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How to use credit cards: 6 tips to make yours work for you

Credit
Man thinking about his Save Wealth credit cards.

When used responsibly, credit cards are a convenient and secure way to manage your cash flow, build strong credit, and earn rewards from your everyday spending. 

Unfortunately, credit cards are often misused. In the second half of 2021, the average U.S. credit card holder had $5,668 in credit card debt

Read on to learn how to properly manage your credit cards to help you avoid misuse while taking advantage of the many perks it offers. 

1. Pay your balance in full 

In the third quarter of 2021, Americans carried a balance on 52% of all active credit cards.  

Carrying a revolving balance each month or paying only the minimum amount, can quickly pull you into a debt trap. At this point, instead of you using your credit cards, it starts using you

The golden rule of owning credit cards is to pay your balance in full each month. Following this rule means you don’t pay any interest charges or fall into credit card debt. 

To do this successfully, follow a monthly budget and charge only what you can comfortably afford to pay. 

2. Aim to use less than 30% of your available credit 

Always be mindful of your credit card balance and try to keep your utilization ratio below 30%. Your utilization ratio is the percentage of available credit you’re actually using. 

For example, if your total credit card limit is $10,000, you should aim to keep your revolving balance below $3,000. The lower your credit utilization ratio is, the better your credit score. 

A healthy credit score helps you qualify for other credit products like loans and mortgages, and get lower interest rates on those products. 

Does this mean you shouldn’t make any large purchases using your credit cards? 

No, making a large purchase that exceeds your credit utilization ratio won’t affect your credit score, as long as you pay it off within that statement month. 

3. Take advantage of credit cards that offer rewards 

Credit cards allow you to earn hundreds or even thousands of dollars worth of rewards for the purchases you’re already making. 

To get the most out of your rewards, choose a card that matches your financial strategy. For example, if you’re looking for a card with a high return potential, the Save® Wealth card could be a solid match for you. 

The Wealth card is the first credit card that replaces rewards with investment returns, which also makes it a great choice for those who want to start investing but don’t know where to begin. 

With an average annual return potential of approximately 6%1 for the Premium Wealth card, Save exceeds the rewards leading premium credit cards deliver. It also has no variable categories, spending requirements, caps on returns, or category exclusions, which means you earn even more from your everyday spending. 

While rewards are a great perk, you shouldn’t overspend just to chase them. Save lets you earn rewards without having to change your spending habits. 

Click here to learn more. 

4. Regularly track your spending

Keeping an eye on your credit card activity is important. Doing this regularly puts you in control of your spending and helps you catch any potential mistakes or fraudulent transactions. 

Before online banking, you could only do this once a month, when your statement arrived in the mail. Today, you can track your transactions in real-time with the click of a button. 

Save customers, for example, use the Save App or Online Portal to view statements and check their balances and transactions at their convenience. The app also lets customers view the investments made from their spending, their investment gains, and the remaining investment term. 

5. Use your card as a budgeting tool

Following a budget is a healthy habit that helps you save money and create financial stability. 

When used correctly, credit cards can be a great budgeting tool to help you manage your monthly spending. 

For example, when you use your credit cards for all your expenses, you can track your cash flow all in one place using your online accounts. This helps you monitor where your money goes, how much you’ve spent, and how much you have left for the month. 

Seeing your spending in real-time also helps you notice spending patterns you may otherwise not have noticed if you used cash, for example. 

6. Pay your bills on time 

This sounds like an obvious one, but did you know that a whopping 35% of Americans missed a credit card payment in 2018 simply because they forgot? 

Even one late credit card payment can affect your credit score or increase your APR. In addition to that, you might also get hit with a late payment fee. 

Luckily, you can easily avoid this mistake by setting up automatic payments each month. Alternatively, you can log into your mobile app regularly to check your due date and make sure you’re not missing it. 

Making payments on time also helps you build a strong credit history. 

1 For the Save Wealth Card: Average annual returns are based on hypothetical back-tested performance of the Save Moderate Portfolio from 2006 to present and are net of fees. To achieve the return on the Save Wealth Card, Save purchases a strategy-linked security whose investment value is equal to two times the dollar spent. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing.

Glimpse into Save’s product strategy and development directly from the team

Investing
Financial products architect Mohamed El Hioum on investment strategy

Financial products architect Mohamed El Hioum has joined Save to further develop our accounts and portfolios, including an upcoming ESG investment strategy.

As Save continues to grow, we’re proud to introduce recently joined teammates to our customers and readers. This week, we’re bragging about Mohamed El Hioum joining as Save’s Director of Product Development. He’s providing insight into his role at Save and the projects he’ll help develop together with the team.

After studying engineering and applied math, Mohamed has spent over 20 years in the financial industry mostly working for international investment banks, creating, and trading investment products with institutional clients such as public pensions, insurers, and asset managers. He is also a CFA chartered holder.

This blog highlights his work and offers our customers insight into our diversified portfolio management and future product development.

1. What is your primary role at Save, and what attracted you to work at Save?

Mohamed: My role is to work with our partners and providers to expand Save’s account offerings. Our unique position and business model allow us to enhance existing financial products. Our accounts already enhance traditional savings accounts and debit and credit cards, but there’s potential to spread our strategies to other financial products, including insurance and loans.

2. How do you feel Save makes investing more efficient for people?

Mohamed: Most financial products have layers of fees, which means most investors don’t fully benefit from the powers of the financial markets. At Save, we leverage technology, innovation, and market access to allow a broader audience to access the benefits of investing.

