HM Bradley savings plan 3% APY
Re: HM Bradley savings plan 3% APY
Checking if there are any updates on this. Did anyone reach out to HM Bradley or Hatch??
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Re: HM Bradley savings plan 3% APY
I've tried to call both many times but was never able to speak to anyone.
Re: HM Bradley savings plan 3% APY
Here is a good write up comparing HM Bradley with Beam financial
https://www.mymoneyblog.com/beam-app-co ... osits.html
https://www.mymoneyblog.com/beam-app-co ... osits.html
Re: HM Bradley savings plan 3% APY
I reached out to HMBradley via e-mail. Here is the response I got:
Thank you for reaching out to us with your concerns regarding FDIC insurance for your funds at Hatch Bank. All deposits with HMBradley are immediately held at Hatch Bank, and are FDIC insured the moment the deposits hit your account.
In regards to the legal proof that deposits are held at Hatch Bank, first and foremost, you have your deposit account agreement that you digitally signed upon account opening that states that the agreement is between you and Hatch Bank. You also have monthly statements available in the HMBradley app that present Hatch Bank as the bank where your deposits are held. Additionally, the vast majority of screens in the app and website, as well as the emails you receive regarding your application and account state that your deposits are held at Hatch Bank.
We have tried to advise applicants and accountholders throughout the process that their deposits are held at Hatch Bank and are FDIC insured. HMBradley's role is to market the product and provide excellent customer service and experience to accountholders of the HMBradley products.
For your reference, here is a link to the deposit agreement: https://policies.hmbradley.com/deposit/ ... eement.pdf
You can also find the Hatch FDIC listing here:
https://research2.fdic.gov/bankfind/det ... s=&tabId=2
I hope that I have been able to address your concerns adequately. Please let me know if you have any other questions.
Thank you for reaching out to us with your concerns regarding FDIC insurance for your funds at Hatch Bank. All deposits with HMBradley are immediately held at Hatch Bank, and are FDIC insured the moment the deposits hit your account.
In regards to the legal proof that deposits are held at Hatch Bank, first and foremost, you have your deposit account agreement that you digitally signed upon account opening that states that the agreement is between you and Hatch Bank. You also have monthly statements available in the HMBradley app that present Hatch Bank as the bank where your deposits are held. Additionally, the vast majority of screens in the app and website, as well as the emails you receive regarding your application and account state that your deposits are held at Hatch Bank.
We have tried to advise applicants and accountholders throughout the process that their deposits are held at Hatch Bank and are FDIC insured. HMBradley's role is to market the product and provide excellent customer service and experience to accountholders of the HMBradley products.
For your reference, here is a link to the deposit agreement: https://policies.hmbradley.com/deposit/ ... eement.pdf
You can also find the Hatch FDIC listing here:
https://research2.fdic.gov/bankfind/det ... s=&tabId=2
I hope that I have been able to address your concerns adequately. Please let me know if you have any other questions.
Re: HM Bradley savings plan 3% APY
Given that they are still at 3% I'm seriously looking at moving my emergency funds over. Still a little nervous but it seems like this is FDIC insured. Getting an extra 2.5% (Ally is the current home) for 60k is $1500... nothing to scoff at. Will see once Jan 1 hits.
Re: HM Bradley savings plan 3% APY
I just opened an account this month, have set up a DD and will fund it before month end.mrtwstr wrote: ↑Thu Dec 17, 2020 5:39 pm Given that they are still at 3% I'm seriously looking at moving my emergency funds over. Still a little nervous but it seems like this is FDIC insured. Getting an extra 2.5% (Ally is the current home) for 60k is $1500... nothing to scoff at. Will see once Jan 1 hits.
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Re: HM Bradley savings plan 3% APY
bob1234:
by bob1234 » Wed Dec 02, 2020 8:47 pm
I reached out to HMBradley via e-mail. Here is the response I got:
Thank you for reaching out to us with your concerns regarding FDIC insurance for your funds at Hatch Bank. All deposits with HMBradley are immediately held at Hatch Bank, and are FDIC insured the moment the deposits hit your account.
In regards to the legal proof that deposits are held at Hatch Bank, first and foremost, you have your deposit account agreement that you digitally signed upon account opening that states that the agreement is between you and Hatch Bank. You also have monthly statements available in the HMBradley app that present Hatch Bank as the bank where your deposits are held. Additionally, the vast majority of screens in the app and website, as well as the emails you receive regarding your application and account state that your deposits are held at Hatch Bank.
We have tried to advise applicants and accountholders throughout the process that their deposits are held at Hatch Bank and are FDIC insured. HMBradley's role is to market the product and provide excellent customer service and experience to accountholders of the HMBradley products.
