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 the equivalent of your earned interest, which, at this point, is around 3.5% 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.
For example, on $100,000 in a Discover Bank savings account, you’re making ~$290 right now, every month. Instead of depositing that interest into your account, Save would invest an equivalent amount in the stock market on your behalf and hope to achieve a return of $600-$700/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:
- $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
There are some tax advantages to this method, too. While traditional savings accounts that deposit interest every month are taxed as ordinary income, the returns I would get from a Save account would be considered capital gains. Ask your CPA what this means for you and your tax returns.
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 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
Edit:
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
29 replies on “JoinSave.com – a risk review”
[…] wrote about Save a few weeks ago, where they invest your interest to make higher returns in the stock market, while […]
Is this referral still valid?
Yes, it should be. Let me know if not, and I’ll reach out to the team.
The referral still works but it requires the referrer’s first name, last name, and email address. Could you email me that information so we can both get the $1000 investment bonus?
I updated my link, since it looks like they changed the format. Thanks for letting me know the link wasn’t working well.
https://joinsave.com/ref/shoBcRn – the working link now on the actual article, too
Thanks for the review. I have multiple tabs open and I thought I used the page with the referral link. I am now at one of the last pages and it is asking for referral name/email. Could you email me the information?
I already went through the sign up before looking for a referral link I will still try to use youra
This article is up to date with their savings strategy. They have moved on from debit cards to savings accounts and the current market conditions make them even more attractive. Savings accounts start from 1 year length to up to 5 years.
Hey Titus thanks for the quick review. I came across a Save ad and was taking a look. Since they offer Market Saving accounts with very attractive rates right now but it depends on the market performance, would you recommend starting with them for a 1 year or 5 year term?
If the market doesn’t do well and let’s say I sign up with Save for 5 years, wouldn’t it make more sense to open a CD account which has over 4% APY at the moment?
Look, I’m not here to give you financial advice.
Save 1 year gives you flexibility to test and see. With the 5 year CD rates, this is a good time to lock them in, but you won’t access your money until it matures.
Ultimately it depends how much risk you are willing to take
Hey Titus
I opened the account without using your link as I was unaware of the bonus but it allows me to enter a referral at the end. I need your First and Last name + your email or phone number. Please email me the details ASAP. Thanks
I sent you an email with the info you requested
Same for me – can you share your first and last name plus email?
Hey, this is really helpful to understand these types of accounts, so thank you!
Can you add funds to these accounts as one is able, or does the term have to mature before you can add funds?
Yes, you can add money, but it becomes a separate “program” with a new maturity.
Each deposit is separate and the minimum of $1k or $5k apply each time. You can’t just add another $50 here and there, like a traditional savings account.
Hello Titus,
Thank you for this wonderful article. I have signup as well. Could you please share me your details to avail the bonus. Thank you.
I added my details at the end of the article — let me know if you have any issues using them to claim the bonus
How can we confirm that these are FDIC insured? They are just telling us that they are but how do we know that they are
They hold the principal at Webster Bank, you can check the bottom print on the Save website for details on what is insured and how.
How can someone consistently get a $600 or $700 return on $290 in one month? I don’t understand your example
“ For example, on $100,000 in a Discover Bank savings account, you’re making ~$290 right now, every month. Instead of depositing that interest into your account, Save would invest an equivalent amount in the stock market on your behalf and hope to achieve a return of $600-$700/month”
You could potentially get that $600-$700 return per month if you deposit $100k with Save
Hi, Titus,
here is my take on JoinSave:
1. They advertise(d), that you get 8.26% interest, but when I look into my account right now, it shows 3.79%. Nowhere did it it say “up to” 8.26%.
2. In addition they charge a fee for “managing” your money, so deduct that fee from the 3.79% earnings.
3. I currently earn 6% for 11-months-CDs, 4.5% interest for 3-months-CDs and 4.35% interest on a savings account, where I could take out my money anytime I want.
4. You published your article on Jan. 20 and write: “…keeps your money in FDIC insured accounts and only invests the equivalent of your earned interest, which, at this point, is around 3.5% per year on the most generous savings accounts.” The account, that I opened with MySavingsDirect on Dec. 19 (3 months before publihed your article), already has giving me the mentioned 4.35% APY since then. So I would call that more generous than 3.5%.
5. So basically all of my other accounts offer more interest than JoinSave, which is why I recommend, that readers should do a thorough research before signing up with JoinSave. I will certainly take my money out from there, even if I have to pay a penalty fee. Doesn’t look like it makes sense, but I welcome Titus to convince me, that it does. Or maybe it’s just with the recommendations, that will bring you the earnings, that you want?
Kind regards, Alexander.
They invest the interest equivalent in the stock market, so results vary. This is a great instrument in a low interest rate environment, and every time the FED raises rates, both potential earnings shrink (stock market bear pressure) and alternatives become more attractive (CDs). Everyone should do their own calculations, I’m just giving a hypothetical example in the article.
How does the 5K bonus work? Is it yours or only the interest from it is yours?
You get only the return generated by the $5K, not the $5k itself. It would be too good to be true if it was the other way!
Make sense but with the way how banks operate and the way goverments bail them out if they screw up you never know 🙂
One more question – When you get the $5k bonus is it for 1 year or 5 years?
Thank You
It’s for one year only
Hi Titus, I tried opening the Market Savings Account with Save using your referral link but not sure why it still asks me for you First & Last name and Email/Mobile Number. Could you please provide that?
Here you go
First name: Titus
Last name: Capilnean
Email: titus.capilnean (at) gmail.com