Efficiency is only one of the benefits of our products. By coupling this with our innovative solution, our customers can appreciate the benefits of investing and plan their future with more confidence.

Save’s accounts center around our clients. While most financial products focus on incentivizing salespeople and the banks that offer them, we focus on benefiting our customers by investing what otherwise would have been fees to intermediaries. We even pass on collecting our management fee until the customers’ return exceeds our fees. This alone is a first in the industry.

3. How would you break down each of our portfolios for someone unfamiliar with investing?

Mohamed: Depending on a customer’s objectives and risk profile, they can allocate to either a growth, moderate, or conservative portfolio. Each portfolio is diversified into a multi-asset set of ETFs invested into global stocks, bonds, and alternative assets. The growth portfolio is most suitable for the more aggressive investment profile and dynamically allocates to 28 ETFs. The moderate portfolio adds allocation to US inflation-protected bonds in addition to the 28 ETFs, while the conservative portfolio doesn’t invest in highly volatile commodities. Each portfolio is reviewed regularly to ensure it meets its objectives.

4. Can you provide a brief highlight of what you’re developing for Save?

Mohamed: As I mentioned earlier, we are in the process of discussing a variety of new products, but in the short term, I am excited about adding our ESG portfolio to the investment options.

ESG stands for Environmental, Social, and Governance and, when applied to creating portfolios, it means that asset managers like myself are focusing on:

  • A company’s impact on the environment or the risks and opportunities associated with the impacts of climate change on the company, its business, and its industry.
  • A company’s relationship with people and the society, or whether the company invests in its community.
  • A company’s governance issues such as how the company is run and executive compensation.

The nature of our mission, which includes improving the planet, motivates us to include portfolios like this, along with our customers’ preferences. Many of our customers have asked if our portfolios focus on sustainable investing.

I’m happy to say that I’ll have a hand in developing Save’s ESG portfolio. This is just one way and we’re constantly evolving to meet our customers’ needs.

5 ways to maximize your Save® rewards this year 

Finance
Extend your Save rewards with the Debit Invest card.

Make the most of Save’s earning potential and ensure that you don’t leave money on the table from your everyday spending. 

Rewards are one of the biggest perks of using a debit or credit card. 

The Save® Debit Invest Card offers cashback in the form of investment returns. With average returns of 2.93% without category requirements,¹ Save gives customers a chance to earn more from their everyday spending than some of the best rewards programs. 

Here are five strategies to help make your spending more rewarding this year. 

1. Make the Save Debit Invest card your primary payment method 

If you’re currently using an ordinary debit card to do your everyday shopping, you might be missing out on potential rewards. 

The best way to maximize your reward potential is to use your Debit Invest card as your primary payment method. Using your Debit Invest card for all your qualified purchases helps you earn more from the money you’re already spending. 

Consider monthly household essentials like groceries. Using a regular 1% cashback debit card to do your $400 grocery shopping each month will only give you $4 in cashback rewards. 

With Save’s average return potential of 2.93%, you can earn $10 from your grocery spending. 

You can also easily keep track of your rewards by logging into the Save App or the Online Portal. 

2. Earn $1,500 in equivalent portfolio investments with referrals²

For each friend you introduce to Save, you’ll both receive an extra $1,500 in equivalent portfolio investments.

Here’s how it works:

1. Share your unique referral link.

2. Once your referral is signed up, each of you must spend $250 on qualified purchases.

3. You and your friend each get $1,500 in equivalent investments added to your portfolio.² 

4. After a little more than a year, the investment matures, and your returns (minus Save’s fee) are deposited into your account for you to use however you’d like. 

You can refer as many friends and family members as you’d like. Each successful referral enhances your potential returns as well as theirs. 

3. Be strategic about your large purchases 

Another way to rack up more rewards is to use Save for your big-ticket purchases. 

Save has no spending cap, so every qualified purchase you make, no matter how big, will be matched with an equivalent investment.3 

Let’s say you’re planning to spend $4,000 on new furniture for your house this year. You can purchase it with your Debit Invest card, and Save will match what you spend and invest $4,000 on your behalf.3 

In a year, assuming the average annual return is 2.93%¹, you can earn an investment return of $118 from one single purchase (net of fees). 

Whether you’re booking a family cruise or shopping for Black Friday deals, use Save for your large qualified purchases throughout the year so you can maximize your earnings. 

4. Take advantage of bonus offers 

Bonus offers and promotions are a great way to boost your earning potential.

During Save’s 2021 Christmas promotion, every qualified $1 spent was matched with $2 of equivalent investments. This bonus offer allowed Save customers to double their potential rewards from their Christmas shopping. 

Soon, you’ll be able to take advantage of more ways to earn investment returns with the Save Wealth card. Besides a 6.04%4 return potential on all purchases, the Premium Wealth card rewards customers with an even higher return potential when they shop from select brands like Amazon, Apple, Whole Foods, and more. 

Ensure you don’t miss out on any upcoming offers and promotions, check your inbox for our newsletter, or follow Save on Twitter, Instagram, Facebook, or LinkedIn for the latest updates. 

5. Set up a direct deposit 

Picture this. You’re out for dinner with your friends and decide to pay the bill using your Debit Invest card. 

There’s only one problem –– you forgot to transfer funds to your account. Now you’re missing out on potential investment returns, meaning you’re potentially leaving money on the table. 

