Experian launches savings account. Is it worth it?

Experian, the consumer credit reporting agency, has introduced a savings account for its members that earns 2% to 4% annual percentage yield (APY). The account, called the Smart Money Digital Savings Account, has a tiered-rate structure that’s based on customers’ Experian membership level.

The savings account doesn’t have a set minimum deposit amount — nor does it charge a monthly fee — although you may be paying monthly for the Experian membership, depending on the plan you select.

Your Experian membership level will determine how much interest your account earns. 

If you change your Experian membership level, your APY will be impacted. 

It’s important to note that Experian is not a bank. Its banking services are provided by Community Federal Savings Bank (CFSB), which is insured by the Federal Deposit Insurance Corp. (FDIC). As such, money in the account is protected up to $250,000 per depositor, per ownership category through what’s called pass-through FDIC insurance.

Experian memberships that qualify for the savings account

Memberships that enable you to open the savings account include Experian CreditWorks, Experian IdentityWorks, Experian Premium or Experian CreditCheck membership, per the account’s terms and conditions.

All levels of membership — including a free option — receive Experian credit monitoring and alerts, as well as a FICO score tracker.

Add to your savings with Experian’s connected checking account

Savings account holders who also have Experian’s Smart Money Digital Checking account can elect to have eligible debit card purchases rounded up to the nearest dollar and transferred to the savings account. This feature is only available to those with paid Experian memberships, though.

How does Experian’s savings rate compare?

The highest rate you can get with Experian is on par with what you can earn with one of the best high-yield savings accounts from a bank or credit union. And many of these accounts charge no monthly fees, too.

But when looking for a savings account that’s right for you, you should consider more than the APY and fees (though those things are important). Look into the access to your funds — how you can deposit and withdraw money — and the customer service hours and types to make sure you’re choosing an option that works for your life. For example, Experian’s deposit methods are limited to transferring from another bank account or setting up a direct deposit, which wouldn’t be ideal if you’re a person who likes to deposit cash straight into your savings.

Bottom line

Experian launched a savings account for its members that offers a top-notch APY, but the higher rates are only for paid members. You may be able to find a savings account with a similar rate without having to become an Experian member.