Green Dot just announced that it was launching the Unlimited Cash Back Bank Account:
With what is believed to be the richest cash back Visa debit card in America, an integrated high-yield savings account and a tech-forward, branchless approach to banking, the Unlimited Cash Back Bank Account by Green Dot Bank is intended to be the best value bank account in America for all consumers who appreciate convenience, extraordinary value and great mobile technology.
Green Dot, known as the preeminent provider of prepaid debit cards, has evolved over the last several years to become a full-fledged bank. Not only does Green Dot offers prepaid products, it offers traditional FDIC insured financial institution products and services to the masses, including loans, checking, and savings accounts.
The Unlimited Cash Back Bank Account by Green Dot Bank pays customers a 3% cash back bonus on all online and in-app purchases and comes with a high-yield savings account that pays depositors a 3% Annual Percentage Yield on their savings up to $10,000. All deposits are insured by the FDIC. Additionally, the account features a free ATM network, the ability to make free cash deposits at leading national retailers where Green Dot Bank products are featured, no minimum deposit requirements, no overdraft, bounced check or penalty fees of any kind, and a low monthly fee that is easily waived.
The high yield savings is particularly attractive in our current low rate environment and will attract deposits. However, in order to get the savings, you must first get the checking account and be sure that you are able to spend $1,000 or more each month in purchases/spend (there are some exclusions) to avoid the $7.95 monthly fee.
All dollars added to the savings must first be deposited into the checking account and then transferred to the savings and vice versa when dollars are withdrawn from the savings. Also, should all of the funds in the saving account be withdrawn prior to the anniversary date (a calendar year from open date), all interest will be forfeited. Interest is figured daily but compounded annually.
In addition to offering industry-leading value, Green Dot, renowned as an innovative financial technology leader, has designed the Unlimited mobile app and the linked Visa debit card to easily integrate into the lives of tech savvy customers. The app offers many popular features and services that make the account easy to use, including mobile check deposit, an easy way to transfer money from other bank accounts, the ability to send money to friends and family with P2P, the ability to pay anyone with free electronic bill pay, and a fun and intuitive design that allows customers to easily track their spending, track their savings, and track the amount earned in cash back bonus money with every online or in-app purchase they make. The Visa debit card that is linked to the account is EMV protected for security and ready to be set up for Apple Pay, Google Pay, and Samsung Pay.
Americans are in a savings crisis. According to the Federal Reserve Board’s latest Report on the Economic Well-Being of U.S. Households, 4 in 10 Americans said they do not have adequate savings to cover an unexpected expense of just $400. In addition, recent research by Deloitte found that the total net worth of millennials under the age of 35 is down 34 percent since 1996 to less than $8,000. Green Dot’s Unlimited Cash Back Bank Account can be part of a solution to this savings crisis because it pays a 3% cash back bonus on online and in-app purchases and lets that cash build up day by day, purchase by purchase for the customer to redeem each year on their account anniversary. The 3% cash back bonus payments are unlimited, so, it’s like a forced savings account that uses the bank’s money to build up a potentially sizable balance as the customer uses their Visa debit card for their everyday online and in-app purchases.
America is definitely in a saving crisis and accounts like the high yield savings account along with a method to earn a cash back bonus on online purchase spend is definitely a step in the right direction to build savings. Especially as the bonus cash isn’t awarded monthly but annually, allowing time for the dollars to accumulate for larger purchases.
Focused on Value; Not on Fees
Unlike most traditional bank accounts, the Unlimited Cash Back Bank Account has no overdraft fees and no bounced check fees, no minimum balance requirements and no monthly fee when the customer spends $1,000 or more using the Unlimited Visa Debit Card. The account also includes access to a nationwide network of FREE ATMs and the ability to make FREE cash deposits at participating national retailers.
“The rewards associated with the Unlimited Cash Back Bank Account rival those of the best credit cards, but this Visa card is a debit card; not a credit card. As such, Green Dot doesn’t require a certain minimum credit score to open the account. Plus, consumers can benefit from the account’s rich cash back offer without needing to incur the risk of getting into credit card debt, which is a common concern associated with using credit cards,” said Streit.
The Unlimited Cash Back Bank Account’s Unique Features and Benefits
- Unlimited 3% Cash Back Bonus: Every time you make an online or in-app purchase with your Unlimited Visa debit card, Green Dot Bank will add 3% of the purchase amount into the customer’s cash back bonus balance.
- Integrated High Yield Savings Account with 3% Annual Interest: The Green Dot Bank High Yield Savings Account is an FDIC insured savings account that pays a 3% annual interest rate (3% annual percentage yield) on deposits up to $10,000.
- ASAP Direct Deposit: No need to wait for payday. Green Dot customers receive their pay up to 2 days before payday and government benefits up to 4 days before benefits day with Green Dot’s ASAP Direct Deposit.
- Free ATM Network: Customers can use thousands of free conveniently located ATMs nationwide.
- No Overdraft or Penalty Fees: Green Dot has no overdraft fees, no bounced check fees and no minimum balance requirement.
- Deposit Cash for Free: Make free cash deposits at participating national retailers that feature Green Dot Bank products.
- Free Online Bill Pay: Set up one-time or recurring bill payments with Green Dot. You won’t have to make any extra stops, write checks, or pay for stamps just to pay your bills.
Consumers can learn more about the Unlimited Cash Back Bank Account and open their account at Greendot.com. Or, consumers can go to any one of 100,000 major national retailers that feature Green Dot Bank products and pick up an account starter kit with a starter debit card inside. The account can then be registered online at Greendot.com.
As stated, this is an account worth opening that can pay great dividends, not only in true interest, but with all of the other features and benefits provided. Just be sure to read the terms and conditions so that you consciously manage your money for the most positive outcome.
Overview by Sue Brown, Director, Prepaid Advisory Service at Mercator Advisory Group