A simple solution to avoid missing out on rewards is to always make sure you have funds in your account by setting up a direct deposit for your payroll to your Save account. Here’s a step-by-step guide to help you get started. 

This way, your account will automatically be replenished, so you don’t have to worry about adding funds to it or missing out on an opportunity to earn rewards. 

1 Average annual returns are based on hypothetical back-tested performance in the Save Moderate Portfolio from 2006 to present and are shown net of fees. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. The return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing

2 For each successful referral, Save buys a strategy-linked security for each party whose investment value is equivalent to $1,500.

3 For each qualified dollar spent using the Save Debit Invest card, Save buys a strategy-linked security whose investment value is equivalent to the dollar spent.
4 Average annual returns are based on hypothetical back-tested performance of the Save Moderate Portfolio from 2006 to present and are net of fees. To achieve the return on the Save Wealth Card, Save purchases a strategy-linked security whose investment value is approximately two times the dollar spent. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing.

Financial and retirement tips for your 40s

FinanceInvesting
Man and woman walking and talking about retirement

It’s easy to use your age as a savings compass to point you in the right direction, but remember that you’re never too young or too old to save.

But not having a financial compass isn’t advisable.

“Not having a financial plan is actually just having a really bad plan,” Alexa von Tobel, founder and CEO of LearnVest.com in New York, told BankRate. “Every financial plan is specific to the individual, but you should look at your income and set priorities for paying off debt and saving for different needs.”

For those in their 40s, retirement should be at the forefront of their savings goals. To meet those goals, there are a few financial and retirement tips we can recommend.

Don’t give into lifestyle inflation

While we all would love to live like we’re Jay-Z and Beyonce on a yacht, we often can’t and it’s important to not fall into lifestyle inflation as you get older. Yes, you are more established in your 40s, likely with a well-paying job, and a handle on your debt, but it’s not the time to excessively improve your lifestyle and live beyond your means.

Don’t get us wrong. Treat yourself to a family vacation or small luxuries, but it’s important to not let reoccurring costs overcome you. As you eliminate debt, redistribute the monthly payments to your savings or retirement funds instead of upgrading and financing that new luxury vehicle.

Avoid panic selling

Now that you’re in your 40s, it might be easy to be tempted to panic sell when markets trend downward. Don’t panic sell because long-term investments typically do just fine. If you sell during a low, you may lose money.

If risking your money isn’t your thing, try using Save accounts. Save accounts are powered by savings and investment technology that provide much better return potential all while your deposits are FDIC insured.1

Save currently offers the Debit Invest card, which matches every qualified dollar a customer spends with a dollar of equivalent investment2 in diverse portfolios made up of stocks, bonds, and other assets accessed via ETFs.

The Debit Invest card’s annual average return potential is 2.96%3. While not an apples-to-apples comparative, Save’s Debit Invest card outperforms the best debit rewards programs. With the Discover Cashback Debit card, customers receive 1% cashback on up to $3,000 per month on their purchases, which equates out to $30. Even when looking at some cashback credit cards, like the Citi Double Cash Card, the Debit Invest card is nearly a percentage point higher or more in potential cashback in the form of investment returns.

Save’s next account to launch is the Market Savings account, which will also be FDIC insured.1 With this new account, the money you save will earn a potential return after a 12-month term. With average annual returns for the Premium account of 1.46%4 and 1.03%4 for the Core account, your chosen Save account has the potential to generate even more wealth.

Save expects their accounts to give you a return several multiples more than other high-yield interest savings accounts.

Refinance your house if mortgage rates have dropped

If your mortgage rate is higher than the average right now, you may want to consider refinancing, but make sure that you avoid refinancing to another 30-year loan—unless you want to be paying off the loan in your 70s. Just refinance for a term similar to what you already have left on your loan to save on the interest, but be sure you don’t pick a cash-out refinance because it often results in a longer loan term and higher costs.

And since your home may be among your most valuable assets, you’ll want to ensure your equity continues to rise as you make home improvements. When you are picking what project to tackle, be sure to compare the initial investment to how much value it will provide when you decide to sell.

Don’t tap into your retirement account for your kids’ college or weddings

The children will be fine. If you appropriately planned for their future by starting a 529 account in your 30s, then they’ll have the financial jumpstart needed to be supported through college. Also, there are plenty of scholarships and federal student loans they can look into when the time comes. When it comes to weddings, the COVID-19 pandemic has made elopements and smaller weddings, which mean more affordable weddings, much more acceptable.

After all, ensuring your future in your older age will only allow your children and potential future grandchildren to enjoy you in retirement and have less stress in supporting you as you age.

Maintain your emergency fund and other healthy financial habits

Having healthy financial habits is a lifestyle. It’s crucial to maintain the habits you started in your 20s and 30s throughout your 40s. Among them is maintaining your emergency fund. A hefty emergency fund will help unexpected expenses, of course, but you can also use it to fund expected expenses like your kid’s wedding or their first year of college—both of which you shouldn’t pull money out of retirement for.

This is the third post in a four-part series on how to save money and set money goals at certain ages. Read the tips for saving in you’re in your 20s and 30s, and return next month for the last post or follow Save on Twitter, LinkedIn, Facebook, or Instagram for updates.

