdrawal and start over again.
Having said all that, this requires someone to have a qualifying direct deposit (which they define as, "deposits made by the customer’s employer, a federal or state government agency, retirement benefits administrator, or alimony"). So doesn't work for me. Also, HMB is not a member of FDIC themselves. They "claim" on their web site that "all deposit accounts are provided by Hatch Bank, Member FDIC". Hatch Bank is a tiny ($80 million in assets) one branch California bank with 5 employees. I don't particularly like the sound of that, but I'm pretty risk averse.
Although I suppose the FDIC insurance takes the risk out, I'm not sure I'd want to put money into this account without reading reviews of lots of others who've done it before me and have been enjoying this rate for a while. Seems this structure was offered back in late 2019, but I've yet to read of many people who have jumped on the offer. I've read of people talking about it (on reddit), but not much of folks who have opened the account and documented their experience.
Real Knowledge Comes Only From Experience
Re: HM Bradley savings plan 3% APY
I've had an account for a month now. Interesting concept but not without some kinks. A couple weeks ago they had an authentication outage where I couldn't login for half a day. Couldn't create an ACH link on their site, though I can push and pull money from external account. After starting the link, I couldn't remove the unfinished link, I had to contact CS to remove it. Site/app is very basic/minimalistic. Everything is just a bit unpolished. I would be very hesitant on using it as a workhorse type of account.
Re: HM Bradley savings plan 3% APY
I don't see why it wouldn't be a good savings account paired with a good checking that you can push/pull from.MrJedi wrote: ↑Sat Sep 12, 2020 7:38 am I've had an account for a month now. Interesting concept but not without some kinks. A couple weeks ago they had an authentication outage where I couldn't login for half a day. Couldn't create an ACH link on their site, though I can push and pull money from external account. After starting the link, I couldn't remove the unfinished link, I had to contact CS to remove it. Site/app is very basic/minimalistic. Everything is just a bit unpolished. I would be very hesitant on using it as a workhorse type of account.
Re: HM Bradley savings plan 3% APY
^ Agree. I just heard about this account and am surprised it's not getting more interest. That said, if it got a lot more interest, they would probably have to cut the rates.
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Re: HM Bradley savings plan 3% APY
Lake Michigan Credit Union has had that same rate for several years, not hard to meet the reward criteria. Spend 5 minutes a month on 2 accounts.
Re: HM Bradley savings plan 3% APY
Thanks for the tip. But you have to use their debit or credit card 10x per month, right?Farmboyslim83 wrote: ↑Thu Oct 01, 2020 11:32 am Lake Michigan Credit Union has had that same rate for several years, not hard to meet the reward criteria. Spend 5 minutes a month on 2 accounts.
Re: HM Bradley savings plan 3% APY
yeah...just buy a few amazon credits throughout the month.presto987 wrote: ↑Thu Oct 01, 2020 2:20 pmThanks for the tip. But you have to use their debit or credit card 10x per month, right?Farmboyslim83 wrote: ↑Thu Oct 01, 2020 11:32 am Lake Michigan Credit Union has had that same rate for several years, not hard to meet the reward criteria. Spend 5 minutes a month on 2 accounts.
But HMB is attractive because it will take up to $100k; Michigan CU is capped at $15k.
I signed up, fully expecting the rate to get nerfed before I can really cash in...but I'm now Tier 1 after only a month of DDs, and already got interest posted (at 1%/ tier 3). Was assuming they'd only pay interest quarterly, so pleasantly surprised so far.
We'll see how long this lasts.
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Re: HM Bradley savings plan 3% APY
Well, I learned here that one can make 12 debit card payments online to cable or wireless providers. Make like $36 bucks a month interest at LMCU, so do 12 debit payments that total that. Works at verizon wireless and xfinity, for me.batpot wrote: ↑Thu Oct 01, 2020 3:10 pmyeah...just buy a few amazon credits throughout the month.presto987 wrote: ↑Thu Oct 01, 2020 2:20 pmThanks for the tip. But you have to use their debit or credit card 10x per month, right?Farmboyslim83 wrote: ↑Thu Oct 01, 2020 11:32 am Lake Michigan Credit Union has had that same rate for several years, not hard to meet the reward criteria. Spend 5 minutes a month on 2 accounts.
But HMB is attractive because it will take up to $100k; Michigan CU is capped at $15k.
I signed up, fully expecting the rate to get nerfed before I can really cash in...but I'm now Tier 1 after only a month of DDs, and already got interest posted (at 1%/ tier 3). Was assuming they'd only pay interest quarterly, so pleasantly surprised so far.
We'll see how long this lasts.
