Savings accounts don’t offer much interest these days, with most offering low to zero interest. This means that after inflation, your savings could be losing value. Traditional savings accounts seem to be a thing of the past. They are helpful if you intend to save money short term, but in the long term, savings need good returns to beat inflation and grow.
Over the last several years, more savings and investment apps have been developed that offer better returns than a traditional savings account. Their fees are lower as there is no brick-and-mortar bank.
Some of the best app options, like Catalyst from deVere, offer savings platforms where you can invest in diversified funds at lower-than-average costs. You benefit from the great returns that deVere dVAM funds offer at lower fees.
Online apps vs a Traditional savings account
Online apps |
Traditional banks |
|
|
Investing apps offer far more benefits than regular savings apps. They are convenient, easy to use and can be accessed anytime. A recent survey by deVere shows a 65% increase in fintech use, with baby boomers being the fastest-growing generation. This indicates that the older generations are embracing fintech for its convenience and lower fees.
Most of these savings and investing apps also offer a free debit card for daily purchases or to withdraw cash at ATMs worldwide.
As part of your financial portfolio, an investment app is a great way to supplement your savings without having to partake in complex ETFs or stock trading, which often requires financial advice experience.
Using investments and savings app allows you to save money over the short term and earn valuable compounding interest, e.g. for a new tv, a deposit for a house, that dream vacation or a rainy-day fund.
Chat with your financial advisor to help recommend the right savings and investment app that suits your lifestyle to supplement your savings portfolio.
Please note the above is for educational purposes only and does not constitute advice. You should always contact your deVere Acuma advisor for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken as a result of reading the above.
65% jump in fintech use – with boomers the fastest-growing cohort - deVere Group (devere-group.com)