French startup Lydia is best often called the dominant app for peer-to-peer funds. However the firm has been including extra options, equivalent to a debit card, account aggregation, donations, cash pots and extra. This week, the corporate is including savings accounts due to a partnership with French fintech startup Cashbee.
For those who aren’t acquainted with Cashbee, the corporate permits you to open financial savings accounts by means of a cellular app. After connecting your checking account with Cashbee, you’ll be able to switch cash forwards and backwards between your checking account and a financial savings account.
Proper now, Cashbee companions with My Money Bank for the financial savings accounts. Cashbee doesn’t hold 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 price of two% for a couple of months.
Lydia principally gives the identical phrases and situations with a couple 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 at the least €1,000 in your financial savings account if you open it. For those who undergo Cashbee’s app, you solely must put €10 or extra. However customers can do no matter they need after that in terms 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 attention-grabbing. 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 desires to grow to be a monetary tremendous app.
This financial savings characteristic competes with Livret A, probably 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.
For those who’re a scholar and don’t pay any taxes, that’s a greater deal. However many individuals pay 30% in taxes on accrued pursuits, which implies that you find yourself incomes 0.42% in pursuits internet of taxes with a Cashbee account.
But it surely’s onerous to beat the simplicity of Lydia’s resolution right here. For example, 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, in case you’re already utilizing Lydia to ship, obtain and spend cash, you would possibly wish to try these financial savings accounts.