Green Dot Bank should be on your radar if you’re looking for an online bank that keeps it simple. With various prepaid cards and cash-back rewards, Green Dot has something for everybody.
What is Green Dot Bank?
Green Dot Bank is the consumer-facing banking wing of the Green Dot Corporation — a financial institution originally founded in Pasadena, CA. Today, its headquarters is in Austin, TX.
Green Dot is the world’s largest prepaid debit card company and operates a widely-used payment processing platform. Its FDIC-insured bank operates under three additional trade names:
- GoBank
- Go2bank
- Bonneville Bank
Green Dot Bank Products
Green Dot, as a whole, has a ton of various financial products and brands. To simplify things, this post focuses specifically on Green Dot Bank branded products.
For information on the company’s other offerings, check out GoBank, Go2bank, or Bonneville Bank, which Green Dot Corporation also owns.
1. Visa Debit Card
The Green Dot Visa card is a standard, no-frills debit card that you can use wherever Visa is accepted.
- No monthly fees*
- Overdraft protection
- Mobile banking
- Add money to the account via transfer, cash, or check deposits
- Savings options by moving money into your “Vault” for free
- Payroll direct deposits are available up to 2 days early
- Government benefit direct deposits are available up to 4 days early
*Must have a $500 qualifying direct deposit each month to avoid the $7.95 monthly fee.
2. Pay As You Go Visa Debit Card
Pay As You Go is an option for those who do not have a qualifying $500 direct deposit each month. The Pay As You Go Visa Debit Card can be used wherever Visa is accepted.
- No monthly fees
- Pay Per Transaction ($1.50/use)
- Overdraft protection
- Mobile banking
- Add money to the account via transfer, cash, or check deposits
- Payroll direct deposits are available up to 2 days early
- Government benefit direct deposits are available up to 4 days early
As you can probably tell, Pay As You Go is only a good option if you use it sparingly.
If you plan to make purchases with it daily, you’ll get buried in unnecessary fees.
3. Cash Back Visa Debit Card
Green Dot’s Cash Back Visa Debit Card is the most intriguing option. The Cash Bank Visa Debit Card can be used wherever Visa is accepted.
- 2% cash back earnings on online and mobile card purchases
- 2% APY on money in savings up to $10,000
- Mobile banking
- Add money to the account via transfer, cash, or check deposits
- Payroll direct deposits are available up to 2 days early
- Government benefit direct deposits are available up to 4 days early
- Overdraft protection up to $200 with eligible direct deposits
Unfortunately, this card charges a monthly fee with no way around it. Compare the annual cost to your potential cash-back earnings to ensure it’s worth it.
The cash-back rewards might be well worth it, but if you’re coming up short or breaking even, you’re burning cash.
4. High-Yield Savings Account
Green Dot’s High-Yield Savings Account is only available to those with a Cash Back Visa Debit Card. The account comes with a 2.00% APY on balances up to $10,000, putting it well above the national average interest rate.
There’s no maintenance fee; you can also easily move money in or out when needed. But there is a catch regarding how Green Dot pays interest.
While most HYSA accounts compound interest daily and credit it monthly, Green Dot pays once a year. This means the total interest you earn is based on your average daily balance for the previous 365 days.
Personally, I would rather earn interest each month as opposed to once annually, but that’s just me.
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5. Green Dot Unlimited Cash-Back Bank Account
If you regularly use a Visa debit card, you can earn cash-back on online and mobile purchases, plus 2% interest on your savings up to $10,000 with the Green Dot Unlimited Cash-Back Bank account.
- 2% cash-back on online and mobile purchases
- 2% APY on savings up to $10,000
- 4-free ATM withdrawals per calendar month (then $3 per withdrawal)
- Mobile banking
- Add money to the account via transfer, cash, or check deposits
- Payroll direct deposits are available up to 2 days early
- Government benefit direct deposits are available up to 4 days early
Green Dot Bank Features
Let’s start with a closer look at Green Dot’s most impressive features.
Online Banking
Green Dot is a fully online bank, so don’t expect in-person service as you would get with a traditional bank. Your entire experience will take place either on the website or mobile app.
Mobile App
Green Dot’s mobile banking app lets you manage your Green Dot cards and accounts on the go. You can remotely deposit paper checks, monitor your balance, and send and receive money from any smartphone.
The app is available on iOS and Android and has relatively positive reviews, with a 3.5-star rating in the App Store and a 4.0-star rating in the Google Play Store.
Free ATM Network
Green Dot customers can get free ATM withdrawals at any MoneyPass network ATM. The bad news is a $3 ATM fee for out-of-network ATMs, plus whatever the machine charges. You’ll also pay a $3 fee per withdrawal after your first four monthly free withdrawals.
ASAP Direct Deposit
Green Dot’s ASAP Direct Deposit gets you early access to your paychecks. It’s easy to enroll, and if you do, Green Dot will send you a notification as soon as it receives funds from your employer. The availability varies by employer and sometimes even pay period.
Cash Deposits
Green Dot has no branches or ATMs, but you can still reload your account with cash deposits at participating retail stores like CVS, Rite Aid, and Walmart. I wouldn’t make this a habit, though, because you’ll pay a deposit fee of up to $4.95 per transaction.
Money Transfers
Green Dot lets you set up one-time or recurring bill payments with your card so long as your account is in good standing. You can also easily send funds to other Green Dot users in the app.