1 To obtain FDIC-insurance coverage on your behalf, Save Advisers partners with various FDIC-insured member banks. The funds you provide will be deposited into accounts at one or more FDIC-insured partner banks. FDIC insurance coverage is limited to not more than $250,000 per qualified customer account per bank. Actual deposit insurance coverage may be lower if you have other funds deposited at the partner bank. You are responsible for determining the amount deposited in each account at the partner banks, and for monitoring the total amount of your deposits at each partner bank, to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. Learn more at: https://www.fdic.gov/deposit/deposits. Only the initial funds you provide will be deposited with the partner banks and will be eligible for FDIC insurance. Market returns are held in your Save account and are not FDIC-insured, are not bank-guaranteed, and may lose value. Maximum balance and transfer limits apply. Neither Save Advisers, nor its affiliates, is a bank. Apex Clearing Corporation is a member of Securities Investor Protection Corporation (“SIPC”), formed by Congress to protect “customers” of broker-dealers and to promote public confidence in the U.S. securities markets. Customers of a SIPC Member that fails financially are afforded certain benefits under the Securities Investor Protection Act (“SIPA”). These benefits are relevant only if the broker-dealer that “carries” a customer’s account fails and is liquidated under SIPA. At Apex, your investments are protected up to a maximum of $500,000 total, including $250,000 in cash balances. Coverage limitations apply. To learn more about SIPC coverage, visit the SIPC website at www.sipc.org.

2 For each qualified spend using the Save Debit Invest card, Save buys a strategy-linked security whose investment value is equivalent to the dollar spent. 

3 Average annual returns are based on hypothetical back-tested performance and are net of fees. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. The return figures shown are for informational purposes only and are not actual customer returns. Returns shown are reflective of being invested in the Save Moderate Portfolio from 2006 to present. For more detailed information please see Hypothetical Back-testing.

4 Average annual returns are based on hypothetical back-tested performance and are net of fees. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. Return on Savings Calculation: We assumed that the Core Bundle would appeal to the 60-79.9% percentile of the income distribution and the Premium Bundle would appeal to the 80-99.9% percentile. We then assumed that they would have the average savings account balance for that income bracket on the Market Savings account and the median transaction account balance as debit spend on the Debit Invest Card every month. From the Survey of Consumer Finance, 2019 – Core Inputs: Debit Invest Spending $2,500 per month; Savings balance $28,690. Premium Inputs: Debit Invest Spending $5,000 per month; Savings Balance $51,940. We calculated the returns on each of those products and used that to calculate the return on savings: return on debit in dollars plus return on savings in dollars divided by savings balance in dollars equals Return on Savings. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing. Source: https://www.federalreserve.gov/econres/scfindex.htm

Meet the Save® Premium Wealth card, the world’s first high-yield credit card

Credit
Introducing the Save Wealth credit card.

The Save Premium Wealth credit card is expected to have the highest return potential of any premium card available with an average return of 6% annually1 on all purchases with no caps, category restrictions, or minimums.

The Wealth credit card will match customers’ spending with investments in personalized portfolios which are expected to include globally diversified allocations, sustainable investments, and alternative assets with managed crypto exposure.

After a year, Wealth customers keep all the returns of the investments (minus the Save Wealth management fee of 0.79%), with a minimum return of 0%. The card returns aren’t guaranteed, and the customer may receive more or less than the average 6% annual returns1 depending on market performance. This means that regardless of customers’ spending, they won’t lose money in the stock market. If the market does underperform, customers just don’t earn cashback in the form of investment returns.

Early adopters of the card will receive $10,000 in equivalent investments2 for signing up to receive the card. Existing customers can receive $5,000 in equivalent portfolio investments3 for referring others to the Wealth credit card. Both receive the returns from the referral investments after one year.

The Premium Wealth card has an annual fee of $750 and will also provide access to typical premium card benefits including increased investments and yield potential for purchases done with Save preferred brands. Transactions made with the Premium Wealth card for Tesla, Electrify America, Peloton, and SoulCycle purchases can generate three times more return potential than the normal 6%1 return potential because they’re Save preferred brands. Similarly, Apple, Microsoft, Samsung, Amazon, and Whole Foods purchases can earn up to double the equivalent investments.4

Save is partnering with Visa, a world leader in digital payments, to launch the Wealth credit cards in early 2022. “I’m excited Visa will be a partner for Save in this upcoming card launch,” said Patrick Williams, Head of North American Digital Partnerships at Visa. “With the Wealth card, Save is offering more options for consumers to maximize their spending power.”

“We are very pleased to partner with Visa on the rollout of the first Save Wealth credit cards,” said Michael Nelskyla, Founder and CEO of Save. “The Wealth card is designed for consumers who are looking for the potential of better economic value from their credit card in a low-interest rate environment, and with high inflation.”

“At Save, we believe the benefits of market returns should be expanded beyond traditional investment vehicles,” said Adam Watts, President and COO of Save.

To learn more about and order your Save Wealth credit card, click here.

The card also comes with access to Save’s enhanced FDIC-insured cash management tools including a Premium Market Savings account and a high yield checking account, which currently pays 0.50% interest on cash deposited. Neither account has any deposit limits outside of the $250,000 maximum for eligibility for FDIC insurance provided by Save’s bank partners.5

1 Average annual returns are based on hypothetical back-tested performance of the Save Moderate Portfolio from 2006 to present and are net of fees. To achieve the return on the Save Wealth Card, Save purchases a strategy-linked security whose investment value is equal to two times the dollar spent. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing.

