Step Banking App Review [Build Credit for Teens]

I’ve written for years about how parents who want to help their children develop sound financial management skills should consider a debit card. That still holds true, but from time to time, you find an exception to the rule—and in this case, the exception is a credit card.

And surprisingly, it’s a credit card that can be useful to adult cardholders, too.

Step Banking—and its secured credit card, the Step Card—is similar to many of my favorite debit cards for kids in that it not only allows kids to spend, but it acts as an educational tool that teaches kids how to use their money responsibly. Step also has parental controls that I covet, such as helping parents track spending activity so they can always be on top of their kids’ card purchases.

But the Step Card also has several aces in the hole that can help kids, teens, and adults alike:

• It can act as a high-yield savings account.
• It can help you invest for free.
• It can even build your credit.

And as you’ll find out in my Step Review, it does a whole lot more, too. So read on as I walk you through the main features of this debit card-esque secured credit card, explore the various pros and cons of the service, explain how to open a Step Card, and compare it to some of its closest competitors.

Let’s dive in.

What Is Step Banking?

---

Step Banking bills itself as the “next generation” of banking. And given that it offers a collection of services that are difficult to access all at once through traditional banks, it’s a fair claim.

Step’s original thrust was heavily skewed toward children and teens—an underserved niche. For the longest time, parents either had to add their kids to their existing bank accounts or let them go unbanked. But Step combined traditional banking functions with many features that kids and their parents want.

For instance, with a few taps on a smartphone (or computer), teens can check their balances, deposit their paychecks, transfer funds between each other or with friends or family. And parents can make sure their children are spending smartly by receiving real-time alerts and notifications on stuff their kids buy.

But these and many other Step features also make sense for adult cardholders. Realizing this, the fintech company has expanded its offerings over the past few years to widen its card’s potential reach to users of virtually all ages.

Related: 9 Best Credit Cards for No Credit History [Starter Credit Cards]

The Step Review: Overview

---

Step Banking offers a secured Visa credit card and an FDIC-insured account with banking services provided by Evolve Bank & Trust—both of which are managed from the Step app.

However, while Step’s card is technically a secured credit card, it functions much like a prepaid Visa debit card—all while offering features you’d find from other types of accounts, including saving and investing.

The Step Review: Step Banking Features

---

Step earns a high rating from WealthUp (more on that in a minute) because of its wide array of features. Indeed, rather than thinking about Step as a credit card or a bank account, it’s easier to think of Step as a financial Swiss army knife, providing solutions for numerous needs.

For instance …

The Step Card

---

The Step Card itself is a Visa-branded secured credit card, which means you can use it anywhere Visa is accepted. At the moment, that’s some 44 million merchant locations across more than 200 countries and territories, so it’s easier to just say you can use it virtually anywhere credit cards are accepted.

But the Step Card acts more like a prepaid debit card in that you can only spend whatever funds are in your account. You can fund your Step Account through a number of avenues, including directly linking to another bank account; to a debit card from another bank account; or to payment apps like PayPal, Venmo, and Cash App. You can also have an employer directly deposit funds, or you can even deposit cash from 70,000-plus retail locations.

The card also allows you to withdraw money fee-free from Step’s network of 30,000-plus ATMs. (But I will point out that you can’t use those ATMs to fund the card.)

Building Credit

---

The feature that stands out most about Step is its ability to build credit.

To be clear: You can build a positive credit history with virtually all secured credit cards. But Step stands out because it works differently, it has a laundry list of features most other cards don’t have, and it’s the only such card available for users under age 18.

That last point is what has made Step so popular among teens.

When a parent sponsors a card for their teen, they can opt to have Step report the past two years’ worth of information—transactions, payment history, and more—to the credit bureaus when their child turns 18. Credit scores are assigned once someone turns 18, and most teens will begin with a score of under 600. But based on a Step survey, 18-year-olds who used Step for at least seven months had an average credit score of 725.

That’s a massive difference that can mean easier access to (and lower financing rates on) everything from car insurance to apartment security deposits to student loans.

