Finance

Portfolio diversification: What is it and why does it matter?

InvestingFinance
Portfolio diversification is key.

Portfolio diversification is key. A balanced investment portfolio is made up of a variety of investments that work together to help you achieve your financial goals while reducing risk. 

For an individual investor, the more diverse their portfolio, the more protected they are from potential losses arising from market fluctuations. A portfolio that is too concentrated (for example, all invested in stocks) is subject to greater risk than one that spreads investments across different asset classes and geographic regions.  

At Save, we utilize quantitative techniques to determine relative asset preferences, carry out risk-based asset allocation, and apply volatility control overlays to ensure our portfolios are diversified and expected to perform. This approach provides your portfolio with much-needed stability and reduces the risks of extreme fluctuations in the value of your assets over time. 

An additional benefit of Save’s portfolios is that it isn’t your money that’s being invested. Your deposit is placed in an FDIC-insured account† with Webster Bank, N.A., Member FDIC, and it is never encumbered, collateralized, or put at risk in the market. There is no requirement for customers to outlay their own capital, nor do we fund it from customer accounts. 

Instead, we and our partners take the economic value of your deposits and invest on your behalf in your selected Save portfolio. 

Our Global Diversified Markets Portfolios – Conservative, Moderate, and Growth – are designed to fit your market risk tolerance.  

Each Global Diversified Markets Portfolio utilizes a sophisticated rules-based investment approach that captures returns across a wide range of asset classes and regions, seeking to maximize the consistency of returns. 

The portfolios invest across global equities, government and corporate bonds, inflation-protected bonds, real estate, gold, and the broad commodity universe (remember what we said above – diversification is key). 

In addition to diversification, our rules-based approach assesses the trend and risk of each asset on a daily basis, as well as their correlations, subsequently allocating more weight to the assets expected to outperform while maintaining a diversified portfolio – seeking to maintain a stable level of volatility and minimize drawdowns. In simpler terms, we watch our portfolios on a daily basis in order to ensure they perform as well as possible regardless of market conditions.  

Most recently, we’ve softly launched our Environmental, Social, and Governance (ESG) Portfolio, which caters to customers who want to align their investments with their environmental, social, and governance beliefs.  

The ESG Portfolio utilizes the same sophisticated, rules-based investment techniques as the original Global Diversified Markets Portfolios and maintains a similar global multi-asset class approach, while utilizing ESG-focused ETFs and avoiding investments in certain commodities like agriculture and livestock. 

Specifically, for index components that involve companies (rather than countries), such as equities and corporate bonds, the portfolio invests in iShares ESG Aware ETFs. These seek to provide similar risk and return as their respective broad market benchmarks, while only selecting companies deemed acceptable under the specific environmental, social, and governance rules. 

How to incorporate diversification yourself 

At a high level, diversification helps to reduce the overall volatility of a portfolio by reducing the impact of a single investment on your overall portfolio value.  

While there is no “right” or “wrong” way to build and maintain a diversified portfolio, there are several important things to consider when it comes to selecting and investing in the appropriate mix of securities to help you reach your investment goals, assuming you don’t go with one of Save’s daily-balanced portfolios. 

The following steps will help you build a sound – and diversified – investment strategy:  

  1. Analyze your financial situation to determine your goals (such as time horizon and target returns) and what types of investments can help you achieve them.  
    For example, if you need your investments to be more liquid and accessible at any time, then you might not want to put your money into Series I Bonds or long-term CDs because both come with penalty fees for withdrawing your money before maturity. 
  1. Once you have your goals defined, you can focus on building your strategy. First, look at the asset allocation (stocks and bonds are the basic types) you’re considering. Then read this investing advice from Forbes about how to diversify your investments. 
  1. Once you learn the ropes, maintain your strategy and perform regular reviews of your strategy to ensure it remains consistent with your objectives and risk tolerance level. Much like our portfolios, you must review where your money is and how it’s doing regularly and rebalance your portfolio as needed to maintain your desired asset allocation.  
    If manually doing this doesn’t sound like your cup of tea, consider robo-advisors, or Market Savings terms so that professionals are managing your portfolio for you. An additional benefit of Save portfolios, too, is that you’re not charged a fee if your portfolio doesn’t perform past the fee’s total of 0.35%.  

4 ways financial literacy is built with Save

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Woman biking with children

This is how the Market Savings terms can teach financial literacy and save you money.

The significance of five years is extremely relative. The five years until your middle-schooler leaves for college seems like a lifetime away, but it flies by in an instant. 

