Update June 2021: Affirm’s high yield savings account remains at 0.65% APY and has not encountered a rate drop yet in 2021. To put this yield in perspective, recent FDIC data shows the following national averages on various types of variable-rate savings accounts:
- Average yield on a money market account: 0.10% APY
- Average yield on a savings account account: 0.06% APY
- Average yield on an interest checking account: 0.03% APY
Affirm is another San Francisco-based, financial technology company that recently launched a high yield savings account in June of this year.
The company was founded by former PayPal founder Max Levchin and the savings account features one of the best APYs (annual percentage yields) on the market.
As Max states, “We’re here to improve lives. If that means more work for us, or that we make less money, we will always take the more difficult path in favor of treating people better.”
This sentiment shows in their high yield savings account. We’ll review this product, its interest rate, features and potential drawbacks below.
Affirm Savings Rate + Account Details
As mentioned, Affirm itself is a financial technology company. They have partnered with Cross River Bank to offer their high yield savings account; leveraging Cross River Bank’s FDIC insurance. All Affirm savings account deposits are federally insured by the FDIC up to $250,000 per depositor (joint accounts are not available at this time).
Affirm Savings Rate
To give the yield above some context, the national average for a savings account currently sits at just 0.07% APY. The top online savings account and money market account rates from FDIC-insured banks are ranging from 0.50% – 0.60% APY, currently.
Interest is compounded daily on all balances above $0.01.
The account is limited to six ACH transfers per month per Federal Regulation D.
Unfortunately there is no debit card at this time. The only way you can access your money is through bank transfers.
How to Open and Fund the Account
To get started, navigate to the high yield savings offer page on the Affirm website (located here). From this page you can either enter in your email, which will Affirm will then confirm and send you a link to download their app OR you can download the app directly from this page. You can find their Android app and IOS app at their respective stores or use our links.
Once you’ve downloaded the app on your phone or tablet, you may begin the process of opening and funding the account.
Information you’ll need to open the account:
- full name (driver’s license)
- current address
- phone number
- social security number or valid Tax ID
To fund your savings account or add more money, do the following:
- Open the Affirm app.
- Under Savings on the Manage tab, tap “See account.”
- Tap “Add money.”
- Enter the amount you want to add.
- Under From, tap the bank account you want to transfer money from.
- No linked accounts? Tap From, then tap New bank account and link a new bank account.
- Only one linked account? From will be auto-filled with your linked bank account. To switch to a new bank account, tap From, then link a new bank account.
- Multiple linked accounts? Tap From, then tap a linked bank or link a new bank account.
- Under Frequency, choose how often you want to add money.
- To add money once, keep Frequency auto-filled with Once. Your transfer will start no later than the next business day.
- To add money every week, tap Weekly, then choose the day. Depending on the day you pick, your transfer may start next week.
- To add money every month, tap Monthly, then choose the date. Depending on the date you pick, your transfer may start next month.
- Review your transfer details and tap Confirm.
After you have funded your account you will begin earning the advertised rate on all balances above $0.01.
Reviews and Customer Sentiment
Given the fact that the Affirm savings account has only been on the market for a short period of time, there isn’t too much coverage on the product.
That said, their mobile app ranks quite high for both Apple and IOS, scoring 4.6 and 4.9 stars out of 5 on the Google Play store and Apple store, respectively.
If you’re looking for a no-hassle, digital way to save your cash then you’ll likely want to consider this saving account by Affirm.
It comes with zero fees of any kind and an annual percentage yield that beats the current national average by almost 12x.
Just be sure you won’t need any checking account features such as a debit card, checks or easy access to cash as this account won’t be able to provide you with those.