What’s appealing to people of all ages is how Step actually functions when it builds your credit. Like I said: Step Card is a secured credit card, which means it’s processed just like a credit card. However, money is withdrawn directly from your Step account, more akin to a prepaid debit card.

In other words, parents can add money to their child’s Step account and never fear them overdrafting their account. And adults can also build credit through the Step Card without risking missing payments or getting hit with interest charges.

Savings Goals

---

Step encourages users to save with the Savings Goals feature. This effectively acts like a savings account, but it allows you to specify several Goals—say, one Goal is saving for a car down payment, and another is saving for a laptop. You can then determine how much you want to save toward (and control the flow of money into) each of those Goals.

Better still? Users earn 5% annually—compounded and paid monthly—on up to $250,000 saved in their Savings Goals. Like with your average savings account, Step’s savings yield can change depending on movements in the Federal Funds Rate, but if that happens, Step will give you 30 days’ notice before it happens.

Users must have direct deposits of at least $500 per month to qualify. The benefit lasts for as long as the direct deposits continue. (By the way, setting up direct deposits earns you other perks, including getting paid up to two days early, and earning bonus points on food delivery, dining, charitable donations, and some merchants, as well as Other perks of setting up direct deposits include bonus points on food delivery, dining, charitable donations, and some merchants.)

Savings Roundup

---

Step actually has another way you can accelerate your savings: Savings Roundup.

With this feature, purchases are rounded up to the nearest dollar and the extra amount is added to the designated Savings Goal. For example, if you buy a fast-food meal for $8.75, Step would round the purchase up to $9.00 and add the extra 25 cents toward a Savings Goal.

Investing

---

Step enables its users to invest in stocks, exchange-traded funds (ETFs), and cryptocurrencies—and it offers fractional shares, so you can invest with as little as $1. (Teens need the assistance of a parent or legal guardian to open a stock account, crypto account, or both.)

Users have to open investing-specific accounts within Step to access these assets. Within the Step stock account, you get access to more than 1,000 “popular” stocks and ETFs. On the one hand, that’s a wide range of options that should be plenty for a beginner investor. But I’ll tell you that’s thousands of stocks and ETFs shy of the entire investible U.S. market—in other words, you might come across stocks and funds you want to invest in that you can’t with Step. So if investing is your main concern, and you want access to a fuller range, you might want to consider more specialized investment apps.

The crypto account is even more limited. It allows you to buy Bitcoin, and nothing more. Also, you can’t spend Bitcoin directly at vendors, and this isn’t a pure crypto wallet.

Apple Pay / Google Pay Compatibility

---

Step Banking is in itself a wide-ranging financial app, but it also plays nice with popular digital wallets. Specifically, you can add your virtual Step Card to Apple Pay or Google Pay. (One tiny feature that I love: You can even add your card to these wallets before your physical card arrives. Not an important feature, but I think it’s a nice touch.)

Instant Transfers (Send + Receive Money from Other Step Apps/Members)

---

Technically, the instant transfer capability refers to Step’s feature allowing you to immediately send money to (and receive money from) other Step account users. It’s pretty simple. You can literally just tap Send, enter a friend’s name or phone number, punch in the amount you want to send, then tap a couple more times to finish the transaction. And like with many payment apps, you can send a note along with the transfer so the recipient knows what the money is for.

This also applies to parent-managed accounts. Let’s say your child is too young to have a job or your teen is too busy to go with you to the bank, you can instantly send them money through the app.

However, you can also fund your Step Card instantly if you’ve linked a debit card from another bank account. (If you link directly to a bank account, or other payment apps, funds will arrive in one to three business days.)

Parental Controls and Monitoring

---

Parents or guardians (called “Sponsors” by Step) have a couple ways to keep tabs on or protect their children from the app:

• Monitor spending
• Freeze the Step Card

Withdrawals

---

As I mentioned earlier, users can withdraw money from Step’s network of 30,000+ ATMs, and they can do so fee-free. Step caps ATM withdrawals at $250 within a 24-hour period, and $1,000 within a 30-day period.

Direct Deposit

---

One of the best features on here for both teens and adults is direct deposit. Adults will enjoy knowing that they can directly deposit their paychecks into their Step account, just like they would a traditional bank account. Parents will love knowing that paychecks are going directly into their teen’s account, where they can monitor the spending.

