Copper Banking Review 2024

Copper is a banking app and money management platform designed for kids and teens. The Copper app and prepaid debit card allow users to practice their money management skills with less risk and with the help of educational resources and parental guidance. The goal is to increase financial literacy and encourage kids to adopt responsible habits.

Copper is a fintech company, not a traditional bank. There are no physical branches and users can do everything through the mobile app, which is powered by SynapseFi. Deposits with Copper are FDIC-insured up to $250,000 per depositor through Copper’s partner bank, Evolve Bank & Trust.

Copper is a financial services platform that allows parents to work together with their children to help them learn money management skills. Parents and kids see different versions of the app. Here’s how Copper works for both.

Parents

To get started, parents open a checking account through Copper, add their child as an authorized user and order them a debit card of their own. Parents can add up to five authorized users to their accounts.

From there, Copper gives parents a few ways to manage their kids’ accounts. Parental control options include real-time spending alerts to show where and how kids are spending money and card freeze capabilities to pause all activity.

To fund their child’s account, a parent can assign Tasks to be completed, schedule allowance payments and make one-time transfers at any time. To keep their own accounts funded, parents can link external bank accounts or payment transfer apps and make manual or automatic transfers.

Kids

All money in a child’s Copper account must be sent from a primary account controlled by a parent or guardian. Kids can only use as much as they have in their accounts. However, they have the freedom to spend, earn, transfer money, save and even invest with Copper.

• Spending. Kids can spend with their debit cards almost anywhere Mastercard is accepted, excluding automatically-blocked merchants deemed inappropriate by Copper. Users can spend or transfer up to $2,000 a day.
• Earning. Kids can complete Tasks assigned by their parents to earn money for their accounts. They may also receive automatic allowance payments from their parents and can fill out surveys to earn money from Copper. If they have a job, they can link direct deposits too.
• Transfers. Kids can request money from their parents and make P2P transfers with other Copper users.
• Saving. Kids can set savings goals for different purchases and enable RoundUps to have their debit card transactions rounded up to the nearest dollar and the extra saved automatically. Depending on the plan, accounts also earn interest at a rate of between 2.00% and 5.00% on savings goal balances up to $5,000. Rewards are paid monthly.
• Investing. Copper + Invest users can invest with as little as $1 in pre-built and managed portfolios of ETFs including over 11,000 stocks. Advisory is offered by Next Financial Advisors. Parents must set up and authorize investment accounts.

Copper offers two different subscription options.

• Copper: $4.95/month
  The basic Copper plan includes saving and allowance features as well as P2P transfer capabilities and debit cards for up to five subaccounts. This plan earns 2.00% interest on savings.
• Copper + Invest: $7.95/month
  The Copper + Invest plan includes everything in the basic plan as well as investing capabilities, priority customer support and 5.00% interest on savings.

For all accounts, Copper provides access to more than 55,000 fee-free Allpoint ATMs and has no overdraft fees. However, there are fees for some services including cash reloads (up to $4.95 each) and instant debit transfers (2.5% transaction total + $0.30).

To sign up for Copper, a parent over the age of 18 must first set up an account before authorizing their child. While the platform is ideal for teenagers, kids as young as six can become authorized users. Here are the steps for getting started.

1. Download the app. Register your phone number with the app. To use Copper, both parents and kids need access to smartphones with unique phone numbers.

2. Create a parent account. Set up a parent account by opening a checking account with Evolve Bank & Trust through Copper. You can link external accounts and connect third-party payment platforms including Venmo, CashApp and PayPal to fund your Copper account.

3. Verify your information. Verify your account by providing the following:

• Full name
• Address (this is where the debit card will be mailed to)
• Phone number
• Email
• Social Security number (SSN) or Taxpayer Identification Number (TIN)
• Government-issued ID

4. Register your child as an authorized user. Your child can now install the app if they haven’t already and set up their account. They will receive a debit card of their own.

5. Start using the account. You can wait until the physical debit card hits your mailbox, or you can use a virtual debit card to start using the account immediately.

Copper Bank offers many advantages, but there are downsides to be aware of as well.

Pros

• Parental controls. Parents can monitor spending, freeze cards and decide how much to transfer to their kids and when.
• All-in-one banking. Kids can do everything from spending and saving to earning and investing, making this a comprehensive option for beginners.
• Educational resources. The Copper app offers quizzes and guides on a wide range of money topics specifically designed for teens.
• Includes investing. Copper provides a safe and educational introduction to investing.
• Customer service. There are many options for reaching support, including an in-app chatbot, social media channels, text, phone and email.

Cons

• Fees. There are monthly account fees and some cash and debit reload fees.
• Reload and spending limits. There’s a daily debit/ACH deposit limit of $500 and a monthly limit of $2,000 for Copper. The daily spending limit is capped at $2,000.
• Low rewards. Only Copper + Invest users earn the highest rate on savings, for balances up to only $5,000, and the earnings rate for the basic account is lower than what the best high-yield savings accounts offer.

Copper Bank is best for older kids and teens who know a little about money and parents who want to be somewhat involved in their learning. Copper offers a moderate level of parental control so you can give teens freedom while still monitoring their activity. While kids as young as six can join, Copper is ideal for teens under the age of 18 who can take full advantage of all the features available.

Copper’s resources and quizzes are geared toward those with a basic understanding of money. The app is also well-suited for teens who are already earning income from an allowance, part-time job or side hustle and those interested in saving and investing.

Copper Bank is not the only banking option for kids and teens. Take a look at how Copper Bank compares to a few popular alternatives.

Copper Bank vs. Greenlight

Greenlight is a prepaid debit card designed for younger kids and tweens. Both platforms offer features like real-time alerts and activity monitoring, but Greenlight gives parents a bit more control.

Greenlight lets primary users set spending limits at certain stores, restrict ATM access and block specific merchants. Both platforms offer chore management and allowance features, beginner investing options and rewards on savings. Greenlight’s plans range from $4.99 to $14.98 per month compared to $4.95 or $7.95 for Copper.

Greenlight is better for younger kids and parents who want to be more involved in their child’s activity, while Copper is better for teens with some money knowledge.

Copper Bank vs. Current

Current is a banking option designed to help account holders build credit, something that can be helpful for teens without a financial history. It offers many of the same features as Copper, including interest on savings and low-cost investing, but without a monthly fee.

Current offers a banking app and debit card for teens (the that includes chore features, round-up savings transfers, fee-free ATM withdrawals and instant transfers between teen and parent accounts. Like Copper, parents can monitor spending activity and pause cards. But unlike Copper, Current also allows parents to block merchants. Current does not charge monthly subscription fees.

For users who want to invest and have access to more learning resources, Copper is ideal. But for those looking to save on fees and parents who want a little more control, Current comes out on top.

If you want to give your teen exposure to real-world financial literacy concepts with training wheels, Copper could be a good fit. Copper is best for teens interested not only in spending but also in saving, investing and learning about money management.