What Bank Does Greenlight Use? Your children get a measure of financial independence through the use of a debit card, but you retain control over their transactions and may establish spending limitations.
There are two debit card firms for kids and teenagers with parental controls, Greenlight and Current, that sell debit cards. To assist you in making the best choice for your family, we’ve broken down the features of each one and compared them side by side.
Greenlight and the Current
Both Greenlight and Current have very similar parental restrictions. In the app, you may establish daily spending limits for each of your children’s card accounts. The monthly fees, age limitations, and other perks of each card are shown below.
What’s the deal with Greenlight?
Parents may use Greenlight’s debit cards to teach their children about saving, spending, donating, and investing. Using Greenlight, children may separate their money into three separate accounts: one for spending, one for saving, and one for donating. You can opt to pay a certain proportion of the balance on the first of each month in order to earn interest on the savings account that your parents pay for you.
You can keep tabs on your child’s spending, restrict where they may shop, and even turn the card on and off with a Greenlight account. You may also establish purchase round-ups to help them save money more quickly. This will allow you to save the difference in each transaction by rounding up to the closest dollar.
You may put money into your Parent’s Wallet by using a bank account or debit card as a “funding source.” There is also an option to set up automatic weekly payments from your Parent’s Wallet to your child’s debit card if you choose. Transfers from a debit card to your Parent’s Wallet are instantaneous, however transfers from an external bank account may take up to four business days.
For up to $250,000, the money on your Greenlight debit card is protected by the Federal Deposit Insurance Corp. Adding Greenlight + Invest or Greenlight Max to your account will get you access to even more functionality and security. A debit card and the opportunity to invest in fractional shares with no trading costs are included in the Greenlight + Invest plan.
The Greenlight Max plan offers a variety of services to families, including identity theft monitoring, phone damage or theft coverage, and purchase protection in the event that an item your child purchases is damaged or stolen.
What is Current’s function?
Teen debit cards are available through Current, an online bank that also offers a mobile app with parental restrictions. You may set daily spending limits and restrict your child’s access to select stores. Automated transfers of daily, weekly, biweekly, or monthly allowances are also an option.
The most common method of funding your teen’s account is via a bank transfer, which can take anywhere from three to five business days to complete. There are two methods to speed up transfers using Current, however:
You’re eligible for an immediate direct deposit. People who finish a trial period, pay the $36 yearly membership cost, and have a solid account history are eligible for an immediate transfer option from Current.
- Get a Current account. Your cash can be immediately moved to a teen account if you create a Current account.
Current accounts are useful for teens since they allow them to both spend and save money. If you want to save money, you can use the Savings Pods function to create savings objectives, and you can save the difference by setting up roundups.
You may control how much your children can spend by enabling and disabling the card and setting a daily spending cap. Even if your kid goes beyond, the FDIC will insure up to $250,000 of your cash, so you can relax knowing your money is safe even if the firm goes bankrupt.
What both firms excel at is the same thing.
To assist you in teaching your children about personal finance, two applications are available: Greenlight and Current. Allowance transfers, savings targets, and expenditure limitations are all possible with any of these tools.
Apps like this allow kids to make money management decisions within the parameters that you specify, so you don’t have to worry about them blowing all of their allowance on gaming or Amazon buying. Current and Greenlight are both compatible with Apple Pay, as well as Google Pay and Samsung Pay.
In both Greenlight and Current, there is a savings roundup function that demonstrates how even tiny sums of money may add up over time for youngsters. It’s also possible to get started with a minimal or no initial investment with both cards.
Finally, the best banks make it obvious how much you’ll be charged for monthly fees and other transactions, and both Current and Greenlight are open about pricing.
Greenlight and Current have five significant distinctions.
Although there are some parallels between Greenlight and Current, there are a number of important distinctions. The following are the most significant distinctions to be aware of:
- Greenlight allows you to make investments. Kids may start investing as little as $1 with Greenlight + Invest or Greenlight Max. You may use this tool to demonstrate the power of compounding interest and investment. At the moment, there is no way to invest with Current.
- A few more safeguards are provided by Greenlight. Purchase protection, mobile phone protection, and identity theft protection for the entire family are included in the Greenlight Max service level (with some restrictions; for example, cell phone protection is limited to five kids).
- With Greenlight, you may use a debit card to add money to your child’s account. You may use your bank account to fund and reload your child’s account with Current. Funding your Greenlight account is as simple as using a debit card or a bank account.
- Teens may watch Greenlight and adults can watch Current. Current accounts need a youngster to be at least 13 years old, however the Greenlight debit card does not.
In the case of Current, there is no such necessity. Greenlight requires a $10 initial payment into your Parent’s Wallet, followed by a minimum deposit of $1 if you’re using a linked bank account or $20 if you’re financing the account using a debit card. There are no minimum or maximum deposit amounts imposed by Current.
So how do you go about choosing a banking product?
Greenlight vs. Current: Which banking product is best for you depends on your financial goals and preferences. For parents who just want their kids to have money for lunch, petrol, or the odd shopping trip, Current might be a good option for sending money without incurring hefty fees.
There is no minimum balance requirement, no overdraft fee, no transfer cost, and no activation fee with the Current card. In comparison, Current charges $36 per year compared to $60 per year for the standard Greenlight tier, which is a significant savings.
Nevertheless, in order for a youngster to get the most out of Current, you may have to establish your own individual Current account for them. If you don’t qualify for immediate transfers, you may not be able to transfer money as soon as you’d want. If your kid calls in an emergency and needs money to fill up their gas tank, a standard transfer from an external account to Current might take three to five working days.
When it comes to teaching kids about money, the Greenlight debit card may be a better option because it has additional capabilities that can help you create instructive moments. Greenlight, for example, includes educational content and the parent-paid interest function allows you to explain about how interest on savings works. Your youngster can also learn how to invest if you upgrade the account.