Allowance and Recurring Payments

---

Parents can set up one-time allowance payments for their kids, or automate it by setting up weekly recurring payments. (And if your child has done extra work or slacked off, you can adjust allowance higher or lower.)

Seamless Transition to Adulthood

---

Step also provides a seamless experience for teens who “graduate” into young adulthood. When they turn 18, Step allows cardholders to keep their old credit card number and account, doing the legal heavy lifting in the background to get them appointed as the legal owner of their account, and transitioning them to an independent account. Everything—from how they access the app to their account numbers to their investments—stays the same from their perspective, and Step continues reporting credit on the same “credit line,” which allows them to keep building their credit history.

Security

---

The Step Card comes protected by Visa’s Fraud Protection and Zero liability guarantee. So if your card (or your teen’s card) gets lost, stolen, or misplaced, and fraudulent charges crop up, you can dispute the charges within a certain time frame to avoid liability for paying.

And remember: If you’re worried the card is lost, you can also freeze it right from the app until you’ve found it or determine you need to order a replacement.

How to Open a Step Bank Account and Debit Card for Teens

---

Opening a Step card account is quick and easy.

1. Visit the Step homepage and click the “Get Started” button in the top right.
2. Enter your phone number.
3. Step will send you a link to your mobile device to download and install the app.
4. Install the app either from the iOS App Store or Google Play Store (depending on your mobile device)
5. Launch the app and Click “Sign Up.”
6. Create a username and password, customize your card if desired, and enter your address to receive the card by mail.
7. Once your account is verified, you can create a virtual Step card, which can be used online instantly. If you want a physical card to use in stores, you can order that as well. The physical card should arrive within 14 to 21 business days (though it can arrive sooner). When I ordered the card to review it, I received it in roughly two weeks.

Is Step a Good First Bank Account for Teens?

---

The Step App was designed to help teenagers learn about personal finance, banking, investing, and credit. So if you’re a parent who is looking for a way to teach your teen money management, or the basics of credit card usage, I would recommend a Step card.

If you’d like more nuanced parental controls as well as integrated allowance and chore app functionality, I think alternatives, such as the Greenlight card, give you more options. While Greenlight’s prepaid card for kids comes with a flat monthly fee, it comes with added security and parental controls and covers up to five kids.

Likewise, you might consider other prepaid cards, such as Acorns Early, FamZoo, and Current—all of which incorporate allowance and chore management, have spending controls and limits, as well as real-time notifications.

However, for the price you pay (that is, nothing—Step has no monthly fees), Step is an excellent way to help your teen begin banking, build credit, and build a solid money management knowledge base.

What Other Debit Cards for Teens Should I Consider?

If you’re looking for a card for your teen or child, and you’re not sure Step is the solution, I’ve compiled a list of the best debit cards for teens that should work for your needs below. Look at each and compare which one makes the most sense for your needs.

1. Greenlight (Best-Rated Debit Card for Teens)

---

• Available: Sign up here
• Price: Core: $5.99/mo. Max: $9.98/mo. Infinity: $14.98/mo. (All plans include cards for up to 5 children)

The Greenlight debit card allows kids to begin spending, but provides parents with peace of mind by giving them control over where their kids can spend money. Parents also can choose to receive alerts that tell them when, and how much, money is spent on the Greenlight debit card.

Greenlight works like a prepaid debit card, allowing you to transfer money onto the card for your child to pay for expenses at approved locations. You can choose how much money to load onto the card, and your child will be cleared to make approved purchases so long as a money balance backs up the card.

If your child asks for extra money to get added to the card, you can have them take a photo of the purchase they want to make and receive your approval. This gives you control and allows you to have discussions with your child about why a purchase might be a good or bad idea. And if your child has a job, they can add their own funds to the card via direct deposit.

The Greenlight debit card is a good choice for parents looking to teach their kids the importance of saving money and making prudent financial decisions. This financial product can be an effective learning tool for helping kids to understand why saving should be a priority and how to simplify paying an allowance or tracking chores. 

Greenlight boasts numerous other features, too.

