Dave, a Los Angeles, California-based fintech startup, as per recent reports, has announced its digital-only deposit account to enable young adults – living paycheck to paycheck – to thrive and stay atop their expenditures.
Dave, which initially started its journey two years ago with a mobile app that was specifically designed for young adults to avoid overdraft fees, with this new checking account offering – Dave Banking – will now be providing its users a debit card, which will facilitate free withdrawals at 30,000 ATMs, without any monthly fees. Instead, Dave Banking will be making money on interchange revenue from card swipes. Although the users opening new checking account will not be allowed an overdraft, they’ll have an interest-free $100 advance against their next paycheque.
Furthermore, the new checking account will offer customers the choice to build their credit score by reporting back all their rent payments to partner – CreditPop. Also, the company promises that very soon the utility payments service too will be added to the checking accounts.
Although direct deposit funding to a Dave Banking account is free, charges will apply on other funding methods. The checking account is insured by the Federal Deposit Insurance Corporation (FDIC) partner bank, Evolve Bank and Trust.
Dave’s core app users – who generally fall under the average age of 22 – need not open a new Dave Banking account to gain access to the app’s services.
According to Jason Wilk, co-founder & CEO, “People can come and try us out for a year and then decide to open a bank account. They can do it never. Or they can do it the same day that they join. It’s a very flexible model.”