US-based wireless network operator T-Mobile is entering the banking space with a mobile checking account, which does away with fees and minimum balance requirement.
T-Mobile created the new offering, dubbed T-Mobile MONEY, in association with Customers Bank unit BankMobile.
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The new account offers an annual percentage yield (APY) of 4% on balances up to $3,000.
This is said to be 50 times more compared to the average US checking account.
Customers must deposit a minimum of $200 into the account each month to get the interest.
Balances above the $3,000 figure will earn 1% APY.
T-Mobile MONEY is available for those who are customers of T-Mobile and those who are not.
Users of the account will be offered a Mastercard debit card.
Through the new account, one can make mobile check deposits and bill payments, set up direct deposit, conduct P2P payments, and send a check.
The account also supports Apple Pay, Google Pay and Samsung Pay.
T-Mobile MONEY deposits of up to $250,000 are insured by the Federal Deposit Insurance Corporation.
T-Mobile CEO John Legere said: “Traditional banks aren’t mobile-first, and they’re definitely not customer-first. As more and more people use their smartphones to manage money, we saw an opportunity to address another customer pain point.
“You work hard for your money … you should keep it … and with T-Mobile MONEY, you can!”
