Saving money is one of the pillars of financial management, yet people often struggle to put aside money for a rainy day.
Why not make it easier by opening an Affirm savings account? Affirm is a fintech company that is revolutionizing the way people do banking. The company’s goal is to do away with the fine print and hidden fees of traditional banking.
Check out this Affirm savings account review and discover the pros and cons of using this platform.
Why You Should Open an Affirm Savings Account
Affirm has partnered with Cross River Bank to provide a high yield savings account that’s geared for the future.
More and more people are taking advantage of this since Affirm offers an impressive APY (Annual Percentage Yield). The APY indicates how much your money can potentially earn in interest within a year.
An Affirm savings account currently has an APY of 0.65% to 1.3%. That’s up to 13 times higher than the national average. This protects your hard-earned money from the effects of inflation.
While Affirm’s interest rates are higher than those of traditional banks, their savings account APY rates aren’t fixed. These rates may fluctuate depending on the conditions in the market.
APY Comparison: Affirm Savings Account vs. Traditional Accounts
The key difference is that an Affirm savings account provides higher in interest rates compared to traditional savings accounts.
The current national average yield of traditional savings accounts in the US is only 0.07% APY. By opening an Affirm savings account, you’re getting a much higher return on your savings.
If you’re considering other financial instruments, take note that the average APY yields for various kinds of accounts are:
|Bank||Savings Account||Interest Rate (Annual Percentage Yield)|
|Affirm Savings Account||1.30%|
|Basic Banking Package||0.50%|
|American Express Online Savings Account||0.40%|
|Money Market Account||0.40%|
|Online Savings Account||0.40%|
As you can see, Affirm’s savings account outperforms both in terms of APY. It’s worth opening an Affirm savings account if this is your primary criteria.
Pros of an Affirm Savings Account
If you’re looking for a digital platform to save money and keep it aside over the long term, then the Affirm savings account is the ideal choice.
With an Affirm savings account, you will get the following benefits:
No Minimum Deposit Requirement
Unlike traditional savings accounts, there’s no minimum deposit requirement.
No Monthly Fees or Hidden Charges
Another great thing about Affirm savings accounts is that there are no monthly fees, which is a stark contrast to traditional savings accounts. You also won’t be surprised by hidden charges like transaction fees.
As mentioned earlier, an Affirm savings account has a current average rate of 0.65% APY, which is much higher than traditional savings accounts.
Easy to Open
Opening an Affirm savings account is easy and simple through the mobile app. It can be done fast without complicated paperwork.
Affirm has an auto-deposit feature that allows you to transfer money from another account into your Affirm savings account automatically. You can schedule the transfer weekly, monthly, or on a specified date. This way, saving money becomes a habit.
Top-Rated Mobile App
The Affirm app has high ratings on the Google Play Store and Apple Store (about 4.6 on Google Play and 4.9 on the Apple store).
Cons of an Affirm Savings Account
In some cases, an Affirm savings account may not be the best option due to the following drawbacks:
Accessible Only Through the Affirm App
You don’t have the option to access your savings other than through the Affirm app. This could be an issue if you have no internet connectivity or if you lose your smartphone.
No Debit Card
At the moment, Affirm does not provide debit cards to account holders. This can be a hindrance when it comes to making physical payments.
No Direct Withdraw Capabilities
At the moment, users can’t withdraw money directly from their Affirm savings accounts. The only way to withdraw money from your Affirm savings account is by transferring the funds to another linked account.
Limited Number of Transfers
According to federal regulations, you can only make a maximum of six ACH (automated clearing house) transfers per month.
No Joint Accounts
Affirm doesn’t offer joint accounts. So if you’re looking at opening an Affirm savings account, it can only be done under one person’s name.
Keep in mind that these cons are not dealbreakers if you plan to use the Affirm account purely for savings.
Frequently Asked Questions
Is An Affirm Savings Account Safe?
Yes, an Affirm savings account is as safe as a standard savings bank account. It is also less risky compared to putting your money in stocks, cryptocurrency, or a business.
You don’t need to worry that you’ll lose your savings in case of a downturn in the economy. If you scroll through the Affirm savings account landing page, you’ll notice that all Affirm savings accounts are insured by the FDIC for up to $250,000 per depositor.
How Does an Affirm Savings Account Work?
Opening an Affirm savings account is pretty straightforward. Just visit their savings account page and do the following:
- Download their iOS or Android app. Enter your email address so that they can send you a download link.
- Once you download the app, you need to fill in personal details:
- Full name as per your driver’s license
- Current address, your email
- Social Security Number or valid Tax ID
And you’re done! You can then proceed to add money to your account on the app.
The platform uses the daily balance method to compute your interest. Your interest will be compounded daily if your balance is greater than $0.01.
Opening an Affirm account is a great way to grow your savings. You can’t beat the APY rates offered by this platform, not to mention the convenience it offers via the mobile app. However, it has some drawbacks that you need to factor into your decision.
Please note that the rates mentioned in this article may change at any time. Always check the current rates before selecting a financial tool.