French startup Lydia is healthier 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 financial savings accounts due to a partnership with French fintech startup Cashbee.
In the event you aren’t aware of Cashbee, the corporate permits you to open financial savings accounts via a cell app. After connecting your checking account with Cashbee, you possibly can 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 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 count on an rate of interest of 0.6% after an introductory price of two% for a number of months.
Lydia principally presents the identical phrases and situations with a number of variations. As a substitute of incomes 2% curiosity for the primary three months, Lydia customers solely earn extra curiosity through the first two months.
The opposite huge distinction is that Lydia asks you to place a minimum of €1,000 in your financial savings account whenever you open it. In the event you undergo Cashbee’s app, you solely must put €10 or extra. However customers can do no matter they need after that on the subject 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 reveal Cashbee to much more customers as Lydia has greater than 5 million customers. It’s additionally an vital characteristic if Lydia needs to develop into a monetary tremendous app.
This financial savings characteristic competes with Livret A, probably the most prevailing financial savings account in France. All people can open a Livret A in a retail financial institution. You get an rate of interest of 0.5% web of taxes. On paper, 0.6% is healthier than 0.5%. However Cashbee’s financial savings accounts aren’t web of taxes.
In the event you’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 implies that you find yourself incomes 0.42% in pursuits web of taxes with a Cashbee account.
However it’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, for those who’re already utilizing Lydia to ship, obtain and spend cash, you would possibly need to take a look at these financial savings accounts.