For your reference, here is a link to the deposit agreement: https://policies.hmbradley.com/deposit/ ... eement.pdf
You can also find the Hatch FDIC listing here:
https://research2.fdic.gov/bankfind/det ... s=&tabId=2
I hope that I have been able to address your concerns adequately. Please let me know if you have any other questions.
Top
Bob,
I've read both of the documents that you provided: the Deposit Agreement and the FDIC document. Neither addresses my concern that deposits to an HM Bradley account are directly 100% insured by the FDIC. I accept that HM Bradley maintains an account at Hatch Bank which is insured for up to $250,000. Suppose that HM Bradley has customers who've "deposited" a total of $25 million. If the coverage is only $250,000 in aggregate, wouldn't that mean that only one penny of each dollar that customers have on deposit with HM Bradley is insured? ($250,000 divided by $25,000,000.) Just show me in clear language where HM Bradley's customers are insured 100% for their deposits up to $250,000. A chat session with an HM Bradley employee referred me to that same deposit agreement which unfortunately doesn't address my concern.
And 3% when risk-free investments are paying near zero?? Are you kidding me? This doesn't pass the smell test.
by bob1234 » Wed Dec 02, 2020 8:47 pm
I reached out to HMBradley via e-mail. Here is the response I got:
Thank you for reaching out to us with your concerns regarding FDIC insurance for your funds at Hatch Bank. All deposits with HMBradley are immediately held at Hatch Bank, and are FDIC insured the moment the deposits hit your account.
In regards to the legal proof that deposits are held at Hatch Bank, first and foremost, you have your deposit account agreement that you digitally signed upon account opening that states that the agreement is between you and Hatch Bank. You also have monthly statements available in the HMBradley app that present Hatch Bank as the bank where your deposits are held. Additionally, the vast majority of screens in the app and website, as well as the emails you receive regarding your application and account state that your deposits are held at Hatch Bank.
We have tried to advise applicants and accountholders throughout the process that their deposits are held at Hatch Bank and are FDIC insured. HMBradley's role is to market the product and provide excellent customer service and experience to accountholders of the HMBradley products.
For your reference, here is a link to the deposit agreement: https://policies.hmbradley.com/deposit/ ... eement.pdf
You can also find the Hatch FDIC listing here:
https://research2.fdic.gov/bankfind/det ... s=&tabId=2
I hope that I have been able to address your concerns adequately. Please let me know if you have any other questions.
Top
Bob,
I've read both of the documents that you provided: the Deposit Agreement and the FDIC document. Neither addresses my concern that deposits to an HM Bradley account are directly 100% insured by the FDIC. I accept that HM Bradley maintains an account at Hatch Bank which is insured for up to $250,000. Suppose that HM Bradley has customers who've "deposited" a total of $25 million. If the coverage is only $250,000 in aggregate, wouldn't that mean that only one penny of each dollar that customers have on deposit with HM Bradley is insured? ($250,000 divided by $25,000,000.) Just show me in clear language where HM Bradley's customers are insured 100% for their deposits up to $250,000. A chat session with an HM Bradley employee referred me to that same deposit agreement which unfortunately doesn't address my concern.
And 3% when risk-free investments are paying near zero?? Are you kidding me? This doesn't pass the smell test.
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Re: HM Bradley savings plan 3% APY
My concern would be that HMBradley is acting as a conduit, and possible bottleneck, between me and money earmarked for me held at Hatch Bank.
Let's assume that there's adequate assurance that my funds are actually held at Hatch Bank. Let's assume that there is a record keeping trail at HMBradley that establishes that the sum of the funds at Hatch Bank equals the sum of the savings accounts managed by HMBradley, and that HMBradley knows that $123,456 belongs to me. Finally, let's assume that the way FDIC protection works is that are willing to accept HMBradley's records as qualifying me for $123,456 worth of deposit insurance. Just off the top of my head, I think it's reasonably likely that all these things are true.
What happens if HMBradley, for whatever reason, can't provide services? My money is "safe" at Hatch Bank but the only way I know how to get it out is via HMBradley, and for whatever reason their app isn't working and I can't make a withdrawal and I can't reach anyone at HMBradley. (As I understand the press accounts, this is roughly what happened at Beam).
That is, the risk I would be concerned about is not that my money is lost, stolen, or strayed, but that it is safe but inaccessible to me.
Is there a way I can bypass HMBradley and go directly to Hatch Bank and get my money out? (Possibly just the principal, and not the 3% HMBradley is getting from heaven knows where). Does Hatch Bank know me?
