Green Dot Bank Review 2023

Posted on December 14, 2021 in Banking

To help you determine if Green Dot Bank is right for you, we’ve put together this comprehensive Green Dot review guide that covers everything the company has to offer, from its cashback account to its platinum visa credit card.

Green Dot Bank is a financial institution that offers various services, including credit cards, unlimited cash bank accounts, and high-yield savings accounts.

The Bank is a subsidiary of the Green Dot Corporation, based in Pasadena, California. This financial technology firm has been offering a line of prepaid debit cards to consumers from 1999 when it was formed.

Since 2010, Green Dot has helped millions of people manage their money as a publicly listed company.  If you are a frequent online purchaser, using Green Dot cash back and cash deposits at retail establishments might help you save money.

What Accounts Does Green Dot Bank Offer?

A review of Green Dot Bank shows that the company offers a variety of basic banking accounts, as well as products and services that include high-yield savings account, Platinum Visa account, and cash account.

Cash Back Account

Green Dot Bank is one of the best online banks for people who prefer online shopping or card purchases. The bank account offers you 2% cashback on specific online purchases.

It also waives their monthly fee ($7.95) if you spend $1,000 in one month, provided your account is in good standing and the balance is positive. However, cashback benefits do not apply to airline tickets, gift cards, or bill payments.

IMPORTANT: You must also keep your account active for at least a year and in good standing to access your cashback rewards balance. A year’s worth of earned incentives can be redeemed once after the calendar year.

One restriction of this account is that you won’t get anything if you don’t waive the cost or earn more points than $7.95. You’ll also get a Visa debit card with a Green Dot unlimited cashback account.

Top features

  • There will be no overdraft fees.
  • Customers may earn limitless 2% cashback on select online purchases, provided with a positive balance and a strong credit rating.
  • It comes with a Visa Debit card
  • Absence of a minimum monetary investment
  • Your first month is free if you use your card for $1,000 or more in the preceding month.
  • There are no fines for going above your credit limit.
  • Your employer’s direct deposit will arrive two days ahead of schedule on average.

High-Yield Savings Account

When you open a spending account, there is an even higher-yield savings option. This unique feature of the Bank allows customers to earn up to 2% APY on all balances of $10K or less – much higher than average!

However, interest rate calculations are different in one crucial way: they’re calculated differently. Rather than daily or weekly averages as most banks do today, they are only applied to their account after 12 months.

With this approach, you can see exactly how much interest you’re generating in your savings. In addition, this savings account is Federal Deposit Insurance Corporation (FDIC) guaranteed to $250,000, and there are no monthly fees to worry about.

Top features

  • With a $10,000 balance, you can get a 2% annual percentage yield (APY).
  • There isn’t a cap on the highest possible balance.
  • There are no recurring charges.
  • A minimum balance is not required, meaning you can always withdraw cash.
  • The Federal Deposit Insurance Corporation (FDIC) provides coverage.

Green Dot Platinum visa credit card

Green Dot’s platinum visa credit card is a good choice if you want to restore your credit. That’s because it doesn’t require a credit check when applying.

If you cannot make a payment on your secured credit card, it’s not just bad for the Bank; it can also hurt your chances of getting that unsecured line of credit.

Some credit card offers like Capital One MasterCard are free to get, but others cost $200 as an activation deposit. This could be one reason people might not upgrade their rewards-based credit cards.

You can use an online debit card, an ACH transfer of money from your bank account, or a check to pay with this card.

If you don’t mind paying a charge, you may also pay with cash at one of Green Dot’s retail partners or by using the company’s MoneyPak card.

Top features

  • Zero credit checks
  • Many alternatives for making payments
  • A $39-a-year charge
  • It is a credit card that has been “locked.”
  • For the card to function, you must deposit a $200 deposit.
  • Fixed APR of 19.99 percent

Pros of Having a Green Dot Bank Account

Green Dot Bank reviews show it has innumerable benefits to the user. Below are some pros of having a Green Dot Bank Account:

1. Early access to direct deposited paychecks

Green Dot’s ASAP Direct allows you to obtain your direct deposit wages up to two days early. Your employer’s payment processing determines whether you are eligible for early access.

2. Competitive APY on high yield savings account

According to Green Dot, the 2% annual percentage yield (APY) on balances of less than $10,000 is very competitive with the top online savings accounts.

3. No overdraft fees

As long as you don’t overdraw by more than $200, you won’t have to pay any overdraft fees. The transaction is canceled if you don’t have enough money to pay for it.

4. Online and mobile purchases earn 2% cashback.

When using the Green Dot Unlimited Cash Back Account, you get 2% cashback on certain online transactions, including in-app and other mobile purchases. There is no limit to the amount of cashback you may receive.

