HMBradley recently changed the requirements for earning 3% APY on their platform. Beginning February 1, 2022, although HMBradley remains an exclusive high-yield savings account that offers 3% APY, HMBradley added an additional requirement to getting that 3% APY.
For users that met all of three existing steps earned 3% APY, as I’ve outlined in my previous article: (1) Connect your direct deposit to HMBradley; (2) save at least 5% of your direct deposit each quarter (save 20% to earn 3% APY); and (3) earn your savings tier (up to 3% APY) for the next three months. Now, those three steps will only earn you up to 1% APY.
Now, without signing up for their credit card, the savings tiers only go up to 1% APY. If you sign up for the HMBradley credit card, the tiers top out at the previously high 3% APY; however, the lower tiers now offer lower APYs than before. Unless you get the credit card, you are better off using an HYSA like Yotta (at least for the first $10k), because you should earn over 1% APY, on average, without the strings attached.
The HMBradley 3-2-1 Cashback Credit Card
The HMBradley credit card offers you cashback that automatically adjust based on your spending. The category you spend the most in earns 3% cashback without limits. The category you spend the second most in earns 2% cashback without limits. Finally, all other spending earns 1% cashback.
The main perks of this card are: unlimited cashback, instant auto-pay from your HMBradley account, 24/7 customer support, no foreign transaction fees, fixed APRs, and the annual fee waived for the first year ($60/year after the first year). Further, when you pair the credit card with the high-yield checking account, you also get savings tier protection where your spending counts towards your saving percentage. The only disadvantage of this card is the $60/year annual fee, however.
The credit card itself isn’t bad, especially if you spend a lot on one category like fuel or utilities where the 3% back would help. Further, if you save over $3,000 or more in the high-yield checking account, you get a guaranteed 3% APY and would come out ahead (even after the $60/year fee) of the non-cardholder account — not counting any cash back on the credit card. (1% APY with a balance of $3,000 is $30 and 3% APY with a balance of $3,000 is $90. $90 minus the $60 annual fee is $30. Therefore, $3,000 at the top tier is the breakeven point between having the card or not.)
In conclusion, if you have at least $3,000 saved and are able to qualify for the credit card, HMBradley is still a 3% APY checking account that would be worth it. Otherwise, you may want to consider alternatives like Yotta.