Re: HM Bradley savings plan 3% APY
I signed up when it was taking a waitlist, and then was turned off by how complicated it seemed. I can get 2.8% at Varo (capped at 10K per account) and 4% at T-Mobile (capped at 3K). Between my wife and I, that's all the cash in interested in holding (also have a 5 year unlimited add-on CD at over 3% that is funded with more).
I don't have a need for the HMBradley account so I kind of just let it go. Good to hear that it's easier to get to T3 than they indicated when the initial T&C's came out
I don't have a need for the HMBradley account so I kind of just let it go. Good to hear that it's easier to get to T3 than they indicated when the initial T&C's came out
Re: HM Bradley savings plan 3% APY
I signed up and it was pretty straightforward. I'm in the 3% tier now.
I was wondering, has anyone done research into what happens if there is fraudulent activity. I see that there is a zero liability protection on the debit card, but I didn't sign up for the debit card, so I was wondering about the account itself. Does federal law cover all cases, or could there be cases that are not covered?
I was wondering, has anyone done research into what happens if there is fraudulent activity. I see that there is a zero liability protection on the debit card, but I didn't sign up for the debit card, so I was wondering about the account itself. Does federal law cover all cases, or could there be cases that are not covered?
Re: HM Bradley savings plan 3% APY
Never heard of Varo. Checked out their website. It’s showing 0.81% on savings accounts. Where are you getting the 2.8% from?MBB_Boy wrote: ↑Fri Oct 02, 2020 8:28 am I signed up when it was taking a waitlist, and then was turned off by how complicated it seemed. I can get 2.8% at Varo (capped at 10K per account) and 4% at T-Mobile (capped at 3K). Between my wife and I, that's all the cash in interested in holding (also have a 5 year unlimited add-on CD at over 3% that is funded with more).
I don't have a need for the HMBradley account so I kind of just let it go. Good to hear that it's easier to get to T3 than they indicated when the initial T&C's came out
Re: HM Bradley savings plan 3% APY
https://support.varomoney.com/hc/en-us/ ... s-Account-BV3273 wrote: ↑Mon Oct 05, 2020 6:48 amNever heard of Varo. Checked out their website. It’s showing 0.81% on savings accounts. Where are you getting the 2.8% from?MBB_Boy wrote: ↑Fri Oct 02, 2020 8:28 am I signed up when it was taking a waitlist, and then was turned off by how complicated it seemed. I can get 2.8% at Varo (capped at 10K per account) and 4% at T-Mobile (capped at 3K). Between my wife and I, that's all the cash in interested in holding (also have a 5 year unlimited add-on CD at over 3% that is funded with more).
I don't have a need for the HMBradley account so I kind of just let it go. Good to hear that it's easier to get to T3 than they indicated when the initial T&C's came out
Re: HM Bradley savings plan 3% APY
ThxMBB_Boy wrote: ↑Mon Oct 05, 2020 7:53 amhttps://support.varomoney.com/hc/en-us/ ... s-Account-BV3273 wrote: ↑Mon Oct 05, 2020 6:48 amNever heard of Varo. Checked out their website. It’s showing 0.81% on savings accounts. Where are you getting the 2.8% from?MBB_Boy wrote: ↑Fri Oct 02, 2020 8:28 am I signed up when it was taking a waitlist, and then was turned off by how complicated it seemed. I can get 2.8% at Varo (capped at 10K per account) and 4% at T-Mobile (capped at 3K). Between my wife and I, that's all the cash in interested in holding (also have a 5 year unlimited add-on CD at over 3% that is funded with more).
I don't have a need for the HMBradley account so I kind of just let it go. Good to hear that it's easier to get to T3 than they indicated when the initial T&C's came out
Re: HM Bradley savings plan 3% APY
I am giving it a shot. I opened an account for $200. My SS will be direct deposited to them in December. I entered their plan to be offered a credit card; with their credit card I believe the rate goes up to 3.5%. After that I will transfer more cash. Their current lowest rate is 1% and their highest rate is 3.5%. I assume those rates will eventually be reduced but expect that their new lowest rates will still be highly competitive. It will last until it does not.
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Re: HM Bradley savings plan 3% APY
I also opened an account and am working on getting my direct deposit set up. Where do you see the offer of the rate going to 3.5% with the credit card?vbdoug wrote: ↑Sun Oct 18, 2020 12:13 pm I am giving it a shot. I opened an account for $200. My SS will be direct deposited to them in December. I entered their plan to be offered a credit card; with their credit card I believe the rate goes up to 3.5%. After that I will transfer more cash. Their current lowest rate is 1% and their highest rate is 3.5%. I assume those rates will eventually be reduced but expect that their new lowest rates will still be highly competitive. It will last until it does not.
