6% APR for a saving MANGO account

Daniel

Daniel

#hackingtheplane(t)
Free-quent Flyer said:
Just to clarify, the 6% is APY, not APR. Useful to know so you are comparing like to like investments/interest rates.
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FYI, here's the math on the APR:

A = P * e ^ rt

We're told APY is 6%. Therefore:

A = 1.06 * P

Divide by P since we're only considered about the rate (since A will scale linearly with an increase in P) and we get:

1.06 = e ^ rt
ln(1.06) = rt

Since t = 1, we have:

r = ln(1.06) = 0.0582

Therefore APR ~ 5.82%

Factoring in the monthly fee, you have:

r_actual ~ 0.0582 - 36/5000 = 0.051

Therefore APR_actual ~ 5.1%

The reason we care about APR and not APY is because of the $5000 cap. The interest you earn won't actually earn full interest, so you can't realize the 6% value they cite.

Source

[Note that we actually have daily compounding instead of continuous, so the rate is a touch higher, which is how we get $24.84 - $3 = $21.84 per month. However, as many people have mentioned, you do pay taxes on the interest earned before subtracting out the fee, which is kind of crappy, but it's only about $10 even for higher tax brackets]
 
Jivepicnic

Jivepicnic

Level 2 Member
Kim @Savy.Traveler said:
There are other posts on fatwallet that confirm/led me to believe it was true, which is why I never did anything beyond my two employer DDs.
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My experience was the same. I used employer DD for the first few months, and then after that I stopped it. I've always received the 6% even after I stopped the employer DD.

My wife's account has never had employer DD. I have funded all of the money in that account from Paypal transfers (funds from Stubhub sales and rewards sites such as TD CC Rewards, Ebates, and Savingstar). Her account has always received the 6% as well even though she has never had a "real" DD.
 
S

Shak Y

Level 2 Member
For ACH pull, my Chase bank account worked fine. But I'm curious now if I can just pay a credit card (I was able to add Mango as a bank account in my amex profile). Probably not worth tempting fate, but curious if someone has tried this?

(For reference, my HR block card recently got closed for loading money from a debit card and then trying to use it to pay my Fido Amex using the Fido Amex interface. Did that successfully last year this time multiple times, guess they caught on.)
 
M

madage

Level 2 Member
Shak Y said:
For ACH pull, my Chase bank account worked fine. But I'm curious now if I can just pay a credit card (I was able to add Mango as a bank account in my amex profile). Probably not worth tempting fate, but curious if someone has tried this?

(For reference, my HR block card recently got closed for loading money from a debit card and then trying to use it to pay my Fido Amex using the Fido Amex interface. Did that successfully last year this time multiple times, guess they caught on.)
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I've pulled a few, small payments to my BA+ from Mango. I don't make it a habit.
 
aresay

aresay

Level 2 Member
Shoot, I've been dragging my feet on this one. When signing up for Union Prepaid, are you just choosing a random union (assuming you do not belong to one)? Do they check?
 
Matt

Matt

Administrator
Staff member
aresay said:
Shoot, I've been dragging my feet on this one. When signing up for Union Prepaid, are you just choosing a random union (assuming you do not belong to one)? Do they check?
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I signed up for a random one. Didn't check as far as I know, but I haven't funded yet as I was trying to figure out the DD aspect.
 
C

cdancer20

Level 2 Member
Shak Y said:
For ACH pull, my Chase bank account worked fine. But I'm curious now if I can just pay a credit card (I was able to add Mango as a bank account in my amex profile). Probably not worth tempting fate, but curious if someone has tried this?

(For reference, my HR block card recently got closed for loading money from a debit card and then trying to use it to pay my Fido Amex using the Fido Amex interface. Did that successfully last year this time multiple times, guess they caught on.)
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madage said:
I've pulled a few, small payments to my BA+ from Mango. I don't make it a habit.
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You are fine. I have had Mango/Union for over a year. Even back when I was doing $500/month in my Mango accounts, I would then either pull right back out or ACH to Amex/mortgage. No AA as of yet.
 
LiarsDice

LiarsDice

Level 2 Member
raenye said:
Get Union Prepaid while you can.
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I'm new to this and I'm wanting to get Mango very soon and I'm not sure if that ship has sailed or not.

What exactly is closed to new members? I didn't see any data points elsewhere regarding any big news re:mango.
 
LiarsDice

LiarsDice

Level 2 Member
C

cdancer20

Level 2 Member
LiarsDice said:
Thanks for this post. I went ahead and created one for my wife and I. Has anyone here tried the changing of the phone number trick to create a second Union Plus in your name? I know it worked w/ Mango, but not sure if we're comparing apples to apples here despite Mango and UP being basically the same product.
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I believe I read somewhere that you are limited to 3 total per person between Mango & Union. Maybe even per address but I could be wrong with that part.
 