Let's assume that there's adequate assurance that my funds are actually held at Hatch Bank. Let's assume that there is a record keeping trail at HMBradley that establishes that the sum of the funds at Hatch Bank equals the sum of the savings accounts managed by HMBradley, and that HMBradley knows that $123,456 belongs to me. Finally, let's assume that the way FDIC protection works is that are willing to accept HMBradley's records as qualifying me for $123,456 worth of deposit insurance. Just off the top of my head, I think it's reasonably likely that all these things are true.
What happens if HMBradley, for whatever reason, can't provide services? My money is "safe" at Hatch Bank but the only way I know how to get it out is via HMBradley, and for whatever reason their app isn't working and I can't make a withdrawal and I can't reach anyone at HMBradley. (As I understand the press accounts, this is roughly what happened at Beam).
That is, the risk I would be concerned about is not that my money is lost, stolen, or strayed, but that it is safe but inaccessible to me.
Is there a way I can bypass HMBradley and go directly to Hatch Bank and get my money out? (Possibly just the principal, and not the 3% HMBradley is getting from heaven knows where). Does Hatch Bank know me?
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
The app exposes your Hatch Bank account details to set up direct deposits. Yes, it is actually Hatch Bank. You also can use this info to link from an external account. I have done both successfully, an actual requirement to achieve the 3% is to direct deposit funds in so yes your account details have to be available to you.nisiprius wrote: ↑Thu Dec 17, 2020 7:15 pm My concern would be that HMBradley is acting as a conduit, and possible bottleneck, between me and money earmarked for me held at Hatch Bank.
Let's assume that there's adequate assurance that my funds are actually held at Hatch Bank. Let's assume that there is a record keeping trail at HMBradley that establishes that the sum of the funds at Hatch Bank equals the sum of the savings accounts managed by HMBradley, and that HMBradley knows that $123,456 belongs to me. Finally, let's assume that the way FDIC protection works is that are willing to accept HMBradley's records as qualifying me for $123,456 worth of deposit insurance. Just off the top of my head, I think it's reasonably likely that all these things are true.
What happens if HMBradley, for whatever reason, can't provide services? My money is "safe" at Hatch Bank but the only way I know how to get it out is via HMBradley, and for whatever reason their app isn't working and I can't make a withdrawal and I can't reach anyone at HMBradley. (As I understand the press accounts, this is roughly what happened at Beam).
That is, the risk I would be concerned about is not that my money is lost, stolen, or strayed, but that it is safe but inaccessible to me.
Is there a way I can bypass HMBradley and go directly to Hatch Bank and get my money out? (Possibly just the principal, and not the 3% HMBradley is getting from heaven knows where). Does Hatch Bank know me?
Re: HM Bradley savings plan 3% APY
My initial funding was via the HMBradley app which I initially linked to Ally from the HMBradley app (I later linked to Hatch from Ally via trial deposits). In Ally this initial funding transaction is labeled “352 HATCH BANK TRANS PMT”.
Re: HM Bradley savings plan 3% APY
FYI I set up a very small DD as a test and it recognized it as DD and says my account qualifies for the top tier as of Jan 1
Re: HM Bradley savings plan 3% APY
Following topic...
This is a bit beyond what I have the time and energy to look into right now in terms of whether it is 100% legit or not. It doesn't pass my initial smell test as others have mentioned above and at first I had no interest. Thanks to some BH investigative reporting I am now interested again as it appear that it may be legit.
If I understand correctly though, it has not collectively been deemed completely safe (as safe as FDIC can be) and there are some blind spots where risk may be hiding since HM Bradley's role in the "money chain" isn't completely understood?
This is a bit beyond what I have the time and energy to look into right now in terms of whether it is 100% legit or not. It doesn't pass my initial smell test as others have mentioned above and at first I had no interest. Thanks to some BH investigative reporting I am now interested again as it appear that it may be legit.
If I understand correctly though, it has not collectively been deemed completely safe (as safe as FDIC can be) and there are some blind spots where risk may be hiding since HM Bradley's role in the "money chain" isn't completely understood?
Re: HM Bradley savings plan 3% APY
I set up an account, and linked my bank to it and an alert came back noting a link has been set up to Hatch bank.
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Re: HM Bradley savings plan 3% APY
Don't know. I set up a real direct deposit.aristotelian wrote: ↑Sat Dec 19, 2020 10:35 amDo they recognize a linked bank as direct deposit or do you need a "real" direct deposit?
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Re: HM Bradley savings plan 3% APY
What would Charlie Munger say about this?