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Re: HM Bradley savings plan 3% APY
So a customer could have an electronic deposit in any amount directed to HMB and earn 3% on the entire of the account (including transfers or non-electronic deposits) ? I have a small monthly distribution from an annuity (less than $200 per month) that would meet the requirement?
And then earn 3% on the HMB account balance that would include, say $50,000 deposited or transferred from another of my accounts?
Is this true?
And then earn 3% on the HMB account balance that would include, say $50,000 deposited or transferred from another of my accounts?
Is this true?
Re: HM Bradley savings plan 3% APY
Yup. Looks like that will work.
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Re: HM Bradley savings plan 3% APY
Simple question: Is HM Bradley a bank?
I cannot find HM Bradley as a member institution of FDIC either searching for its name or its website.
If they are merely a depositor at Hatch Bank, would the FDIC insurance limit of $250,000 apply to the total account balance that HMB has on deposit (on behalf of its customers)? And if that's the case, how much insurance would an individual HMB depositor have? How much does HMB have on deposit at Hatch? Assuming HMB had just $2,500,000 and failed, does this mean that HMB's depositors would get no more than 10% of their funds under the FDIC coverage for the one HMB account?
I would want an answer from the FDIC before making a deposit with HMB.
Remember, in a near-zero-rate world, a 3% yield makes ones heart beat a little faster. I won't compare this to skimpy bathing suits but sometimes you have to just sit down and remember to "investigate before you invest."
I cannot find HM Bradley as a member institution of FDIC either searching for its name or its website.
If they are merely a depositor at Hatch Bank, would the FDIC insurance limit of $250,000 apply to the total account balance that HMB has on deposit (on behalf of its customers)? And if that's the case, how much insurance would an individual HMB depositor have? How much does HMB have on deposit at Hatch? Assuming HMB had just $2,500,000 and failed, does this mean that HMB's depositors would get no more than 10% of their funds under the FDIC coverage for the one HMB account?
I would want an answer from the FDIC before making a deposit with HMB.
Remember, in a near-zero-rate world, a 3% yield makes ones heart beat a little faster. I won't compare this to skimpy bathing suits but sometimes you have to just sit down and remember to "investigate before you invest."
Re: HM Bradley savings plan 3% APY
https://faq.hmbradley.com/hc/en-us/arti ... C-insured-
HMBradley is just the “marketer” so to speak. Your money is on deposit at Hatch bank. HMBradley is not the depositor, you are, so you’re covered up to $250,000 like any other bank account.
HMBradley is just the “marketer” so to speak. Your money is on deposit at Hatch bank. HMBradley is not the depositor, you are, so you’re covered up to $250,000 like any other bank account.
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Re: HM Bradley savings plan 3% APY
Thanks, Auream. This still seems a little squishy. HMB may be the "marketer" as you say and not the bank. I can see a lot of fingers being pointed at "the other guy."
Who will issue the 1099-INT? Will it be HMB, Hatch or Hatch's parent, Firstrust? I'm still not convinced that my money will be deposited in an account in my name at a FDIC member institution. It isn't unrealistic to expect an iron-clad guarantee of FDIC insurance.
And perhaps the biggest question is still, "In a near-zero interest rate world why, if HMB is as you say a "marketer," why would they have to pay 3% to be in a marketing business? Really? Does this pass the "smell test?"
I can imagine uninformed savers being attracted to deals like this and risking 100% of their capital to gain just 3% if it's not really insured, in the event HMB fails.
Edit: HMB appears to carefully avoid the term "bank" at their website. As a prospective customer, I would feel better if they would clearly state that each HMB customer would have a FDIC-insured account at Hatch Bank. Without that, I would feel compelled to walk away.
Who will issue the 1099-INT? Will it be HMB, Hatch or Hatch's parent, Firstrust? I'm still not convinced that my money will be deposited in an account in my name at a FDIC member institution. It isn't unrealistic to expect an iron-clad guarantee of FDIC insurance.
And perhaps the biggest question is still, "In a near-zero interest rate world why, if HMB is as you say a "marketer," why would they have to pay 3% to be in a marketing business? Really? Does this pass the "smell test?"
I can imagine uninformed savers being attracted to deals like this and risking 100% of their capital to gain just 3% if it's not really insured, in the event HMB fails.
Edit: HMB appears to carefully avoid the term "bank" at their website. As a prospective customer, I would feel better if they would clearly state that each HMB customer would have a FDIC-insured account at Hatch Bank. Without that, I would feel compelled to walk away.
