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How Does Parent-Paid Interest Work?

How Parent-Paid Interest Works

The parent-paid interest rate you set for your child’s Savings is an annual percentage yield. Your parent-paid interest is calculated and paid monthly based on the average daily balance of your child's “Total Savings” for the previous month. The amount is paid from your Parent's Wallet to your child's savings account on the first of the month.

 

Where does my interest payment go if my child has multiple savings goals and a general savings account?

The monthly interest payment is allocated across your child's savings goals and general savings based on the average daily balance in each account. of how a $1 monthly interest payment on $100 in total savings would be paid out across a child's savings accounts:

 

 

 

What if there's not enough money in my Parent's Wallet?

You will receive an alert notifying you that there is not enough money in your Parent's Wallet to give your child interest. Your parent-paid interest amount will be put on hold until money is added to your Parent's Wallet.

 

 

 

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Comments

2 comments
  • My daughter is wanting to use her greenlight card like a regular debit card, while also receiving payments for small jobs she does in her free time. Will she be able to also do that?

  • Hi there! Greenlight can be used just like a normal debit card, but it has a number of extra features and parental controls not available at your typical bank. We're about to release direct deposit so your daughter can receive her payments. If the small jobs don't use direct deposit, you can always collect the payment for her and add it directly to her card. If you have any additional questions, feel free to send us an email at support@greenlightcard.com.

    Thanks for reaching out!
    David

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