Copper is a fintech app with a prepaid debit card that offers digital banking for kids, especially teens. It allows teens to spend money with a Mastercard debit card under parental supervision. And parents can track and monitor their teen’s spending.
Once a parent has loaded the account, the virtual debit card can be used. It can be used through the Copper app or added to Apple Pay or Google Pay digital wallets. You can also use the debit card to withdraw cash from more than 55,000 ATMs.
However, Copper does not offer credit-building tools and pays virtually no interest on deposits (0.001% interest rate; 0.00% APR).
As a fintech company, Copper uses SynapseFi for the backend technology of its app. SynapseFi is a partner of Evolve Bank & Trust. The relationship between these two companies makes it possible for Copper to offer banking services.
The funds are FDIC-secured through Evolve Bank. FDIC insurance protects against the loss of deposits up to $250,000 if an insured bank or thrift fails.
Copper is a financial technology company, not a bank. Banking services are provided by its partner Evolve Bank & Trust, members of the FDIC.
We rate Copper on Green, but what there is to complain about from a compliance point of view is that the company presents itself to the public as a bank, which they are not.