Re: HM Bradley savings plan 3% APY
I would expect the 1099-INT to come from Hatch bank, since that’s where the money is actually deposited. There’s plenty of other accounts (mostly reward checking accounts) paying in the vicinity of 3%. Most have limits of 10-20k, however, and require debit card transactions to qualify. 3% really isn’t highly unusual, although I’d expect the 100k cap on the high interest tier to go away sooner rather than later.
Once they have a critical mass of deposits, I can totally see them capping the 3% tier at 10K and paying 1% on amounts beyond that. That’s probably still just good enough to keep most people from moving everything out.
Once they have a critical mass of deposits, I can totally see them capping the 3% tier at 10K and paying 1% on amounts beyond that. That’s probably still just good enough to keep most people from moving everything out.
Re: HM Bradley savings plan 3% APY
They aren't going to claim to be a "bank" themselves because they aren't. However, their page at https://www.hmbradley.com/about/#security seems to come pretty close that that:Retired1809 wrote: ↑Sun Oct 18, 2020 9:26 pm Thanks, Auream. This still seems a little squishy. HMB may be the "marketer" as you say and not the bank. I can see a lot of fingers being pointed at "the other guy."
Who will issue the 1099-INT? Will it be HMB, Hatch or Hatch's parent, Firstrust? I'm still not convinced that my money will be deposited in an account in my name at a FDIC member institution. It isn't unrealistic to expect an iron-clad guarantee of FDIC insurance.
And perhaps the biggest question is still, "In a near-zero interest rate world why, if HMB is as you say a "marketer," why would they have to pay 3% to be in a marketing business? Really? Does this pass the "smell test?"
I can imagine uninformed savers being attracted to deals like this and risking 100% of their capital to gain just 3% if it's not really insured, in the event HMB fails.
Edit: HMB appears to carefully avoid the term "bank" at their website. As a prospective customer, I would feel better if they would clearly state that each HMB customer would have a FDIC-insured account at Hatch Bank. Without that, I would feel compelled to walk away.
Every deposit account is opened and maintained with Hatch Bank, Member FDIC, and is insured up to $250,000 per depositor.
Re: HM Bradley savings plan 3% APY
HM Bradley is an affiliated entity of Hatch Bank with non bank operations. They aren’t paying 3% to be in the marketing business - hatch is paying 3% to get the deposits to get its capital way up and quickly and they decided HM Bradley was a better marketing name than Hatch.patrick wrote: ↑Mon Oct 19, 2020 1:22 pmThey aren't going to claim to be a "bank" themselves because they aren't. However, their page at https://www.hmbradley.com/about/#security seems to come pretty close that that:Retired1809 wrote: ↑Sun Oct 18, 2020 9:26 pm Thanks, Auream. This still seems a little squishy. HMB may be the "marketer" as you say and not the bank. I can see a lot of fingers being pointed at "the other guy."
Who will issue the 1099-INT? Will it be HMB, Hatch or Hatch's parent, Firstrust? I'm still not convinced that my money will be deposited in an account in my name at a FDIC member institution. It isn't unrealistic to expect an iron-clad guarantee of FDIC insurance.
And perhaps the biggest question is still, "In a near-zero interest rate world why, if HMB is as you say a "marketer," why would they have to pay 3% to be in a marketing business? Really? Does this pass the "smell test?"
I can imagine uninformed savers being attracted to deals like this and risking 100% of their capital to gain just 3% if it's not really insured, in the event HMB fails.
Edit: HMB appears to carefully avoid the term "bank" at their website. As a prospective customer, I would feel better if they would clearly state that each HMB customer would have a FDIC-insured account at Hatch Bank. Without that, I would feel compelled to walk away.
Every deposit account is opened and maintained with Hatch Bank, Member FDIC, and is insured up to $250,000 per depositor.
Re: HM Bradley savings plan 3% APY
Escapevelocity stated and asked:
"I also opened an account and am working on getting my direct deposit set up. Where do you see the offer of the rate going to 3.5% with the credit card?".
From their web site, if I am interpreting it correctly.
"Boosting the Savings Tier on Your HMBradley Deposit Account: You can boost the Savings Tier on your HMBradley Deposit Account by one level if you:
Spend at least $100 on your Card Account every Billing Period with a closing date in the calendar quarter in which we determine the Savings Tier pursuant to the HMBradley Deposit Account Agreement and Disclosures;
Remain current and not in default on your Card Agreement; and
Maintain an open HMBradley Deposit Account.
If you already are in Savings Tier 1, we will add 0.5% annual percentage yield bonus to your HMBradley Deposit Account."
"I also opened an account and am working on getting my direct deposit set up. Where do you see the offer of the rate going to 3.5% with the credit card?".
From their web site, if I am interpreting it correctly.
