Credit Cards
Save Wealth Premium Credit Card Offers Rewards Tied to Market Returns
As FinTechs have begun to migrate from reimagining debit cards to designing their own credit cards, we’ve seen some innovative options emeger. For example, the recently-launched Owner’s Rewards Card by M1 offers consumers enhanced rewards rates when they make purchases from select companies they own stock in. Now, another credit card that includes an investing twist is ready to hit the market as well.
This week, the FinTech Save announced that it would be launching the Wealth Premium credit card next month. According to Save’s site, for every $1 a customer spends with the Wealth card, the company invests $2.17 on their behalf. Then, these funds remain invested for “a little more than a year.” After that time, returns from the investment will be deposited in the customer’s account as cash. However, these returns are subject to a 0.79% management fee.
Currently, Save estimates that the average return of the Wealth Premium card will be more than 6% annually. That would easily top most flat-rate rewards credit cards, which offer 2% or less. Of course, Save does note that actual returns may be less than the stated 6% (or could potentially be more) depending on market performance. Additionally, the Premium Wealth card charges an annual fee of $750.
Notably, while Save’s press release focuses on the Premium card specifically, the site does also mention another option called the Plus Wealth card. In this case, the card comes at a lower $300 per year cost but estimates a 4% average annual return compared to the Premium’s 6%.
Commenting on the debut of the Wealth card, Save founder and CEO Michael Nelskyla said, “We are very pleased to partner with Visa on the rollout of the first Save Wealth credit cards. The Wealth card is designed for consumers who are looking for the potential of better economic value from their credit card in a low-interest rate environment, and with high inflation.”
Visa’s Head of North American Digital Partnerships Patrick Williams said of working with Save, “I’m excited Visa will be a partner for Save in this upcoming card launch. With the Wealth card, Save is offering more options for consumers to maximize their spending power.”
Overall, the Save Wealth Premium Credit Card certainly has an intriguing concept. However, the $750 annual fee could be hard to swallow for some. Plus, depending on what type of a year it turns out to be for the market, the card’s appeal could easily wain. Regardless, it’s always interesting to see FinTechs thinking outside of the box — and for big companies like Visa to join them for the ride.