I believe that he would put it in the "Too complicated file," move on to the next question and forget it.
(Why risk 100% of ones principal to achieve a maximum possible gain of 3% if it's legit?)
I believe that he would put it in the "Too complicated file," move on to the next question and forget it.
(Why risk 100% of ones principal to achieve a maximum possible gain of 3% if it's legit?)
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Re: HM Bradley savings plan 3% APY
Can you withdraw directly from Hatch Bank without involving HMBradley?mhop wrote: ↑Thu Dec 17, 2020 7:39 pm...The app exposes your Hatch Bank account details to set up direct deposits. Yes, it is actually Hatch Bank. You also can use this info to link from an external account. I have done both successfully, an actual requirement to achieve the 3% is to direct deposit funds in so yes your account details have to be available to you...
The question isn't "is your money really held in an FDIC-insured account." That's a legitimate concern but I'm willing to grant that it almost certainly is. The question is whether your business relationship is with a bank? Or is it with HMBradley, which is not a bank? Your account details are available to you, but is the money that you have deposited into that account available to you?
Have you tried a trial withdrawal of a small amount to find out?
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.
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Re: HM Bradley savings plan 3% APY
Retired1809 wrote: ↑Sat Dec 19, 2020 6:37 pm What would Charlie Munger say about this?
I believe that he would put it in the "Too complicated file," move on to the next question and forget it.
(Why risk 100% of ones principal to achieve a maximum possible gain of 3% if it's legit?)
Wondering why you think it's not legit? HM Bradley isn't the only company doing this, but their rate is higher than competitors at the moment.
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Re: HM Bradley savings plan 3% APY
1) What do you mean by "legit," exactly?JHU ALmuni wrote: ↑Sat Dec 19, 2020 8:27 pmRetired1809 wrote: ↑Sat Dec 19, 2020 6:37 pm What would Charlie Munger say about this?
I believe that he would put it in the "Too complicated file," move on to the next question and forget it.
(Why risk 100% of ones principal to achieve a maximum possible gain of 3% if it's legit?)
Wondering why you think it's not legit? HM Bradley isn't the only company doing this, but their rate is higher than competitors at the moment.
2) No, HM Bradley isn't the only one. Another one is Beam Financial. In your opinion, is Beam Financial "legit?" If not, then it's reasonable to wonder about the others. As nearly as I can tell from the news reports, Beam Financial absolutely did place customers' money in FDIC-insured bank account, but nevertheless customers are unable to get their money out in a timely way.
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
I've actually never used HMBradley's interface to move money in and out of my account. I've always initiated transfers directly from my Ally account. The HMBradley account comes up as Hatch Bank when you enter the routing number in Ally's systemnisiprius wrote: ↑Sat Dec 19, 2020 7:30 pmCan you withdraw directly from Hatch Bank without involving HMBradley?mhop wrote: ↑Thu Dec 17, 2020 7:39 pm...The app exposes your Hatch Bank account details to set up direct deposits. Yes, it is actually Hatch Bank. You also can use this info to link from an external account. I have done both successfully, an actual requirement to achieve the 3% is to direct deposit funds in so yes your account details have to be available to you...
The question isn't "is your money really held in an FDIC-insured account." That's a legitimate concern but I'm willing to grant that it almost certainly is. The question is whether your business relationship is with a bank? Or is it with HMBradley, which is not a bank? Your account details are available to you, but is the money that you have deposited into that account available to you?
Have you tried a trial withdrawal of a small amount to find out?
Re: HM Bradley savings plan 3% APY
You are clearly moving money to and from Hatch Bank. That's not in doubt. Even the agreements you sign talk about Hatch Bank. I get that doesn't make it 1000% safe and that there is SOME sort of risk here.
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Re: HM Bradley savings plan 3% APY
We seem to be talking past each other. At Beam, customers were "clearly" moving money to and from Huntington National Bank. Nevertheless, they found they were unable to withdraw that money when Beam's operations became chaotic. I don't seriously question that HM Bradley's customers' money is being held in an FDIC insured account at Hatch Bank. The question is simple.
Is HM Bradley a link in a chain connecting you with your money in Hatch Bank?
Are withdrawals, by whatever means, routed through HM Bradley as a conduit? Is it a participant in the withdrawal process? Or can you withdraw your money without them? What is it risk if HM Bradley's operations become chaotic, like Beam's?
Last edited by nisiprius on Sun Dec 20, 2020 9:55 am, edited 1 time in total.
