What is Parent-Paid Interest? How do I set it up?

Parent-Paid Interest is a customizable interest rate that you — the Primary Accountholder — set for your child’s savings. It’s a great way to teach the value of saving and show how money can grow over time!

You decide the annual interest rate (anywhere from 1- 1,000%), and the interest is paid from your Greenlight Wallet each month. The amount is calculated based on your child’s average daily balance from the previous month across their Total Savings — which includes both General Savings and Savings Goals.

Parent-Paid Interest is paid out on the 1st of every month and comes directly from your Greenlight Wallet.

Depending on your plan, your child may also earn up to 6% in Greenlight Savings Reward, paid by Greenlight. Learn more here!

How to set up Parent-Paid Interest:

1. Select your child’s dashboard 
2. Tap the “Saving” tile
3. Tap the “Parent-Paid Interest” tile
4. Enter the annual interest rate you’d like your child to earn (1–1,000%)
   • You can also toggle on “Autofunding” to make sure there’s always enough money in your Greenlight Wallet to cover your Parent-Paid Interest. Read more on autofunding here!
5. Tap "Save interest rate"

What if there aren’t enough funds in my Greenlight Wallet?

If there’s not enough money in your Greenlight Wallet when it’s time to pay out the Parent-Paid Interest, you’ll receive a notification to let you know. The Parent-Paid Interest will be paused until you add funds to cover the payment.

*Greenlight Core families can earn 2% per annum, Greenlight Max families can earn 3% per annum, Greenlight Infinity families can earn 5% per annum, and Greenlight Family Shield families can earn 6% per annum on an average daily savings balance of up to $5,000 per family. To qualify, the Primary Account must be in Good Standing and have a verified ACH funding account. See Greenlight Terms of Service for details. Subject to change at any time.