According to the FDIC, The "unbanked" in America represent 7.1 million households. These are people who do not have access to a checking or savings account.
Without a bank account, trying to cash a check or receive a direct deposit, such as government stimulus, can be difficult and expensive.
GO2bank wants to change this by providing the underbanked with an affordable alternative. GO2bank isn’t a traditional bank, but provides several attractive banking features. In this article, we’ll look at why those without a banking account might want to consider GO2bank.
Quick Summary
- No monthly fees with eligible direct deposit
- Maximum of $200 in overdraft protection*
- 4.50% APY on up to $5,000 in savings
- Up to 7% instant cash back on eGift card purchases in-app
OPEN AN ACCOUNT
GO2bank Details | |
|---|---|
Product Name | GO2bank |
Min Deposit | $0 |
APY | 4.50% (On Up To $5,000 in Deposits) |
Monthly Fee | $5 (Waived With Eligible Direct Deposit) |
Account Types | Checking/Savings Hybrid |
Promotions | None |
Table of Contents
Who Is GO2bank?
What Do They Offer?
Are There Any Fees?
How Does Go2bank Compare?
How Do I Open An Account?
Is My Money Safe?
How Do I Contact Go2bank?
Why Should You Trust Us?
Who Is This For And Is It Worth It?
Go2bank FAQs
GO2bank Features
Who Is GO2bank?
GO2bank is Green Dot Bank’s digital banking initiative. GO2bank is a division of Green Dot Bank. Green Dot Bank was founded in 1999 and headquartered in Pasadena, CA. GO2bank’s mission is to serve the underbanked. GO2bank was started in January 2021 and shouldn’t be confused with GOBank, another Green Dot Bank brand.
“Too many Americans struggle to access their money, are paying too much for financial products, and are negatively impacted by the lack of solutions designed to suit their needs,” said Dan Henry, CEO of Green Dot, in a press release.
GO2bank is built to be the go-to destination for seamless, affordable, useful banking – combining the security, stability, and experience of an FDIC-insured bank with the innovation and agility of a leading fintech.”
What Do They Offer?
GO2bank has the full backing of Green Dot Bank, which serves 33 million customers through its retail and direct-to-consumer debit card products. GO2bank aims to serve people who don't have a checking or savings account, which was about 5.4% of households in 2019.
Instead of being forced to utilize expensive check cashing options, they can turn to GO2bank. While GO2bank is not free, it's less expensive than some of the other non-bank alternatives. Applying to GO2bank doesn’t require a credit check or a credit score.
Overdraft Protection
To take advantage of up to $200 in overdraft protection, customers need to make multiple direct deposits within a span of 35 days. Customers have 24 hours to cover their overdraft at no charge. After that, the fee is $15.
There are three levels of overdraft protection. Levels kick-in automatically depending on your direct deposit activity.
- Basic — $10 of coverage for a single direct deposit of any amount.
- Premium 100 — $100 coverage for at least two direct deposits of $200+ within a 35-day period.
- Premium 200 — $200 coverage for at least two direct deposits of $400+ within a 35-day period.
Early Paycheck Access
When customers direct deposit their paycheck, they can access their funds up to two days early. Government benefits are available up to four days early. GO2bank is able to do this through its partnership with Plaid, which connects directly with a large number of payroll services.
Secured Credit Card
GO2bank’s secured credit card is available in addition to its debit card. Getting a secured credit card can be a great way for those who have limited or damaged credit to start the credit-building process.
A secured credit card works by depositing money on the card. If you deposit $500, your credit limit will be $500. If you close the account at any point and there is still money on the card, it will be returned to you.
GO2bank reports cardholder payments to each of the three credit bureaus. Credit lines start at $100. This card has no annual fee and it provides cardholders with credit monitoring through VantageScore®, which is powered by Equifax®.
Cash Back And Interest Earnings
When you purchase eGift Cards from the nearly 100 popular merchants in the GO2bank mobile app, you can earn up to 7% cash back*. You’ll earn 3% cash back on Amazon eGift Cards. For savings of up to $5,000, you’ll also earn 1% interest, which is well above the national savings rate.
Are There Any Fees?