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
Then there’s Netspend. There’s Brinks. There’s Greendot. There’s T-Mobile Money. There’s Insight.nisiprius wrote: ↑Sat Dec 19, 2020 8:43 pm1) What do you mean by "legit," exactly?JHU ALmuni wrote: ↑Sat Dec 19, 2020 8:27 pmRetired1809 wrote: ↑Sat Dec 19, 2020 6:37 pm What would Charlie Munger say about this?
I believe that he would put it in the "Too complicated file," move on to the next question and forget it.
(Why risk 100% of ones principal to achieve a maximum possible gain of 3% if it's legit?)
Wondering why you think it's not legit? HM Bradley isn't the only company doing this, but their rate is higher than competitors at the moment.
2) No, HM Bradley isn't the only one. Another one is Beam Financial. In your opinion, is Beam Financial "legit?" If not, then it's reasonable to wonder about the others. As nearly as I can tell from the news reports, Beam Financial absolutely did place customers' money in FDIC-insured bank account, but nevertheless customers are unable to get their money out in a timely way.
None of these are banks. All of these are marketed products serviced by an actual bank. Beam was uniquely stupid in not exposing the account information to the users. Lake Michigan has advertised 3% rates for years. When you take in 20+% on credit products it’s certainly possible with the right customer mix.
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Re: HM Bradley savings plan 3% APY
Beam only allowed withdrawals THROUGH THE APP. There was no way to withdraw money from Beam externally (for example, initiating a withdrawal from Ally) as no routing/account number was provided.nisiprius wrote: ↑Sun Dec 20, 2020 9:49 amWe seem to be talking past each other. At Beam, customers were "clearly" moving money to and from Huntington National Bank. Nevertheless, they found they were unable to withdraw that money when Beam's operations became chaotic. I don't seriously question that HM Bradley's customers' money is being held in an FDIC insured account at Hatch Bank. The question is simple.
Is HM Bradley a link in a chain connecting you with your money in Hatch Bank?
Are withdrawals, by whatever means, routed through HM Bradley as a conduit? Is it a participant in the withdrawal process? Or can you withdraw your money without them? What is it risk if HM Bradley's operations become chaotic, like Beam's?
HMBradley provides a routing and account number for your account at Hatch Bank that can be used (and I use exclusively) to send and withdraw money without ever going through HMBradley.
So the two are quite different beasts.
Re: HM Bradley savings plan 3% APY
I set up a direct deposit into the account using a Hatch bank routing and account number. It worked. Email said it was to Hatch bank.nisiprius wrote: ↑Sun Dec 20, 2020 9:49 amWe seem to be talking past each other. At Beam, customers were "clearly" moving money to and from Huntington National Bank. Nevertheless, they found they were unable to withdraw that money when Beam's operations became chaotic. I don't seriously question that HM Bradley's customers' money is being held in an FDIC insured account at Hatch Bank. The question is simple.
Is HM Bradley a link in a chain connecting you with your money in Hatch Bank?
Are withdrawals, by whatever means, routed through HM Bradley as a conduit? Is it a participant in the withdrawal process? Or can you withdraw your money without them? What is it risk if HM Bradley's operations become chaotic, like Beam's?
I set up a link to another bank account, from that account to the Hatch account, and pushed money into it using the same Hatch routing and acct number. It worked. I haven't tried to pull money from it yet, but I have no idea why it functionally wouldn't work.
If you log in, the site is hm Bradley but the bottom right says "all accounts are provided by Hatch Bank member FDIC" and right next to a Hatch Bank logo.
I've yet to see anything that makes me think I am not dealing directly with Hatch bank.
Re: HM Bradley savings plan 3% APY
Thanks, you are the first person I've seen to say they tried to send and withdraw directly without using HMBradley. Out of curiosity did HM Bradley then recognize the new balance? I assume yes but just want to be sure.need403bhelp wrote: ↑Sun Dec 20, 2020 2:55 pmBeam only allowed withdrawals THROUGH THE APP. There was no way to withdraw money from Beam externally (for example, initiating a withdrawal from Ally) as no routing/account number was provided.nisiprius wrote: ↑Sun Dec 20, 2020 9:49 amWe seem to be talking past each other. At Beam, customers were "clearly" moving money to and from Huntington National Bank. Nevertheless, they found they were unable to withdraw that money when Beam's operations became chaotic. I don't seriously question that HM Bradley's customers' money is being held in an FDIC insured account at Hatch Bank. The question is simple.
Is HM Bradley a link in a chain connecting you with your money in Hatch Bank?
Are withdrawals, by whatever means, routed through HM Bradley as a conduit? Is it a participant in the withdrawal process? Or can you withdraw your money without them? What is it risk if HM Bradley's operations become chaotic, like Beam's?