Let’s say you put $5,000 in a 5-year Save® Market Savings term in the summer before your child’s 8th-grade year, then you make an additional $5,000 deposit for a 2-year term the summer before they started their junior year in high school.

Where most savings accounts would earn less than 3% in interest, the Market Savings 5-year term’s 9.35% average annual return and 2-year term’s 5.78% average annual return* potentially could earn the following return when they graduate:

YearFDIC-insured deposit amount and term length**Average annual return per term*Potential annual gains
8th grade$5,000, 5-year term9.35%$467
9th grade9.35%$467
10th grade9.35%$467
11th grade$5,000, 2- year term9.35%, 5.78%$467 + $289
Graduation9.35%, 5.78%$467 + $289
Total$10,000$2,913

At the end of the terms, your child’s Market Savings program could mature to $12,913 at the time of their graduation. Not only this, you can get a jump on teaching your child about financial literacy by utilizing the Market Savings terms.

According to Investopedia, financial literacy is “the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.” 

As the pandemic has proved, it’s important to establish monetary security, adaptability, and backup plans in the face of unexpected crises. But according to a study conducted by the FINRA Investor Education Foundation, less than 35% of Americans can be considered financially literate. 

The drastic effects of this statistic are illustrated by the US Federal Reserve, which revealed from a survey from July 2020 to May 2021 that a $400 emergency would be difficult to cover for 35% of Americans. Unfortunately, many adults faced this reality in the wake of the pandemic, but utilizing financial tools like the Market Savings program can help ease financial surprises.

How can Save build a foundation of financial literacy?

Only 23 states require financial literacy classes in high school, and 25 states don’t even require economics. Unsurprisingly, one in three students failed the National Financial Educators Council’s Financial Foundation Test in 2021. When considering our children’s financial education, it’s important to implement financial literacy in their everyday life.

The Market Savings program offers the perfect introduction for your child to practice money management before going off on their own. 

Here are four lessons the Market Savings program can offer your child:

  1. Insurance

    Insurance provides stability and security in the face of uncertainty. While developing a foundation of financial literacy, your children will come to understand that protecting their money is crucial as well.

    Deposits into the Market Savings program are FDIC insured up to the maximum amount the law allows, meaning you are guaranteed security of your initial deposit up to $250,000.** In other words, while your child engages with their account to learn how the stock market works, they’re not actually risking their deposit in the stock market.
  2. Budgeting

    Financial planning skills are the root of financial literacy. After all, before you can maximize your wealth potential by investing, you have to have money to invest.

    By empowering your child with their own Market Savings program, you allow them to practice essential financial-planning skills like budgeting. Introduce them to basic concepts like the 50/30/20 rule, in which budgeters allocate 50% of their income to necessities, 30% to their wants, and 20% to financial goals.

    Review the budget together monthly to discuss how much they save, how often they withdraw, and how it aligns with their goals. By giving kids the opportunity to manage assets early on, you provide the security of your own experience and knowledge to help them navigate their financial future.
  1. Understanding Market Access

    Remember when I said, “before you can maximize your wealth potential by investing, you have to have money to invest”? This is true, but the Market Savings program gives customers market access with a bit more security.

    Save invests in a diversified portfolio on the behalf of customers based on their deposits. This is done at no risk to your funds thanks to the FDIC insurance protecting your Market Savings initial deposit.**

    The Market Savings program has three terms that generate three potential returns. With average returns of 5.73% for 1-year terms up to 9.35% for 5-year terms,* the longer your money stays in your account, the higher your annual return.

    At the end of the term, you receive a direct deposit with the gains from the investment’s returns (not the investments themselves), minus Save’s 0.35% management fee. If your returns are less than 0.35%, you aren’t charged a fee. Save provides customers market access, customers collect the returns, while their initial deposits remain FDIC insured.**

    By using the Market Savings program to build financial literacy, you also prime your kid to be a successful participant in the stock market. Financial literacy leads to portfolio diversification, which leads to better returns. And while your child builds this foundational knowledge, Save maximizes their money’s potential in the meantime by investing on their behalf. 
  2. Inflation

    Inflation can be confusing, but it’s a fact of life: your dollar is worth drastically more today than it will be when your child is an adult. Luckily, the Market Savings program can buffer inflation’s diminishing effect on your child’s money with returns up to 9.35%.* 

    As the Federal Reserve aims to keep inflation around 2% yearly, even the shortest Market Savings term can combat the effects of inflation. The 1-year term’s 5.73% return* still vastly outperforms the average savings account, which only returns about 0.13%

    No matter what term you go for, the Market Savings program can help cover the cost of inflation. To top it off, all deposits are FDIC insured,** and if you don’t make money, Save doesn’t charge a fee. It’s a conservative way to allow your kid to participate in the market, observe inflation’s effects, and potentially reap 9.35% returns.*

Beyond that, the foundational knowledge they’ve built is invaluable. We should never stop improving our financial literacy, and your family can start with Save’s new Market Savings terms today.