2 As a bonus to signup, Save will buy a strategy-linked security whose investment value is equivalent to $10,000.

3 For each successful referral, Save buys a strategy-linked security for each party whose investment value is equivalent to $5,000. 

4 For each dollar spent using the Save Wealth card, Save buys strategy-linked securities whose investment value is equivalent to twice the dollar spent.

To obtain FDIC-insurance coverage on your behalf, Save Advisers partners with various FDIC-insured member banks. The funds you provide will be deposited into accounts at one or more FDIC-insured partner banks. FDIC insurance coverage is limited to not more than $250,000 per qualified customer account per bank. Actual deposit insurance coverage may be lower if you have other funds deposited at the partner bank. You are responsible for determining the amount deposited in each account at the partner banks, and for monitoring the total amount of your deposits at each partner bank, to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. Learn more at: https://www.fdic.gov/deposit/depositsOnly the funds you provide will be deposited with the partner banks and will be eligible for FDIC insurance. Market returns are held in your Save Apex Clearing account and are not FDIC-insured, are not bank-guaranteed, and may lose value. Maximum balance and transfer limits apply. Neither Save Advisers, nor its affiliates, is a bank. Apex Clearing Corporation is a member of Securities Investor Protection Corporation (“SIPC”), formed by Congress to protect “customers” of broker-dealers and to promote public confidence in the U.S. securities markets. Customers of a SIPC Member that fails financially are afforded certain benefits under the Securities Investor Protection Act (“SIPA”). These benefits are relevant only if the broker-dealer that “carries” a customer’s account fails and is liquidated under SIPA. At Apex, your investments are protected by SIPC up to a maximum of $500,000 total, including $250,000 in cash balances. Coverage limitations apply. To learn more about SIPC coverage, visit the SIPC website at www.sipc.org.

Debunking 3 common investing myths with Save®

Investing
Don't give into the myths of investing

Investing is a great way to reach your financial goals, but it can seem daunting at first. 

The truth is, everyone can become an investor and reap the rewards that come with it. You don’t need to be an expert or have a pile of cash at your disposal to invest.

And the sooner you do it, the better. According to a recent MagnifyMoney survey, 77% of Americans regret not having invested earlier in their life.  

Let’s shed some light on three of the common myths about investing that hold you back from growing your money. 

Myth # 1: You need a lot of money to get started

Investing may have felt like an exclusive club decades ago when not everyone could afford it, but that’s no longer the case. You don’t need to be a high-powered Wall Street broker or pay exorbitant commissions and fees to have someone invest for you. 

With Save®, you don’t even need to have extra cash or cut back on your spending to invest. When you make qualified purchases with the Save Debit Invest card, Save matches your spending dollar for dollar with equivalent investments,1 giving Save customers the potential for a much bigger return from their everyday spending.

In other words, the money you spend on restaurants, gas, or other qualified purchases gets turned into investments. For example, if you spend $2,000 on qualified purchases each month, Save invests $2,000 on your behalf.1 Based on an average return potential of 2.94%2, a single month’s worth of spending can generate $58 in investment returns (net of fees).

When it comes to fees, Save only charges a management fee of 0.59%, if your investment generates a return. If your returns are less than 0.59% that fee no longer applies.  

Myth # 2: Investing is too complicated and takes up a lot of your time 

With all the investment options available to you, how do you pick “the right” stocks? And the heavy investment jargon that’s being thrown around is enough to make your head spin. 

At the same time, finding the time to keep track of your investments feels like a luxury you don’t have. When you use Save, you don’t need to pick stocks or keep up with financial news. 

Your investments go into a portfolio of your choice which is managed by the Save team. All you have to do is choose a portfolio that best suits your investment goals and the level of risk you are willing to take by using Save’s Recommendation Tool during account sign-up. For example, if you’re a conservative investor, you might choose a well-diversified portfolio that avoids investing in commodities.

Once you’re all set, you can easily keep track of how your investments are performing by logging in to the Save App or Online Portal at your convenience. 

With the Save team looking after your well-diversified portfolio, investing is far less complicated and time-consuming. 

Myth # 3: Investing is not worth it – far too risky!

Does investing come with some form of risk? Yes. 

Does this make it not worth it? Not exactly. 

While investing is risky, there are ways to protect yourself against certain risks and keep your money safe. 

Here’s how Save looks after your investments: 

  • If your investment doesn’t perform well, you won’t lose your money. You just won’t see any returns for that period. 
  • In the event of zero returns or returns under 0.59%, you won’t be charged a management fee. 
  • Your checking account is FDIC insured.3
  • Save’s well-diversified portfolios help maximize your earning potential and minimize exposure to market volatility.

Save was specifically designed to give your investments a safer way to grow.

1 For each qualified spend using the Save Debit Invest card, Save buys a strategy-linked security whose investment value is equivalent to the dollar spent.

2 Average annual returns are based on hypothetical back-tested performance and are net of fees. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. The return figures shown are for informational purposes only and are not actual customer returns. Returns shown are reflective of being invested in the Save Moderate Portfolio from 2006 to present. For more detailed information please see Hypothetical Back-testing.

