– According to the FDIC,
the unbanked in America represents 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 video, we’ll look at why those without a bank account might
wanna consider Go2bank. Hey everyone. This is Andy with the College Investor, investing and personal
finance for millennials. If you’re new to the channel
and like what you hear, please hit subscribe, so you’re ready when our next video comes out. Thanks. Oh, and as you’re watching, know that all the resources mentioned in today’s video will be available
in our description below. All right, let’s jump in. Here we go. Who is Go2bank? Go2bank is a Green Dot Bank’s
digital banking initiative.
Green Dot Bank was founded in 1999 and headquartered in Pasadena, California. Go2bank’s mission is to
serve the underbanked. Go2bank was started in January, 2021, and shouldn’t be confused with GoBank, which is another Green Dot Bank brand. Dan Henry, CEO of Green Dot said this about their initiative. Too many Americans struggle
to access their money, and they’re paying too much
for financial products. And they’re negatively
impacted by the lack of solutions designed to suit their needs. 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.
Sounds pretty cool. What does Go2bank offer? Well, Go2bank has the full
backing of Green Dot Bank, which serves 33 million
customers through its retail and direct-to-consumer
debit card products. It aims to serve people who don’t have a checking
or savings account, which was about 5.4% of
households as of 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
other non-bank alternatives. Applying to Go2bank doesn’t
require a credit check or credit score. Here are some of their main features. Number one, 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 bucks. There are three levels
of overdraft protection. Levels kick in automatically, depending on your direct deposit activity. The first one is basic. That offers $10 of coverage for a single direct deposit of any amount. Premium 100’s the next one. Offers $100 of coverage for
at least two direct deposits of $200 or more within a 35 day period. And then there’s Premium
200, which offers $200 of coverage for at least
two direct deposits of $400 within a 35 day period. Number two, 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. Number three, 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 again. A secured credit card works by depositing money on the card. If you deposit 500 bucks, your credit limit will be 500 bucks. If you close the account at any point, and there’s still money on the card, it’ll be returned to you. Go2bank reports card
holder payments to each of the three credit bureaus.
Credit lines start at $100. This card has no annual fee,
and it provides card holders with credit monitoring
through VantageScore, which is powered by Equifax. Number four, cash back
and interest earnings. When you purchase e-gift 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 e-gift cards for savings up to $5,000.
You’ll also earn 1% interest, which is well above the
current national savings rate. Let’s talk competitors. How does Go2bank compare
in the marketplace? Well, Go2bank offers a
strong interest rate, but only up to $5,000 in deposits. If you have more in savings than that, you might wanna 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. Two other top competing online banks to consider our Chime and Ally.
Well, perhaps you’re
ready to open an account. Well, here’s how to get that done. You can visit the Go2bank
website in the link in our description to open an 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 another form of ID. If you’re approved to open an account, Go2bank says that your
debit card should arrive within 7 to 10 days. Let’s talk safety.
Is my money safe with Go2bank, you might be asking. Well, yes, Go2bank’s
deposits are FDIC insured. Additionally, Go2bank
monitors your account, and will send you a text message if it detects fraudulent activity. You can lock your card instantly
through the mobile app. Also your debit card is
an EMV chip enabled card. And if you want to contact Go2bank, they can be contacted
by phone or live chat. Their phone support team
is available every day from 5:00 AM to 9:00 PM
Pacific Standard Time, at 8 8 5 – 4 5 9 – 1 3 3 4. Live chats can be initiated
from the website or the app during the same customer 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 outta five, from 50 plus reviews. Well, in the end is Go2bank 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 video of the top
online banks on this channel. Well enough from our side everyone. We wanna hear from you. What do you think of this Go2bank review? Are you considering giving Go2bank a try? Please let us know in the comments below. Thanks for hanging out today. This is Andy from the College Investor, and we’ll see you in the next video. (gentle music).