GoBank is part of Green Dot Corporation. It’s a self-service mobile checking account that offers a huge free ATM network and boasts no overdraft fees. You might be wondering how the GoBank overdraft works and whether it’s right for you. Read on to find out.

How does GoBank work?

There are no GoBank branches, as their checking account is designed to be accessed via your phone, but you will get a debit card to obtain cash. You can deposit money for free at any neighbourhood Walmart, by giving the cashier your card and requesting funds to be added to your account. Fees apply if you deposit cash elsewhere.

There is also a monthly maintenance fee associated with GoBank’s checking account of $8.95. However, this fee is waived providing your card account receives $500 (monthly) via payroll or government direct deposit.

The GoBank app allows you to check your balance quickly and efficiently, find ATMs nearby that are free to use, deposit checks using your smartphone and transfer money to another GoBank card. This bank also has a “Money Vault” feature where you can stash cash to one side for safekeeping – a handy option, although it doesn’t pay interest on savings.

So, can you overdraft with this bank? In short, no. GoBank doesn’t charge any overdraft or Non-sufficient Funds (NSF) fees because they don’t allow overdrafts at all.

While this may be perfectly fine for some people, who don’t want the worry of possibly spending more than they have in their account, for others, the lack of an option to overdraft in an emergency may be off-putting.

GoBank reviews

On the GoBank website, feedback from customers is glowing, particularly about the “Slide for Balance” function, where you can see your balance on your phone without even logging into the app. The expansive free ATM network is also a big plus, as is the overall simplicity of the concept.

The overall score for this app on Google Play and iTunes is 4.4 / 5. One iTunes reviewer gave the GoBank app a 5 / 5 review, stating that it was “Super Easy” and that they would never go to a bank in person again! The lack of NSF or over-limit fees was also mentioned in a positive way.

There is an option to use a pre-paid card with GoBank, which another iTunes reviewer found useful (it’s free to load).

Over at Google Play, one user vouched for the service as “Ah-mazing” – she was able to have her bills automatically withdrawn, making life a bit easier.

GoBank complaints

Some of the main issues arising from the reviews on Google Play are related to the app not working as it should. For example, one recent user claimed that they were regularly unable to transfer money or check their balance and someone else faced issues logging in.

Another reviewer on Google Play complained about poor customer service at GoBank. After calling the bank, he couldn’t get an answer to his question about why he had to wait two weeks for a mobile deposit. His complaint was addressed, however, via the review he left.

Note: It is possible to reach GoBank by email and Twitter as well as by phone.

What if you need to overdraft?

GoBank seems to offer quite a few benefits as a no-frills mobile banking service. But if being able to overdraft is important to you, there are a few other options you can look at:

1. Bank elsewhere

Consider using another bank that will allow you to set up an overdraft protection product, in particular banks with no overdraft fees.

2. Use overdraft apps

The Earnin app gives you early access to your paychecks, directly through your smartphone, helping you avoid the need to overdraft altogether. This app is suitable for use with many different banks, but you will need to check that your employer is set up with Earnin first. Read more – Earnin App.

Dave is an innovative app and a leader in overdraft prevention solutions. Once downloaded, you can connect it to your bank account and over time, it will analyze and predict your spending behaviour, including when you’re likely to overdraft. The app includes a small-loan feature, where you can borrow up to $75 at 0% interest and pay it back when you receive your paycheck. Check out Dave App for more details.

3. Review your financial situation

If you find yourself overdrafting regularly, you may benefit from managing your money a little differently. It’s worth reviewing your income and expenditure to see if you can cut back on your spending in some areas, to reduce the risk of overdrafting in the future.

GoBank – a convenient banking solution for some

If you like the concept of mobile banking, you don’t mind the potential monthly fee of $8.95, and you can work around not being able to overdraft, GoBank could be a sound banking choice. Do you already use GoBank? Let us know your experiences below.

*Disclaimer: the facts and figures above are correct at the time of publishing.