For instance, parents can open an investment account for kids to get their children investing in stocks and exchange-traded funds (ETFs) for the first time.

Greenlight offers monthly savings rewards based on your tier, listed in the box below. You may also set up “Parent-Paid Interest” between you and your child, which allows you to foot the bill and pay interest on accounts for up to five kids.

Any Greenlight subscription also lets users qualify for the cash-back Family Cash Card. Parents can add their teenagers as authorized users to this Mastercard help them learn how credit cards function and establish a credit history. This credit card offers the following cash-back rewards:

• 3% cash back when you spend at least $4,000 in a billing cycle
• 2% cash back when you spend at least $1,000 (but less than $4,000) in a billing cycle
• 1% cash back when you spend less than $1,000 in a billing cycle

There is no limit to the cash back that can be earned, and users can also auto-invest the cash-back rewards.

Each monthly Greenlight subscription includes debit cards for up to five kids. Replacement cards cost $3.50 each but are free the first time. If you need to replace your card quickly, you can get express delivery for $24.99. The company also offers a personalized card, with your own photo or design, for $9.99. Greenlight has no minimum age requirements for this card, but recommends starting at age 6 or older.

The Greenlight debit card is a good choice for parents looking to teach their kids the importance of saving money and making prudent financial decisions. This financial product can be an effective learning tool for helping kids to understand why saving should be a priority and how to simplify paying an allowance or tracking chores.

Read more in our Greenlight card review or sign up today.

Related: 9 Best Credit Cards for Students with No Credit [Building Credit]

2. Chase First Banking (Best Free Debit Card for Kids and Teens)

---

• Available: Sign up here
• Price: Free (no monthly fees)

Ready to teach your little ones about money, but not quite sure if you have the time, patience and expertise?

Chase First Banking^℠ offers simple banking for both of you in one location: the Chase Mobile^® App—for free. Manage all accounts with this mobile app and encounter no fees as well as find yourself able to withdraw money on 16,000 Chase ATMs around the country. The account is designed with kids 6-12 in mind, and available for ages 6-17.

At the heart of Chase First Banking^℠ sits one of the best free debit cards for kids and teens that works anywhere Visa is accepted.

Need insight and oversight into your child’s spending and saving? You can set spend alerts and limits as well as specific locations all in your Chase Mobile^® app.

Teach your kids to spend, save and earn — all from the Chase Mobile^® app. Chase First Banking^℠ helps parents teach teens and kids about money by giving parents the control they want and kids the freedom they need to learn.

To get started, you’ll first need to be a Chase customer with a qualifying Chase checking account.

Consider opening a Chase Total Checking^℠ or Chase Secure Banking^℠ account to qualify.

• Chase Total Checking^℠ also grants access to more than 15,000 Chase ATMs and more than 4,700 branches. You can pay $0 in monthly fees, subject to meeting certain conditions.* And if you set up direct deposit within 90 days of coupon enrollment, you can earn a $300 sign-up bonus!
• Chase Secure Banking^℠ offers the same Chase ATMs and branch locations as well as a $100 sign-up bonus when you make stated qualifying activities and meet certain conditions.

Once you open a qualifying Chase Checking account, you may apply for a Chase First Banking^℠ account for your child.

Read more in our Chase First Banking review.

Related: 4 Best Ways to Save Money for Kids [Children’s Savings Plans]

3. Acorns Early / GoHenry (Best for Customer Service)

---

• Available: Sign up here
• Price: Acorns Early: $5/mo. for 1 child. $10/mo. for 2-4 children. Acorns Gold: $12/mo., includes Acorns Early for up to 4 children.

A longtime player in the kids’ debit card/financial app space has a new name and a new face: GoHenry, which was acquired in 2023 by Acorns, has officially become Acorns Early.

Many reviewers have long painted Acorns Early/GoHenry as just a way to spend. However, I see it as a real financial solution for minors—a debit card, yes, but also an app-based ecosphere that provides education and experience for the child, as well as ways for parents to keep their kids safe and teach them responsibility.