* Average annual returns reflect the most recent deposit rates and 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. For client accounts, the average annual return percentage calculated across the full term length of investment will never reflect returns of less than 0%. Calculations of average annual returns based on hypothetical back-tested performance across any term length of investment of one (1) year or greater are based on an assumption of sequential reinvestment of the principal and any returns of each such security into a new hypothetical strategy-linked security effective on the maturity date of the predecessor security. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see https://joinsave.com/hb-moderate 

**To obtain FDIC insurance coverage, customer funds provided will be deposited into non-interest-bearing accounts at Webster Bank. FDIC insurance coverage for funds deposited at Webster Bank is limited to not more than $250,000 per depositor, per FDIC-insured bank, per ownership category. Actual deposit insurance coverage may be lower if you have other funds deposited at Webster Bank, N.A.. Customers are responsible for determining the amount deposited in each account at Webster Bank, N.A., and for monitoring the total amount of their deposits at Webster Bank, N.A., 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 funds customers provide and deposit with Webster Bank, N.A. will be eligible for FDIC insurance. Webster Bank is not providing any investment advice or responsible for the purchase or performance of any investment contracts. The funds held in the Apex Clearing Corporation accounts are not FDIC-insured, are not bank guaranteed, and may lose value with a minimum return of zero. Maximum balance and transfer limits apply. Neither Save Advisers, LLC, nor its affiliates, are a bank. Apex Clearing Corporation is a member of the 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 Clearing Corporation, 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 http://www.sipc.org.

Following the Rule of 72, potentially double your Market Savings deposit in less than 8 years

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Rule of 72 shows you should double your deposit in 8 years

How long does it take an investment to double in value? Meet the Rule of 72. This is a simplified equation used to estimate the number of years an investment may take to double at a given annual rate of return.

The Rule of 72 states that you can get an estimate of how long a sum of money will take to double by dividing 72 by the rate of return: 

72 / (annual return) = (years for principal to double) 

An example: An investment with a 9% annual return, means your money should double every 8 years.  

The Rule of 72*

YEARS 9% 
$10,000 
$19,926  
16 $39,703
24 $79,111   
32 $157,633 
40 $314,094 

We believe savings accounts should give you that kind of return, not just risking your money in the market, thus why we created the Market Savings program, which combines the safety of an FDIC-insured bank account with the return potential from investing in the market.  

The core investment philosophy of Save is to generate stable returns on savings or deposit instruments and other cash accounts using market investments that do not require any customer outlay of capital but, rather, utilize the economic value of that cash or cash transactions as its principal. 

That economic value could be due to interest that the customer forgoes or savings in fees that would have otherwise been paid directly or indirectly on customers’ transactions. Those external revenues to the customers’ savings/spending are used to finance the investment and ensure it doesn’t lose value.  

Save can achieve such high return potential1 by investing on your behalf in a diversified market portfolio based on your risk preferences. While typical investments in the market can be risky, your Market Savings deposits are FDIC-insured2, meaning 100% of it is protected to the maximum allowed by law.  

That’s what makes it so unique — you get the security of a bank account and the earning potential of an investment portfolio. Maximizing your current savings account’s earning potential will help you build wealth faster. 

The chart below breaks down the Rule of 72 for other return rates compared to the Market Savings program’s 9% average annual return:1 

Rule of 72 Rate Comparison*

YEARS 1% 3% 9% 
$10,000   $10,000   $10,000  
$10,829   $12,668   $19,926  
16 $11,726   $16,047   $39,703  
24 $12,697   $20,328   $79,111  
32 $13,749   $25,751   $157,633  
40 $14,889   $32,620   $314,094 

Your choice: 24 years with traditional savings accounts or a little over 8 with the FDIC-insured 5-year Market Savings term.  

To get an even more accurate comparison with interest rates that fall outside of 6-10%, the Rule of 72 changes. In these cases, you can utilize this compound interest calculator from the SEC to calculate how much your money can grow. 