HMBradley provides a routing and account number for your account at Hatch Bank that can be used (and I use exclusively) to send and withdraw money without ever going through HMBradley.
So the two are quite different beasts.
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Re: HM Bradley savings plan 3% APY
Yesmrtwstr wrote: ↑Mon Dec 21, 2020 8:16 amThanks, you are the first person I've seen to say they tried to send and withdraw directly without using HMBradley. Out of curiosity did HM Bradley then recognize the new balance? I assume yes but just want to be sure.need403bhelp wrote: ↑Sun Dec 20, 2020 2:55 pmBeam only allowed withdrawals THROUGH THE APP. There was no way to withdraw money from Beam externally (for example, initiating a withdrawal from Ally) as no routing/account number was provided.nisiprius wrote: ↑Sun Dec 20, 2020 9:49 amWe seem to be talking past each other. At Beam, customers were "clearly" moving money to and from Huntington National Bank. Nevertheless, they found they were unable to withdraw that money when Beam's operations became chaotic. I don't seriously question that HM Bradley's customers' money is being held in an FDIC insured account at Hatch Bank. The question is simple.
Is HM Bradley a link in a chain connecting you with your money in Hatch Bank?
Are withdrawals, by whatever means, routed through HM Bradley as a conduit? Is it a participant in the withdrawal process? Or can you withdraw your money without them? What is it risk if HM Bradley's operations become chaotic, like Beam's?
HMBradley provides a routing and account number for your account at Hatch Bank that can be used (and I use exclusively) to send and withdraw money without ever going through HMBradley.
So the two are quite different beasts.
Re: HM Bradley savings plan 3% APY
Great thank you, that's excellent news.
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Re: HM Bradley savings plan 3% APY
I pulled a small amount from my HM using using a pull from my Cap One account. For some reasons, the verification with Cap One never worked on HM end. But it shows up as a verified Hatch Bank account within Cap One and worked seamlessly.
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Re: HM Bradley savings plan 3% APY
Sound perfect. To confirm: I understand you to do say you were able to withdraw money from Hatch Bank without involving HM Bradley in any way. How did you do that? Use an account at another bank to pull from Hatch Bank as an ACH transfer, using the routing and account number... or how?
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
And another one is SoFi. And Varo. And Chime. This is not an uncommon arrangement, and has not been for a few a years at leastnisiprius wrote: ↑Sat Dec 19, 2020 8:43 pm1) What do you mean by "legit," exactly?JHU ALmuni wrote: ↑Sat Dec 19, 2020 8:27 pmRetired1809 wrote: ↑Sat Dec 19, 2020 6:37 pm What would Charlie Munger say about this?
I believe that he would put it in the "Too complicated file," move on to the next question and forget it.
(Why risk 100% of ones principal to achieve a maximum possible gain of 3% if it's legit?)
Wondering why you think it's not legit? HM Bradley isn't the only company doing this, but their rate is higher than competitors at the moment.
2) No, HM Bradley isn't the only one. Another one is Beam Financial. In your opinion, is Beam Financial "legit?" If not, then it's reasonable to wonder about the others. As nearly as I can tell from the news reports, Beam Financial absolutely did place customers' money in FDIC-insured bank account, but nevertheless customers are unable to get their money out in a timely way.
Re: HM Bradley savings plan 3% APY
I made an initial token deposit some months ago and my direct deposit began just last week. Although I was planning on making a substantial deposit this month, I have decided to postpone that deposit until 1 January. To qualify for the lower rate there are some restrictions on withdrawals and I am therefore better off waiting until the next quarter. I utilized HMBradley's chat line today and the agent stated I would receive the 3% interest rate in the first quarter the day the deposit was received. Also, and somewhat interesting, is the fact that HMBradley does not pay any interest on amounts over 100K.
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Re: HM Bradley savings plan 3% APY
They are definitely hip to the trick of moving money between institutions to "fake" direct deposits. You will need a legit "paycheck" type of DD to pass their test for interest tier 1.aristotelian wrote: ↑Sat Dec 19, 2020 10:35 amDo they recognize a linked bank as direct deposit or do you need a "real" direct deposit?
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Re: HM Bradley savings plan 3% APY
I've got my HM Bradley (hatch) account balance north of $60k now and have confirmation that I am now in the 3% interest tier. let's see how long it lasts....
I'm hoping to get one of their credit cards also which would boost the interest rate on savings another 0.5% to 3.5%.
I'm hoping to get one of their credit cards also which would boost the interest rate on savings another 0.5% to 3.5%.
