What Bank Does Step Use & How Does It Work?
Learn about Step's financial structure, its relationship with partner banks, and how it delivers secure, modern money management.
Step is a financial technology company offering banking-like services, primarily designed for teenagers and their families. It aims to foster financial literacy and equip younger generations with practical money management skills from an early age. Step provides tools that bridge traditional banking with digital habits, making financial education accessible and engaging.
Step’s Operational Model
Step is a financial technology company, not a traditional bank. While Step offers services similar to banks, it does not directly hold customer funds. Instead, Step operates through a strategic partnership with Evolve Bank & Trust, a federally regulated, FDIC-insured chartered bank.
Step provides the technological platform, including the user interface, mobile application, and customer experience. The partner bank handles the regulated banking infrastructure. This arrangement ensures that all funds held in a Step account are FDIC-insured up to $250,000 per depositor, per insured bank, for each account ownership category.
Core Account Features
A Step account provides financial tools for spending and saving. The primary tool is the Step Visa Card, a secured spending card. This card allows users to make purchases online, in physical stores, and is compatible with mobile wallets like Apple Pay and Google Pay. The Step Visa Card has no overdraft fees, as users can only spend available funds.
Beyond spending, the account incorporates features to encourage savings. Users can engage in automated round-ups, where small transactions are rounded up to the nearest dollar and the difference is transferred to savings. The mobile application serves as the central hub for all account activities, providing users with a comprehensive overview of their finances. The account also supports direct deposit, enabling users to receive funds such as paychecks directly into their Step account.
Managing Your Step Account
Setting up a Step account involves a straightforward process for both parents (sponsors) and the teen user. Both individuals download the Step application and create their accounts, with the parent linking theirs to the teen’s for oversight.
Funds can be added to a Step account through several convenient methods. Users can link an external bank account or a debit card for instant transfers, or set up direct deposit for regular income. Cash deposits are also possible at a network of over 70,000 retail locations, though a small fee of around $3.95 per deposit may apply. Parents have access to various control features, including the ability to monitor transactions in real-time, set spending limits, and send instant transfers to their teen’s account.
Ensuring Account Safety
Security measures protect Step account funds and personal information. This includes FDIC insurance through Step’s partner bank. Step also employs robust data security practices, including bank-level security and data encryption, which safeguards sensitive user information.
Accounts benefit from fraud protection measures like instant transaction alerts, allowing users to quickly identify suspicious activity. Users can also instantly lock and unlock their Step card through the mobile app. Purchases are protected by Visa’s Zero Liability Policy for unauthorized transactions.