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, which is the total amount saved between General Savings and Savings Goals.
With Parent-Paid Interest you have the opportunity to set and pay an interest rate of your choice from 1-100% that typically would grow 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.
To set up Parent-Paid Interest:
- Navigate to your child's dashboard.
- Tap on the Savings tile.
- Click on “Parent-Paid Interest” within the Savings Boosts section of the page.
- From this page, enter what percent interest rate you'd like to set for your child to earn.
- Tap “Save” to complete the set-up process.
If there is not enough money in your Parent's Wallet to cover a Parent-Paid Interest payment, 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.