Credit Karma Savings Account Review [My Honest Thoughts]

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Almost everyone has a savings account. With it, you can organize your finances easily and effectively. Having a savings account is also one of the great ways to build a habit of saving. Credit Karma offers a savings account, and we’ll give a detailed review of it.

However, did you know there are different types of savings accounts? The list includes regular savings accounts, money market savings accounts, certificate of deposit accounts, cash management accounts, and specialty savings accounts.

One of the most popular accounts to own is what is known as a high-yield savings account. This kind of account is suitable for you if you want to earn a more competitive rate on savings with minimal fees.

Credit Karma Savings account

First off, what is Credit Karma?

Credit Karma is a personal finance company that was founded in 2007. They originally created and offered a free service to track changes in your credit score along with other relevant information related to it.

They then launched a high-yield savings account service in 2019 called Credit Karma Money Save.

This bank-like product is provided by MVB Bank Inc. – a member of The Federal Deposit Insurance Corporation (FDIC). You have to sign up for Credit Karma to open one of these accounts.

The Credit Karma Money Save account offers an extremely competitive Annual Percentage Yield (APY).

What is the national average savings interest rate?

The latest national average savings interest rate is 0.1%

What is Credit Karma’s Savings interest rate?

Credit Karma’s interest rate for a high-yield savings account is currently 0.9%. That’s nine times the national average! For every $10,000 you keep in the account, you can earn up to $90 per year on top of it.

However, this Credit Karma APY is subject to change as it can be adjusted anytime the Federal Reserve raises or lowers interest rates. We’ve seen Credit Karma’s APY being offered as low as 0.56% and as high as 2.03%.

Unfortunately, they don’t always specify what you’ll be getting before you apply. You have to go through the process to find out the rate you’re getting for sure. It may also depend on your account balance, as that can sometimes affect the kind of rates they’re able to source for you from various banking institutions.

Is Credit Karma FDIC insured?

Yes, Credit Karma accounts are FDIC insured, so you can rest assured your money is safe with them.

How to open a Credit Karma Savings account?

Compared to opening an account through traditional banks, opening a Credit Karma savings account is relatively simple. Just follow the steps outlined below:

  1. Access the Credit Karma Savings website from your desktop or phone. You can also download the Credit Karma app from App Store or Google Play and get it installed directly onto your devices. Make sure that your device is compatible with the app.
  2. Open the Credit Karma platform.
  3. Find the ‘Open Account’ button.
  4. Log in to your Credit Karma account or sign up if you don’t already have one.
  5. Confirm your Social Security number.
  6. Next, you will receive a text message or call with a unique security code. Enter that unique code, and you are ready to connect your bank account.

For some banks, you can connect your account with the Credit Karma savings account just by providing online banking credentials.

It only takes a few minutes for the entire process, and then your Credit Karma savings account will be ready to use immediately.

If you use the Credit Karma app, you can get advantageous features that aren’t available in Credit Karma’s desktop or mobile website versions. There are multiple login options (PIN, Touch ID, and Face ID) and in-app alerts, and push notifications.

Is Credit Karma a good savings account?

Although Credit Karma comes with a bank-like product – a savings account – Credit Karma itself isn’t a bank because it doesn’t keep your money for you. It only facilitates the opening and managing of your high-yield savings account. However, that isn’t necessarily a bad thing. In this case, it’s actually quite good.

Here’s why: Any single bank can’t consistently offer the best return since interest rates are constantly changing. However, Credit Karma is able to consistently offer relatively high-yield APYs for its members by partnering with more than 800 banks. It lets Credit Karma monitor the savings account interest rates.

The balance in your savings account can be moved to one or more of those network banks that are paying the highest APY. If the interest rate changes in any given month, you will be able to see the new rate on the first of the month. This method is used to make sure you always get the best rate in Credit Karma’s network.

However, keep in mind that some banks require a certain balance to earn the highest APY. So, the amount of your balance may affect the savings rate you get.

Is Credit Karma Savings safe?

When it comes to money, security is a top priority. You won’t need to worry about that though. Credit Karma gets your money insured by the FDIC up to $5,000,000.

The actual insured amounts may be less than that. It is adversely affected based on the balances you hold in the network bank.