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Re: HM Bradley savings plan 3% APY
Amazing! In a zero interest rate environment 3.5% sounds completely unsustainable...Escapevelocity wrote: ↑Fri Jan 01, 2021 12:25 pm I've got my HM Bradley (hatch) account balance north of $60k now and have confirmation that I am now in the 3% interest tier. let's see how long it lasts....
I'm hoping to get one of their credit cards also which would boost the interest rate on savings another 0.5% to 3.5%.
Re: HM Bradley savings plan 3% APY
nisiprius wrote: ↑Wed Dec 23, 2020 6:51 amSound perfect. To confirm: I understand you to do say you were able to withdraw money from Hatch Bank without involving HM Bradley in any way. How did you do that? Use an account at another bank to pull from Hatch Bank as an ACH transfer, using the routing and account number... or how?
I have made payments/transfers directly out of it using the provided routing and account number of Hatch Bank. Have done multiple (including a few that were significant). No problems and everything shows up as Hatch Bank.
Re: HM Bradley savings plan 3% APY
This was in Forbes today:
Most Intriguing Newcomer: HMBradley
The Los Angeles-based startup launched in late 2019 with a tiered checking and savings account. If you save 20% of your paycheck, you earn 3% interest. If you save 15%, you earn 2%, and so on. Those rates haven’t budged in a year even as interest rates have fallen off a cliff. In just 12 months, it has attracted $100 million in customer deposits. It rolled out a credit card in 2020, and CEO Zach Bruhnke says car loans and mortgages are next.
Any comments?
Most Intriguing Newcomer: HMBradley
The Los Angeles-based startup launched in late 2019 with a tiered checking and savings account. If you save 20% of your paycheck, you earn 3% interest. If you save 15%, you earn 2%, and so on. Those rates haven’t budged in a year even as interest rates have fallen off a cliff. In just 12 months, it has attracted $100 million in customer deposits. It rolled out a credit card in 2020, and CEO Zach Bruhnke says car loans and mortgages are next.
Any comments?
Re: HM Bradley savings plan 3% APY
Well, a little S&L got $100 Million in new deposits. And even if they had to pay 3% on everything (clearly they won't, a significant percentage of depositors will not meet/maintain the qualification) it would only cost them $3M. Good on them for vacuuming up so much yield-chasing capital, very clever.anon_investor wrote: ↑Fri Jan 01, 2021 12:41 pm Amazing! In a zero interest rate environment 3.5% sounds completely unsustainable...
Now they diversify their services to monetize that capital.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
Re: HM Bradley savings plan 3% APY
I opened my account with HM Bradley last quarter and have been depositing $100 per bi-weekly payroll. I was given Tier 3 (1%) right away. I just checked to see if I was earning at Tier 1 (3%), it said "No Tier - You will not be earning interest this quarter". I contacted support via chat and within 2 minutes they told me the system missed the December deposit, they fixed it and within seconds it showed Tier 1 and earning 3%. Great customer service, but I would check your account to make sure the Tier is correct.
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Re: HM Bradley savings plan 3% APY
Thanks. That sounds pretty safe to me, then.
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Re: HM Bradley savings plan 3% APY
Yes, they have very good customer service. It is very easy to move in and out big chunk of money to my surprise. I have got 3% for the last quarter. Just keep the maximum there until I need it.
Re: HM Bradley savings plan 3% APY
Every time I consider doing this I get the feeling that the 3% will get lowered to 2% the moment I qualify for tier 1. I'd probably feel different if I wasn't already getting 2% on cash deposits through a local credit union. This does have less hoops to jump through once it is set up though, kind of attractive.
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Re: HM Bradley savings plan 3% APY
I am prepared for this too but seems like there is no downside to try and take advantage of it for now. My Cap One account has already dialed back from 1.5% to 0.4% so there's nothing to lose! HMB does have an interesting setup that encourages you to keep contributing. If they can monetize that in some way perhaps they can keep these rates or at least some premium.csmath wrote: ↑Sat Jan 09, 2021 11:22 am Every time I consider doing this I get the feeling that the 3% will get lowered to 2% the moment I qualify for tier 1. I'd probably feel different if I wasn't already getting 2% on cash deposits through a local credit union. This does have less hoops to jump through once it is set up though, kind of attractive.
Re: HM Bradley savings plan 3% APY
I have a decent chunk in HMBradley earning 3%. I definitely expect during the course of 2021 for them to do 2 things (probably not both at once but who knows):
1) Lower the cap that can earn the highest tier from $100K to around $25K. They'll spin this as "in order to offer one of the highest savings rates in the country, we need to make sure there's resources for everyone. The vast majority of our depositors have less than $25K deposited and will see no impact from this change!
