If you’re like most Americans, you have a traditional banking account that yields little to no interest. But what if you could have an account that lets you invest your money conservatively with the opportunity to earn higher returns while also allowing you to spend it at any time?
This revolutionary cash management account is available now to current and retired NEA members and their spouses/partners through the NEA Smart Money Account. We’re thrilled to partner with Investor Cash Management (ICM) in conjunction with Visa to create this new cash management account that gives NEA members exclusive access to a low-risk and potentially higher-return alternative to traditional checking and savings accounts.
Keep reading to find out more about how the NEA Smart Money Account works and how this innovative cash management solution can help make your money work harder.
What is the NEA Smart Money Account?
The NEA Smart Money Account is an integrated banking, investment and payments account that gives you more control over managing your money. You’ll have immediate access to both your Federally Insured Account (an account insured by the Federal Deposit Insurance Corporation (FDIC)) and investment accounts to create a unique form of cash management that empowers you to earn far greater returns on your money than the average bank account provides.
How is this different from a regular checking or savings account?
The traditional bank model, with no- or low-interest checking and savings accounts, invests your money and keeps the investment returns. With the NEA Smart Money Account, you invest your money, and you pocket the returns you earn on that investment. Your money generates wealth, and we think you should get to keep it!
In addition, the availability of multiple accounts in the NEA Smart Money Account provides you with flexibility to move your money around in a Federally Insured Account and investment accounts.
How can the NEA Smart Money Account pay more than a traditional banking account?
The traditional bank model is weighted in favor of the bank. They pay you little to no interest on your money, and then turn around and lend that money to others at a higher interest rate. That means the bank actually makes a profit off your money.
By contrast, the NEA Smart Money Account lets you place your money in a Federally Insured Account and investment products, and you keep the profits your funds earn.
Can I use my account to shop in stores and online?
Yes. Your NEA Smart Money Account works in the same way as a traditional banking account. You’ll receive an NEA Smart Money Card, a physical debit card you can use like you would any other debit card – at stores, online and at ATMs.
You can make transactions with your NEA Smart Money Card at ATMs, online bill pay, peer-to-peer transfers and ACH payments. In all cases, you have immediate access to your funds.
How would I manage the money in my account?
You’ll have access to your account both on the website and the NEA Smart Money App, where you can easily manage your accounts, transfer funds, change investments and more. You can fund your account through direct deposit, bank transfer or wire transfer.
Do I have to meet any requirements to be eligible for an account?
Every NEA member is qualified, with no approval necessary.
In addition, there are no credit checks, no monthly fees, no spending limits, and no over-limit charges.
We want to help all NEA members have access to a banking solution that can help your money earn returns at a substantially higher rate than it would in a traditional bank account.
How would I transfer funds from my current bank account to the NEA Smart Money Account?
First, visit the NEA Smart Money Account page to get access to this special NEA member benefit. You’ll be directed to open an account on the NEA Smart Money site, or you can enroll by downloading the app. You can fund your NEA Smart Money Account by linking and transferring funds from your existing bank account or by setting up direct deposit.
You should receive your new NEA Smart Money Card in the mail in about a week. Once you activate your card, you can start using it for investing, making purchases, getting cash or paying bills.
Are my funds federally insured?
The NEA Smart Money Account provides immediate access to both your Federally Insured Account and investment accounts for routine debit card spending. Your funds within the Federally Insured Account are insured by the Federal Deposit Insurance Corporation (FDIC). The Federally Insured Account pays a higher rate than the average checking or savings account.
Funds swept into your investment accounts are not federally insured. Investing in securities is not required to have an account. You can choose whether or not you want to put any of your money in these investment vehicles.
Can I lose money in invested funds?
Yes. The funds in the investment account are linked to specific securities, such as ultrashort and short duration bond funds (e.g., mutual funds and/or ETFs (Exchange Traded Funds, which are collections of securities)). All securities have a risk of loss. However, funds held in your Federally Insured Account are guaranteed against loss.
Open your account today
Now that you’ve learned about this new cash management solution, we hope you’re as excited as we are about how it can help NEA members harness their financial potential. To find out more, or to open your new account, check out the NEA Smart Money Account page.