The Greenlight Family Cash Card offers three tiers of cash back, earning up to 3% based on monthly spending. Parents can automatically invest rewards in stocks and ETFs. The innovative card has no annual fee but requires a paid Greenlight subscription plan.
Introduction
There are plenty of rewards credit cards on the market that offer decent cash-back returns on card spending. However, very few can match the across-the-board 3% cash-back earning potential offered with the Greenlight Family Cash Card.
Greenlight is known for its popular debit cards for kids and mobile banking app. Used by over five million parents and kids, the company is a leader in the family financial space. The Greenlight Family Cash Card is the company’s first foray into the world of credit.
The card earns unlimited cash back on all card purchases, earning between 1% to 3% cash back based on monthly spending. The more you spend, the more you earn, making it an excellent option for high-spenders.
The other unique offering that sets the Greenlight card apart is the ability to automatically invest rewards into your child’s future or other goals. Users can automatically invest their cash back earnings into stocks and exchange-traded funds (ETFs).
The Greenlight Family Cash Card doesn’t charge an annual fee, but that doesn’t mean it’s free to own and use. Instead, an active paid Greenlight subscription is required to apply for the card, which can cut into the value of rewards earned with the card.
Greenlight Family Cash Card basics
- Annual fee: $0, but requires a monthly Greenlight plan ($4.99-$14.98 per month).
- Welcome bonus: None.
- Rewards: Up to 3% cash back on all purchases.
- Regular APR: 19.49%-27.49% variable.
- Foreign transaction fees: None.
- Does the issuer offer a preapproval tool? No.
- Recommended credit score: Good to excellent.
Greenlight Family Cash Card other details
Greenlight Family Cash Card rewards
The Greenlight Family Cash Card earns up to 3% cash back on all purchases. Cash-back rewards break down into three tiers based on monthly card spending. You must spend at least $4,000 per month on the card to earn the highest cash back tier. Cash back tiers range from 1%-3% depending on your spending habits:
The Greenlight card offers unique redemption options for parents. Perhaps the most intriguing redemption is the option to automatically invest cash back rewards into stocks or ETFs within the app through Greenlight’s investing platform. The investment account is a standard brokerage account, not a 529 education or other tax-sheltered accounts, so there are tax implications to consider.
Besides investing, parents can redeem rewards for statement credits or deposit cash back earnings into their parent account, making the funds available to transfer to kids’ accounts.
Greenlight Family Cash Card rewards potential
Using government data and other publicly available information, we estimate that the median household in the U.S. with an average income of $84,352 has $25,087 in expenses they are likely to be able to charge to a credit card.
Calculating rewards for the Greenlight card depends on monthly habits. If a parent spends $25,087 annually on card purchases, it breaks down to approximately $2,090.58 per month, which won’t earn the top cash-back tier.
It’s likely, though, that individuals considering this card could spend at least $4,000 a month a few times a year. In this scenario, about one-third of the spending, or $8,362, would earn 3% cash back, or $250.87. The remaining $16,725 would earn 2% cash back, or $334.50, for a total of $585.37 in cash-back earnings annually.
Greenlight Family Cash Card APR details
The Greenlight Family Cash Card doesn’t come with an introductory 0% APR offer for balance transfers or purchases. The regular APR on this card is 19.49%-27.49% (variable) based on your creditworthiness.
Greenlight Family Cash Card benefits and perks
- Competitive cash-back rates.
- Flexible redemption options.
- Rewards can be auto-invested.
Greenlight Family Cash Card drawbacks
- Requires a Greenlight account to apply.
- Monthly account fees.
- Must spend at least $4,000 per month to earn highest cash back rate.
How the Greenlight Family Cash Card compares to other cash-back credit cards
Greenlight Family Cash Card vs. Wells Fargo Active Cash® Card
If you want to earn cash back without jumping through hoops or paying fees, consider the Wells Fargo Active Cash® Card. The no–annual-fee cash-back card earns 2% cash back on purchases. It also includes benefits like FICO credit score access (enrollment required) and a 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 19.24%, 24.24%, or 29.24% variable APR applies. Balance transfers made within 120 days qualify for the intro rate and fee of 3% then a fee of up to 5%, with a minimum of $5 applies.
Greenlight Family Cash Card vs. Capital One SavorOne Cash Rewards Credit Card
Depending on your spending habits, you may want to consider a card like the Capital One SavorOne Cash Rewards Credit Card that earns bonus rewards in specific categories. The card earns unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores and 1% cash back on everything else. The no-annual-fee card also earns higher cash back rates on Uber and Uber Eats purchases and travel and entertainment purchases made through Capital One.
Greenlight Family Cash Card vs. Bank of America® Travel Rewards credit card
For families who love to travel, the Bank of America® Travel Rewards credit card allows you to use rewards for statement credits towards travel and dining purchases. The card earns unlimited 1.5 points per dollar spent on all purchases. The Bank of America® Travel Rewards credit card has no annual fee or foreign transaction fees. Unlike the Greenlight card, it also features a 0% Introductory APR for 18 billing cycles for purchases, and for any balance transfers made in the first 60 days, followed by a 18.24% – 28.24% variable APR on purchases and balance transfers. A balance transfer fee of either $10 or 3% of the amount of each transaction, whichever is greater, applies.
Should you get the Greenlight Family Cash Card?
If you already have a Greenlight account or are looking for a complete banking and financial literacy program for your family, the Greenlight Family Cash Card is a no-brainer. Between its cash-back rewards, investment features, and connection to the rest of the Greenlight ecosphere, the Greenlight Family Cash Card offers enough value for parents who are already paying for access to the company’s mobile app and other offerings.
If you aren’t already a Greenlight customer, the card may still be a good option depending on your monthly spending habits. Although there’s no annual fee, you will pay a total of $59.88 to $179.76 in monthly account fees annually with the required Greenlight subscription. You may get more value from a 2% cash-back card with no annual fee after factoring in the monthly fees associated with a Greenlight account.
If you aren’t interested in a 360-degree banking system for your family, there are other cash-back and rewards cards available that are probably a better fit.
Greenlight Family Cash Card summary
Frequently asked questions (FAQs)
The Greenlight Family Cash Card doesn’t charge a monthly or annual fee. The card does require a paid Greenlight account to access, which carries a monthly fee between $4.99 and $14.98, depending on the plan.
The Greenlight Family Cash Card is available for parents only. Families with a Greenlight Max or Greenlight Infinity account earn 1% cash back on debit card purchases.
Greenlight is a family-focused financial technology company known for its debit cards for kids. The tech company partners with Community Federal Savings Bank to provide basic banking services for kids and teens through its products and mobile app as an introduction to money management.
You can close a Greenlight account online by submitting a request online or by texting 404-974-3024. Closing your account will immediately cut off access to Greenlight’s mobile app and debit card. If you have investments through Greenlight, they are sold at market value. Greenlight will refund any remaining account balances within five to seven business days.
Only parents with active Greenlight accounts can apply for the Greenlight Family Cash Card. You must be at least 18 years of age to open a Greenlight account or credit card.
