When we think of Affirm, we automatically think of their pay-later services and credit loans. But something we tend to leave by the wayside is the possibility of improving our economic life using their savings account system.
Undoubtedly, having a savings account is an essential step on the road to economic growth. The simple fact of saving and learning how to do it will open endless doors on your way. This is why Affirm, the company that has revolutionized the credit system since 2012, offers its Affirm Savings services.
What is Affirm Savings, and how does it work?
Affirm Savings is a way to give the user free rein in saving their money, giving total control over their account to the client with an APY of 3.25%. That positions it as one of the highest annual percentage yields in the savings banking market.
This system is characterized by its simplicity, which seeks that the user is not overwhelmed when meeting their savings goals—created with the idea that the user can easily make and receive transfers while saving money with the high annual rate of return offered.
Likewise, no minimum amount is required to open the account, and no transaction fees are charged. Affirm Savings wants you to feel comfortable while saving money for the future.
Your money is entirely yours
Affirm Savings seeks to follow a mission of honesty, where no fine print is written, and no phantom fees are charged, where the user can have the opportunity to save and grow financially along with the platform. In addition to the already known since the platform launch, pay later plans.
This service has been available since 2020; since then, it has not stopped growing. Even more so in an era where saving money is a red light that never ceases to attract users’ attention. All this while you have annual return percentages that you won’t get in any traditional bank.
Transparency is paramount for Affirm, especially for those young people who do not yet know how the banking system works. That is why they seek to demonstrate each of their processes to block the uncertainty that bank fees usually generate.
Creating an Affirm Savings account is simple
Applying for an Affirm Savings account is simple; you need to use your Affirm account and fill out the application form from the web portal or the mobile application. As simple as that, the automated system will measure if you are eligible for this account and will notify you by mail.
Your credit history will not be a key point for whether the account is opened. Only the performance you have given to your Affirm account will be considered. So you don’t have to worry about your credit history being affected by opening or closing an Affirm Savings account.
Opening an Affirm account if you don’t already have one
As you may have noticed, to open an Affirm Savings account, you will need an Affirm account first. This is a rapid process; you will only need to download the app or log in from your web browser to meet specific requirements.
You will need to add your phone number as the first requirement from the app or the website. Your full name, date of birth, and social security number will follow the primary data needed to have an account with Affirm.
Just click on “create an account,” and you will have your Affirm account ready in a few minutes. It should be noted that the phone number and legal name entered will be requested every time you log into your Affirm account, either through the web or the app.
Affirm Savings Review
Affirm Savings accounts are a shot in the arm if you’re looking to generate savings and don’t know how to get started. With a secure and easy-to-use system, their application will allow you to take advantage of each of its functions without any problem that may come your way.
In the same way, Affirm has an automated system for transfers to your savings account. This is as long as you have linked your bank account. So if you want to keep a certain amount of money in your savings account every month, you could use this system.
The only drawback you will find with Affirm savings accounts is the fact that you do not have the possibility of accessing a checking account. Something irrelevant if we think about the extra opportunities that the benefits of Affirm’s pay later option generate.
An option aimed at millennials and generation Z
If one thing is evident when you see how Affirm Savings works, it is a savings platform aimed at millennials. With a transparent and easy-to-learn-to-use setup, the application itself denotes that it is aimed at that generation that grew up distrusting traditional banks.
So it becomes a good option if your idea is to start in the world of savings and learn how to generate future income.
It also complies with security standards, so you should not be afraid of falling into a scam. Affirm is a company that, since 2012, has been fulfilling as a credit provider, and you should not expect anything less from this new facet.
Comparing Affirm Savings to traditional savings accounts
The main feature of Affirm Savings that sets it apart from conventional accounts is up to 3.25% APY on its High-Yield account. Unlike traditional savings accounts that don’t even reach those APY ratings, even if you’ve been with the banks for years.
Even if you don’t have access to a checking account, with Affirm Savings, you have a purely digital version of an account. It’s easy to manage and will teach you how to manage your savings while generating passive income as you use it.
Banks that match Affirm
|Citi, American Express and Discover||1%|
High-Yield Savings Accounts like Citizens (3.75% APY), American Express High Yield Savings Account (3.00% APY), and SoFi (3.25% APY) match or even exceed Affirm’s APY. But these accounts are difficult to open or require more than Affirm Savings can cost.
Affirm Savings is a direct variant of these bank savings accounts with which you won’t even have to go to the bank. It also outperforms traditional banks like Citi, American Express, and Discover with savings accounts that don’t exceed 1% APY.
However, these figures will depend on how you use the account and how your credit history evolves. So the limit you impose on yourself will be the same as what your savings can afford.
“Affirm High-Yield Online Savings Account (HYSA).” Affirm | Buy Now, Pay Later with No Late Fees or Surprises, https://www.affirm.com/savings.
“Create an Account.” Affirm Help Center, helpcenter.affirm.com/s/article/create-an-account.
“Create an Account Savings.” Help Center Affirm, https://helpcenter.affirm.com/s/article/create-an-account-savings.
Rowan, Lisa. “Affirm Savings Account Review – Forbes Advisor.” Forbes Advisor, https://www.forbes.com/advisor/banking/savings/affirm-savings-account-review/.