If you prefer paper checks or need them for specific bills, you can order a personalized Green Dot checkbook for a nominal fee.
Fees
Green Dot’s pricing depends on which product you use, but certain charges are common across the board. Here are the most common fees that you need to be on the lookout for with Green Dot Bank:
Monthly Fees
Green Dot charges a monthly fee for most of its products — some of which are avoidable by achieving a certain deposit, spending, or balance amount. You’ll either pay a monthly fee or a per-transaction fee, depending on your chosen card.
Overdraft Fees
Green Dot offers overdraft protection for all of its prepaid debit cards, up to $200, but each person qualifies for a different amount based on income.
If you go over your allotted overdraft amount, you’ll pay a $15 overdraft fee. Additionally, if you don’t correct an overdraft within your allotted amount within 24 hours, you may get hit with another $15 fee.
Cash Deposit Fees
On the one hand, it’s nice that you can make cash deposits. Many online banks simply don’t let you deposit cash. The drawback is that there’s always going to be a deposit fee. Cash deposit fees vary depending on the retailer, but Green Dot requires that the fee not exceed $4.95 per transaction.
ATM Fees
Out-of-network ATM use and ATM withdrawals at in-network ATMs over four monthly withdrawals cost $3 per transaction. This is a Green Dot fee, so you’ll pay both if the ATM charges one.
Getting Started
The first step is to visit GreenDot.com and choose the card or account you want to open.
Alternatively, you can find Green Dot cards at popular retailers like 7-Eleven, Walgreens, and Walmart, then set up your account online.
Primary cardholders must be at least 18 years old. When you set up your account, you’ll be asked to verify your name, address, and date of birth. You’ll also need to enter your Social Security Number.
There’s no credit check required to open a Green Dot account, so your credit score is not affected when you submit this information.
Promotions
There’s no sign-up bonus for any of Green Dot’s cards. This is pretty standard for the world of prepaid cards. That said, Green Dot has been known to offer small bonuses for new products, so I’ll keep you updated if we find something in the future.
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Security
If your Green Dot card is lost or stolen, you can temporarily lock it or report it missing in your account. Green Dot will automatically send you a replacement if your card is gone for good. While you’re waiting for it to arrive, you can still use the app to pick up cash at Walmart locations.
Most importantly, deposits up to $250,000 are FDIC-insured.
Customer Service
For quick help on the most common issues, check out the FAQ section of Green Dot’s website. If you need to talk to a real person, you can live chat with a representative or call the customer service phone number (866) 795-7597. Both chat and phone support are available seven days a week from 5 a.m. to 9 p.m. Pacific Time.
Pros & Cons
Pros:
- Several prepaid card options
- Cash deposit option
- High APY on the savings account
- Easy to sign up and use
Cons:
- Lots of fees
- No physical branches
- No sign-up bonus
- No credit cards
Alternatives to Green Dot Bank
Bluebird by American Express
Bluebird by American Express is a prepaid debit card that offers free cash deposits at Family Dollar retail locations. The card is completely free, and you can use it just like a debit card with a checking account.
Chime
Chime is a leading neobank that specializes in high APYs and low-cost accounts. Like Green Dot, it offers fee-free overdraft protection to hold you over and even gives you the opportunity to build up your credit score.
Chime offers checking and savings options and has a network of more than 60,000 free ATMs.
T-Mobile MONEY
T-Mobile MONEY is an online cash management account for current T-Mobile wireless members. It’s completely fee-free, comes with early direct deposit, and has an eye-popping maximum APY of 4.00% for select customers. MONEY accounts are provided by T-Mobile’s partnership with Customers Bank, an FDIC-insured institution.
Frequently Asked Questions
Is Green Dot a real bank?
Yes, Green Dot is a real bank, not a scam. It’s a leading issuer of prepaid debit cards and has been around since 1999.
Is Green Dot trustworthy?
Yes. Green Dot Bank is protected by FDIC insurance, which protects any deposits into its accounts up to $250,000. It also has good ratings on the iOS and Google Play store from existing users.
What bank is associated with Green Dot?
Green Dot’s parent company is the Green Dot Corporation. Green Dot Bank provides FDIC protection for its various trade names, including GoBank, Go2bank, and Bonneville Bank.
Does Green Dot Bank deposit early?
Yes, Green Dot offers direct deposits up to two days before traditional banks with ASAP Direct Deposit. Like any bank offering this feature, whether or not the money arrives early depends on your employer’s participation.
Who Is Green Dot Bank Best For?
Overall, Green Dot is a safe option for people who don’t want or need a traditional bank account. It also might be a great fit for those who can’t qualify for one.
Green Dot Bank is an under-the-radar player in the digital banking space. But as the world leader in prepaid debit cards, it’s no newcomer to the fintech scene.
A Green Dot account is an easy-to-use, basic online bank. Whether or not it makes sense for your personal finance strategy comes down to which of its features you are most likely to use and if you can avoid paying unnecessary fees.
On that note, the biggest downside of Green Dot is the fees. To put it bluntly, there are many solid and lower-cost account options available.
Now that you know what Green Dot Bank offers, the next step is either signing up or continuing your quest to find the best online bank for you. Remember that any bank you use should be helping you grow your money rather than taking it.
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