Greenlight, the fintech company that's on a mission to help teach children about personal finance, has introduced a new credit card specifically for parents.
The Greenlight Family Cash Card allows parents to earn rewards and save for their family's future by offering up to 3% cash back on all purchases and the option to automatically invest rewards in stocks and ETFs — all for no annual fee. It originally launched in May with a waitlist, but is now available to the general public.
Below, Select breaks down everything you need to know about the card.
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Greenlight Family Cash Card benefits
The Greenlight Family Cash Card stands out for two reasons: its earning potential and optional auto-investing. It has no annual fee, but you must have an active Greenlight subscription, which ranges from $4.99 to $14.98 per month and includes access to a debit card for kids, investing tools and educational resources. New subscribers currently get their first month free.
The card's rewards structure is extremely straightforward. All purchases earn cashback at the same rates so there are no bonus categories to keep track of, though you're earning rate will depend on how much you use your card in a given month. Here's how it breaks down:
- Earn 3% back when you spend $4,000 or more in a billing cycle
- Earn 2% back when you spend between $1,000 and $4,000 in a billing cycle
- Earn 1% back when you spend less than $1,000 in a billing cycle
While there are other cashback credit cards that offer 2% back on everyday purchases, such as the Wells Fargo Active Cash® Card and the Citi® Double Cash Card (you earn 1% when you purchase and 1% when you pay), a 3% return is industry-leading. However, you'd have to spend a significant amount each month to unlock this return — the average American spends less than $2,000 per month, according to spending data available from Esri.
Wells Fargo Active Cash® Card
Rewards
Unlimited 2% cash rewards on purchases
Welcome bonus
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual fee
$0
Intro APR
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers; balance transfers made within 120 days qualify for the intro rate
Regular APR
20.24%, 25.24%, or 29.99% variable APR on purchases and balance transfers
Balance transfer fee
Introductory fee of 3% for 120 days from account opening, then up to 5% ($5 minimum)
Foreign transaction fee
3%
Credit needed
Excellent/Good
See rates and fees, terms apply.
Citi® Double Cash Card
Rewards
2% cash back: 1% on all eligible purchases and an additional 1% after you pay your credit card bill
Welcome bonus
None
Annual fee
$0
Intro APR
0% for the first 18 months on balance transfers; N/A for purchases
Regular APR
19.24% - 29.24% variable
Balance transfer fee
For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies
Foreign transaction fee
3%
Credit needed
Fair/Good/Excellent
See rates and fees. Terms apply.
Read our Citi® Double Cash Card review.
Greenlight encourages parents to invest its rewards in stocks and ETFs through its optional auto-investing feature to help save for their children's education and other family expenses. Just note that you wouldn't get the tax benefits of a 529 savings plan through this feature.
However, you don't have to invest your rewards. Cardholders can also redeem rewards as a statement credit or deposit the earnings directly into their Greenlight account.
In addition to these perks, the Greenlight Family Cash Card also comes with World Mastercard benefits including discounts with DoorDash and Lyft, a complimentary ShopRunner membership, cell phone protection, access to Mastercard's Priceless Experiences and price protection.
Bottom line
The Greenlight Family Cash Card's up to 3% return on everyday purchases is extremely lucrative — whether you're a parent or not. That said, although billed as a no-annual-fee card, you need to have a Greenlight subscription to apply, so it might only make sense to apply if you're already a customer. Unfortunately, there's no welcome bonus for new cardholders.
