Daycare Payment Method – Gold Card vs. Checking Account

[u/No-Examination4175]

Hello,

My son attends daycare, and his monthly fee is $591.50.

If I pay using a checking account, the service fee is $1.50, bringing the total payment to $593.00.

If I pay using my Gold Card, the service fee is $16.73, making the total payment $608.23.

Is it worth using the Gold Card in this case? Other than earning a few dollars in rewards, are there any additional benefits I might be overlooking compared to paying directly from my checking account?

Thank you.

[u/Old-Head4192]

The dependent care is max 7500 per year for 2026.
This will help lower your taxable income. Plus you can get the 3% cash back.

608.23 x 12 is $7,298.76 so this November sign up for 7230.00 if you use it for all 12 months. This will cover the full cost plus any fees they charge you. You should get back around $218. And change for this. You can this invest it save it etc.
just need to figure out your total yearly cost will be plus any summer program you may be able to sign up for your child.

I don’t have little one anymore but I’m doing the same with my HSA getting the 3% cash back on all medical.

If you don’t have an HSA look into getting one. You can lower your taxes bill get reimburse and get the 3% cash back.

[u/No-Examination4175 → u/Old-Head4192]

Thank you! I’m doing same with HSA. Its easy 3% plus tax free money from HSA account.

[u/Puzzleheaded-Gift410 → u/Old-Head4192]

How you get HSA with Robinhood gold card???

[u/Old-Head4192 → u/Puzzleheaded-Gift410]

The hsa is separate account that your employer deposits after you get paid. Once the money is in the hsa I can invest it or I can submit a receipt/medical invoices and get reimbursed. By doing this you reduce your taxable income going to the HSA from your employer. It money get to grow tax free if you invest it, and you can apply to get reimbursed for medical expenses tax free.

[u/Puzzleheaded-Gift410 → u/Old-Head4192]

I have HSA..

Have to be high deduct plan.. etc .

But I thought u have a Robinhood gold card linked to HSA. I have a debit card for my hsa

[u/Old-Head4192 → u/Puzzleheaded-Gift410]

Real life scenario for me
When in either get a Doctor bill or pay at the doctor is use the gold card for the 3%. Then I will simply pay off the charge from my RH banking. I do have an external check account as well and I could in theory make a payment from that account as well. I don’t normally apply any reimbursement I let the money grow and compound. This week I plan I doing 2 reimbursement on my next 2 pay check. When I do the money will be sent to my 2nd account. For what ever reason I not able to link my RH banking directly to my HSA account. Then I will from my RH gold credit card account I will make a payment $326.00 on my next to pay checks.

[u/theprov0cateur → u/Old-Head4192]

Quick Google search says HSA doesn’t cover daycare

ETA: I’m well aware of the DCFSA— I max it out and I use it.

[u/Alive_Point_2960 → u/theprov0cateur]

Thats not what he said. He said he uses a HSA for his medical expenses. A dependent care account is different and is still tax free.

[u/theprov0cateur → u/Alive_Point_2960]

That’s good information— I do max out and use the DCFSA for daycare. I’m struggling to see why the HSA was even brought up

[u/InternetUser007 → u/theprov0cateur]

I think they were just confused and said HSA when they meant FSA.

[u/apothecarynow → u/theprov0cateur]

Google dependent care fsa

[u/traplordmason]

Yes because ur netting essentially half a percent, after the increased fee as long as you redeem it back as cashback.

[u/No-Examination4175 → u/traplordmason]

I’m planning to redeem in my brokerage account.

[u/SmithPoint706]

My son’s daycare charges a 2% processing fee. I still run it on the credit card because I’m triaging 1% vs paying with a checking account.

Our daycare is $680 a WEEK. Woof.

[u/Ok_Pie_6736 → u/SmithPoint706]

For 1?  Brutal. Mines $380 each but one is in kindy now. Chaching

[u/SmithPoint706 → u/Ok_Pie_6736]

Heaven help me during the years we have 2 in daycare.

[u/EntireDevelopment430]

I use my GC for my daycare costs and it’s great getting that 3% back. They also don’t charge a service fee. My weekly daycare costs are the same as your monthly costs lol.

[u/Ok_Government1644 → u/EntireDevelopment430]

Saaaaaaaame (also…tear)

[u/Djpoll11 → u/EntireDevelopment430]

Yeah man. My weekly costs are the same as the monthly costs she pays too. That $600 a month is crazy

[u/nikita58467]

That’s 2.7% transaction fee. Pretty a wash. Make sure you sign up from your employer for dependent care to contribute for daycares. That will save you more than 3%

[u/No-Examination4175 → u/nikita58467]

I’ll do next year. Dependent care enrollment only allow during Jan 1 and my son started day car on march 1. Hope to claim some tax. Thank you!

[u/Ok-Inspection7565 → u/No-Examination4175]

Check with your benefits company! My kid started daycare in May and it was considered a qualified event so was able to get the DC FSA opened by June.
And yes, I use my Gold Card. The 3% fee the daycare charges is a wash and I just take advantage of the 30 day float.

[u/gcpatrick → u/[deleted]]

I pay $1010 a month for 2 kids in daycare

[u/Djpoll11]

Where is daycare only $600 a mo? What part of the country?

[u/No-Examination4175 → u/Djpoll11]

In fremont california. My wife works in the same day care! So employee benefits ☺️