HMBradley Introduces Rewards Credit Card for Deposit Account Customers

Home » Money Management » Personal Finance » HMBradley Introduces Rewards Credit Card for Deposit Account Customers

HMBradley Introduces Rewards Credit Card for Deposit Account Customers

At a time when many FinTechs are issuing their own debit cards, it seems that one such platform is trying something a bit different by offering a specialty credit card instead. This week the digital banking platform HMBradley introduced a new rewards credit card for customers.

The card, which is issued in partnership with Hatch Bank, is now being offered to deposit account holders who maintain an average daily balance of at least $250 and receive at least one direct deposit a month into their account. Additionally, users will need to opt into the platform’s One-Click Credit where they will be able to see if they qualify for an HMBradley rewards card based on a soft pull of their credit.

In contrast to many rewards credit cards that have set multipliers for various categories, the HMBradley card will adapt to users’ spending habits. With its “3-2-1 cashback” structure, cardholders will earn 3% back on purchases in their largest spending category, 2% back on purchases in their second-highest spending category, and 1% back on everything else. These categories will also adjust with each statement cycle, giving customers greater flexibility. While it’s not noted in their press release, according to HMBradley’s FAQ, the reward card will carry a $60 annual subscription fee. However, this is waived for the first year.

Another component of the HMBradley credit card is that users who spend at least $100 a month on their card will get a boost in reaching higher Savings Tiers on the HMBradley accounts. At this time, the digital banking platform offers four tiers of interest rates based on customers’ savings rates. Currently those who save between 5% and 9.99% of their direct deposits earn 0.5% APY in the lowest tier while those who manage to save 20% or more can unlock 3% APY. Thus, now those HMBradley cardholders who can save at least 15% of their income and spend upwards of $100 a month on their credit card can bump their 2% APY in Tier 2 up to Tier 1’s 3% APY.

Commenting on what makes the company and its new credit card unique, HMBradley co-founder and CEO Zach Bruhnke said in a statement, “We created HMBradley to provide a better way for people to bank; every aspect was designed with their needs and concerns in mind. The HMBradley Credit Card takes all of the guesswork out of rewards so that consumers can use it however and whenever they want.” Bruhnke added, “Similarly, we made it just as easy to bank via mobile as it is over a laptop or desktop with an experience we feel is superior to other traditional banking options.”

To be fair, although other credit cards do offer rewards based directly on user spending, this is more common among business cards than consumer-minded ones. The concept of a credit card potentially allowing you to earn more interest on your savings is certainly intriguing. For those reasons, the HMBradley rewards credit card could be a good option for current users. However, given the banking requirements and annual fee (starting in the second year), the market for the card will likely be limited for the time being. Nevertheless, those seeking a new online bank account and a simple-to-manage rewards credit card may find a solution in HMBradley.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Gemini Plans Crypto Rewards Credit Card

With Bitcoin and cryptocurrencies once again garnering a ton of public attention, there seems to be a renewed interest in making such assets as accessible as possible. This not only includes the likes of PayPal allowing users to buy Bitcoin and other tokens but also introducing ways for customers to...

Walgreens Planning Co-Branded Credit Card with Synchrony

It seems that Walgreens has a plan to keep customers' wallets healthy. This week, the drug store chain announced that it would be expanding its line-up of financial services, including debuting a co-branded credit card product. The upcoming card will integrate with the recently-launched myWalgreens loyalty program, giving customers the...

Visa and Plaid Call Off Acquisition Plans

One of the biggest FinTech deals of the past year will no longer be going forward. This week, Visa and Plaid announced that they have mutually agreed to terminate their merger plans. Visa originally intended to pay $5.3 billion for Plaid in an acquisition that was first announced almost exactly...