The COVID-19 crisis and Federal Reserve interest rate cuts have resulted in bank savings accounts paying near-zero APY rates, forcing hard-hit savers to accept low returns or put their money into riskier investments. Especially at a moment when Americans are concerned about their financial futures and the personal saving rate has reached an all-time high of 33%, savers need better places to put their savings.
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Now there is a new way for people to earn a higher yield on their savings without the higher risks. Save Advisers, LLC, a fintech startup dedicated to helping people maximize their savings, is announcing the pre-launch of Save, its new “save tech” platform.
Save is a first of its kind in the financial industry: a “robo-advisor for savings,” giving people FDIC insurance on their deposits while offering tech-driven investment portfolio management that has the potential for higher yields than any traditional savings account or even many longer-term CDs. Along with Save’s advanced tech-driven investment portfolio management, the platform offers industry-leading tools to help savers supercharge their savings even more.
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Save is more than a high-yield savings account, it is a comprehensive “savetech” platform that helps people save money, customize their investments based on their risk tolerance and savings goals, and earn bigger returns in three ways:
- Market Savings Account: Deposits are FDIC-insured and the customer’s deposits can be withdrawn at any time without risk or penalty on their capital. Instead of paying a fixed rate of interest like a bank savings account, Save invests the customer’s interest in a diversified portfolio of ETFs representing stocks, bonds, real estate and commodities, the types of which are usually only available to institutional investors. Investments are tailored to each customer’s risk level, with the goal of delivering a stable return that is higher than a bank account or CD. Save’s Market Savings Account’s returns vary with market conditions and is currently showing an average return of 3.20%. Even if the portfolio does not deliver a positive return, the investor will not suffer a loss of their initial investment, because their initial deposit is FDIC-insured.
- Referral Program: Save makes saving social. Refer a friend or family member to Save, and you will each receive a bonus of $1,000 of equivalent portfolio investments. This means your account gets credited for the portfolio returns on an extra $1,000 over a period of one year.
- Market Debit Card: Save is also launching a debit card linked to your Save checking account which provides additional investments for everyday spending. Currently, the card offers $1 in additional investments for every $1 spent. For example, if you spend $10,000 per year on your Save® debit card, you will get the returns of $10,000 in portfolio investments added to your account.
The Save platform can help supercharge a saver’s returns in several ways, depending on how active the customer is at referring friends to Save, and how much they spend on their debit card.
For example, if a Save customer made an initial Save investment of $5,000 and then referred 5 friends to Save, that customer would get a bonus of equivalent portfolio investments of $5,000 which would double their expected average return. Add the debit card rewards component, and the Save platform can help a customer’s investment returns grow even faster.
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