When you open an Acorns Early account, each child receives an Acorns Early Mastercard debit card that can be used anywhere Mastercard is accepted (so, millions of vendors). Not only can kids spend online and in stores, but they can also use their Acorns Early debit card to withdraw cash from ATMs. The standard Acorns Early debit card itself is included in the monthly subscription. However, your child can also choose to stylize their card with one of 35 different designs—most designs require a $5 one-time fee, though certain “limited edition” designs will be $6.

An Acorns Early account also allows kids to set savings goals, which they can fund manually or via autosave. And it also hosts educational materials to help children and teens alike develop good money habits. One of the more impressive aspects of the program is that it’s explicitly segmented into different age groups, starting with money basics for kids in single-digit ages, then becoming more advanced over time, so the lessons really appear to grow as your children do.

This FDIC-insured account also enjoys a variety of safety features, including chip and PIN protection, secure PIN recovery, and Mastercard’s Zero Liability Protection, which means your child won’t be liable for fraudulent purchases as long as they take care in protecting your card from theft and you promptly report any fraudulent activity.

Acorns Early also offers parents additional peace of mind by providing a number of controls, including:

• Real-time spending notifications
• Card lock/unlock
• Savings goal lock/unlock
• Adjustable spending limits on a per-transaction and per-week basis
• Card category block/unblock for in-store purchases, online purchases, and ATM withdrawals
• Adjustable spending block/unblock at stores that sell age-restricted goods such as firearms and alcohol

Also, kids can only spend whatever money is available on the card because it’s a prepaid debit card. That means parents don’t have to worry about costly overdraft fees or their kids running up a debt.

Acorns Early offers a number of ways to fund the account. Parents, of course, can send money in a pinch whenever they want with instant transfers. They can also set up a regular allowance, or tie payment to chores. (And parents get to approve chores before they pay out—no half-done dishes allowed.) Teens can also receive ACH deposits from their employers. And loved ones can either get “relative accounts” that allow them to send money to your kids, or they can send money via Acorns Early “Giftlinks,” which act similarly to an e-gift card.

GoHenry really stuck out to us as one of the best prepaid debit cards for kids because of its outstanding customer service. Good news there: Acorns Early users should expect a similarly high level of customer support, including seven-day-a-week phone service from 5 a.m. to 7 p.m. PT, as well as 24/7 live chat support.

Parents have two ways of signing up for Acorns Early: 

1. Signing up for an Acorns Early account for either one or two to four children.
2. Signing up for Acorns Gold. Not only does a subscription come with a free Acorns Early account for up to four children, but you can also open an Acorns Early Invest account—a custodial account that allows you to invest for your kids’ future.

Acorns Early has no minimum age requirements but recommends starting at age 6 or older. Learn more in our Acorns Early review.

A note for current GoHenry users: For now, your app, features, and cards will continue to work as normal. However, if you want all of the latest features, you’ll need to download the Acorns Early app from the iOS App Store or Google Play. 

Related: GoHenry vs. Greenlight

4. Copper Card (Best Debit Card for Kid Independence)

---

• Available: Sign up here
• Price: 30 days free. Copper: $4.95/mo. Copper + Invest: $7.95/mo.

Copper Banking was founded on the belief that kids and teens should have equal access to financial education and should be empowered to learn by doing. Now, the company is on a mission to help children gain real-world experience by giving them access to their money in a way that traditional banks can’t.

The Copper app and debit card teaches your child how to make smart financial decisions by creating a platform where parents and their kids can connect. With the Copper app, you get easy snapshots of your accounts. And with the Copper Debit Card, it’s easy to shop in-store or online, including with Apple Pay or Google Pay.

Plus, users get exclusive access to engaging advice curated by a team of financial literacy experts who provide tips on how to take control of their financial future.

Copper features

When I reviewed the Copper banking product, I found the following features to be most important:

• Send/Request: Kids and parents can easily send and receive money all at the touch of a button.
• Spend: Spend using Apple or Google Pay, or using the Copper Debit Card.
• Withdraw: Access your money from more than 55,000 fee-free ATMs.
• Monitor: Get a snapshot of all your child’s spending in an easy-to-read dashboard.
• Save: Gain quick snapshots of your kid’s savings and helpful tips on how to save even more. Set up savings buckets and save for the things that you want.
• Learn: With the help of Copper’s team of financial literacy experts, gain bite-sized tips on how you can maximize your money and prepare yourself for your financial future.

