Green Dot Bank 3% HY savings account

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Tamales
Posts: 1385
Joined: Sat Jul 05, 2014 10:47 am

Green Dot Bank 3% HY savings account

Post by Tamales » Mon Aug 12, 2019 11:49 pm

Is anybody opening an account at this bank? They have been advertising on TV lately, and 3% is curiously high for a saving account in the current environment.

I never heard of the bank before. Not exactly a confidence-inspiring history:
https://en.wikipedia.org/wiki/Green_Dot_Corporation
and it seems they only became a bank last month. So there's not much history on how likely their savings accounts will remain at these high rates, or anything else about their service as a bank for that matter.

Apparently, accounts are only accessible via their mobile app (" If you do not have access to the Green Dot app for any reason, you will not be eligible to use the savings account.") so they must be monetizing your smartphone data somehow.

Also this info from their account agreement leads me to generally say no thanks:

For the purposes of the Savings Account, a “Savings Year” is twelve (12) monthly
periods from the date your account was opened and you were able to first use your debit
card to make purchases. The 3% annual interest is credited to your Savings Account after
the completion of each Savings Year.
On or about the anniversary of each Savings Year,
we will calculate the average daily balance held in your savings account for each of the
prior 365 days. We will then multiply that average daily balance by 3% (or the interest
rate in effect at that time). That amount will then be credited to your savings account.

The only requirement to earn your annual interest payment is that your primary account
must be in good standing, meaning that it has a positive balance (not a negative balance)
and the account cannot be blocked for fraud or any other reason.

Interest will be applied to a maximum average daily balance of $10,000. You will
not earn interest on any average daily balance that exceeds $10,000.
We may, at our
sole discretion, at any time, change the interest rate paid on the principal balance of
your High-Yield Savings Account and the corresponding annual percentage yield
for new accounts. If you close your account before the annual interest is credited to
your High-Yield Savings Account, you will not receive the interest.

Daryl
Posts: 551
Joined: Thu May 22, 2008 9:34 am
Location: Malvern, PA (I like to sleep near my money!)

Re: Green Dot Bank 3% HY savings account

Post by Daryl » Tue Aug 13, 2019 5:24 am

According to the highlighted terms, the maximum interest earned annually is $300 ($10,000 average daily balance * 3%). A lot of banks have new account bonuses that are about that much money, provided you are willing to temporarily switch your direct deposit and leave a couple thousand dollars with them for 60-90 days. Here is one with Wells Fargo that could net you $400: https://www.doctorofcredit.com/wells-fargo-400-checking-bonus/

j0nnyg1984
Posts: 600
Joined: Sun Apr 24, 2016 9:55 am

Re: Green Dot Bank 3% HY savings account

Post by j0nnyg1984 » Tue Aug 13, 2019 2:11 pm

Interest is only paid once a year?

lol, no thanks.

megabad
Posts: 2167
Joined: Fri Jun 01, 2018 4:00 pm

Re: Green Dot Bank 3% HY savings account

Post by megabad » Tue Aug 13, 2019 2:57 pm

glad you posted the fine print. 12 months is an awfully long time to trust a bank to maintain high interest rates. From a profit standpoint, it would certainly be awfully tempting for them to offer this "deal" for a month or two, wait 10 months and then drop the interest rate significantly right before the payout. I guess time will tell.

krafty81
Posts: 191
Joined: Thu Jul 05, 2018 2:01 pm
Location: San Diego, CA

Re: Green Dot Bank 3% HY savings account

Post by krafty81 » Tue Aug 13, 2019 4:47 pm

Pass! 8-)

Turbo29
Posts: 541
Joined: Tue May 01, 2018 7:12 am

Re: Green Dot Bank 3% HY savings account

Post by Turbo29 » Tue Aug 13, 2019 5:27 pm

I have seen their ads on TV. I think they are marketing it to people who probably, out of the course of the twelve month period, will have to take every cent out of the account and close it. By not paying interest to those account holders, they will be able to make a profit paying 3% to those who actually hang on.

Edit:

You have to spend $1000 each month using the debit card that comes with the account to avoid a fee.

Monthly Charge
$7.95. Waived when you spend $1,000 or more using your Card in the previous monthly period.*

* Your Monthly Fee will be waived if you spend $1,000 or more using your Card in the previous monthly period (excluding ATM and teller cash withdrawals, payments conducted at www.greendot.com or via our mobile app (such as bill payments), check or ACH payments, funds transfers to another account, quasi-cash transactions (i.e., the purchase of items that convert to or substitute for cash, such as money orders, travelers checks, casino chips, etc.), and purchases of gift or prepaid cards).

softwaregeek
Posts: 160
Joined: Wed May 08, 2019 8:59 pm

Re: Green Dot Bank 3% HY savings account

Post by softwaregeek » Wed Aug 14, 2019 8:07 pm

Predatory.

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