Go2Bank Review – A Top Digital Banking Option
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Fast Facts
Availability:
Online-only
APY:
4.50% on upto $5,000
Account opening deposit:
$20 to $500
Monthly fees:
$5; waivable
Out-of-network ATM withdrawal fees
$3 per transaction
When I got my first bank account, it was the same financial institution where my parents banked. That was useful when I lived in Indianapolis; however, when I moved to Chicago after graduating college, I quickly realized that the branches where I banked were few and far between. I had to start evaluating new solutions for my checking and savings accounts, and as part of that research, I weighed the pros and cons of digital bank accounts.
While there are some scenarios where it’s nice to go to a physical branch to handle the banking business, for the most part, an account at a brick-and-mortar bank is no longer necessary. Mobile-first banks, which can be fully managed on your smartphone or via the internet, have risen in popularity in recent years—often offering competitive annual percentage yield (APY) rates in high-yield savings accounts and checking accounts.
Whether or not you’re comfortable with a digital bank often depends on the features and conveniences you look for from a bank. For example, if you are fine using your mobile device for check cashing and can make ATM withdrawals from an ATM that isn’t attached to a physical bank branch, you may not miss much from switching to a bank built around a mobile app.
If you’re considering online banks, you’ve likely come across Go2Bank, an option with many features and perks. Keep reading to learn more about the ins and outs of mobile banking with a Go2Bank account to see whether it makes sense for you and your finances.
Jump To
What is Go2Bank?
Go2Bank is a digital banking alternative offered by Green Dot, a financial technology company with the distinction of being a registered bank holding company. Green Dot’s goal as a business is to make modern banking accessible for everyone, something they accomplish, in part, through Go2Bank, their flagship offering.
One way that Go2Bank makes banking more accessible is by letting customers create a bank account. While you can open a new account online via their website, you can also start an account with Go2Bank by picking up a Visa Go2Bank card at participating retailers to get things started.
Since Green Dot is a registered bank holding company, its digital accounts are FDIC-insured, so you can have peace of mind and great features when banking with Go2Bank. All told, Go2Bank can advertise over 20 years of innovation in the banking world and over 30 million customers the company has served.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
How does Go2Bank work?
Opening an account with Go2Bank is quite simple. You’ll start by navigating to their website, where you can activate your prepaid card (from a participating retailer) or click “open an account” to start banking online.
After you’ve clicked that button, you’ll start setting up your account. You’ll complete a quick CAPTCHA process and enter your email address before being prompted to enter some other personal information.
As you set up your account, you’ll want to include your first and last name as they appear on your ID. You’ll also be prompted to enter your mailing address and agree to the terms and conditions. Remember that your Go2Bank debit card will be sent to the address you enter. You’ll then add and verify your mobile phone number. After completing the registration process, you’ll be on your way to getting started banking with Go2Bank. It’s a good idea to familiarize yourself with the app after registering your account.
How much does Go2Bank cost?
One nice thing about Go2Bank is that you don’t have to worry too much about fees. You don't need to think twice about fees if eligible direct deposits are made to your Go2Bank account monthly. Go2Bank’s website states, "$0 whenever you receive a payroll or government benefits direct deposit in the previous monthly statement period.”
Of course, if you don’t qualify for that, there is an annual fee in the form of a $5 monthly fee. You also need to be able to deposit $20 to $500 to open an account in the first place. Plus, if you use the bank card to activate your account, you may pay up to $2.95 as a one-time convenience.
Other potential fees with Go2Bank
A great reason to bank with Go2Bank is how transparent their pricing is regarding various banking fees. The bank isn’t completely fee-free but is pretty clear about what you can expect to pay a fee for. The Simple Fees page of their website outlines all the possible fees you may encounter when banking with them. Some of the most common fees you may run into include:
- Up to $4.95 retail service fee for cash deposits
- 3% of the amount transferred (min of $2.00) added to the transfer amount when transferring from a linked debit card
- 1% or 5% of the check amount for almost instantaneous access to check funds, depending on check type. (There is a $5 minimum fee per check for this service; however, you’ll pay $0 if you can wait for your money to appear in up to 10 business days)
- $3 per transaction for out-of-network ATM withdrawal
- 3% foreign transaction fee
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Go2Bank features
As mentioned earlier, Go2Bank has various features that make it a popular digital banking option. Here’s a quick rundown of some of the most popular features with a Go2Bank account.
