MetLife which hasn’t been know for their bank accounts has premiered a solid high interest Savings Account. The rate is competitive though there is more than a few caveats when you compare this account to others in the market.
Unfortunately, the rates are tiered. This doesn’t bode well for those that are building up your savings. If you do have the 25k needed to reach the top tier, there’s probably smarter investments that you can gain a greater yield from.
The account is FDIC insured, you do have ATM access to your account within their limited ATM network. You also have the ability to transfer funds online between accounts.
In order to open the account online, the MetLife Savings Account requires that you open with a minimum deposit of $50.
One benefit of this card that is something that other savings accounts should offer, is the optional ATM card. A big reason why some people can’t stick to their savings goals is that their savings is too accessible.
In my early days of saving, I was forever guilty of diving into my savings account
to fund unnecessary expenses. Not having easy access to your savings can help you reach your goals faster and stick to your plan.
As with all accounts, the rates are variable and are subject to change at a moments notice. With a pending rate change, I wouldn’t be surprised if the tiered rates were dropped soon.
MetLife does have a handy calculator that enables you to see what type of savings you can accumulate with their tiered rates in 1 to 5 years. I’ve punched is a few realistic numbers, since we’re not all likely to have 25k sitting around.
I began with a $500 deposit and
entering a $100 deposit monthly deposit to see what the account would yield in 1 to 5 years. I would’ve have saved $6,587 in five years! Even with a nominal interest rate, that isn’t too bad. That’s all dependent though on if I didn’t dig into my savings.
The second scenario starts with a $50 deposit and depositing $25 a
month. Let’s say I was putting away for one of those new TVs that are supposed to hit the shelves in 3 years or so. This scenarios shows me accumulating $1,256.27 in 3 years and $3,088.44 in 5 years. Not too shabby.
Things to know.
Limited ATM Network access.