LiarsDice

LiarsDice

Level 2 Member
cdancer20 said:
I believe I read somewhere that you are limited to 3 total per person between Mango & Union. Maybe even per address but I could be wrong with that part.
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Would be great to confirm this. I'm going to have to do more digging. Any idea where you might've read this? FT or a blog? Either way if I find anything I'll post itt.
 
Matt

Matt

Administrator
Staff member
LiarsDice said:
Would be great to confirm this. I'm going to have to do more digging. Any idea where you might've read this? FT or a blog? Either way if I find anything I'll post itt.
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I've read it a few places.. I think Bogleheads for one..
 
LiarsDice

LiarsDice

Level 2 Member
Matt said:
I've read it a few places.. I think Bogleheads for one..
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Funny you mention Bogleheads. I hadn't heard of it before and found the thread and basically came to the same conclusion as cdancer20. Nothing conclusive but there's a few people mentioning a combination of a three account limit. I've found several cases of duplicate Mango accounts but none of Union Plus. I did read one person having 4 accounts. It's one of those things where those who have 3+ accounts probably aren't willing to brag much about it to keep prying eyes away.
 
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cdancer20

Level 2 Member
LiarsDice said:
Funny you mention Bogleheads. I hadn't heard of it before and found the thread and basically came to the same conclusion as cdancer20. Nothing conclusive but there's a few people mentioning a combination of a three account limit. I've found several cases of duplicate Mango accounts but none of Union Plus. I did read one person having 4 accounts. It's one of those things where those who have 3+ accounts probably aren't willing to brag much about it to keep prying eyes away.
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Here's the thread that you want. fatwallet COM/forums/finance/1235341/m19085051/#m19085051
 
R

raenye

Lever 2 Membel
It's dead, Jim. I expect Mango to follow.

Dear Valued Cardholder,

Our records indicate you have an open Union Plus Prepaid Visa® Card issued by First Bank & Trust, Brookings, South Dakota.

As such, this letter is to notify you that all Union Plus Prepaid Visa cards will be discontinued, including all services in connection with the Card, effective September 16, 2015. This means your account will be closed on September 16, 2015, or on your Card’s expiration date, whichever comes first. A new provider for this program will be contacting you directly between now and September 16, 2015 with details of the new program that will be available to you.

After September 15, 2015, your Card will no longer be available for use. Any remaining available balance will be refunded to you in accordance with the terms and conditions of your Cardholder Agreement.

THE FOLLOWING DATES APPLY LEADING UP TO THE CLOSING OF YOUR ACCOUNT:

1. August 15, 2015 - Last Day to Reload Your Card
Card loads including recurring deposits will not be available after August 15, 2015. If you receive recurring deposits (such as direct deposits) please make arrangements – as soon as possible - with your bank, payment provider or payroll department to stop those deposits from posting to the Card. Any recurring deposit initiated on or after August 15th , 2015 will be rejected and returned to the originating source.

2. September 15, 2015 - Last Day to Use Card at A Merchant or ATM
Use any remaining balance before September 16, 2015, or your Card’s expiration date, whichever comes first. Remember, your Card may be used everywhere Visa debit cards are accepted. If recurring debit charges are assessed to your account, you should contact the merchant immediately to make other arrangements for payment.

3. By September 30, 2015 - Check Issued for Remaining Funds
The check will be sent to the name and address we currently have on file no later than 30 days of account closure.

Remember, the new provider for this program will be contacting you directly and before September 16, 2015 regarding details of the prepaid card they will make available to you.

Thank you very much for your business. We regret any inconvenience this change may cause.

If you have questions regarding this notice, or any other matter related to your account, please call the number printed on the back of your card.

Union Plus Customer Service
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C

cav

Level 2 Member
Mango Money appears to be accepting signups for new accounts again. The fee structure is the same, and they still have the 6% savings account.

The old accounts and cards, issued by First Bank & Trust, are being closed Oct 1. If you already have an account, you will need to login to apply for a new Mango card, issued by Sunrise bank.
 
Dave

Dave

Level 2 Member
It looks like the 6% savings now requires a monthly $500 direct deposit.... previously I was ACH'ing $3 a month to get the bonus.
 
rajin

rajin

Level 2 Member
Great news. Thanks. I've signed up for my account. It looks like the 500 is a monthly requirement, so I plan to pull 125 weekly from my paycheck (real DD), and have another account pull from here weekly, since the 125 will be over the 5k max that pays 6%.
 
Mountainmanduy

Mountainmanduy

Level 2 Member
Got my new Mango card. Vertical card is interesting. Just in case anybody is wondering. When you get the new card, look at the paper that asks for direct deposit info, as it shows what routing number is. The reason why I mention this is for those with multiple accounts. After you call in for the card or register the card, the money will automatically transferred over seamlessly.
 
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