The services that Credit Karma provides are free, have no hidden fees or penalties, no minimum balance requirements, no overdraft fees, and free withdrawals from a network of over 55,000 Allpoint ATMs using the Credit Karma Visa debit card.

Credit Karma does earn money from its partners. It receives fees every time users purchase products or services it recommends from targeted advertisements.

Pros and cons of Credit Karma Savings: The pros


  • No minimum opening deposit. The savings account provided by Credit Karma doesn’t require you to provide a minimum deposit when you want to open an account.
  • No minimum balance. You don’t need to worry about fees when balance requirements are not met. Any amount of money you have in this account is just fine.
  • No monthly service fees. Since there is no such fee in Credit Karma, you won’t get any money unexpectedly withdrawn from your account each month.
  • No monthly management fees. All available services in Credit Karma are free.
  • User-friendly. The application process is very simple, especially if you are already a member of Credit Karma. You can also easily transfer between accounts using the mobile app.
  • FDIC insured. Your deposits in this savings account are insured for up to 5 million dollars. Since 1933, no user has ever lost money from FDIC-insured reserves. Now that’s a great track record.
  • The most competitive APY. Credit Karma has access to over 800 banks and has the ability to move your money among different banks. Such flexibility lets you always get the best rate of return.
  • Free identity monitoring. Credit Karma provides identity theft protection services to help you detect potential identity theft. It even gives you tips for keeping personal information safe as well.
  • Free unclaimed money search. Credit Karma helps you find unclaimed money that has your name attached to it. For example, it could be a deposit for a certain service, a balance in a closed bank account, etc.
  • Free credit score monitoring. This is one of the best ways to improve your credit score. You will also get some tips on how to build your credit, qualify for credit cards, and learn more about what primary credit card issuers are looking for in a new cardholder.
  • Free tax prep. Credit Karma also offers a free tax preparation service. It is an excellent service that helps you ease stress during tax season. They guarantee accuracy and support common tax forms, like deductions, business profits and losses, etc.
  • Chance to win cash. When you make a deposit to your savings account, you will get a monthly chance to win a $20,000 Instant Karma cash prize. Furthermore, when you purchase using a debit card, you will get a daily chance to win Instant Karma cash reimbursements.

Pros and cons of Credit Karma Savings: The cons


  • Inconsistent interest rates. Some banks oblige a certain balance to earn the highest APY. So, the amount of your balance may affect the savings rate you receive. The higher your account balance is, the more money you will earn in compound interest over time. Besides, interest rates on high-yield savings accounts are inconsistent and can fluctuate at any time.
  • Higher inflation rate. The rate of inflation can be higher than the yield you earn over time. It is better for you to not only add deposits into your savings account but also into other money investments.
  • No cash or paper check deposits. Since Credit Karma doesn’t hold your money, you can’t deposit cash or paper checks directly to this savings account. You still have to provide access from your regular bank account.
  • No joint accounts. Many banks provide joint accounts as one of their services. With a joint account, you and your spouse can pay multiple expenses from the same savings account and it helps to simplify finances. However, Credit Karma hasn’t yet considered launching joint accounts.
  • Few physical offices. Most of the banks offering online high-yield savings accounts don’t have a physical location. Credit Karma does have physical locations, but only a few. What that means is whenever you come across problems with your savings account, you can’t easily come to an office to get fast resolutions. Instead, you’ll need to contact Credit Karma customer service via the website and complete a report form.

How to get money out of a Credit Karma Savings account

You can withdraw money out of your Credit Karma Save Money account anytime you’d like. Simply go to the Credit Karma phone app or website and transfer the money from your savings account to your checking account. Keep in mind that since it is a savings account, Credit Karma will only allow up to 6 withdrawals a month. This is a regulation that affects savings accounts in general, not just Credit Karma’s.

Also, the maximum daily allowed transaction is $10,000, and the maximum monthly allowed transaction is $50,000.

In conclusion

Credit Karma offers an astounding savings APY via their Money Save account option. Their offer of up to 0.9% APY is well above the national average, so it’s always worth a shot if you’re looking for a great savings account to open.

Do you have a Credit Karma savings account? If so, how’s your experience with it? Let us know, we’d love to hear about it!

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