Lori Rothman from FOX Business recently interviewed our CEO, Gabe Krajicek, about Kasasa, and how it's a rewarding, free alternative to megabanks. She asked how Kasasa accounts work, who is eligible, and how much account holders have been rewarded to date. Watch the three-minute interview below. (If you can’t access video right now, the full transcript is pasted underneath the video player.)
Questions about Kasasa? Ask us in the comments!
Full Video Transcript
LORI ROTHMAN: All right with interest rates hovering near zero and stocks climbing toward all time highs, leaving your cash in the bank may seem like a bad idea but there may be an alternative a checking account that pays up to 4% interest.
Joining me now is the man in charge of this, Gabe Krajicek, CEO of Kasasa. Welcome, sounds to good to be true. Tell me about this checking account.
GABE KRAJICEK: Well it's a fantastic account. It is not too good to be true and Kasasa was birthed out of a lot of research that we did that showed that all things being equal consumers would rather bank at a community financial institution a community bank or credit union. But they don't really know that there are great accounts out there at those institutions so we created the Kasasa brand and the Kasasa accounts to let consumers know if you see Kasasa that means that you're gonna get great rewards like great high rate interest accounts and great personal service.
LORI: Just to be clear, Kasasa services megabanks or retail banks? So if I'm just an average Joe going into my corner branch I can ask for Kasasa, I hear they offer a 3-4% checking account. Can I apply for this? Is that is how it works, is it as simple as this?
GABE: Not exactly. We do not service the megabanks. In fact Kasasa was designed to give an alternative to the megabanks for consumers to know they can get great service, great rewards at a community institution. So if a consumer wants these accounts they can go to Kasasa dot com, K-A-S-A-S-A dot com, put in their zip code and find an account near them.
LORI: Okay let's go over the conditions. You have to get an e-statement. You have to log on to online banking. So basically do all of your banking, all of your checkbook balancing, online. And you have to use your debit card ten times. What timeframe for that latter condition? One month?
GABE: Well the first thing I'd say is you don't have to do that stuff. If you don't do those things the account is still free there's no minimum balance, there's no penalty if you don't do those things. But if you do those things--we call them the qualification criteria--and you do them over the course of a month, then you get free ATMs nationwide and you get a great interest rate.
LORI: Okay. Is there a cap on the amount of money that can earn the maximum interest rates and how is that determined?
GABE: Typically there is a cap on how much earns the high rate of interest in each bank or credit union sets that cap by their own discretion.
LORI: We're looking at a graphic here showing a range of five to fifty thousand dollars. That's quite wide. What questions should I be asking to find out what I would be eligible for?
GABE: Well everybody's eligible for the account if they go to Kasasa.com they can just find what account has the right cap for them. Most consumers--about 75%--have balances less than 5000 dollars. So having a cap, you know, that 50000 dollars throws a huge net and allows average everyday consumers to get the same kind of interest rates that heretofore were only available to America's wealthiest consumers.
LORI: How much interest have you guys that paid out so far with this program?
GABE: In the last four years we've paid out 67 million dollars, which I'm pretty proud of. On free account with no minimum balance that's pretty awesome.
LORI: Gabe Krajicek of Kasasa. Three to four percent checking accounts these days check it out. Thank you sir.
GABE: Thank you