* This table serves as a demonstration of how the Rule of 72 concept works from a mathematical standpoint. It is not intended to represent an investment. The chart uses constant rates of return, unlike actual investments which will fluctuate in value. It does not include fees or taxes, which would lower performance. It is unlikely that an investment would grow 10% or greater on a consistent basis. 

1 Average annual returns reflect the most recent deposit rates and 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. For client accounts, the average annual return percentage calculated across the full term length of investment will never reflect returns of less than 0%. Calculations of average annual returns based on hypothetical back-tested performance across any term length of investment of one (1) year or greater are based on an assumption of sequential reinvestment of the principal and any returns of each such security into a new hypothetical strategy-linked security effective on the maturity date of the predecessor security. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see https://joinsave.com/hb-moderate.

2 To obtain FDIC insurance coverage, customer funds provided will be deposited into non-interest-bearing accounts at Webster Bank. FDIC insurance coverage for funds deposited at Webster Bank is limited to not more than $250,000 per depositor, per FDIC-insured bank, per ownership category. Actual deposit insurance coverage may be lower if you have other funds deposited at Webster Bank, N.A. Customers are responsible for determining the amount deposited in each account at Webster Bank, N.A., and for monitoring the total amount of their deposits at Webster Bank, N.A., 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 funds customers provide and deposit with Webster Bank, N.A. will be eligible for FDIC insurance.  Webster Bank is not providing any investment advice or responsible for the purchase or performance of any investment contracts. The funds held in the Apex Clearing Corporation accounts are not FDIC-insured, are not bank guaranteed, and may lose value with a minimum return of zero. Maximum balance and transfer limits apply. Neither Save Advisers, LLC, nor its affiliates, are a bank. Apex Clearing Corporation is a member of the 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 Clearing Corporation, 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. 

University of Houston Graduate Students Join Save’s Development and Security Teams

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This summer, University of Houston students Nilesh Dikhale and Aditya Pendse will gain startup culture experience before entering their final school year.

This summer, University of Houston students Nilesh Dikhale and Aditya Pendse will work alongside the development and IT security teams, respectively, to gain startup culture experience before entering their final year in graduate school.

As Save continues development on improving our systems and product offerings, Nilesh and Aditya will help the team execute our newest product offerings, including the Wealth Card and Market Savings account, and ensure they’re secure.

For both University of Houston graduate students, the startup environment is an appeal because of the opportunities to own and manage a diverse range of responsibilities. More specifically, Nilesh particularly was impressed with the platform and the accounts themselves.

“Save captivated me with its visionary idea about creating a savings platform that will be beneficial for regular people, as well as improving their financial wellbeing,” Nilesh said. “Secondly, Save’s culture thrives on continuously improving their products and providing the best experience to their customers and this aligns with my goals of exploring ways to improve continuously.”

In his studies at the University of Houston, Nilesh is focused on machine learning and artificial intelligence and his previous projects focused on connecting databases, handling multi-threaded applications, and working with data structures. He also has nearly 5 years of experience as a software developer working in Java, Oracle, SQL, Spring Framework, and Spring Boot technologies.

“I wish to explore and learn the investment domain and how Save fits in that domain,” Nilesh said when asked what he hopes to learn from his internship with Save. “Also, I feel there are a lot of opportunities to learn from in various aspects of software development. I want to study and gain knowledge in the development process and implement the knowledge I get.”

Aditya looks forward to “exploring the diversity of responsibilities concept, which I might’ve missed out on in a Fortune 500 company.”

“Additionally, the possibility of working on almost everything that touches the information security domain was insightful,” Aditya said. “I also want to create cybersecurity policies, procedures, and security reviews; learn about the workings of governance, risk, and compliance domains; work collaboratively with software developers to go deeper into the DevSecOps approach; lastly, carry out configurational changes on various platforms to mitigate the security vulnerabilities.”

The University of Houston graduate students are joining Save along with Rice University’s Durga Parulekar, Yifei Ren, and Anusha Muddapati.

Durga, Yifei, and Anusha are all completing their Master of Computer Science degrees at Rice University and will join Save’s team of developers to build out the technology Save runs on and more efficiently utilize Save’s internal data.

Durga and Yifei will use their experiences across these topics to help the development team build out additional portals for Save’s customer support and development teams to better serve our customers and troubleshoot issues when there are any. With Anusha’s data scientist background, she will focus on how to best utilize the internal data Save has to improve the Save app and online dashboard’s performance, as well as connect with potential customers online while working on the marketing team’s paid strategy goals.

