A Review of the Unlimited Cash Back Bank Account by Green Dot
The Unlimited Cash Back Bank Account by Green Dot offers a generous 2% cash back on purchases you make online and on your mobile device. You can use the Green Dot Bank High-Yield Savings account to earn 2% APY on savings up to $10K, which is quite high given most savings accounts offer 1% APY. You will have no problem using the card anywhere Visa cards are accepted, which makes it a convenient card option.
Perks of the Unlimited Cash Back Bank Account by Green Dot
If you are looking for a good way to earn cash back on your online or mobile purchases, the Unlimited Cash Back Bank Account by Green Dot is a great option to do so. The unlimited 2% you will earn on those purchases can add up quickly, but there is one quirk in redeeming your cash back earned that you should be aware of.
You will be able to see the cash back you have earned on eligible purchases soon after your purchase clears in your account but you will not be able to redeem it as quickly. Every year on the anniversary of your account, your cash back earned will be automatically deposited into your account. In order to receive your cash back, your account has to be open and in good standing with the bank.
Along with your deposit account, you will have access to a high yield savings account in the Green Dot Bank mobile app. This account earns an APY of 2% (subject to change) on savings up to 10K, which is quite high compared to other savings accounts. Many savings accounts also require you to have a minimum balance, but this one does not. There are no associated fees with the savings account which means you will get the full 2% APY at essentially no cost for the account. Green Dot Bank reserves the right to change the APY on the savings account at their discretion, so you will want to keep an eye on it to see if it has changed.
In order to put funds in the high yield savings account, you will need to transfer them from the deposit account associated with your card. Make sure your card has funds loaded to it then, through the app, you can transfer funds over to the savings account. The same applies if you would like to access the funds in your savings account. You will need to log in to the app and transfer funds to your deposit account, then the funds will be available for use with your card. When you transfer funds from your savings to your deposit account you will need to be aware that if your deposit account has a negative balance, part or all of your transfer will go to cover your negative balance first, depending on the amount of your transfer.
Much like the unlimited 2% cash back, the 2% you earn on your savings is deposited to your savings account on or about the time of your account anniversary. Your primary account must be in good standing with the bank in order to receive your 2% APY on your savings account.
Potential Fees and Drawbacks With the Account
Like many prepaid cards and bank accounts, there are a number of fees that you need to be aware of when applying for the Unlimited Cash Back Bank Account by Green Dot. There is a monthly fee associated with the card. The monthly fee is avoidable though, depending on your spending. If you spend $1,000 or more using your card in the previous month, your monthly fee will be waived. Keep in mind those purchases must be online or on a mobile device. Be sure to check out the terms and conditions because there are some limitations on what can be considered a purchase.
You will also need to be aware of potential ATM fees if you decide to withdraw or check your balance. ATM fees are typical for a lot of cards, so this comes at no surprise, but you should still be aware of the fees when you apply. If you simply need to check your account balance, use the app so that you can avoid any unnecessary fees.
You will also incur a fee if you need to replace a card if it is lost, stolen or damaged. You will want to take care of your card to make sure you are not charged this fee. Review the cardholder agreement to educate yourself on the fees associated with the card to make sure you are ok with them.
As with any card or account with Green Dot Bank you will not be able to drive to a physical location to conduct your banking needs. Green Dot Bank uses a network of participating retailers in order to facilitate banking needs that you can not complete within their app. There are a few ways that you can add funds to your account and one of them is at the register at their participating retailers. This can be a hassle if you need to add funds to your account quickly as you will need to visit a retailer to get funds added. One other way is through direct deposit. Having your paycheck directly deposited to your card is probably the best way to add funds to your account. You may also be able to have access to your funds earlier than normal if you use your card for direct deposits. Many times your paycheck will be sent to the bank a couple of days before the money hits your account but the bank holds on to it until the official payment date. If you use your card for direct deposit, you may get your funds as soon as they are sent to the bank.
Since this is not a credit card it will not help you build credit. If you are looking to build or establish your credit score you may want to take a look at getting a secured credit card. Secured credit cards are a great way for people to build or establish their credit with responsible card use. You can view a list of secured cards if you are looking for an opportunity to build or establish your credit.
Who is the Card For?
This card is a good option for those who make online or mobile purchases, especially if you make a lot of them. The 2% cash back is a fairly generous cash back percentage, especially when you can couple it with the 2% APY on the associated savings account. With the 2% cash back being unlimited you do not have to keep track of your spending to know when you maxed out your reward earning potential.
You will have to be patient and someone who is not looking to get instant rewards for your purchases as you will only be credited once a year on the anniversary of your account if your account is in good standing. This can be a tough pill to swallow in the world of instant gratification, but you can look at it as a once a year boost to your account balance. Even though you may not be able to redeem the cash back instantly you will still be able to see it grow in your account throughout the year as you make purchases.
If you do not currently have a way to receive your paycheck via direct deposit the Unlimited Cash Back Bank Account by Green Dot can be a great option for you. You can have your paycheck deposited straight to your card without having to take a paper check to the bank to have it cashed. Having a card to make online purchases can also be a great tool as more and more things are available online for purchase.
How Do I Open An Account?
You will need to apply for a card in order to open an account. In the registration process, you will be asked for a few things in order for the bank to identify you. Things like your name, address, date of birth, SSN, and phone number are all needed so the bank can make sure that you are who you say you are. When you sign up online your card will be mailed to you upon approval of your account. You will need to call the bank to activate your account and add funds via their retailer network, direct deposit or their Bank Transfer Service.
Once you have called to active your card and added funds to it, you are good to begin using your card.
If you make a large number of purchases online or on a mobile device the unlimited 2% cash back could benefit you. The 2% APY on the high yield savings account is also hard to come by for most savings accounts. If you are willing and able to wait to receive your cash back once a year then the Unlimited Cash Back Bank Account by Green Dot can be a great option for you. It can also be a way for you to receive your paycheck via direct deposit as opposed to a paper check. The one thing that we would recommend if you are considering the Unlimited Cash Back Bank Account by Green Dot is to check the fees associated with the account and make sure they align with what you are looking for.