2) Lower the highest tier from 3% to 2%. Again, they'll spin it as "this rate is still one of the highest in the country, and 136x higher than the national average savings rate!"
They obviously want to avoid having money flood back out, but I think they can do these two things and still keep most of their deposits (I know I'd still stay). Pulling an "Ally Bank" or "Capital One" and lowering all the way down below 1% would be completely counterproductive and they'd basically lose 95% of their new customers.
1) Lower the cap that can earn the highest tier from $100K to around $25K. They'll spin this as "in order to offer one of the highest savings rates in the country, we need to make sure there's resources for everyone. The vast majority of our depositors have less than $25K deposited and will see no impact from this change!
2) Lower the highest tier from 3% to 2%. Again, they'll spin it as "this rate is still one of the highest in the country, and 136x higher than the national average savings rate!"
They obviously want to avoid having money flood back out, but I think they can do these two things and still keep most of their deposits (I know I'd still stay). Pulling an "Ally Bank" or "Capital One" and lowering all the way down below 1% would be completely counterproductive and they'd basically lose 95% of their new customers.
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Re: HM Bradley savings plan 3% APY
Have you applied for the HM Bradley credit card? They haven't offered to me yet. When I asked customer service they said they gauge your income qualification directly from the size of your direct deposits into your HM Bradley account. I increased mine to see if they would offer me one.Auream wrote: ↑Thu Jan 14, 2021 7:50 am I have a decent chunk in HMBradley earning 3%. I definitely expect during the course of 2021 for them to do 2 things (probably not both at once but who knows):
1) Lower the cap that can earn the highest tier from $100K to around $25K. They'll spin this as "in order to offer one of the highest savings rates in the country, we need to make sure there's resources for everyone. The vast majority of our depositors have less than $25K deposited and will see no impact from this change!
2) Lower the highest tier from 3% to 2%. Again, they'll spin it as "this rate is still one of the highest in the country, and 136x higher than the national average savings rate!"
They obviously want to avoid having money flood back out, but I think they can do these two things and still keep most of their deposits (I know I'd still stay). Pulling an "Ally Bank" or "Capital One" and lowering all the way down below 1% would be completely counterproductive and they'd basically lose 95% of their new customers.
Re: HM Bradley savings plan 3% APY
As another point in the "seems legit" column, I recently got my 1099 tax form for my HMBradley account and it comes directly from Hatch Bank.
Re: HM Bradley savings plan 3% APY
Escapevelocity posted:
Have you applied for the HM Bradley credit card? They haven't offered to me yet. When I asked customer service they said they gauge your income qualification directly from the size of your direct deposits into your HM Bradley account. I increased mine to see if they would offer me one.
I chatted with HM this morning. I have a substantial amount all ready deposited. The agent told me that they wanted to see the second payment of my direct deposit before I would receive any offer from "one click credit". My second one [about $1400] will occur in a few days, so I would not yet qualify. They told me me they make offers primarily in the beginning of the month and sometimes in the middle of the month. I asked what else I should do and was told [pretty much] "Don't call us, we'll call you".
Have you applied for the HM Bradley credit card? They haven't offered to me yet. When I asked customer service they said they gauge your income qualification directly from the size of your direct deposits into your HM Bradley account. I increased mine to see if they would offer me one.
I chatted with HM this morning. I have a substantial amount all ready deposited. The agent told me that they wanted to see the second payment of my direct deposit before I would receive any offer from "one click credit". My second one [about $1400] will occur in a few days, so I would not yet qualify. They told me me they make offers primarily in the beginning of the month and sometimes in the middle of the month. I asked what else I should do and was told [pretty much] "Don't call us, we'll call you".
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Re: HM Bradley savings plan 3% APY
OK I got a similar response.vbdoug wrote: ↑Tue Jan 19, 2021 6:25 pm Escapevelocity posted:
Have you applied for the HM Bradley credit card? They haven't offered to me yet. When I asked customer service they said they gauge your income qualification directly from the size of your direct deposits into your HM Bradley account. I increased mine to see if they would offer me one.
I chatted with HM this morning. I have a substantial amount all ready deposited. The agent told me that they wanted to see the second payment of my direct deposit before I would receive any offer from "one click credit". My second one [about $1400] will occur in a few days, so I would not yet qualify. They told me me they make offers primarily in the beginning of the month and sometimes in the middle of the month. I asked what else I should do and was told [pretty much] "Don't call us, we'll call you".
Re: HM Bradley savings plan 3% APY
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
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