you may want to consider
the company save if you want the chance
of earning a much higher interest rate
with the small amount of risk that you
may earn no interest at all they
describe themselves as banking with
market returns since your deposits are
fdic insured up to 250 000 like other
banks but you earn interest at a rate
linked to the stock and bond markets you
can earn an average return of 4.45 if
you keep your money in the account for a
year as of july 2022. now if the stock
market goes down it could affect the apy
that you receive however unlike
investing in stocks directly it will not
affect the value of the capital that you
have deposited into the account it only
affects the apy and if the stock market
does well you could earn more than 4.45
percent also the longer you leave the
money in there the higher the expected
return will be for a two-year term it is
5.84 and for a five-year term the
estimated annual return is nine point
four four percent per year so this is a
great option at a time when although
bank interest rates have gone up it’s
still only around two percent so it’s
nowhere near even beating inflation let
alone earning some money but with save
you do have the possibility of earning a
lot more with the very small possibility
that you might earn less or nothing but
when the competition is only two percent
you’re not really losing much if the
stock market does go down and you lose
all your interest in your save account
since the competition was only two
percent anyway how much is that even
going to be on ten thousand dollars
that’s only 200 bucks that you would
earn in interest and you do have the
My big concern is this: yes sure, his argument is something like this “why not do this, worst case scenario you just miss out on 2% if the market crashes but your principal is proteted”
But my concerns are:
– But like is our principal really guaranteed? If they could just do this scheme, then why aren’t other companies or banks doing it?
– There are alternatives like 5 year TIPS which don’t participate in the market but should do well if there is unexpected inflation
– it seems too good to be true, why would they give us like 4% APY with no risk on our principal? There must be some kind of risk to our principal that they aren’t saying
If they lose alot of money in the stock market, what would happen?