As financial companies nudge their customers in small ways to save more, a neobank is making the concept central to its business plan.
HMBradley will offer customers up to 3% in annual percentage yields on a combined checking and savings account provided they save a set portion of their direct deposits every month. The money would be held in federally insured accounts provided by Hatch Bank in San Marcos, Calif.
In the past, community banks, credit unions and challengers have doled out small financial rewards for customers who watch videos, or read material related to good money habits. Larger banks like Bank of America round up debit card purchases and deposit the difference into customers’ savings accounts.
But Zach Bruhnke, co-founder and CEO of HMBradley, says such efforts don’t go far enough to customize what he calls “positive financial behavior” on an individual level.
“We are choosing to treat each customer like an individual, offering competitive rates for all of our customers, and industry-best rates for customers who save the most,” he said.
“We tier this by percentage, not dollar amount, of their income because we believe banking can and should be truly egalitarian,” Bruhnke added.
Customers who save more than 20% of their direct deposits each month are eligible for the highest rate. Users who save between 15% and just below 20% of direct deposits receive a rate of 2.25% APY.
The percentage drops to 1.50% for those customers saving…