Cons of Having a Green Dot Bank Account

Below are some cons of Green Dot Bank Account;

1. Out-of-network ATM fee

The Bank charges a $3 fee if you use an ATM that isn’t part of the Green Dot network, even though the Bank has an ATM network.

2. No joint accounts

There seem to be no custodial or joint accounts available

3. Monthly fee if you don’t meet minimum

Green Dot imposes a $7.95 monthly fee if you don’t fulfill the minimum monthly spending threshold. The charge is waived if you spend $1,000 on your card in the preceding month. Certain purchases aren’t included in the definition of “spending,” such as bill payments.

How To Apply a Green Dot Bank Account

It’s simple to open a Green Dot account! You may download the app, fill out an online form or visit your local store to buy one of their starter kits. To establish an account, you’ll need to provide personal information like your name, address, birth date, and social security number. One Green Dot Bank review’s your application, you will be quickly notified.

Who Is Green Dot Bank Best For?

If you want a high-yield savings account, a cashback account, or a platinum visa credit card to build credit, go no further than Green Dot Bank. Customers will appreciate the Bank’s wide range of services and benefits.

The $7.95 monthly account charge for Green Dot might be a viable option for online consumers, particularly those who can spend enough to offset the price.

When it comes to checking accounts, the green dot has an APY 2 percent higher than Axos Bank’s rate of 0.61 percent. You will, however, have to wait a year before you can make use of it. Green Dot should be at the top of the list for those who can afford the extra expense right away (or don’t have another bank).

How Green Dot Bank Customers Can Reach Customer Service

Green Dot has gone the extra mile to ensure that its customers are happy through efficient communication. Customers may reach customer care by phone or email and online support chat. The most popular way to get customer service is via FAQS on their website.

The FAQ page on their website provides answers to all customers’ questions. However, if you can’t find what you need there, they also offer an automated chat system where someone will help right away!

However, it’s worth mentioning that Trustpilot (a customer review website) has received complaints about the slowness of customer assistance.

According to Green Dot reviews, it appears that the major issue with Green Dot Bank’s customer service is handling complaints. The Trustpilot rating is 1.2 out of 5 stars. Compared to Varo Bank’s total rating of 4.4, this is a long cry from the latter.

Wrap Up On Green Dot Bank Review

If you’re looking for a bank account that can help you earn rewards on your spending and allow you to save money, a review of Green Dot may be worth considering.

It’s also an ideal solution for those in the service industries or anyone who regularly receives cash and wants options for depositing their funds at retail stores. But you mustn’t exceed any of the monthly requirements, so your fees won’t pile up quickly.

However, before joining this Bank, it is vital to read all their terms and conditions to understand what is involved. There are numerous fees associated with owning a Green Dot Bank account, which could quickly add up if not careful.

But there are also plenty of perks such as competitive rates on savings accounts and online bill pay. The best way to determine whether a Green Dot Account is correct for your financial needs is by first reading through their terms and conditions!

Green Dot Review

Green Dot Review FAQs

How does Green Dot work?

Green Dot works like other banks. It offers customers savings accounts, checking accounts, and money cards. Green Dot Bank also offers free ATM transactions and nationwide enrollment for its reloadable prepaid debit product. Customers can use Green Dot’s mobile app to deposit checks, track their spending, and more.

What is Green Dot used for?

Green Dot Bank is among the most popular prepaid card service companies in the United States. It was initially founded to serve people with bank accounts who had no access to traditional banking. For those without a bank account, loan, or credit card, this company offers an opportunity for financial security and independence.

Is Green Dot a legit bank?

Yes! Green Dot is a real bank with FDIC coverage. However, there are mixed reviews of this award-winning Bank, with some people claiming to have had a negative experience. Some report that they found it hard to get in touch with customer service and difficulty accessing funds when needed; others didn’t experience any issues, so the answer is debatable.

Is PayPal Green Dot?

PayPal and Green Dot Bank are two separate entities but major debit card players. You can use a debit card from Green Dot Bank to pay people through PayPal and vice versa if you’re buying physical goods. A customer can link their Green Dot checking account to their PayPal account or automatically draw funds from a credit card. You may also know PayPal as SYNCB/PPC on your credit report.

How do you get a Green Dot Card?

You can sign up for this product by visiting their website. Green Dot also has offices in most major metropolitan areas where you can apply for the card in person. Their cards are available to US citizens, permanent residents, and non-resident aliens. Green Dot Cards can also be used by anyone with a checking account in good standing at their home bank.

Related blog posts

Need expert financial advice?

Let TurboFinance connect you with the best consulting services and resources to help you take control of your finances and find a path to build wealth.

Get A Free Consultation Today!