3To obtain FDIC-insurance coverage on your behalf, Save Advisers partners with various FDIC-insured member banks.  The funds you provide will be deposited into accounts at one or more FDIC-insured partner banks.  FDIC insurance coverage is limited to not more than $250,000 per qualified customer account per bank.  Actual deposit insurance coverage may be lower if you have other funds deposited at the partner bank.  You are responsible for determining the amount deposited in each account at the partner banks, and for monitoring the total amount of your deposits at each partner bank, to determine the extent of available FDIC insurance coverage in accordance with FDIC rules.  Learn more at: https://www.fdic.gov/deposit/deposits.  Only the initial funds you provide will be deposited with the partner banks and will be eligible for FDIC insurance. Market returns are held in your Save account and are not FDIC-insured, are not bank-guaranteed, and may lose value. Maximum balance and transfer limits apply. Neither Save Advisers, nor its affiliates, is a bank. Apex Clearing Corporation is a member of Securities Investor Protection Corporation (“SIPC”), formed by Congress to protect “customers” of broker-dealers and to promote public confidence in the U.S. securities markets.  Customers of a SIPC Member that fails financially are afforded certain benefits under the Securities Investor Protection Act (“SIPA”).  These benefits are relevant only if the broker-dealer that “carries” a customer’s account fails and is liquidated under SIPA. At Apex, your investments are protected up to a maximum of $500,000 total, including $250,000 in cash balances. Coverage limitations apply. To learn more about SIPC coverage, visit the SIPC website at www.sipc.org.  

8 reasons why it is a great time to get the Save® Debit Invest card

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Reasons why you should get the Save Debit Invest card

Debit card users, it’s time to make your spending work for you with cashback in the form of investment returns deposited directly into your Save® Debit Invest account.

Debit cards are the second most common payment method in the US, but most don’t offer rewards or cashback. The Save® Debit Invest card offers cashback in the form of investment returns, which is just one reason why it is a great time to consider changing your debit card to the Debit Invest card, instead.

Dollar-for-dollar matching on qualified transactions¹

When you make qualified purchases with your Save Debit Invest card, Save matches your spending dollar for dollar with equivalent investments, giving our customers the potential for a much bigger return from their everyday spending.

How it works:

  1. For every $1 you spend, Save invests $1 on your behalf.¹
  2. Your matched equivalent investments stay invested for a little more than a year.
  3. Then, once the investment matures, the returns from the investment (minus our fee) are deposited into your bank account as cash.

Based on hypothetical back-tested performance, Save estimates 2.95%2 average returns on matched equivalent investments. Hypothetically, if you spent $4,000 in one month on qualified investments, after a little more than a year, the equivalent investments made by Save would have the potential to return about $118. This cash would be deposited directly back into your Save account.

Earnings potential is unlike any other

If $118 back into your account doesn’t sound like much, we can dive into a few more hypothetical situations.

The Debit Invest card’s earnings potential is unlike any other. While not an apples-to-apples comparative, Save’s Debit Invest card outperforms the best debit rewards programs. With the Discover Cashback Debit card, customers receive 1% cashback on up to $3,000 per month on their purchases, which equates out to $30. Even when looking at some cashback credit cards, like the Citi Double Cash Card, the Debit Invest card is nearly a percentage point higher or more in potential cashback in the form of investment returns.

Ultimately, using the Debit Invest card gives users a chance to earn more—without changing their spending habits.

Keep your money secure with FDIC insurance3

Save doesn’t use customers’ money to match spending with investments. Read that again: Save doesn’t use customers’ money to match spending with investments.

All Save accounts are FDIC insured.3 The Debit Invest card allows Save to match customers’ spending through strong partnerships with banks and card issuers. Traditionally, interchange fees (this is normally a fee that banks and card companies charge the merchants per transaction) are charged between the card sponsor and the merchant, and most issuers keep that to offset their card program’s cost. Save has taken that traditional model and used it to their customers’ benefit by using the interchange fee to fund the investment matching.

Because of this process, Save’s customers can invest in their future while their cash stays safe with no need to sacrifice any aspects of their lifestyle to start saving.

Get thousands-worth of equivalent investments with referrals

Whenever a Save customer refers a friend or family member to open a Save account, they will each receive a bonus of $1,500 of equivalent portfolio investments5 after both have spent $250 in their respective accounts in a month. The referral program can potentially boost customers’ investment returns. This referral program is designed to be exceptionally rewarding and have strong upside potential for customers returns.

“Banks spend billions in advertisements. We’d rather provide a generous referral and pass the savings onto you and your friends,” said Michael Nelskyla, Save Founder and CEO. “These investments are additional money at work for you. They add to the overall potential of your investments, so you can get more from your Save accounts.”

No return, no fee

Figure 1: The Save® Conservative Portfolio Strategy consists of stocks, bonds, and other assets.
Figure 1: The Save® Conservative Portfolio Strategy consists of stocks, bonds, and other assets.

Another exceptionally generous aspect of Save is its no return, no fee policy.

Nelskyla and President and COO Adam Watts believe that fees should be fair and financial advisors should take responsibility for portfolio performance. Therefore, if Save’s investment portfolios don’t generate a return greater than the management fee of 0.59%, the customers don’t pay a penny in fees.

Clear investment dashboard to monitor your portfolio

Upon signing up, new customers designate their desired portfolio—conservative, moderate, or growth—based on their risk level.

Users can monitor their portfolio’s performance via the Save App or Online Portal. The dashboard (Figure 1 to the right) displays the composition of asset classes for the Conservative Portfolio. Save’s portfolios are designed for diversification, stability, and flexibility.

Multiple avenues to access Save Support

We all need a little help sometimes and Team Save wants to help current and prospective customers throughout researching, signing up for, and utilizing Save accounts. Save makes support easy by providing several avenues to reach the team for help.