"Boosting the Savings Tier on Your HMBradley Deposit Account: You can boost the Savings Tier on your HMBradley Deposit Account by one level if you:
Spend at least $100 on your Card Account every Billing Period with a closing date in the calendar quarter in which we determine the Savings Tier pursuant to the HMBradley Deposit Account Agreement and Disclosures;
Remain current and not in default on your Card Agreement; and
Maintain an open HMBradley Deposit Account.
If you already are in Savings Tier 1, we will add 0.5% annual percentage yield bonus to your HMBradley Deposit Account."
Re: HM Bradley savings plan 3% APY
If you thought that you may need some of the cash along the waywould it make sense to:
Oct-Dec $100 a month DD. Dec 31=$300.
Start earning 3.0% January 2
Move $50k in January 2.
DD $300 JAN- MAR
Pull out $40k Mar 31
Mar 31 balance $10,600, which exceeds 50,300times 20% so next quarter still qualifies.
April 1, put in $40k
Rinse repeat
This way you lose a few days of interest, but if you needed $10k -$20k cash you would still get the rate next quarter
Oct-Dec $100 a month DD. Dec 31=$300.
Start earning 3.0% January 2
Move $50k in January 2.
DD $300 JAN- MAR
Pull out $40k Mar 31
Mar 31 balance $10,600, which exceeds 50,300times 20% so next quarter still qualifies.
April 1, put in $40k
Rinse repeat
This way you lose a few days of interest, but if you needed $10k -$20k cash you would still get the rate next quarter
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Re: HM Bradley savings plan 3% APY
Honestly this seems too good to be true. I'm trying to see through the scam. Is the hatch bank account registered in your name or does the money go through HM Bradley into the FDIC account? What evidence do you get that you actually have an account? What would happen in the event of an HM Bradley bankruptcy. Hatch bank only has 5 employees; Who handles customer service. On 100K it's an annual return of more than 2K over any other account. It's intriguing but I'm passing for now.
Good luck to those who try it.
Good luck to those who try it.
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Re: HM Bradley savings plan 3% APY
When I switched banks for direct deposit of my SS check via ssa.org ("my Social Security"), the soonest option available to switch is January, 2021. That would not make me eligible for Tier 1 until April, 2021.
Does anybody here have an idea of how I could get a qualifying direct deposit over to HMB in the 4th quarter of 2020? I don't have other sources of income, other than interest and dividends from Fidelity and several banks.
Does anybody here have an idea of how I could get a qualifying direct deposit over to HMB in the 4th quarter of 2020? I don't have other sources of income, other than interest and dividends from Fidelity and several banks.
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Re: HM Bradley savings plan 3% APY
It appears that a deposit from a brokerage account might suffice. Good news (I hope) for others interested in doing this.... (If it fails please don't shoot the messenger.....)protagonist wrote: ↑Tue Oct 27, 2020 11:19 am When I switched banks for direct deposit of my SS check via ssa.org ("my Social Security"), the soonest option available to switch is January, 2021. That would not make me eligible for Tier 1 until April, 2021.
Does anybody here have an idea of how I could get a qualifying direct deposit over to HMB in the 4th quarter of 2020? I don't have other sources of income, other than interest and dividends from Fidelity and several banks.
The following is a dialogue I had with Meg, the HMB representative:
Meg:
For our accounts, we define direct deposits as those deposits made by the customer’s employer or a federal or state government agency or retirement benefits administrator. These generally include payments made by corporations and other organizations. We also consider payments from an investment or brokerage account as a direct deposit
Me:
Ah, so if I sent an ACH from Fidelity Investments, it would count as a direct deposit?
And if so would I have to initiate that from Fidelity, or can I initiate it via the HMB web site?
Meg:
One moment while I double check on this for you
Me:
If not is there some other way I could have money sent from Fidelity Investments that would work?
Meg:
Ok- I was able to confirm that if your social security direct deposit doesn't post by January 1, you can schedule a transfer from Fidelity and we will grant a one-time exception for that particular transfer
Me:
Great! well, I would like to request that one-time exception. Please explain how I need to go about the transfer. thanks.
Meg:
You can originate it from HMBradley or push it from Fidelity. Either process will work
We will make a note on your account to mark it as a Direct Deposit when it comes in
Me:
Great! can you do that for me or do I need to go through some other process to get the note on my account?
Meg:
No, you are all set!
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Re: HM Bradley savings plan 3% APY
I just read this article on Yahoo Finance that is germane to this discussion.
https://finance.yahoo.com/news/beware-o ... 28205.html
that shows people having problem getting their money out of FinTech firms. It sounds a lot like what HMBradley offers.
