When you sign up through this article, both of us get a bonus: $5,000 of equivalent portfolio investments. This means your account will be credited with the returns on an extra $5,000 over the span of one year. Click here to sign up now and start earning more!
A while ago, I saw an ad about a new way to leverage savings accounts and get more out of my money, without taking on additional risk on the deposited amount.
Save keeps your money in FDIC insured accounts and only invests the equivalent of your earned interest, which, at this point, is around 3.5% – 4% per year on the most generous savings accounts. (2023 update, since savings rates change with the FED rate).
This way, your deposits are safe, and you can’t lose them, while they invest the interest equivalent on the stock market, in an attempt to 2-3x the return on those funds.
Think of it this way, if you have $100,000 in a savings account, you’re earning about $290 each month. With Save, instead of just adding that interest to your account, they invest the same amount in the stock market. This could potentially increase your monthly earnings to $600-$700.
Now, unless the stock market goes to zero or drops and never goes back up in a year, it’s my view that I’m set to lose, when compared to my current Discover Bank situation:
- $261/month @ 90% meltdown, annualized; so only making $29 / month in interest
- $145/month @ 50% meltdown, annualized; so only making $145 / month in interest
- $72.5/month @ 25% meltdown, annualized; so only making $217.5 / month in interest
- $14.5/month @ 5% drop, annualized; so only making $275.5 / month in interest
…but never more than I deposited.
If, on the other hand, the market goes up, and I deposited my $100,000 in the Save account, I would add the following gains over one year, on top of the $290 I would have got from Discover:
- $14.5/month @ 5% increase, annualized, so making $304.5/ month in interest
- $29/month @ 10% increase, annualized, so making $319 / month in interest
- $30.2/month @ 25% increase, annualized, so making $362.5 / month in interest
An added benefit of Save is that you could pay less in taxes. Traditional savings account interest is taxed as income, but with Save, your returns are taxed as capital gains, which could mean lower taxes. Speak with your tax advisor to understand how this could benefit you.
If you sign up through the referral program, we each receive a bonus of $5,000 of equivalent portfolio investments. This means your account gets credited for the portfolio returns on an extra $5,000 over a period of one year. Neat.
For me, this has been a fantastic low-risk, high-reward venture. Are you ready to maximize your savings? Then it’s time to join Save! Click here to get started on your journey to more efficient savings.
I’ve seen a lot of people not understanding how this program works, so I hope this article clears it up a bit.
Photo by Annie Spratt on Unsplash
A lot of people have emailed me to ask about some details to confirm the referral. I case you need this information, here it is:
Name: Titus Capilnean
Email: titus.capilnean (at) gmail.com