Current and prospective customers can reach Save by the methods below:

Invitation to upcoming Save accounts

Debit Invest cardholders are automatically subscribed to account updates via their email, which is where Save shares promotion updates and new account offerings.

Among the new account offerings include the Market Savings account, where users’ money can actually grow with average returns of 1.46%5 with Premium and 1.03%5 with Core. Like the Debit Invest card, the Market Savings accounts are FDIC insured.

Additionally, Save communicates marketing promotions through their newsletters. Most recently, Save awarded $1,000 in equivalent investments to Instagram followers who posted a selfie as they made purchases with their Save card.

¹ For each qualified spend using the Save Debit Invest card, Save buys a strategy-linked security whose investment value is equivalent to the dollar spent.

2 Average annual returns are based on hypothetical back-tested performance and are net of fees. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. The return figures shown are for informational purposes only and are not actual customer returns. Returns shown are reflective of being invested in the Save Moderate Portfolio from 2006 to present. For more detailed information please see Hypothetical Back-testing.

3 To obtain FDIC-insurance coverage on your behalf, Save Advisers partners with various FDIC-insured member banks. The funds you provide will be deposited into accounts at one or more FDIC-insured partner banks. FDIC insurance coverage is limited to not more than $250,000 per qualified customer account per bank. Actual deposit insurance coverage may be lower if you have other funds deposited at the partner bank. You are responsible for determining the amount deposited in each account at the partner banks, and for monitoring the total amount of your deposits at each partner bank, to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. Learn more at: https://www.fdic.gov/deposit/deposits. Only the initial funds you provide will be deposited with the partner banks and will be eligible for FDIC insurance. Market returns are held in your Save account and are not FDIC-insured, are not bank-guaranteed, and may lose value. Maximum balance and transfer limits apply. Neither Save Advisers, nor its affiliates, is a bank. Apex Clearing Corporation is a member of Securities Investor Protection Corporation (“SIPC”), formed by Congress to protect “customers” of broker-dealers and to promote public confidence in the U.S. securities markets. Customers of a SIPC Member that fails financially are afforded certain benefits under the Securities Investor Protection Act (“SIPA”). These benefits are relevant only if the broker-dealer that “carries” a customer’s account fails and is liquidated under SIPA. At Apex, your investments are protected up to a maximum of $500,000 total, including $250,000 in cash balances. Coverage limitations apply. To learn more about SIPC coverage, visit the SIPC website at www.sipc.org.

4 For each successful referral, Save buys a strategy-linked security for each party whose investment value is equivalent to $1,500.

5 Average annual returns are based on hypothetical back-tested performance and are net of fees. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. Return on Savings Calculation: We assumed that the Core Bundle would appeal to the 60-79.9% percentile of the income distribution and the Premium Bundle would appeal to the 80-99.9% percentile. We then assumed that they would have the average savings account balance for that income bracket on the Market Savings account and the median transaction account balance as debit spend on the Debit Invest Card every month. From the Survey of Consumer Finance, 2019 -Core Inputs: Debit Invest Spending $2,500 per month; Savings balance $28,690. Premium Inputs: Debit Invest Spending $5,000 per month; Savings Balance $51,940. We calculated the returns on each of those products and used that to calculate the return on savings: return on debit in dollars plus return on savings in dollars divided by savings balance in dollars equals Return on Savings. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing. Source:  https://www.federalreserve.gov/econres/scfindex.htm

Protect your wealth this holiday season with Save®

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This holiday, make investments while you shop.

The holiday season is the most wonderful time of the year, however, it’s also an expensive time of year.

A study of U.S. households conducted by Fortunly showed 22% of Americans believe that their Christmas spending will leave them in debt and that 46% of people have lied about liking a gift. With this in mind, could some of your holiday expenses put a strain on you or be a waste of your hard-earned money?

There are ways of ensuring every $1 you spend this holiday season is of value to you.

Five ways you can protect your wealth during the holiday season 

1. Ensure that they get what they want with gift cards

If 46% of people have lied about liking a gift, why take your chances? While gift cards aren’t the most imaginative gift to bestow on your loved ones, it ensures that they’ll eventually purchase something that they want. 

Gift card platforms, such as Raise, CardCash, and GiftCardGranny, sell discount cards to customers from a variety of retailers. Raise currently has Adidas $15 gift cards for up to 10.7% off, meaning you’re paying $13.40 for the $15 gift card.

Plus, with $65 billion of gifts at stake due to supply chain shortages, according to Quincus and the Centre for Economics and Business Research, going the gift card route can ensure you’re not anxiously waiting on a gift to arrive before December 25.

2. Save up each month in the 12-months leading up to Christmas

On average, Fortunly found US households spend $1,536 during the holiday season. When you break this down over 12 months, you need to save $128 per month, which is more manageable than a large lump sum of $1,536. Breaking up large purchases monthly is also a generally wise savings tip to follow.

3. Spend using your Save Debit Invest card

Once you have saved up for your favorite time of the year in your Save® account, use your Save Debit Invest card for your holiday shopping. For every $1 you spend on qualifying purchases, Save® will match and invest $1 of equivalent investments¹ on your behalf. This means that your $1,536 of qualified spending will also be matched and invested and that you have the chance of earning returns from the matched investments.

Assuming that you have chosen Save’s moderate investment profile, in a little longer than 12-months’ time, if the average annual return of 2.95%² is achieved, you will earn an investment return of $45.31, which will be deposited back into your Save account. 

