Save, a technology company that helps people earn higher yields on their savings announced that they have partnered with Mastercard to launch the new Save Debit Invest Card, a one-of-a-kind debit card that matches spending with investments.
Instead of traditional cash back or reward points, the Save Debit Invest Card matches signature spend with investments, and the customer gets to keep the return on those investments.
The investments, consisting of portfolios tracking approximately 30 ETFs would have historically returned an average of 3.12%* with a high of 11.80%* since 2006. The returns aren’t guaranteed, and the portfolios could earn zero in years when the market doesn’t perform. However, customers’ checking accounts are always FDIC insured, and there is no risk to customers’ capital. Based on preliminary signup data from it’s customers, Save is expecting customer spending to be around $20,000 a year on their card.
“We are not only helping people save, but we are transforming the industry by turning every debit card holder into an investor through everyday spending without any separate effort from our customers or risk to their capital,” said Michael Nelskyla, CEO of Save. “Further, we look forward to working closely with Mastercard to deliver leading financial services in a smarter, more empowering way.”
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“Today’s consumers expect banking services that meaningfully meet their individual needs and preferences,” said Sherri Haymond, executive vice president, Digital Partnerships at Mastercard. “This new offering from Save is representative of the evolution of financial services, and we’re pleased to be partnering with them to bring these solutions to market.”
The Save Debit Invest Mastercard will provide consumers with benefits such as contactless payments and advanced security features including Identity Theft protection, Price Protection, and much more. Customers will get notifications of matching investments and will be able to access their card account through a dedicated iOS and Android app.
Save charges no annual account fee, but portfolio returns are subject to Save annual wealth management fees. However, to align itself with positive customer outcomes, Save doesn’t charge an annual wealth management fee for matching investments that don’t generate a return of at least 0.59%.”We created the Debit Invest card to help customers invest and optimize their return,” said Adam Watts, COO of Save. “In an environment where most banks are providing very limited upside for customers, we are offering a platform that is both engaging and potentially very profitable against bank product yields.”
