Credit Karma Review June 2024: Savings APY exceeding 5% and free checking

The Oakland, California-based online company has a partnership with MVB Bank allowing it to offer one checking account and one savings account, which has an annual percentage yield (APY) of 5.10%. Both accounts are free and have no maintenance fees.

When you open an account through Credit Karma online, the funds are held at MVB Bank and its banking network that the Federal Deposit Insurance Corp. (FDIC) insures. Because of this broader network, deposits are covered up to $5 million per account. 

All rates and fees are current as of June 27, 2024, and are subject to change. 

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Credit Karma

Checking accounts:	Free to open; no minimum balance required
Savings accounts:	Earn a 5.10%APY

Credit Karma rates and products 

Credit Karma only offers one savings and one checking account: the Credit Karma Money Save and the Credit Karma Money Spend, respectively.   

The accounts are free to open, with no minimum balance requirement or maintenance fees. To open a banking account, you must first open a general account with Credit Karma. 

Checking account  

Credit Karma Money Spend is a free checking account offered by Credit Karma through its banking partner. There is no minimum balance requirement or monthly maintenance fee.  

However, account holders get far more checking account perks by setting up at least $750 in recurring monthly direct deposits. These perks include faster transfer times, mobile check deposits, $20 in overdraft coverage, and you can get paid up to two days early on direct deposits. You can also link Credit Karma’s Credit Builder feature to the checking account once direct deposits are set up to help build your credit score.  

The company does not charge ATM fees through its more than 55,000 ATM network, but there is a charge for going outside that network.

Savings account  

The Credit Karma Money Save account is the only savings account offered through the company. It’s a high-yield savings account that is free to open, with no maintenance fees or balance requirements. However, there must be at least a penny in the account to earn the 5.10% APY, which is among the best high-yield savings accounts in the market.  

The account is eligible for FDIC insurance for amounts up to $5 million.  

Credit Karma savings rates compared to current top rates* 

While Credit Karma is a great option, some institutions offer higher interest rates. Compare the rates above to this list of competitors: 

Other services Credit Karma offers  

Credit Karma does not offer any other banking products, but it does provide a wide span of other financial services, including:  

• Credit score services: Credit Karma offers several ways to track and improve credit scores, such as linking its Credit Builder service to a checking account to help raise a score.   
• Credit card finder: Credit Karma offers a list of different types of credit card offerings in the marketplace and calculators to help compare costs.  
• Loans finder: Credit Karma has extensive lists of loan products offered nationwide, including personal loans, mortgages, and car loans.  
• Tax services: Credit Karma offers tax services through its sister company, TurboTax. Both companies are owned by the global financial tech firm, Intuit Inc. 

Online banking 

Credit Karma is only online, which means savings and checking accounts must be opened through its website or mobile app. There are many other online-only banks and credit unions, so it’s good to first compare rates and account features. 

The Credit Karma platform and customer support  

Credit Karma has an easy-to-use website and mobile app. It also offers a live chatbot and extensive digital “help center” where visitors can find answers to most questions.  

However, getting a human point of contact is difficult unless you already have a member account. For example, when an online visitor clicks on the “contact us” button, it asks for a log-in or to “continue as a guest,” which then sends the visitor back to the frequently asked questions (FAQs) page. If the correct answer is not auto-generated, the visitor must fill out a lengthy intake form to contact the company.  

Is Credit Karma secure?

Credit Karma offers ID theft and credit monitoring services, as well as fraud alert notifications. However, scammers might use the Credit Karma name in a phishing email, such as in an attempt to access personal information, because the company is so widely known for handling consumers’ credit profiles. Be careful when responding to such emails, and separately contact the company or check your account first.  

In 2023, Credit Karma reached a $3 million settlement with the Federal Trade Commission (FTC) on allegations that it claimed some consumers were “preapproved” for credit offers when they were not by the creditor, causing some of their credit scores to drop after applying for the credit.

Credit Karma user reviews 

Credit Karma has poor reviews online, typically one or two stars out of five. Complaints range from problems accessing an account to not giving an accurate credit score or causing a score to drop more than expected.

Compare Credit Karma alternatives

Credit Karma	SoFi	Zynlo Bank
Top savings APY	Top savings APY	Top savings APY
5.10%	4.60%	5.00%
Top checking APY	Top checking APY	Top checking APY
0.00%	0.00%	0.00%
Top CD APY	Top CD APY	Top CD APY
N/A	N/A	N/A
Learn more	Learn more	Learn more
View offer  at Fiona	View offer  at SoFi	View offer  at Fiona

Is Credit Karma right for you? 

Credit Karma is not a bank, so it won’t provide all the banking services one might need, such as loans or retirement products. However, it offers a free high-interest savings account and a checking account with the option to get paid early if you set up direct deposits. So, it’s a good option for anyone looking for a bonus bank account to earn some interest or direct deposit incentives. 

Frequently asked questions