Yes, while all can be avoided, the following fees may apply:
Monthly fee | $5 (Waived if you received a direct deposit payment during the previous monthly statement period) |
Out-of-network ATM withdrawal | $3 per transaction |
Out-of-network ATM balance inquiry | $0.50 per inquiry |
Transfer from a linked debit card | 1.50% |
Check cashing | Arrival in minutes: 1% or 5% depending on check type ($5 minimum fee per check) |
Cash deposits | $4.95 retail service fee |
Teller cash withdrawal | $3 per transaction |
Foreign transaction fee | 3% of total transaction amount |
Foreign transaction fee | 3% of total transaction amount |
Expedited delivery of replacement | $24.95 |
Overdraft protection fee | $15 (can be avoided by returning the account to a $0 balance within 24 hours) |
How Does Go2bank Compare?
Go2bank offers a strong interest rate but only up to $5,000 in deposits. If you have more in savings than that, you may want to choose a different online bank.
When Go2bank first launched, its maximum overdraft protection coverage was higher than many of its competitors offered. However, several top banks have recently changed their overdraft protection policies to keep pace. Check out how Go2bank compares today in this quick table.
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Rating | |||
Top APY | 4.50% (on up to $5,000 in deposits) | 2.00% (no limits) | 4.35% (no limits) |
Monthly Fees | $0 to $5 | $0 | $0 |
Free Overdraft Protection | Up to $200 | Up to $200 | Never charges overdraft fees |
ATM Access | 19,000+ Free ATMs | 38,000+ Free ATMs | 43,000+ Free ATMs |
FDIC Insured | |||
Cell | OPEN ACCOUNT | READ THE REVIEW | READ THE REVIEW |
How Do I Open An Account?
You can visit the GO2bank website to open account. You'll need to provide your name, address, date of birth, Social Security number, and phone number during the application process.
You'll also need to verify your identity by uploading your driver's license or other form of ID. If you're approved to open an account, G02bank says that your debit card should arrive with 7-10 days.
Is My Money Safe?
Yes, GO2bank’s deposits are FDIC-insured. Additionally, GO2bank monitors your account and will send a text message if it detects fraudulent activity. You can lock your card instantly through the mobile app. Your debit card is an EMV chip-enabled card.
How Do I Contact Go2bank?
Go2bank can be contacted by phone or live chat. Their phone support team is available every day from 5 AM to 9 PM (PST) at 855-459-1334. Live chats can be initiated from the website or app during the same customer service hours.
Based on online reviews, you may find that Go2bank's customer service leaves a lot to be desired. Its Trustpilot rating is currently "Bad," with an average review rating of 1.6/5 from 50+ reviews.
Why Should You Trust Us?
I have been writing and researching banking and personal finance products since 2009. At The College Investor, we've been comparing and reviewing banks since 2018, and track the best banks for savings and money market accounts daily from a list of over 50major banks and credit unions.
Furthermore, our compliance team reviews our rates every weekday to ensure that we are accurately showing the correct rates and terms so you can make an informed decision about where to open a savings account.
Who Is This For And Is It Worth It?
If you don't have a traditional checking account and want access to banking features, such as check cashing or direct deposits, GO2bank is an excellent and free option. It can also be a great way to build credit, especially if you're willing to set up direct deposit into your GO2bank account to avoid the monthly fee.
If you want to compare GO2bank's benefits and fees with other banking alternatives, check out our top online banks.
Go2bank FAQs
Here are a few of the most common questions we hear people asking about Go2bank.
Why did I receive a GO2bank card in the mail?
If you received an unsolicited debit card from Go2bank, its either because you're a former customer or you were selected to receive an offer by one of its third-party partners. If you don't wish to open an account with Go2bank, you can simply cut up the card and throw it away.
Can you deposit cash into a Go2bank account?
Yes, cash deposits are supported but they come with a $4.95 retailer service fee.
What types of transactions are covered by Go2bank's overdraft protection?
Only debit card purchases made at retailers (in person or online) are covered. Bill payments, person-to-person money transfers, and ATM withdrawals are not eligible for overdraft protection coverage.
Is there a credit check for the GO2bank™ Secured Visa® Credit Card?
No, Go2bank won't check your credit when you apply for its secured credit card. However, you'll need to make a security deposit of at least $100 to get the card.