The relevant part it
"The FTC is investigating Beam's marketing and CNBC’s contacts with over 50 of the company’s reported partner banks, reporting that 17 of them said they had no relationship. CNBC also reported that while the banks that the company does work with might be insured by the FDIC, Beam — which is not a bank — is not."
Relevant quote from the CNBC article that Yahoo Finance refers to
https://www.cnbc.com/2020/10/28/beam-pr ... -back.html
"That’s when he realized Beam is not insured by the FDIC. The FDIC insurance Beam touts applies to the banks Beam works with, but not Beam itself. Instead, the deposits are FDIC insured through its partner member banks."
I would be skeptical.
https://finance.yahoo.com/news/beware-o ... 28205.html
that shows people having problem getting their money out of FinTech firms. It sounds a lot like what HMBradley offers.
The relevant part it
"The FTC is investigating Beam's marketing and CNBC’s contacts with over 50 of the company’s reported partner banks, reporting that 17 of them said they had no relationship. CNBC also reported that while the banks that the company does work with might be insured by the FDIC, Beam — which is not a bank — is not."
Relevant quote from the CNBC article that Yahoo Finance refers to
https://www.cnbc.com/2020/10/28/beam-pr ... -back.html
"That’s when he realized Beam is not insured by the FDIC. The FDIC insurance Beam touts applies to the banks Beam works with, but not Beam itself. Instead, the deposits are FDIC insured through its partner member banks."
I would be skeptical.
Re: HM Bradley savings plan 3% APY
It’s a hard no thanks for me anytime there is an intermediary between me and the bank with the FDIC insurance. The fact that some of these FinTech’s seem to be suggesting they are FDIC insured (or are dealing with FDIC insured banks) when they are not FDIC insured or even doing business with some of those banks is troubling to me beyond words.Buffetologist wrote: ↑Wed Oct 28, 2020 3:01 pm I just read this article on Yahoo that is germane to this discussion.
https://finance.yahoo.com/news/beware-o ... 28205.html
that shows people having problem getting their money out of FinTech firms. It sounds a lot like what HMBradley offers.
The relevant part it
"The FTC is investigating Beam's marketing and CNBC’s contacts with over 50 of the company’s reported partner banks, reporting that 17 of them said they had no relationship. CNBC also reported that while the banks that the company does work with might be insured by the FDIC, Beam — which is not a bank — is not."
Beware.
Real Knowledge Comes Only From Experience
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Re: HM Bradley savings plan 3% APY
Indeed. People on DoC are getting cold feet about HM Bradley, too.
https://www.doctorofcredit.com/beam-ban ... eir-money/
Re: HM Bradley savings plan 3% APY
I wouldn't touch this with a 10ft pole.
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Re: HM Bradley savings plan 3% APY
Thanks for posting this.MikeG62 wrote: ↑Wed Oct 28, 2020 3:25 pmIt’s a hard no thanks for me anytime there is an intermediary between me and the bank with the FDIC insurance. The fact that some of these FinTech’s seem to be suggesting they are FDIC insured (or are dealing with FDIC insured banks) when they are not FDIC insured or even doing business with some of those banks is troubling to me beyond words.Buffetologist wrote: ↑Wed Oct 28, 2020 3:01 pm I just read this article on Yahoo that is germane to this discussion.
https://finance.yahoo.com/news/beware-o ... 28205.html
that shows people having problem getting their money out of FinTech firms. It sounds a lot like what HMBradley offers.
The relevant part it
"The FTC is investigating Beam's marketing and CNBC’s contacts with over 50 of the company’s reported partner banks, reporting that 17 of them said they had no relationship. CNBC also reported that while the banks that the company does work with might be insured by the FDIC, Beam — which is not a bank — is not."
Beware.
I just opened an HMBradley account with $100, but after reading about the Beam experience I have decided to close it. I agree that it is probably not worth the extra risk. I will close it and withdraw my funds tomorrow.
I also just found this Bogleheads thread on Beam: viewtopic.php?f=10&t=225853
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Re: HM Bradley savings plan 3% APY
Has anyone actually contacted the FDIC regarding HMBradley ?
Looking at Hatch Bank's documents on the FDIC website they
show no relationship with HMBradley. It appears that they
should. One phone call could clear this up or show it as a
fluke operation. Maybe Hatch is under full control and
HMBradley is just getting a small fee for running the accounts'
website.