Save continues to invest in the professional development of local Houston students. If you’re interested in Save’s future positions, follow us on LinkedIn.

Save’s summer internship welcomes Rice University computer science students

Finance
Save is proud to welcome Rice University’s Durga Parulekar, Yifei Ren, and Anusha Muddapati to our development team.

Save is proud to welcome Rice University’s Durga Parulekar, Yifei Ren, and Anusha Muddapati to our development team.

Durga, Anusha, and Yifei are all completing their Master of Computer Science degrees at Rice University and will join Save’s team of developers to build out the technology Save runs on and more efficiently utilize Save’s internal data.

Prior to joining, Save connected with all three students to learn more about their education, favorite development projects, what they hope to learn while at Save, and how Houston helps them feel connected to their home overseas. 

Their computer science education will help the Save team improve our products and account offerings. With Anusha’s data scientist background, she will focus on how to best utilize the internal data Save has in order to improve the Save app and online dashboard’s performance, as well as connect with potential customers online while working on the marketing team’s paid strategy goals.

“When I interviewed with Save, I loved how the team discussed how important the data scientist role is,” Anusha said. “I wanted to work for a firm where my work is valued and has an impact on making business decisions and Save seemed to be the perfect place for that. A team that believes in fresh talent and a role that perfectly aligns with my future goals and interests made me decide to take up the offer.

“I hope to expand my academic learning by solving real fintech problems, which I believe is a great start for an aspiring data scientist,” she continued. “Along with improving my technical expertise by collaborating with the marketing, managing, and development teams, I look forward to an amazing networking opportunity this summer.”

Their degrees in computer science encompass topics like programming languages, computer networks, cybersecurity, database management, artificial intelligence, and machine learning. Durga and Yifei will use their experiences across these topics to help the development team build out additional portals for Save’s customer support and development teams to better serve our customers and troubleshoot issues when there are any.

“This degree provides me with the building blocks for every pillar in the tech industry,” Durga said. “Having this knowledge will allow me to leverage technology into projects that benefit society.”

After all, benefitting society is the ultimate goal of Save. Save was founded on the premise that investment vehicles that are traditionally only reserved for professional investors, should be available to everyday people with less risk.  This is yet another factor that attracted the Rice University students to Save.

“When thinking about how I will be contributing to products that make many peoples’ lives better, I feel proud, excited, and accomplished,” Yifei said. “Additionally, I like the team at Save. They all love what they are doing, and they are highly experienced in the financial industry. For example, the CEO and founder, Michael Nelskyla, has worked as the Managing Director at multiple top-tier investment banks. I firmly believe that Michael, the COO Adam Watts, the Director of Engineering Sachin Kulkarni, and other colleagues can drive the company to success together.”

Durga mirrored this sentiment saying, “I think Save is a game-changer for people with no experience in investing to get an opportunity to reap the benefits of higher returns. To use myself as an example, the world of finance is a mystery to me, and I am very excited to learn more about finance and investing.”

Additionally, all three students are a great reflection of Houston’s vast diversity as a city.  Each student joined Rice University from different parts of the world after completing their past degrees. Durga came to Houston after finishing her Bachelor and Master of Science in Information Technology at Mumbai universities. Yifei’s education has allowed him to travel from his home country of China to the Netherlands, and Anusha completed her undergraduate in Visakhapatnam, India.

With being so far from home, Durga, Yifeo, and Anusha can get a bit homesick while at Rice University, but thankfully, Houston provides an ideal culinary landscape to stay connected to hometown cuisine. Additionally, the Save team benefits from their authentic restaurant recommendations.

“I miss the variety of flavorful street food options that I used to have in India since I’m a vegetarian,” Durga said. “I frequently visit a restaurant called Shiv Sagar on Hillcroft. Shiv Sagar offers a wide selection of authentic Indian street food. My favorite dish there is Vada Pav, which is an Indian burger with a spicy potato patty.”

For Yifei, it’s Tiger Noodle House in Rice Village. “The food there is really delicious and authentic. It tastes just like the food in China,” he said. “Most restaurants in China Town are also good, but they are too far away from Rice University, so I don’t often go there.”

Save continues to invest in the professional development of local Houston students. If you’re interested in Save’s future positions, follow us on LinkedIn.

How the Wealth Card’s return potential can cover the annual fee

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Woman smiling about her Save return potential

The world’s first high-yield credit card packs a lot of value. Find out how the return potential makes it worth a spot in your wallet despite the annual fee.

