TIO also announced a new initiative to make NetSpend’s national savings program available to TIO prepaid MasterCard cardholders. NetSpend cardholders can earn up to 5% interest on an annualized basis by linking their MetaBank-issued prepaid cards to an interest-bearing savings account. The program benefits under-banked Americans and/or those who prefer not to establish accounts with traditional banks.
The NetSpend national savings program’s promotional 5% annual percentage yield will apply through March 2008 and move to 3% on an annualized basis thereafter. Interest is calculated on the average daily balance and paid quarterly. Funds in the program are held by Inter National Bank, member FDIC. There is no minimum deposit to enroll in the program, no minimum monthly balance to maintain and no additional monthly service fees.
Rick Savard, CEO of NetSpend, said: NetSpend’s national savings program makes it convenient for under-banked Americans to manage their money better by setting part of it aside. We are pleased to extend our agreement with TIO Networks to offer cardholders a 5% promotional interest rate on an annualized basis so that the money they set aside will grow at a rate that surpasses that offered by many commercial banks.
