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.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Bilt and Point.Me Partner for Award Flight Search Integration

With several credit cards, customers can earn points that can then be transferred to various travel programs and redeemed for flights or hotel bookings. Unfortunately, finding and booking the best award travel deals isn't always as straightforward as one might assume. To assist with that, Bilt has unveiled a new integration with Point.Me that will help its rewards members search for award flights on airlines that participate in Bilt's transfer...

Zurp Raises $5 Million for Creator Experience Rewards Credit Card

A FinTech looking to marry credit card rewards with the creator economy has just closed a fresh round of funding. This week, Zurp announced that it had raised $5 million to create a "credit card for experiences." New Form, MAGIC Fund, Launchpad VC, OVO Fund, Darling Ventures, and Animal Capital all participated in the pre-seed fund along with a number of strategic investors. Zurp is a startup looking to create...

U.S. Bank to Launch Business Altitude Connect Credit Card

U.S. Bank is set to expand its small business credit card line-up. Recently, the bank announced the impending launch of the new Business Altitude Connect card. Applications for the new product are expected to open next month. In terms of rewards, Business Altitude Connect cardholders can earn 5x points on hotel and car rentals booked directly in the Rewards Center. Meanwhile, other travel purchases, such as airfare and hotel bookings, will...