Fintech startup Save announced that they have signed a preliminary agreement with Radius Bank to power an FDIC-insured consumer checking account and the Save Debit Invest™ debit card for customers of Save’s Savetech platform. The Save Debit Invest account will be managed as part of Save’s first-of-its-kind savings platform, where Save provides customers with market investments that match their card signature spending on a dollar-for-dollar basis. Under the terms of the partnership, over $3 billion is expected in customer transactions and matching investments within the first 3 years.
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As an example, if a customer were to spend $100,000 in a year on their card, Save expects to allocate $100,000 of equivalent portfolio investments in a portfolio matching their investment profile. Save customers get to keep the yield on the matching investments with the goal of earning average returns that are significantly higher than other card products, bank accounts, or other savings vehicles. The investments are professionally managed with Save’s algorithmic portfolio technology using a diverse portfolio of ETFs.
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“We are transforming the industry of investments and savings with an unparalleled customer proposition,” said Michael Nelskyla, Founder & CEO of Save. “We work with the most innovative banks that are ready to move into the future with technology to drive better results for customers, and Radius has been at the top of that list.”
Headquartered in Boston, MA, Radius operates in all 50 states and describes itself as a forward-thinking digital bank offering a full complement of leading-edge personal and business products and services. Radius is known for its award-winning, digital banking platform that combines state-of-the-art technology with the best checking and savings account features to provide a superior banking experience for consumers and small businesses. Its platform provides convenient features such as mobile check deposit, bill pay, card management, as well as a personal financial management dashboard, and access to the Radius Marketplace, a curated group of best-in-class financial products that help clients spend, save, and protect their money. LendingClub recently announced its intent to acquire Radius Bank, which is subject to regulatory approval.
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