Categories
Business Models

JoinSave.com – a risk review

I’m going to make money if you sign up using this link. If not, then this article just helps a cool business move forward. This is also not investment advice, do your own research, always.

A few months 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, which is still onboarding early adopters, keeps your money in FDIC insured accounts and only invests your earned interest, which, at this point, is around 1% per year on the most generous savings accounts.

This way, your deposits are safe, and you can’t lose them, while they invest your earned interest on the stock market, in an attempt to 2-3x the return on those funds.

For example, on $100,000 in a Discover Bank savings account, you’re making ~$75 right now, every month. Instead of compounding that interest, Save would invest it in the stock market and hope to achieve a return of $200-$300/month.

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:

  • $67/month @ 90% meltdown, annualized; so only making $7 / month in interest
  • $37/month @ 50% meltdown, annualized; so only making $37 / month in interest
  • $18/month @ 25% meltdown, annualized; so only making $57 / month in interest
  • $3.75/month @ 5% drop, annualized; so only making $71.25 / 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 am set to add the following gains over one year, on top of my $75:

  • $3.75/month @ 5% increase, annualized, so making $78.75 / month in interest
  • $7.5/month @ 10% increase, annualized, so making $82.5 / month in interest
  • $18/month @ 25% increase, annualized, so making $105 / month in interest

And there’s a debit card, with which I can earn an extra $1 in investment principal for every dollar spent with it. Sort of like a cash back, but invested.

If you sign up through the referral program, we 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. Neat.

For me, this is a low risk, high reward potential activity, and it makes sense to save with Save.

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

One reply on “JoinSave.com – a risk review”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.