Parent-Paid Interest is an annual percentage yield rate that you set for your child’s General Savings that is paid from your Parent's Wallet on the first of the month in the Greenlight App. 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.
With Parent Paid Interest you have the opportunity to set and pay an interest rate of your choice from 1-100% that grows at a much faster pace than a traditional bank account. This will show your kids how their money grows each month when they make responsible saving decisions.
How do I set up Parent-Paid Interest?
- Navigate to your “Save” tab.
- Tap “Parent-Paid Interest”.
- In the 'Parent-Paid Interest' block, enter what percent interest rate you'd like to set for your child to earn.
- Tap “Save” to complete the set-up process.
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. For example, a $1 monthly interest payment on $100 in total savings would be paid out across a child's savings accounts as follows:
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 payout your child's interest. Your Parent-Paid Interest amount will be put on hold until funds are added to your Parent's Wallet.