Save customers are making thousands of transactions with their Save Debit Invest Card, which matches customer spend on a dollar-for-dollar basis with market investments
Customers are earning a market return by using the Save Debit Invest Card on a wide variety of purchases, such as IRS tax payments, charitable donations, home improvements, restorations, and even certain rental payments
Save, a fintech company that helps people earn higher yields on their savings, announced that the company has completed its first matching investments for its customers’ transactions on their Save Debit Invest Card. As of June 2021, Save has completed matching investment transactions generated by the first 4000 customer sign ups. Depending on market performance and customer risk tolerance, based on historical data since 2006, the Save portfolios are expected to earn an average annual return of 3%* after fees.
The Save Debit Invest Card is the first of its kind: a card that matches consumer spending with investments. For every dollar that Save Debit Invest Card customers spend with their card, Save matches that spending with an equivalent dollar of investments in the customers chosen portfolio. Customers don’t keep the investments, but they do keep all the returns (minus the Save investment advisory fee of 0.59%). Qualifying transactions are generally any transactions where the customer does not use their PIN.
Consumers are eagerly adopting the Save Debit Invest Card. Early data indicates that Save Debit Invest Card customers are spending an average of $1,200 per month on their cards (more than 2x the average American debit card spend) and are making an average of 50 transactions per month, which is twice the average frequency of 25 transactions per month.
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Along with everyday spending, Save Debit Invest Card customers have already earned matching investments on some unique purchases and transactions:
- Paying taxes: A Save customer used their card to pay for a $5,000 federal income tax bill; that tax payment is now earning a yield with a portfolio of market investments
- Making donations: Another Save customer used the card to donate $75 online to a local nonprofit organization; the matching money is now going to work in the markets, as well as in the community
- Employee company expenses: Another Save customer is redirecting his monthly business expenses through the Save Debit Invest Card account, with potentially thousands of dollars of matching investments per month
- Home improvements, servicing and some rental payments are eligible for matching investments, giving large ticket items potential to earn market returns
The Save matching investments are allocated to a diversified portfolio of 30 diversified stock, bond, and other Exchange Traded Funds (ETFs), based on the customer’s individual risk profile. Customers can view their investment performance from the dashboard on their Save account, with ongoing updates about investment amounts, current gains, and percentage return on investment. The money stays invested for one year, and any net investment returns are deposited into the customer’s account as cash.
Save also offers a substantial referral reward program, where customers can earn $1,000 of additional equivalent portfolio investments for each new customer they refer who signs up for a Save Debit Invest Card and spends their first qualified $250. (The new customer referred also gets an extra $1,000 of equivalent portfolio investments in their account.)
For example, a customer who spends $1,000 per month on their card, and refers 5 friends to join Save, will earn a total of $17,000 of equivalent portfolio investments. With an average yield of approximately 3.00%*, that customer would earn an average of $510 in investment returns over the course of one year.
“We are excited to see that people are enthusiastically reaching for our card as their primary spending choice,” said Michael Nelskyla, CEO of Save. “The Save Debit Invest Card is unique for its focus on incentivizing saving, investments, and long-term financial success. Unlike a typical cashback credit card or travel rewards card, Save’s card encourages customers to think about their overall financial picture and get more potential returns from market investments.”
Save partners with Mastercard as the payment network. Save Debit Invest Cards are linked to online bank accounts provided by LendingClub Bank, N.A. Apex Clearing Corporation, Member FINRA/SIPC provides brokerage and clearing services for the securities traded with Save, and Save serves as a fiduciary advisor to manage customers’ investments on their behalf. Save charges an investment advisory fee of 0.59%, but only if the customer’s matching investments earn a yield of at least that amount.