Customers deserve better economic value from their credit cards. 

That’s why Save is partnering with Visa to launch its first credit card — the Save Wealth Card.  

Instead of offering cashback or air miles, the Wealth Card replaces rewards with investments. With an annual return potential of 6%¹ on every single purchase, your earning potential exceeds what leading premium credit card rewards programs deliver (Figure 1). 

A chart showing the return potential comparison between the Save Wealth card versus other premium cards.
Figure 1: Comparison between the Save Wealth Card versus other premium cards.4

The card also comes with many other rewards like a signup bonus of $10,000 in equivalent portfolio investments² and a chance to increase your average return potential up to three times when you shop from brands like Tesla, Electrify America, SoulCycle, Amazon, Whole Foods, and more. 

But what does this mean in terms of dollar value? 

Let’s find out. 

Signup bonus of $10,000 in equivalent portfolio investments² 

Early adopters will get a signup bonus of $10,000 in equivalent portfolio investments² just for signing up for the Wealth Card. Referrals and bonuses like this have an average 3% return potential.5

Let’s break down what this means: 

Once your credit application is approved, at the next trade date, Save adds $10,000 in equivalent investments² to your personalized investment portfolio.

Assuming the average 3% return potential is met, your returns will be about $300 after a little more than a year.¹

Any returns (minus Save’s 0.35% management fee if the annual return is greater than 0.35%) are yours to keep.

For the first year, the annual fee for each card—$750 for the Premium Wealth Card and $300 for the Plus Wealth Card—could be covered up to 40% and 100%, respectively.¹ 

6% return potential on every purchase¹  

Unlike most premium credit cards, the Wealth Card has no category restrictions, exclusions, or cap on returns. Every dollar you spend is eligible for investment matching. This means that you can turn your monthly credit card bill into an investment. Assuming a 6% annual return potential¹ is met, here’s what your returns can look like, depending on your average monthly spend: 

Monthly credit card spendingMonthly earning potential¹Yearly earning potential¹
$1,000 $60$720
$2,000 $120$1,440
$3,000$180$2,160

According to the return potential in the table above, spending just over $1,000 each month can almost cover the $750 annual fee of your Premium Wealth Card. 

If credit cards are your preferred spending method, chances are you’re spending more than that. With the Premium Wealth Card, you can earn more from the money you’re already spending. 

Triple the return potential on some preferred brands 

A 6% return potential on everyday spending is great.¹ An 18% return potential3 is even better. 

The Premium Wealth Card rewards you with a higher return potential from your investments when you purchase from preferred brands. Whether you’re a frequent Amazon shopper or a devoted Peloton member, there are many ways to earn more.  Let’s take a look at how much you could earn with preferred brands using the Premium Wealth Card:

Brand Purchase Return Potential3 Annual Earning Potential3
Amazon $12.99/month Prime membership, Average annual spend for members is $1,000 9%$14.02 (Prime membership), $90 (annual purchases)
Peloton$39/month all-access membership18%$84.24
Apple$1,999 MacBook Pro 12%$239.88
Whole Foods$200 grocery run 9%$18

These are just a few examples of what your investment earning potential can look like. Click here to see all of Save’s preferred brands. 

So, does the Save Wealth Card deserve a spot in your wallet? With potential returns like these, it’s easy to see how the rewards and benefits of the Wealth Card can outweigh those offered by other premium credit cards.

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.

² As a signup bonus for the Save Wealth Card, Save buys strategy-linked securities whose investment value is equivalent to $10,000. This special promotion is subject to change at any time. 

3 To achieve the potential returns for the Save Plus and Premium Wealth Card’s preferred brands, Save purchases strategy-linked securities whose value correlates with [or is determined by] desired portfolio returns. Save will increase each purchase of strategy-linked securities as necessary to create the client’s desired exposure needed to replicate the hypothetical back-tested performance return. For more detailed information please see Hypothetical Back-testing.

4 Average annual return of the Wealth Card is based on hypothetical back-tested performance in the Save Moderate Portfolio from 2006 to present. Return is net of the management fee of 0.79%. Hypothetical back-tested performance is not a guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. Save purchases strategy-linked securities whose investment value generates an average of the stated returns since inception. Card comparisons made based on public disclosures available by other issuers, assuming points are worth 1.5%, monthly spending of $3,500, and a $5,000 equivalent portfolio signup bonus for the Save Wealth Card, as well as, other signup bonuses for each respective card as of 11-23-2021.

5 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.

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.

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