Pros Explained
- Competitive APY on high-yield savings account: Green Dot's high-yield savings feature linked to the Cash Back Visa Debit Card earns a 2% annual percentage yield (APY) on balances of up to $10,000. The Go2bank Visa Debit Card earns a quarterly 4.5% APY on balances up to $5,000.
- Online and mobile purchases earn 2% cash back: The Cash Back Visa Debit Card earns unlimited 2% cash back on online purchases, including in-app purchases and other mobile purchases. There is no cap on cash-back earnings.
- Early access to direct deposited paychecks: You can get your paycheck up to two days early with Green Dot's ASAP Direct Deposit. Eligibility for early access depends on your employer's payment processing.
- No overdraft fees: You are protected from fees on overdrafts of up to $200, with eligible direct deposits. If you don't have funds to cover a purchase, the transaction may be declined.
Cons Explained
- Monthly fees: Green Dot charges a $7.95 monthly fee for its Visa Debit Card account unless you direct deposit $500 or more in the previous month. Go2bank Visa Debit Card's monthly fee can also be waived with an eligible direct deposit. The $9.95 monthly fee for the Cash Back Visa Debit Card cannot be waived. The Pay As You Go Visa Debit Card has no monthly fee.
- Out-of-network ATM fee: Green Dot's ATM network is free for the Cash Back Visa Debit Card and the Go2bank Visa Debit Card. However, if you have to use one that's out of network, the bank charges a $3 fee on top of any charges from the ATM operator.
- Limited cash-back access: Restricted to a deposit of earnings once a year, on the account's anniversary.
- No joint accounts: There are no joint or custodial account options.
Who Is Green Dot Bank Best For?
Green Dot is best for people who do most of their banking online or through mobile access. It may be a good fit for those who want:
- A competitive interest rate on savings
- Unlimited 2% cash-back rewards on most spending
- No minimum balance requirements
- Monthly fees that can be waived with direct deposits
- Cash deposits at retail stores
What Does Green Dot Bank Offer?
Green Dot is not a full-service online bank, but it offers debit cards that feature online banking services and attractive returns on savings. Here are the Cash Back Visa Debit Card and the high-yield savings account, as examples.
Cash Back Visa Debit Card
The Cash Back Account is a spending account that earns rewards for card purchases. It's not technically a checking account but acts similar to one.
The main draw is the unlimited 2% cash back that's earned on select online purchases. Not all spending earns cash back, such as airline tickets, gift cards, and bill payments.
Besides a complimentary debit card, customers also get access to services including:
- Free cash deposits at select retail locations
- No overdraft fees with eligible direct deposit
- Mobile banking
A major drawback of the unlimited Cash Back Visa Debit Card Account is the $9.95 monthly fee.
To access your cash-back rewards balance, you need to keep your account open at least 12 months and it needs to be in good standing at the time. Accrued rewards are deposited only once a year on the account anniversary.
High-Yield Savings Account
When you open a Cash Back Visa Debit Card or the Go2bank Visa Debit Card, you also get access to a high-yield savings account. The first has no monthly fee and currently earns 2% APY on all balances of $10,000 or less, which is more than the current national average. The Go2bank Visa Debit Card earns 4.5% APY on balances up to $5,000 and pays quarterly.
However, interest is calculated differently than it is at most banks and is only applied to your account once at the end of a 12-month period. Take the Cash Back Visa Debit Card. Interest is calculated by taking the average daily balance of your savings account for each day over a 12-month period, starting when you opened the account, and multiplying that by 2%.
Like all banks covered by the Federal Deposit Insurance Corporation (FDIC), money held in Green Dot accounts is FDIC-insured up to $250,000 per depositor. Keep in mind the $250,000 is for all accounts, including any you may have with Green Dot Corporation's other banking subsidiaries.
Green Dot Bank Customer Service
For help, customers can call 866-795-7597. For disputes on unauthorized charges on accounts, you need to submit a dispute form.
Green Dot has no physical bank branches, but customers can access their accounts 24/7 online or through its mobile app, which is available for iOS (3.6 stars) or Android (4.1 stars).
How To Bank With Green Dot
To open an account with Green Dot, go to its website or download the app and fill out the account application. You also have the option to open an account in-store at participating retailers, which include Walmart, 7-Eleven, and Rite Aid, among others.
Similar to other banks, you'll need to provide personal information to open an account. This includes your mailing address, phone number, Social Security number, and date of birth.
Final Verdict
If you're in search of an online bank that pays competitive interest rates and cash-back earnings, Green Dot might be a good fit. Keep in mind that your Cash Back Visa Debit Card interest/rewards are only accessible once every 12 months. Moreover, if you plan to keep more than $10,000 in savings, other online banks may pay greater interest in the long run. With a $9.95 monthly fee for the Cash Back card, consider opening a Green Dot account only if you think your earnings will outweigh the total for monthly fees. Be sure to check for updates to the APY, fees, and other account details before opening an account.
Frequently Asked Questions
Is Green Dot Bank Owned by Walmart?
No, Green Dot Bank is owned by Green Dot Corporation, not Walmart. However, Walmart owns shares in Green Dot and is a retail distributor of some of its products, including the Go2bank Visa Debit Card. Green Dot and Walmart also partnered to launch the Walmart MoneyCard.
What Are Green Dot's ATM Limits and Fees?
With the Green Dot Cash Back Visa Debit Card, you can make 4 withdrawals per month at in-network ATMs for free. Beyond that, you'll be charged $3.00 per withdrawal (plus potential charges by the ATM owner).
Does Green Dot Have a Physical Bank Location?
Green Dot has no brick-and-mortar branches. Its service is focused on online and mobile accounts and the use of ATMs for withdrawals.
What Is Green Dot Corporation?
It's a fintech and bank holding company that creates financial tools for individual customers and corporate partners such as Apple, Amazon, CVS Pharmacy, and Walmart. It functions on cloud-based technology and has 67 million accounts. Green Dot Bank is a subsidiary.
Methodology
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of banks. We collected over 20 data points across more than 80 banks including products available, interest rates, fees, and accessibility to ensure that our content helps users make the right decision for their savings and banking needs.
