“We believe it is a historic day for financial empowerment, for our customers and the un-banked, when the annual percentage yield on a savings account quadruples and nears and in some cases surpasses the yield commercial banks are paying on money market accounts,” said Rick Savard, chief executive officer of NetSpend. “Our savings program does all of that and more for households outside the sphere of traditional banking services.
“This is a result of listening to our customers who ask us to deliver products and services that are essential if our card is going to be the bank in their wallet.”
The NetSpend National Savings Program annual percentage yield at 3.00 percent – effective Oct. 1, 2006 – more than doubles the one-year high of 1.2 percent in the national average rate paid on interest checking account deposits, according to Bankrate.com. The annual percentage yield rate on NetSpend National Savings Program deposits has been 0.75 percent.
Participation in the program has been growing at almost 15 percent per month in 2006, counter to a national trend that saw Americans log a negative savings rate of 0.5 percent in 2005.
“We expect the annual percentage yield increase to attract a significant number of new participants,” said Bill Siegel, Chairman, FiSCA Savings Program Committee. “Our customers have consistently told us they want a savings product that is available through their neighborhood financial services center.
“FiSCA has more than 6,000 member locations nationwide,” Siegel said. “That level of access and an unprecedented increase in the annual percentage yield present the self-banked with a compelling case for saving and extending their financial reach.”
The savings program is available free of charge to all new and current NetSpend prepaid cardholders who originate their accounts through a FiSCA member financial services center. There is no minimum deposit to enroll in the program, no minimum monthly balance to maintain and no additional monthly service fees. Funds in the NetSpend National Savings Program accounts are held by Inter National Bank, in McAllen, Texas and insured by the FDIC.
“As NetSpend’s issuing bank partner, we echo its mission of financial empowerment and proudly support NetSpend’s efforts to extend savings benefits to self-banked customers,” said Carlos Garza, president of Inter National Bank. “There is no reason that those who purchase prepaid cards should not get a savings yield that is among the best offered anywhere.”
Cardholders can enroll in the program online at www.netspend.com or by calling 1-86-NETSPEND to link their prepaid card to an interest-bearing savings account. Once this happens cardholders can add funds to their savings account via free transfers from their prepaid card.
The program is designed to reach the millions of Americans who choose not to establish accounts with traditional financial institutions or who are underserved by banks. The U.S. Treasury estimates almost 10 percent of American households are self-banked.
*Interest is calculated
on the average daily balance and paid quarterly.
**FDIC Insurance is provided through the issuing bank
listed on the back of the cardholders prepaid card.
About FiSCA
FiSCA, founded in 1987, is the national trade association and voice of the industry representing more than 6,000 individual financial service centers across the United States. FiSCA members provide a wide variety of financial services and products to their communities, including check cashing, money orders, money transfers, and electronic bill payment services, automatic teller machine access, government benefit and payroll payments, deferred deposit services, electronic tax preparation, prepaid cards, deposit acceptance services, public transportation fare and token sales, motor vehicle license plate and title distribution, postage stamp sales and numerous other services. For more information, go to www.fisca.org.
About NetSpend Corporation
NetSpend Corporation is the leading provider of innovative, accessible prepaid debit cards that enable financial freedom and growth for self-banked consumers. Grounded by a mission of financial empowerment, NetSpend is committed to meeting its customers’ financial services needs on their terms while offering the convenience, security and acceptance of conventional financial services. NetSpend’s proprietary processing platform is unique in the industry and allows it to support prepaid card programs end-to-end from customer acquisition and card fulfillment to customer service and risk management. The NetSpend® Prepaid Card Network includes leading consumer brands and the foremost companies serving the un-banked and under-banked markets, and its strategic relationships include card issuers, EFT networks and payment card associations. For more information, visit www.netspend.com.
