JoinSave.com - a risk review

I’m going to make money if you sign up using this link. If not, then this article just helps a cool business move forward. This is also not investment advice, do your own research, always.

A few months ago, I saw an ad about a new way to leverage savings accounts and get more out of my money, without taking on additional risk on the deposited amount.

Save, which is still onboarding early adopters, keeps your money in FDIC insured accounts and only invests the equivalent of your earned interest, which, at this point, is around 3.5% per year on the most generous savings accounts. (2023 update, since savings rates change with the FED rate).

This way, your deposits are safe, and you can’t lose them, while they invest the interest equivalent on the stock market, in an attempt to 2-3x the return on those funds.

For example, on $100,000 in a Discover Bank savings account, you’re making ~$290 right now, every month. Instead of depositing that interest into your account, Save would invest an equivalent amount in the stock market on your behalf and hope to achieve a return of $600-$700/month.

Now, unless the stock market goes to zero or drops and never goes back up in a year, it’s my view that I’m set to lose, when compared to my current Discover Bank situation:

• $261/month @ 90% meltdown, annualized; so only making $29 / month in interest
• $145/month @ 50% meltdown, annualized; so only making $145 / month in interest
• $72.5/month @ 25% meltdown, annualized; so only making $217.5 / month in interest
• $14.5/month @ 5% drop, annualized; so only making $275.5 / month in interest

…but never more than I deposited.

If, on the other hand, the market goes up, and I deposited my $100,000 in the Save account, I would add the following gains over one year, on top of the $290 I would have got from Discover:

• $14.5/month @ 5% increase, annualized, so making $304.5/ month in interest
• $29/month @ 10% increase, annualized, so making $319 / month in interest
• $30.2/month @ 25% increase, annualized, so making $362.5 / month in interest

There are some tax advantages to this method, too. While traditional savings accounts that deposit interest every month are taxed as ordinary income, the returns I would get from a Save account would be considered capital gains. Ask your CPA what this means for you and your tax returns.

If you sign up through the referral program, we each receive a bonus of $5,000 of equivalent portfolio investments. This means your account gets credited for the portfolio returns on an extra $5,000 over a period of one year. Neat.

For me, this is a low risk, high reward potential activity, and it makes sense to save with Save.

I’ve seen a lot of people not understanding how this program works, so I hope this article clears it up a bit.

Photo by Annie Spratt on Unsplash

Edit:

A lot of people have emailed me to ask about some details to confirm the referral. I case you need this information, here it is:

Name: Titus Capilnean

Email: titus.capilnean (at) gmail.com