Access pay early
One high-level feature that may appeal to you is that Go2Bank lets you access your pay up to two days early. When you sign up for their ASAP Direct Deposit feature, you’ll get your payday up to two days early and any government benefits regularly deposited to your account up to four days early.
Overdraft protection
Once you’re set up to receive direct deposits, you’re automatically eligible for overdraft protection. After you’ve opted into Go2Bank’s overdraft coverage, you will have up to $200 with no overdraft fee whatsoever—as long as you bring your balance back to at least $0 within 24 hours.
Mobile app
Go2Bank’s app is more than just convenient; it’s also the best way to maximize the value you’re getting from your account. For example, whenever you buy eGift cards using the Go2Bank mobile app, you’ll automatically qualify for 7% cash back, while earning 2% cash back for any Amazon eGift cards you purchase. The app is also your one-stop shop for locating free ATMs nearby and checking deposits and cash deposits at participating national retailers.
Savings account
A benefit of Go2Bank for savings accounts (which the company calls a “vault”) is that they let you start saving with no minimum balance required. They advertise an APY at 10 times the national average for savings account interest rates. According to their website, you’ll earn “4.50% APY on savings, paid quarterly on balances up to $5,000” with a Go2Bank savings account.
Banking security
Even though Go2Bank is a digital-only bank, there are still plenty of features in the world of security to protect your bank account and debit card. In addition to offering fraud alerts on your account, Go2Bank gives its customers a chip-enabled Visa card that can be locked and unlocked to prevent purchases with just a few taps via the app.
Options to build credit
Looking to improve your credit score after a credit check came back less-than-favorable? Go2Bank can help out through its Go2Bank Secured Visa Credit Card. A secured credit card lets you set your credit limit using a security deposit for as little as $100. No credit check is required, and no maintenance fees are charged either. This allows you to build your credit and improve your score gradually.
Who is Go2Bank best for?
Employees paid with direct deposit
If you receive direct deposit pay each month, Go2Bank is a great digital banking option. It has lots of ways to deposit and access your cash, and with direct deposit, you won’t need to worry about a $5 monthly fee for account maintenance.
Digital nomads
The digital nomad lifestyle has gained popularity in recent years, partly because of the work-from-home revolution and more freelancing opportunities through platforms like Fiverr and Upwork. While you will need a mailing address to set up your Go2Bank account if you frequently travel (or travel for work) and don’t want to worry about finding a bank branch in the city you’re staying in for the week, Go2Bank is an excellent banking option.
Who shouldn’t use Go2Bank?
High-value savers
Go2Bank.com offers a comparatively generous 4.50% APY on its savings vault accounts; however, if you want to earn the most, you’ll want to find a bank that offers high-yield savings without a $5,000 account cap.
Employees without direct deposit
While a $5 fee for banking services as robust as Go2Bank is certainly reasonable, plenty of other digital banking options don’t charge a fee. As such, you should only use Go2Bank if you know you can get the $5 monthly fee waived through qualifying direct deposits each month.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Pros and cons
Pros
- High APY for savings accounts. Interest rates for savings accounts aren’t typically very high these days, so Go2Bank’s 4.50% APY is quite a selling point.
- Easy-to-use mobile app. A digital bank should have a good app, and Go2Bank’s mobile app is intuitive and full of clearly laid out and self-explanatory features.
- Big network of ATMs and participating retailers. Some mobile banking options struggle with offering enough options for making withdrawals. Go2Bank is not one of those banks, thanks to its presence within a large network of ATMs and retail locations.
Cons
- High APY is capped at $5,000. It’s great that Go2Bank offers a solid APY rate; however, you can only earn that 4.50% on a total of $5,000 in savings.
