T-Mobile has launched a new mobile-only current account for its US customers.

The no-fee account offers a four per cent annual percentage yield on balances up to $3,000 and one per cent on every dollar over that amount, when at least $200 is deposited each month.

Pitching itself against traditional bank overdraft and account fees, the telecoms giant is also offering overdraft protection when customers sign up for T-Mobile MONEY, giving up to 30 days and $50 of leeway to get back into the black.

“Traditional banks aren’t mobile-first, and they’re definitely not customer-first,” commented John Legere, chief executive of T-Mobile. “As more and more people use their smartphones to manage money, we saw an opportunity to address another customer pain point.”

Via the app customers can make mobile cheque deposits, set up direct deposits, pay bills, send cheques, pay with a mobile wallet such as Apple Pay, Google Pay and Samsung Pay, transfer money, and make payments person to person. The app uses biometric security with fingerprint and Face ID login, account alerts and debit card disabling.

T-Mobile MONEY comes with a Mastercard debit card that can be uses at more than 55,000 Allpoint ATMs worldwide, with the app helping to locate the ATM nearest the user.

The new account was created in partnership with BankMobile, a division of Customers Bank, and has been available in a limited pilot since November 2018.

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