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Save Debit Invest Card
Posted on 4/2/21 at 9:35 pm
Posted on 4/2/21 at 9:35 pm
LINK
Anyone herd of this or use it? Just signed up and looking to try it out.
Looks like every dollar they spend they invest $1 and in return you get the money made on investment from it.
Any insight?
Anyone herd of this or use it? Just signed up and looking to try it out.
Looks like every dollar they spend they invest $1 and in return you get the money made on investment from it.
Any insight?
2
Posted on 4/2/21 at 10:04 pm to tigersint
Their sketchy site starts by talking about reaching saving goals by not risking your money in the market
Then goes into how they invest money for you in the market
I don't get it. Sounds like a high yield savings account with weird strings attached.
Would need to do more research
Then goes into how they invest money for you in the market
I don't get it. Sounds like a high yield savings account with weird strings attached.
Would need to do more research
Posted on 4/2/21 at 10:37 pm to HailToTheChiz
I read through a good bit of their docs.
Essentially -- You open a debit/checking account with them and make a deposit.
You spend money via the debit card. At the end of the month, if you've spent >$250, they will match dollar for dollar and invest on your behalf to a account held by Apex Clearing. I.e. you spend $2000 on qualifying purchases, then they will "invest" $2000 on your behalf.
What's not clear is if you have any choice in what that money is invested in (presumably you do), but it may be limited options or more like a conservative/moderate/growth generic options.
Your money will then presumably earn a return. If your money in a given month returns more than 0.59% - then the company takes a 0.59% fee and you "earn" whatever profits on top of that. So if the returns are 3.59% - you effectively receive 3% of that profit. If the earnings are less than 0.59%, there no fee...but you also do not earn a return.
Whatever money "earned" in the investment must stay for a minimum of one year prior to withdrawal of the returns/profits.
They post a 3.08% return (so essentially 2.5% return on your spending factoring in their fee). However the company hasnt really been in business and this number is based off a hypothetical model.
All and all interesting concept. I guess possibly ideal for people who are interested in an automatic investing option for "rewards" for spending. But essentially if you think about its competition, which is essentially any cash back card. almost would be better to just get a 2% cashback card, because you are guaranteed a 2% return on you spend as opposed to the option of 2.5% back, with returns/profits that are tied up for a minimum of 1 year.
Essentially -- You open a debit/checking account with them and make a deposit.
You spend money via the debit card. At the end of the month, if you've spent >$250, they will match dollar for dollar and invest on your behalf to a account held by Apex Clearing. I.e. you spend $2000 on qualifying purchases, then they will "invest" $2000 on your behalf.
What's not clear is if you have any choice in what that money is invested in (presumably you do), but it may be limited options or more like a conservative/moderate/growth generic options.
Your money will then presumably earn a return. If your money in a given month returns more than 0.59% - then the company takes a 0.59% fee and you "earn" whatever profits on top of that. So if the returns are 3.59% - you effectively receive 3% of that profit. If the earnings are less than 0.59%, there no fee...but you also do not earn a return.
Whatever money "earned" in the investment must stay for a minimum of one year prior to withdrawal of the returns/profits.
They post a 3.08% return (so essentially 2.5% return on your spending factoring in their fee). However the company hasnt really been in business and this number is based off a hypothetical model.
All and all interesting concept. I guess possibly ideal for people who are interested in an automatic investing option for "rewards" for spending. But essentially if you think about its competition, which is essentially any cash back card. almost would be better to just get a 2% cashback card, because you are guaranteed a 2% return on you spend as opposed to the option of 2.5% back, with returns/profits that are tied up for a minimum of 1 year.
Posted on 4/2/21 at 11:31 pm to Puffoluffagus
Good post.
What if we are in a very poor market? They just eat all the costs? Sounds like a good business for them in a good market but they can get absolutely crushed since they take all the risk.
What if we are in a very poor market? They just eat all the costs? Sounds like a good business for them in a good market but they can get absolutely crushed since they take all the risk.
This post was edited on 4/2/21 at 11:39 pm
Posted on 4/3/21 at 6:48 am to TheWalrus
Debit accounts offer very little in the form of consumer protections....
Posted on 4/3/21 at 9:42 am to tigersint
How do they make their money?
Posted on 4/3/21 at 12:11 pm to Jag_Warrior
Like most of these card companies, they are probably making their money in the cut they take from the vendors. So they're making on us like every other bank.
Posted on 4/9/21 at 9:30 pm to Tate
Got my card in the mail and it works just like a debit card.
Ill just keep around $1K in the account at a time and use it as “cash”
Doesn't seem so be all that much risk involved to me other than maybe loosing what i keep in there short term to be spent.
I have made 2 purchases so far tho and one of them at Walgreens did not qualify for the investment so I'm not sure exactly how it works yet.
Ill just keep around $1K in the account at a time and use it as “cash”
Doesn't seem so be all that much risk involved to me other than maybe loosing what i keep in there short term to be spent.
I have made 2 purchases so far tho and one of them at Walgreens did not qualify for the investment so I'm not sure exactly how it works yet.
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