An extra bonus to this product is the current promotion Save is running, where every qualified $1 spent is matched by Save with $2 of equivalent investments¹. This way, you can turn your holiday spending in December into your future savings.

4. Plan ahead for Christmas

If you can set aside a lump sum for future Christmas spending, open Save’s soon-to-be-launched Market Savings account. Deposit $1,536 for a 12-month term, and your money has the chance of generating an average annual return of 1.03%³ with the Core bundle and 1.45%³ with the Premium bundle, giving you a potential $15.82 extra for you to spend.  Learn more about the Market Savings account here. 

5. Set a realistic gift budget and stick to it

Leading up to the holiday season, realistically look at your expenses and decide on what you can afford for gifts and holiday travel. 

Then, when you have your budget, make a gift list and do research on potential price ranges so you’re able to know when you’ve found a good deal. 

No spending is worth the cost of post-holiday debt or financial woes due to overextending your finances during the holidays. You work hard to make your money, so make it count with smart financial strategies and utilizing Save accounts.

¹For each qualified spend using the Save Debit Invest card, Save buys a strategy-linked security whose investment value is equivalent to the dollar spent.

²Average annual returns are based on hypothetical back-tested performance. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. The return figures shown are for informational purposes only and are not actual customer returns. Returns shown are reflective of being invested in the Save Moderate Portfolio from 2006 to present. For more detailed information please see Hypothetical Back-testing.

³Average annual returns are based on hypothetical back-tested performance. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. Return on Savings Calculation: We assumed that the Core Bundle would appeal to the 60-79.9% percentile of the income distribution and the Premium Bundle would appeal to the 80-99.9% percentile. We then assumed that they would have the average savings account balance for that income bracket on the Market Savings account and the median transaction account balance as debit spend on the Debit Invest Card every month. From the Survey of Consumer Finance, 2019 – Core Inputs: Debit Invest Spending $2,500 per month; Savings balance $28,690. Premium Inputs: Debit Invest Spending $5,000 per month; Savings Balance $51,940. We calculated the returns on each of those products and used that to calculate the return on savings: return on debit in dollars plus return on savings in dollars divided by savings balance in dollars equals Return on Savings. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing. Source:  https://www.federalreserve.gov/econres/scfindex.htm

How to get an edge against rising prices

FinanceInvesting
Rising prices cause everyday items to go up in value

Rising prices are a part of life and with the Save® Debit Invest card, maintaining your money’s purchasing power can be, too.

It looks like the US economy is on the road to recovery. A healthy economy is a good sign, but what does this mean? 

One word: inflation. 

Since the economy reopened, consumers haven’t shied away from spending. 

Demand for goods and services went up, but supply couldn’t quite keep up, which was one of the reasons why the price of just about everything rose. In fact, inflation, as measured by the CPI, rose 6.2% year-over-year this October

While such a strong rise in prices is scary, experts predict it will level out. The International Monetary Fund projects roughly a 2.25% annual rise in prices until 2026. This projection means that an item you buy today for $100 will cost $102.25 next year and increase a couple of dollars each year thereafter. The chart below from Statista shows International Monetary Fund’s predicted annual inflation in the U.S. from 2010 to 2020 with additional projections up to 2026.

Statistic: Projected annual inflation rate in the United States from 2010 to 2026* | Statista
Find more statistics at Statista

Moderate inflation of around 2% is considered normal and healthy for an economy. Even so, it hurts your purchasing power. As a small example of inflation in action, the cost of a movie ticket keeps increasing year after year.  In 2012, a ticket to see The Avengers cost $7.96. As of 2019, the cost had gone up to $9.16.  And in 2021, an AMC ticket locally costs $12.85.

When inflation rises, your money is losing its purchasing power. And since inflation is expected to continue going up over the next few years, how will your money keep up? 

Curb the effects of rising prices by getting your qualified spending matched with equivalent investments from Save.

To maintain your purchasing power, you can potentially: 

  1. Get a yearly salary increase
  2. Work more hours 
  3. Put your money in a savings account
  4. Maybe try your luck with crypto?
  5. Become an investor by using Save

Our choice? Become an investor by using Save

With Save, you don’t need to be an expert or have tons of disposable income to invest.

Save matches every qualified dollar you spend and invests it in the markets for you, with an average annual return of 2.96%** after fees. An experienced portfolio manager looks after your investments, ensuring they are diversified. 

If the experts are right and average annual inflation hovers around 2.25% in the next few years, the returns from Save’s investment matching have the potential to keep up with inflation.

Take the price of gas for example. 

If it costs you an average of $1,500 to fill up your tank this year, a 2.25% inflation will hike up that price to $1,533 next year. Using your Debit Invest card at the pump could ensure Save matches your $1,500 in gas and invests it. Assuming an annual rate of return of 2.96%**, net of fees, you could earn a $40.00 cash reward from your initial purchase, which could help offset the cost of the next year’s gas purchases and give you an edge against rising prices. 

*For each qualified spend using the Save Debit Invest card, Save buys a strategy-linked security whose investment value is equivalent to the dollar spent.

**Average annual returns are based on hypothetical back-tested performance in the Save Moderate Portfolio Strategy from 2006 to present. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. All return figures shown are for informational purposes only and are not actual customer returns. The funding rates and specific calculations for the Premium and Core bundle returns are described in detail in the Hypothetical Back-test. For more detailed information please see Hypothetical Back-testing.

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