The basic Copper account includes the above banking features. With Copper + Invest, your child also gets access to automatically curated smart portfolios built with their preferences in mind. (We like the guardrails they provide to get your child started with investing.) Your child is given a questionnaire that helps Copper determine a portfolio based on their age, income, net worth, investment objective(s) and investment horizon. Copper then recommends one of three ETF portfolios—Moderately Aggressive, Aggressive, and Extra Aggressive—made up of thousands of stocks. Parents can review the portfolio to ensure it matches with not just your child’s preferences, but your family’s. (Portfolios can be changed later on by accessing the Support chat.)

Much like many other apps I’ve reviewed on WealthUp, your child doesn’t need much money to begin their investing journey with Copper. They can begin investing for as little as $1, then add more contributions down the road. Copper will automatically rebalance the portfolio as needed to make sure it always keeps up with your child’s investment preferences.

Copper is available to kids 6 years and older.

Read more in our Copper Banking review.

Related: 13 Best Money Apps for Teens [Invest, Spend, Budget + Pay]

Is the Step Banking and Checking Account Safe?

Step App employs several industry standards and best practices when it comes to safety. The most relevant items to know:

1. Step card accounts are FDIC-insured for up to $250,000 per individual through banking services provided by Evolve Bank & Trust. This partner bank has FDIC coverage, which protects any balance held on your cards from risk of failure of Step or Evolve Bank & Trust. FDIC coverage works for all accounts held at a financial institution by the primary owner.
2. Step card comes with an EMV chip and parent-controlled PIN.
3. Step card uses industry-best encryption practices as well as firewalls and VPNs to protect your private data.

If you lose your card, you have the ability to turn off that card with a tap on your Parent Account. Likewise, the Step card comes with Visa’s Zero Liability Policy. This is the industry standard $0.00 of liability if your physical card gets lost or stolen, someone gains unauthorized access to your virtual card number or fraudulently makes an unauthorized transfer from your card account.

However, to claim this liability waiver, you need to act fast by contacting customer service through the app within two business days. You also must exercise reasonable care in safeguarding your card from loss, theft or unauthorized use.

How Does Step Make Money?

---

Traditional banks make money from charging you fees, lending your deposits or performing other non-interest bearing services. Step, as a financial technology company and not a bank, makes money by collecting a portion of the interchange fees paid by the ‘merchant bank’ facilitating the transactions made with the card.

When you use your card, the network processing your transactions made on your card will collect a fee. Step gets a percentage of those interchange fees. This means that the Step app does not have to charge traditional fees and you can enjoy the savings.

How Does Step Compare to Other Kids’ Debit Cards?

---

If you’re interested in seeing how Step compares to other popular kids debit cards, we’ve got several head-to-head comparison articles that shows how they stack up.

• Step vs. Copper
• Step vs. Greenlight
• Step vs. Acorns Early (Formerly GoHenry)
• Step vs. BusyKid
• Step vs. Jassby
• Step vs. Current
• Step vs. Axos First Checking

And lastly, if you need more options, we have an in-depth list of the best Step alternatives.

Related:

• Chase First Banking Account and Debit Card for Kids Review
• Axos First Checking Account Review [Free Checking + Debit Card]
• 30 Best Side Hustles for Teens [In-Person + Online]

---

Step Disclaimer

Disclaimer: Step is a trademark of Step Mobile, Inc.

Chase Disclaimer

* Chase Total Checking charges a $12 monthly service fee. However, that fee may be waived with one of the following, each monthly statement period: 1.) Electronic deposits made into this account totaling $500 or more, such as payments from payroll providers or government benefit providers, by using (i) the ACH network, (ii) the Real Time Payment or FedNow℠ network, (iii) third-party services that facilitate payments to your debit card using the Visa® or Mastercard® network, OR a balance at the beginning of each day of $1,500 or more in this account, OR an average beginning day balance of $5,000 or more in any combination of this account and linked qualifying Chase checking, savings, and other balances.