Save savings account and cards

Save Wealth adds 4.5% savings account

Last week, the Houston-based savings company Save launched the Market Savings program for consumers that targets a 4.45-9.5% annual return.

The SEC-registered, FDIC-insured high yield savings firm aims to give consumers better options when it comes to saving. In 2022, the fintech consumer has numerous consumer investment products claiming high savings, but many high-tech options have returned none, and Save strives for better, though it does not guarantee the high returns it advertises.

Founder and CEO of Save, Michael Nelskyla, said that savings accounts that offer a measly 1-2% do not keep up with inflation.

“This is why we’re bringing an entirely new approach to creating savings returns for our customers,” Nelskyla said. “High inflation and market volatility are top of mind for many people and businesses, and the Save Market Savings program addresses some of those concerns and supports our customers’ financial and savings goals.”

ETF Investing

The firm said that the Market Savings program seeks to return customers through an investment by Save into a diversified portfolio of ETFs representing stocks, bonds, real estate, and commodities based on the customer’s investment profile. Additionally, Save hopes to add a range of investment portfolios, including sustainable and alternative asset portfolios.

Save expects the U.S. Market Savings program and its Savetech platform to help attract several billion dollars in savings over the next three years.

“Everyone should have access to sophisticated investment strategies to get the highest market returns possible while keeping their investments safe,” Adam Watts, President, and COO of Save, said. “We believe our Savetech platform is one the most important new bank deposit innovations in a century because it fundamentally changes how people save and create wealth.” 

The first product from Webster Bank partnership

At the end of May, Save signed an agreement with Webster Bank to provide savings accounts. The firm said Websterbank does not directly offer the new savings product but holds custody over Saves’ savings products as a provider.

“Save is on a mission to change how people build wealth,” Watts said. “Our Savetech platform can fundamentally change how people save.”

Save expects the return potential of its Market Savings program to be higher than traditional high-yield interest savings accounts. Customers can expect an average annual return potential between 1.50% to 7.70% depending on the program term, without risk to customer deposits.

“We’re excited to work with Webster Bank to build an entirely new approach to savings,” said Nelskyla. “By adding the Market Savings program to our platform, we’re able better to support our customers’ financial and savings goals when low rates, high inflation, and market volatility are top of mind.”

A great year for savings cards

At the start of the year, Save offered a high yield credit card that provides market returns instead of points or cashback, the first of its kind, it said, with around a 6% return. With an annual fee of $750, the Visa-powered card offered “premium card benefits” when customers purchased at Apple, Microsoft, Amazon, and other top brands.

Save currently has over 25,000 customers signed up for its services and expects the U.S. Market Savings program and its Savetech platform to help attract several billion dollars in savings over the next three years.

“We look forward to working with Save on this innovative savings product. Save is focused on innovative, digital offerings and has an approach that differentiates Save in the consumer space,” said Matthew Smith, Executive Managing Director at Webster Bank.

Webster Bank is based in Stamford, CT, with $65B AUM. The bank provides a range of traditional and fintech offerings, like commercial and consumer banking, and its HSA Bank is one of the country’s largest providers of employee benefits solutions.

  • Kevin Travers

    Intensely energetic news reporter asking questions covering the collision between Silicon Valley, Wall Street, and everywhere in-between. Studied history at the University of Delaware, learned to write at the Review, and debanked.