Online bank's new savings account's interest rate 30 times US average

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As the Federal Reserve is poised to cut interest rates this week, branchless bank Green Dot launched a new account for consumers on Tuesday that promises 3 percent annual interest on savings, and 3 percent cash back on all debit card purchases.

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“The Unlimited Cash Back Bank Account by Green Dot Bank pays customers a 3 percent cash back bonus on all online and in-app purchases and comes with a high-yield savings account that pays depositors a 3 percent Annual Percentage Yield on their savings up to $10,000,” the company said in a press release announcing the new account.

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The 3 percent rate on a savings account is the highest for any bank in the country, according to Bankrate. (The average rate is a paltry 0.1 percent.) Green Dot’s offer is also above the current federal funds rate -- the interest rate that banks charge to borrow from each other -- which is likely to drop this week after a widely expected rate cut by the Federal Open Market Committee.

The Visa debit card linked to the account is EMV protected for security and ready to be set up for Apple Pay, Google Pay and Samsung Pay, the Pasadena, California-based bank said in a press release announcing the new account.

"Additionally, the account features a free ATM network, the ability to make free cash deposits at leading national retailers where Green Dot Bank products are featured, no minimum deposit requirements, no overdraft, bounced check or penalty fees of any kind, and a low monthly fee that is easily waived," the company wrote.

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Shares of the online bank took a nearly 30 percent one-day tumble in May after its earnings release as Wall Street was concerned with the company’s aggressive plans to invest in marketing and technology spending. Those efforts showed signs of paying off on Tuesday as the stock got a boost after news of the launch.