Looking at Hatch Bank's documents on the FDIC website they
show no relationship with HMBradley. It appears that they
should. One phone call could clear this up or show it as a
fluke operation. Maybe Hatch is under full control and
HMBradley is just getting a small fee for running the accounts'
website.
age in bonds, buy-and-hold, 10 year business cycle
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Re: HM Bradley savings plan 3% APY
I fear we are going to see a lot more of this, and that we are going to see that there is very little recourse, outside of the courts, against strangers who offer to take your money and keep it for you in an FDIC-insured bank, and stall when you ask them to go and get it back for you. The SIPC "protects" (note, not "insures") the integrity of your brokerage statement. Robinhood made a false claim--no horror stories but the falsely claimed their cash accounts were "insured" by the SIPC. But neither the SIPC nor anybody else provides similar protection for FDIC-insured bank accounts held by an intermediary on your behalf.patrick013 wrote: ↑Thu Oct 29, 2020 7:49 am Has anyone actually contacted the FDIC regarding HMBradley ? Looking at Hatch Bank's documents on the FDIC website they show no relationship with HMBradley. It appears that they should...
However, for the record: Hatch Bank's home page does indicate some kind of relationship with HMBradley, "Hatch provides a fintech platform called Powered by Hatch with API connectivity and industry-leading expertise in loans, deposits, and payments verticals. Companies like Wisetack and HMBradley offer loans, credit cards, and digital bank accounts for regular people that are all Powered by Hatch."
...and while we're at it, the FDIC Bankfind page confirms that "Hatch Bank" of San Marcos, CA, is member #25803 of the FDIC.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
- patrick013
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Re: HM Bradley savings plan 3% APY
Hatch's FDIC documents are incomplete IMO. They should
name HMBradley as a business relationship. In effect the
FDIC as no knowledge of HMBradley being an agent for Hatch.
So ?
name HMBradley as a business relationship. In effect the
FDIC as no knowledge of HMBradley being an agent for Hatch.
So ?
age in bonds, buy-and-hold, 10 year business cycle
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Re: HM Bradley savings plan 3% APY
According to the state guaranty laws in most states, insurance companies are not allowed to mention state guaranty association protection when advertising insurance. Institutions who are not members of the FDIC probably should not be allowed to use phrases like "FDIC insured."
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
Re: HM Bradley savings plan 3% APY
How do regulators let operations like this go unchecked?
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Re: HM Bradley savings plan 3% APY
There must be a reason why Hatch and HMBradley are different entities. Otherwise why bother with the separation. If this were legit, I'd put in $100K, but that is way too much to put at risk on a fly by night startup. Has anybody been able to do an ACH pull directly from their Hatch account without going through HMBradley? I don't see how money "passing through" HMBradley is FDIC insured while it's in transit. I also don't see how Hatch bank can make money paying 3%. They'd have to be lending at much higher rates. If it were possible don't you think some other Bank or Credit Unions would have high rates too?
Re: HM Bradley savings plan 3% APY
Risk and reward indicate that safety is missing.
Re: HM Bradley savings plan 3% APY
If it seems too good to be true...
Perhaps all will be fine in the end. However, I would not want to be an early adopter with any significant amount. Buyer beware.
Perhaps all will be fine in the end. However, I would not want to be an early adopter with any significant amount. Buyer beware.
Re: HM Bradley savings plan 3% APY
I suspect it is very costly and time-consuming to set up a new bank. HMBradley offers credit cards with higher interest rates than they pay on deposits, and they probably hope that most accounts will not get top interest. I wouldn't be surprised if they end up lowering their rates (and/or the cap), but note that Ally has already cut their interest rates (0.80% to 0.60%) after this thread started.Buffetologist wrote: ↑Thu Oct 29, 2020 8:45 am There must be a reason why Hatch and HMBradley are different entities. Otherwise why bother with the separation. If this were legit, I'd put in $100K, but that is way too much to put at risk on a fly by night startup. Has anybody been able to do an ACH pull directly from their Hatch account without going through HMBradley? I don't see how money "passing through" HMBradley is FDIC insured while it's in transit. I also don't see how Hatch bank can make money paying 3%. They'd have to be lending at much higher rates. If it were possible don't you think some other Bank or Credit Unions would have high rates too?
There are other accounts paying 3% or above, but with lower caps than HMBradley. For example:
3% on $15K at Porte (using Metabank)
3.3% on $20K at Evansville Teachers Federal Credit Union (directly NCUA insured), requires 15 debit card purchases per month
3.5% on $10K at Devon Bank (directly FDIC insured), requires 12 debit card purchases of at least $3 each per month
5% on $1K per card at Netspend (using Metabank), requires activity every 90 days to avoid fees
6.17% on $1K at Digital Credit Union (directly NCUA insured)
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Re: HM Bradley savings plan 3% APY
3% of 10K is only $300/yr. I would guess those institutions gamble on profiting by paying small amounts of interest on small deposits that attract a large number of customers that go on to invest more money at low rates (or borrow at high rates). It's like a store offering a good sale on one item, knowing that most people wind up browsing and buying a lot more. Bogleheads are probably much more compulsive about managing their finances than the general public.patrick wrote: ↑Thu Oct 29, 2020 11:40 am
There are other accounts paying 3% or above, but with lower caps than HMBradley. For example:
3% on $15K at Porte (using Metabank)
3.3% on $20K at Evansville Teachers Federal Credit Union (directly NCUA insured), requires 15 debit card purchases per month
3.5% on $10K at Devon Bank (directly FDIC insured), requires 12 debit card purchases of at least $3 each per month
5% on $1K per card at Netspend (using Metabank), requires activity every 90 days to avoid fees
6.17% on $1K at Digital Credit Union (directly NCUA insured)
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Re: HM Bradley savings plan 3% APY
I opened an account a little over a month ago but later closed it due to the unclear hoops to jump through for the interest rate and unsustainability since they are just burning VC money.
