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% cash rewards 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.
The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual fee.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $100 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.74%, 24.74%, or 28.74% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don't expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Balance Transfer Fee
3% intro for 120 days from account opening, then up to 5%, min: $5
Foreign Transaction Fee
3%
The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure. Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.49% - 28.74%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
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.
