Sunday, 25 October 2020

Review of the Qapital Savings App

Review of the Qapital Savings App
30 Aug
10:18

The Qapital app wants to simplify and personalize your savings game. The app lets you set multiple savings goals, and establish rules to automate the process of saving money. It offers a cash management account for spending and savings, and also gives you an investing account to grow your money in the market.

There are three service tiers, costing from $3 to $12 per month, with more features available at each tier. Despite the monthly fees, as of the date of publishing the cash management account offers a very modest interest rate of 0.10% APY on savings and spending account balances.

Qapital gives you tools to manage your personal finances if you’re willing to pay for them. Folks across the board can benefit, whether they just want a better way to track their savings or want to go all in with their suite of tools. Let’s dive into what this app offers, the specifics of each plan and the costs that come with it.

How does Qapital work?

Qapital has three plans: Basic, Complete and Master, offering increasing perks and features with each tier. The table below offers a quick look at what each plan includes.

  Basic Plan Complete Plan Master Plan
Monthly fee $3 $6 $12
Unlimited savings Goals
Automatic savings Rules
VISA debit card
Payday Divvy
Spending Sweet Spot
Investment portfolio
Money Missions
Exclusive webinars

Qapital Basic plan

The Qapital Basic plan gives you a Goals savings account, which you must link to an external checking account. You set up one or more savings goals, for objectives such as a home down payment or a vacation. Balances for each of your savings goals are held in an FDIC-insured savings account. You can transfer money between goals to accommodate changes in your savings needs.

To help you save more automatically and frequently, Qapital adds the ability to apply rules to your savings goals. For example, you can apply an Apple Health Rule that is linked to targets you set up on your Apple iPhone Health app. This could trigger transfers into your savings goal when you walk a set number of steps each day, or accomplish your workout aims. Do you have a weakness for online shopping? The Guilty Pleasure rule moves money to savings whenever you give in and make a purchase from online merchants on your list. There’s even a rule that triggers savings based on activity in apps like Twitter, Facebook, Fitbit and Google — the so-called IFTTT rule.

Setting Rules and contributing to your Goals account from your own external account is the only way to grow your savings through the Basic plan. The Goals account does not earn interest under the Basic plan (this availability comes with the Complete plan).

Qapital Complete plan

The Complete plan adds a spending account and an investment account. The Qapital Spending account is a checking account in your name held with one of Qapital’s partner banks, but managed in the Qapital app. The account includes a Visa Debit Card, and the ability to send checks in-app through a third-party provider.

Once you have a Spending account, you also start earning interest at 0.10% APY on both your Goals account and Spending account, as of the date of publishing.

You can set up direct deposit into the Spending account and make unlimited transfers between your Spending and your Goals and external funding accounts. There are no account setup or overdraft fees.

To give you a fuller picture of your finances in one go, the Spending account includes Payday Divvy, a feature that lays out the assets, deposits and savings goals you’ve linked to your account. When the app recognizes a deposit in your account, it will prompt you to assess your financial needs and allocate your funds accordingly.

The Spending account also includes a budgeting feature called the Spending Sweet Spot. After accounting for fixed expenses like monthly bills, the Spending Sweet Spot helps you monitor your day-to-day expenses and determine how much you can safely spend each month.

Once you have a Spending account, Complete plan members also have access to Qapital Invest portfolios. Branded as “ideal for budding investors,” these exchange traded fund (ETF) portfolios diversify your funds for balanced investing. Each invest goal will have its own Invest account and requires at least $10 to open. To get started, you’ll need to provide a goal amount and an investment timeline to hit your goal. You can also choose the best option based on your risk tolerance. After that, Qapital will manage the portfolio for you.

Qapital Master plan

The Master tier includes all of the above features and products. But for $12 each month, you also gain access to Qapital Money Missions, exclusive webinars and events and the first look at new features. Webinars and events are not yet live, however, and will be announced as this feature is available.

Qapital describes Money Missions as “challenges designed to help you unlock insights about how you use your money now, so you can use it better in the future.” To set up like savings goals, Money Missions have labels like “Have a worry-free night out” and “Buy time not things,” in an effort to “change and instill new behaviors” that give you more control over your money. Master level members can find Money Missions in the lightbulb tab in the app.

Qapital fine print

Since Qapital is not a bank itself, the company partners with Wells Fargo to hold savings funds in FDIC-insured accounts, and partners with Lincoln Savings Bank to hold Spending account funds in FDIC-insured accounts.

The Visa Debit Card that comes with your Spending account has daily limits you may want to keep in mind. You can spend up to $7,000 each day on the card, which includes card transactions, withdrawals and transfers. You can withdraw up to $510 from an ATM each day; this amount includes ATM fees.

When it comes to ATM usage, you can use your debit card at any ATM that accepts Visa. However, while Qapital won’t charge a fee, you may face a fee from the ATM owner. To get cash out and skip ATM operator fees, Qapital suggests using using the cash-back option offered by merchants.

Qapital’s main website doesn’t provide much detailed information on its various accounts and features or how they work. To find out more about their products, you’ll have to navigate its labyrinthine Help Center. Even then, you may have to contact customer support to find the information you’re looking for.

Opening a Qapital account

You can create a Basic account either online or in the app. You’ll be prompted to provide your name and email. You’ll also have to select one or more short-term savings goals, choosing from options like “do something,” “pay off debts” and “rainy day fund.” You can then indicate whether you want to include Qapital Invest, a Spending account and Money Missions.

Once you’ve indicated these preferences, you’ll submit your phone number to receive a code. After that, you’ll choose your membership tier and link your checking account. Finally, you will be prompted to download the app.

Who is Qapital best for?

With its range of payment plans, Qapital can work for a variety of customers. If you’re just looking for some help with your savings, the Basic plan will work best. That will give you access to handy savings tools like goals and rules that make your savings more automatic and manageable. Just remember that unlike most savings accounts, this one doesn’t earn interest at the Basic level. You’ll need to upgrade to the Complete plan to earn interest. The Basic plan is the cheapest option if you’re a bit strapped for cash. However, at $3 per month, that makes it a costlier choice than free similar services, like Simple.

As its name suggests, the Complete plan is the best option if you’re looking for a more complete banking package. This level unlocks the ability to earn interest on your savings and checking balances, although the low 0.10% APY (as of the date of publishing) doesn’t quite match up to the best savings accounts or even best interest-earning checking accounts. The Complete plan includes all the savings features in addition to the comprehensive Qapital Spending and budgeting account. Plus, once you have the spending account, you’re open to using an Qapital Invest account as well, which is a nice option if you’re new to investing. However, people who want a more dedicated and flexible app to start their investing journey would be better off looking at our choices for best robo-advisors.

The Master plan is really only for people who want insider scoops and extra financial educational material. Its Money Missions are small add-on goals that may teach you some new behaviors around money management, but may not be worth the extra money.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lauren Perez

Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

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Source: https://www.magnifymoney.com/blog/banking/qapital-review/

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