Credit Karma Money Save review
Credit Karma Money Save isn't available on Finder right now.
- Annual Percentage Yield (APY)
-
5.10%
- Fee
- $0
- Minimum deposit to open
- $0
Our verdict
This free savings account boasts a 5.1% APY and up to $5 million FDIC insurance.
Previously called the Credit Karma savings account, Credit Karma Money Save is a free, digital-first account. The account has a high 5.1% APY but requires a membership with Credit Karma to sign up. You also need a valid Social Security Number (SSN) to apply, and unlike other institutions, it doesn't accept Individual Taxpayer Identification Numbers. There are no monthly fees, no minimum balance requirements and no opening deposit requirements. It also boasts a whopping $5 million in FDIC-insured deposits, thanks to its bank network. But as an online banking option, there are no physical locations for in-person support.
Best for: Existing Credit Karma customers in need of a high-yield savings account.
Pros
-
High 5.1% APY
-
No monthly fees
-
Can be insured up to $5 million
Cons
-
Requires Credit Karma membership
-
Only accepts SSN
Who is Credit Karma Money Save best for?
Credit Karma Money Save requires a Credit Karma membership, making this account ideal for someone who already uses or plans to use Credit Karma on the regular. Luckily, the membership is free and comes with other perks like credit score monitoring and access to your TransUnion and Equifax credit reports.
The Money Save account also has no monthly fees and no balance requirements to earn the high APY and the high insurance coverage. This account is well-suited for anyone who prefers digital bank accounts.
What we like about Credit Karma Money Save
The Credit Karma Money Save account offers FDIC insurance through MVB Bank. It offers a 5.1% APY, making it much higher than the national average of 0.43%(1), as reported by the FDIC. The account has seen many changes in rates, going from a decent rate of 2.03% at its launch in 2019 and a poor rate of 0.17% in 2021. But its current rate rivals other top savings accounts and big banks.
You can also access your funds through the Allpoint ATM network, which has over 55,000 ATMs.
Flexibility with automated deposits
Since this is a digital account, we’re pleased to see the major flexibility that comes with setting up automated deposits within the Credit Karma app.
You can choose the amount you want to deposit and the frequency, such as every week, every other week or every month. You can even see an estimate of how your automated deposits will impact your balance over time with the account’s current APY.
Insured up to $5 million
Most deposit accounts are insured up to $250,000 through NCUA or FDIC insurance. Credit Karma’s deposit accounts can be insured up to $5 million, thanks to a network of banks.
Where it falls short
Since Credit Karma Money Save is an online account, there are no physical branches. And if you need to deposit cash, it’ll require a workaround. You’ll either need to deposit money into an external account or with a Credit Karma Spend account and then transfer the money into your savings account.
If you choose to deposit it through Credit Karma’s Spend account, you’re limited to depositing cash at select retailers.
Compare Credit Karma Money Save to other savings accounts
Narrow down top savings accounts by APY, opening deposit requirements and monthly fees. Select the Compare box on up to four providers to see their features side by side.
How to open the Credit Karma Money Save
You must have a free membership with Credit Karma and a verified phone number to open a Money Save account. Get a Credit Karma membership in three steps:
- Head to Credit Karma’s site or download the app.
- Create an account with email and password.
- Verify your information, including your SSN.
After you have the Credit Karma account, you can sign up for the Money Save account online or via the app by:
- Go to the Savings page, and select Start saving.
- Confirm your information, such as SSN and address.
- Agree to terms and conditions, and start using the account.
Customer experience
Credit Karma isn’t accredited by the Better Business Bureau (BBB) and holds a poor D rating. The BBB rating is based on how well businesses handle complaints or issues and takes into account government actions — and there have been government actions against Credit Karma.
In 2022, Credit Karma went into settlement with The Federal Trade Commission. Throughout 2018 and 2021, Credit Karma was sending literature advertising that customers were pre-approved for third-party products. Many customers applied for the products, resulting in a hard credit pull, and many were not approved, resulting in multiple claims of misleading advertisements. Credit Karma agreed to pay $3 million to consumers who applied for these products but were denied, and Credit Karma is also prohibited from making deceptive claims about pre-approvals.
Customer reviews are also rather poor overall on BBB and Trustpilot, but nearly all reviews are in reference to Credit Karma’s main purpose, which is its free credit monitoring service. Negative reviews often complain about advertisements, product suggestions and how Credit Karma displays VantageScore and not FICO. On the other hand, positive reviews praise Credit Karma’s credit monitoring services to help with repairing credit, finding loan products and providing identity theft alerts.
Frequently asked questions
Is Credit Karma Money Save legit?
Yes, it’s safe to save your money with Credit Karma. Its banking services are provided by MVB Bank, an FDIC-insured bank. Plus, your money is protected up to $5 million.
Savings account ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We analyze top savings accounts and rate them one to five stars based on factors that are most important to you. These factors include: interest rates, monthly fees, minimum deposits, customer service and account features.
Credit Karma Money Save is not currently available on Finder
Have you considered Uphold?
- $0 monthly fee
- Earn 4.65% APY on balances of $1,000+
- Earn 2% APY on balances lower than $1,000
- Available in 47 states
- Up to $2.5 million FDIC insurance
Your reviews
Bethany Finder
Editor, Banking
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