If you want to earn a high rate of interest and cash back on your spending â€”Â and are alsoÂ OK with waiting up to a year to access it â€” Green Dot has a new product that may pique your interest.
Green Dotâ€™s new offering, the Unlimited Cash Back Bank Account, gives customers a 3% savings rate on a high-yield savings account, plus a high return on their spending: Unlimited Cash Back debit card holders get an unlimited 3% cash-back bonus on all online and in-app purchases. The bonus is then sent to a separate bonus account, where it remains inaccessible until the account anniversary, when the cardholder can finally access it.
The cash-back bonus account is â€œlike a forced savings account that uses the bankâ€™s money to build up a potentially sizable balance,â€ the company said in a news release.
A couple of caveats to note: Youâ€™ll have to pay a $7.95 monthly fee for the Unlimited Cash Back card unless youâ€™ve made $1,000 in purchases the previous month, excluding mobile bill payments, ATM withdrawals, ACH transactions and other charges. The high-yield savings accountâ€™s funds are accessible at any time, though the interest earnedÂ may be accessed only on the account anniversary. And the 3% savings account APY applies only up to a balance of $10,000.
Green Dot made its name with prepaid debit cards, an alternative to traditional debit cards that allows people to reload funds. Green Dot prepaid debit cards haveÂ attracted their share of customer ire, with higher-than-average consumer complaints, according to a 2018 NerdWallet investigation.
That being said, Green Dotâ€™s accounts are FDIC-insured, and customers have access to a free ATM network and are able to make free cash deposits at national Green Dot retailers, like Walmart. The account has no minimum deposit requirement, and no overdraftÂ or penalty fees.
More From NerdWallet
- Why a Fed Rate Cut May Signal It’s Time to Get a CD
- Betterment Offers 2.69% Yield on Savings Accounts â€” But There’s a Catch
- What to Do When Back to School Bites You in the Budget
Chanelle Bessette is a writer at NerdWallet. Email: firstname.lastname@example.org
The article Green Dot Launches 3% Cash Back and Savings Account originally appeared on NerdWallet.