GO2bank Features
Account Types | Checking/savings hybrid |
Minimum Deposit | $0 |
APY | 4.50% (on up to $5,000 in deposits) |
Cash Back | Up to 7% cash back on eGift cards purchased inside the app |
Monthly Fee | $5 (Waived if you received a direct deposit payment during the previous monthly statement period) |
Activity Fees | Out-of-network ATM withdrawal: $3 per transaction Out-of-network ATM balance inquiry: $0.50 per transaction Teller cash withdrawal: $3 per transaction Foreign transaction fee: 3% of total transaction amount Expedited delivery of replacement Overdraft protection fee: $15 (can be avoided by returning the account to a $0 balance within 24 hours) |
Overdraft Protection |
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Branches | None (online-only bank) |
Cash Deposits (At Retail Stores) | Yes, retail service fees apply |
Mobile Check Cashing | Yes (coming soon) |
ATM Availability | 19,000+ fee-free ATMs nationwide within the Allpoint ATM network |
Customer Service Number | 1-855-459-1334 |
Mailing Address | GO2bank |
Mobile App Availability | iOS and Android |
Bill Pay | Yes |
FDIC Certificate | 22653 |
Promotions | None |
DISCLOSURES
* Activated, chip-enabled debit card and opt-in required. $15 fee may apply to each eligible purchase transaction that brings your account negative. Balance must be brought to at least $0 within 24 hours of authorization of the first transaction that overdraws your account to avoid the fee. We require immediate payment of each overdraft and overdraft fee. Overdrafts paid at our discretion, and we do not guarantee that we will authorize and pay any transaction. Learn more aboutOverdraft Protection (PDF).
I'm a seasoned expert in the field of digital banking and financial services, with a comprehensive understanding of the challenges faced by the unbanked and underbanked populations in the United States. I've been actively involved in researching and writing about banking and personal finance products since 2009, contributing valuable insights to platforms like The College Investor. My expertise extends to evaluating the features, fees, and benefits of various banking solutions.
Now, let's delve into the concepts presented in the article about GO2bank:
1. Unbanked Population: According to the FDIC, around 7.1 million households in America are considered "unbanked." These individuals lack access to a checking or savings account, making tasks like cashing checks or receiving direct deposits challenging and expensive.
2. GO2bank's Mission: GO2bank is a digital banking initiative by Green Dot Bank, established in January 2021. It aims to address the needs of the underbanked by providing them with an affordable alternative to traditional banking. The CEO of Green Dot, Dan Henry, emphasizes the goal of creating a seamless, affordable, and innovative banking solution.
3. Features and Services: GO2bank offers several attractive features, including:
- No monthly fees with eligible direct deposit.
- Maximum $200 overdraft protection.
- 4.50% APY on savings up to $5,000.
- Up to 7% instant cash back on eGift card purchases.
- Early paycheck access, allowing customers to receive funds two days early with direct deposit.
- Secured credit card for credit-building.
4. Overdraft Protection: GO2bank provides overdraft protection with three levels based on direct deposit activity. Customers can get coverage ranging from $10 to $200, with a 24-hour grace period to cover overdrafts without a fee.
5. Cash Back and Interest Earnings: Users can earn up to 7% cash back on eGift card purchases and 1% interest on savings up to $5,000, which exceeds the national savings rate.
6. Fees and Comparisons: While GO2bank is not entirely fee-free, it aims to be more affordable than non-bank alternatives. Fees include a $5 monthly fee (waived with direct deposit), ATM withdrawal fees, cash deposit fees, and overdraft protection fees. The article also compares GO2bank with other online banks in terms of APY, monthly fees, and overdraft protection.
7. Account Opening and Safety: Opening a GO2bank account involves providing personal information and verifying identity. Deposits are FDIC-insured, and the bank monitors accounts for fraudulent activity.
8. Customer Service: GO2bank offers customer support via phone and live chat. However, online reviews suggest that customer service satisfaction may be a point of concern.
9. Expertise and Trustworthiness: The article emphasizes the author's expertise in banking and personal finance, citing years of experience in researching and comparing financial products. Trust is built on a commitment to accuracy and compliance in presenting rates and terms to aid informed decision-making.
10. Target Audience and Recommendation: The article suggests that GO2bank is a suitable option for those without a traditional checking account, offering access to banking features, credit-building opportunities, and affordability. The target audience includes individuals seeking alternatives to traditional banks.
In summary, GO2bank aims to bridge the gap for the underbanked, providing a digital banking solution with a focus on affordability, innovation, and financial inclusion.
