Update 6/18/20: $50 bonus has now been removed.
Update 6/3/20: Savings rate decreases from 3% to 2%. Cashback rate has decreased from 3% to 2%.
[Update: added details on the $50 bonus.]
So this is interesting. Green Dot released a product duo which is actually worth a review.
- Green Dot unveiled a new bank account and debit card product called the Unlimited Cash Back Bank Account. This account earns 3% cashback at year’s end on purchases made throughout the year online or in-app. There’s no limit to the amount of cashback you can earn. Store purchases don’t earn any cashback. Gift cards and airline tickets are excluded from earning cashback.
- They are also offering a savings account with a 3% APY interest rate on up to $10,000. The Green Dot Bank High-Yield Savings Account is available only in conjunction with the Unlimited Cash Back Bank Account.
- There’s also a $50 signup bonus for the Unlimited Cash Back Bank Account. The $50 bonus will only be available for use after 12 months. (I saw it before, I think it pops up at the top of the screen, but I can’t see it anymore, maybe it needs a fresh IP address.)
There is a monthly fee of $7.95 which is waived if you spend $1,000 the previous month.
The major catch to the 3% cashback offer is that the cashback is only credited at year’s end. I personally wouldn’t trust GreenDot with deciding whether I deserve my cashback at year’s end, I’d prefer to make do with a different everyday card for 2-2.5%. Also, since the GreenDot product is a debit/banking product, it’s less convenient and a bit less secure.
The catch with doing this for the purpose of the savings account alone is the $7.95 monthly fee. If you’re doing the 3% cashback banking option, and you’ll be spending $1,000 per month anyway, then the 3% savings account is a nice little bonus there. The top competing rate currently on a no-qualifications account is 2.57%.
