Step is a fintech banking app for parents/teens. With a monthly (per 30 days) direct deposit of $500 or more, Step saving account earns 5% APY on up to $250k. If you earn 600 or more, they will send a 1099-MISC form for tax purposes. Anyway, if you want to increase the FDIC coverage and APY limit from $250k limit to $1 million, you can get Step’s Black Card for a $99 annual fee.
But wait, there is more, Step’s Black Card also comes with “over $250 annual perks and credits”, a higher cashback rate, and a metal card. See the screengrab below for details.
To reiterate the “over $250 annual credit” includes:
- $100 in ClassPass credits for new ClassPass users 🏃♂️
- 8x points and a $25 annual credit to dine at inKind partners, from Michelin-star restaurants to cozy cafes 🍽️
- 8x points and a $25 annual credit at Fanimal, where you can score tickets to your favorite live events 🎟️
- 5x points and a $45 annual credit at WORN for comfortable, high-performance socks 🧦
- 5x points and a $50 annual credit at Alexandra Organic for cruelty-free skincare and haircare 💇♀️
- $5 credit at Grubhub for your food needs, delivered 🚚
- $5 credit at Starbucks for your next caffeine fix ☕
You might think getting all of that for $99 isn’t too terrible. It could have been better but you think this isn’t bad because you are willing to try some of these brands you have never heard of.
But then you join (to my knowledge the following information isn’t available until you join) and realize the credits are harder to claim than you might have expected. For example, the Grubhub and Starbucks credit expires within a month. Alexandar Organic appears to be a $10 rebate on $45+ purchases (max rebate $50/year). WORN is a $15 rebate for a purchase of $65+ (max rebate $45/year).
Closing Thoughts
The 5% APY is nice, but an actual FDIC-insured bank provides 5%+ APY on up to $250k. One Finance, another fintech, also provides 5% APY. PrizePool, with a paid $99 membership, offers a minimum of 4.25% APY on up to $500k FDIC-insured balance.
So, in short, not worth it. But I find their choice of not having numbers on the card to be interesting.
Oh, and the app has a $1 referral.
P.S. Step card is neither a debit nor a credit card. It is a secure card.