I did link my account to Ally/Fidelity via ACH which worked fine. The routing number showed as Hatch bank in both instances.
I did link my account to Ally/Fidelity via ACH which worked fine. The routing number showed as Hatch bank in both instances.
Today's high is tomorrow's low.
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Re: HM Bradley savings plan 3% APY
Were you able to do an ACH pull from Ally? That would be a sign that the actual Hatch account is in your name.Nummerkins wrote: ↑Thu Oct 29, 2020 1:21 pm I opened an account a little over a month ago but later closed it due to the unclear hoops to jump through for the interest rate and unsustainability since they are just burning VC money.
I did link my account to Ally/Fidelity via ACH which worked fine. The routing number showed as Hatch bank in both instances.
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Re: HM Bradley savings plan 3% APY
I pushed from Ally and pulled with Fidelity.
Today's high is tomorrow's low.
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Re: HM Bradley savings plan 3% APY
In October 2020, I visited FDIC.GOV and posed the following question about H. M. Bradley and received the answer shown on October 23, 2020:
Has anyone asked for a written representation letter from HM Bradley in answer to the questions listed in the FDIC's response to my inquiry? And if so, do you believe it?Thank you for contacting the Federal Deposit Insurance Corporation (FDIC). Your recent inquiry asked the following question:
"Are deposits to the HM Bradley savings plans held at the Hatch Bank insured directly by the FDIC? Specifically, if I deposit $25,000 in the HM Bradley savings plan, will it be insured in full by the FDIC? Will the savings account at the Hatch Bank be in my name and will the interest 1099-INT tax form come to me from Hatch? I'm just trying to understand if all of my money in the HM Bradley Savings Plan would be completely FDIC insured at 100%. Thank you."
HM Bradley is not an FDIC-insured bank. Hatch Bank, San Marcos, California, is insured by the FDIC under Certificate #25803. If HM Bradley deposits funds on your behalf into Hatch Bank they would be insured by the FDIC if the recordkeeping and disclosure rules for fiduciary accounts are met and the funds remain on deposit at Hatch Bank.
Those rules require that:
1) The fiduciary nature of the account be disclosed in the account records, usually in the account title, and
2) The identities and interests of the client must be ascertainable either from the records of the institution or, more usually, from the records of the agent/fiduciary, maintained in good faith and in the ordinary course of business.
If all of these requirements are met, the deposits held by the agent are together with any other funds the client (s) own(s) in the same right and capacity at the insured institution, either directly or through an agent, and insured to the same extent as if the deposits had been placed directly by the client(s). For example, if an agent deposits funds in a client’s name alone into the same bank where the client already has funds on deposit in his/her name alone, those funds would NOT be insured separately. Rather they would be added together and insured up to a combined maximum of $250,000.
You should contact HM Bradley directly for information on how the accounts will be held/titled at Hatch Bank and any tax reporting questions you may have.
If you wish to learn more about FDIC deposit insurance coverage, please visit the Deposit Insurance page on our website where you will find our brochure, "Your Insured Deposits" which explains in detail all of the deposit insurance ownership categories.
You can also visit EDIE, our electronic estimator, where you can calculate the insurance coverage of your accounts. These and other deposit insurance resources can be accessed directly by clicking the following link: http://www.fdic.gov/deposit
I hope this information is helpful. If you have further questions, please contact us at 1-877-275-3342 or visit the FDIC's Information and Support Center located at https://ask.fdic.gov/fdicinformationandsupportcenter/s/
Sincerely,
Federal Deposit Insurance Corporation
Division of Depositor and Consumer Protection
550 17th Street, N.W.
Washington, DC 20429
Please note that our response to your deposit insurance coverage inquiry is based strictly on the information provided, and any change or omission in the facts or failure to comply with FDIC's deposit insurance requirements could change the deposit insurance coverage discussed in this response.