Save gives you the best of both worlds with our unique combination of a savings account and an investment portfolio return through portfolio securities.
A savings account is a basic type of bank account that allows you to deposit money, keep it safe, and withdraw funds, all while earning interest. The interest rate depends on economic conditions and your bank’s desire to compete with other banks. Savings account rates are historically not very high and may not even match inflation, but your risk of loss is virtually nonexistent when your funds are federally insured by the FDIC.
How does our portfolio security work?
A portfolio security adds a market return to a conservative investment by only risking the amount of interest you may receive from the account.
And here’s the best part: market increases affect your portfolio as if you had invested the entire amount in the market, and not just your interest payout.
Save takes the interest you would have been paid by leaving your funds in a high-yield savings account and invests that on your behalf in one of our portfolio securities. At the end of the term, you've got your initial investment, plus any return from the invested interest (minus our management fee).
Example: Let’s say you invest $10,000 with Save. The full $10,000 is deposited with an FDIC member bank which is insuring no risk to your capital. In addition, a portfolio security will be placed into your account which is paid for by the interest earned on your savings account. This portfolio security gives the return of a $10,000 investment.
If the market drops causing no investment returns, you will still walk away with the same $10,000 you put in.
You don’t pay a fee until you’ve earned at least 0.35% on your investment. This means that you don’t pay the 0.35% account fee until after you’ve made your first 0.35% in profit.
At the end of the day, you get the best of both worlds by cashing in on the market upside without risking any of the market downs because your savings are 100% protected from both fees and from market fluctuations.
For more detailed information on our program, please see our ADV Part 2.