- Monthly fee if no direct deposit. If you’re using Go2Bank for a secondary bank account, you may not want to have direct deposit set up for it. Some people are paid with cash or check and wouldn’t qualify for direct deposit.
- Can’t transfer to other banks. Go2Bank doesn’t make it easy to transfer money to other bank accounts, so if you bank with other institutions, you will have to jump through a few hoops to get your money from one bank to the other.
Go2Bank vs. competitors
Bank | Monthly Fee | Savings APY | Overdraft Coverage | Early paycheck access |
Go2Bank | $5 (waived with direct deposit) | 4.50% on up to $5,000 | $10-$200 (depending on direct deposit) | Yes |
Green Dot Bank Card | $0 | N/A | N/A | N/A |
Chime | $0 | 2.00% | Up to $200 | Yes |
Go2Bank
Compared to Chime, Go2Bank has a higher savings APY, although you’ll need to set up direct deposit to qualify for a $0 monthly fee and overdraft coverage. Go2Bank and Chime offer access to your pay up to two days early. Go2Bank is a subsidiary of Green Dot; however, Green Dot does offer an FDIC-insured pre-paid debit card with a value of up to $1,000. While that isn’t a robust banking option, it can still be worth considering if you are trying to access banking features but don’t need physical checks.
Green Dot Bank Card
Regarding a bank account, the Green Dot Bank Card accomplishes many of the same things you can do with a regular debit card. While that is great and will appeal to certain individuals, it must be said that a pre-paid debit card (even one that is FDIC-insured) is in no way the same as a fully-featured mobile bank account. If you’re interested in Green Dot, look at Go2Bank, the financial tech company’s mobile banking option.
Chime
Chime is more appealing in some ways than Go2Bank, but only if you don’t plan on saving. Go2Bank has an APY that is twice as high as what Chime offers. Both platforms are similar in accessing pay early, overdraft protection, and monthly fees. Ultimately, you’ll need to determine how often you’ll qualify for direct deposit as you determine whether Go2Bank or Chime is a better online banking solution for your needs.
FAQs
Is my Go2Bank account FDIC-insured?
Yes. As Green Dot is a registered bank holding company, your bank account and money are insured via the FDIC. Your bank account value is not at risk if the company goes bankrupt.
How do you qualify for overdraft protection?
You will automatically receive basic overdraft protection coverage if you are enrolled in direct deposit. If you want more overdraft protection for your Go2Bank account, you’ll need to opt into coverage and receive at least $200 or more in direct deposits every 35 days. Depending on how much you are receiving via direct deposit, your overdraft protection will range from $10 to $200 in protection.
Where can you deposit cash in person?
Go2Bank lets you use your card at participating retailers, where you can go to deposit cash. Just a few of the businesses where you can deposit cash include familiar places like 7-Eleven, ACE Cash Express, CVS Pharmacy, Dollar General, Family Dollar, Kroger, Rite Aid, Walgreens, and Walmart. This is particularly convenient if you travel a lot or don’t live near a specific bank branch you want to bank with.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
The bottom line
When it comes to digital banking options, Go2Bank is a top-tier option. Thanks to its easy-to-use mobile app, transparent fee structure, and ways to eliminate other fees through simple steps like setting up direct deposit each month, Go2Bank makes mobile banking accessible without sacrificing the kinds of features you’d be interested in other brick-and-mortar banks.
Especially if you travel a lot or are trying to maximize a savings account of $5,000 or less, you’ll appreciate how simple Go2Bank makes online banking. On the other hand, if you don’t have direct deposit or are primarily interested in Go2Bank as a secondary banking institution, you may want to look at other options and weigh their pros and cons carefully.
Even so, for its convenience—thanks to retail locations where you can quickly deposit cash and a large free ATM network—and clearly explained terms and conditions, Go2Bank is a great online banking option. The fact that its parent company, Green Dot, is FDIC-insured is just the icing on the cake.
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Writer
Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.
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