French startup Lydia is best generally known as the dominant app for peer-to-peer funds. However the firm has been including extra options, corresponding to a debit card, account aggregation, donations, cash pots and extra. This week, the corporate is including financial savings accounts because of a partnership with French fintech startup Cashbee.
If you happen to aren’t aware of Cashbee, the corporate permits you to open financial savings accounts by way of a cellular app. After connecting your checking account with Cashbee, you may switch cash backwards and forwards between your checking account and a financial savings account.
Proper now, Cashbee companions with My Cash Financial institution for the financial savings accounts. Cashbee doesn’t maintain your cash, it simply acts as a center particular person between your checking account and My Cash Financial institution. With these financial savings accounts, customers can anticipate an rate of interest of 0.6% after an introductory charge of two% for a number of months.
Lydia mainly presents the identical phrases and situations with a number of variations. As an alternative of incomes 2% curiosity for the primary three months, Lydia customers solely earn extra pursuits in the course of the first two months.
The opposite huge distinction is that Lydia asks you to place no less than €1,000 in your financial savings account if you open it. If you happen to undergo Cashbee’s app, you solely need to put €10 or extra. However customers can do no matter they need after that in the case of placing some cash apart and withdrawing cash from the financial savings account.
However the truth that Cashbee is seamlessly built-in in Lydia is fascinating. It’s going to show Cashbee to much more customers as Lydia has greater than 5 million customers. It’s additionally an essential options if Lydia needs to develop into a monetary tremendous app.
This financial savings characteristic competes with Livret A, essentially the most prevailing financial savings account in France. Everyone can open a Livret A in a retail financial institution. You get an rate of interest of 0.5% internet of taxes. On paper, 0.6% is best than 0.5%. However Cashbee’s financial savings accounts aren’t internet of taxes.
If you happen to’re a pupil and don’t pay any taxes, that’s a greater deal. However many individuals pay 30% in taxes on accrued pursuits, which signifies that you find yourself incomes 0.42% in pursuits internet of taxes with a Cashbee account.
But it surely’s arduous to beat the simplicity of Lydia’s answer right here. As an illustration, it can save you as much as €1,000,000 in your financial savings account whereas the Livret A is proscribed to €22,950. In different phrases, should you’re already utilizing Lydia to ship, obtain and spend cash, you would possibly wish to try these financial savings accounts.