Affirm Unveils High-Yield Savings Account

Affirm has debuted a high-yield savings account called Affirm Savings, according to an announcement.

The alternate payment company said the offering is available through its app, which users can download from the Google Play Store or App Store.

The company said in an announcement, “Affirm started by creating a simple, transparent form of credit that allows consumers to split the total cost of a purchase over monthly payments, without ever charging late or hidden fees. Today, 5.3 million consumers trust that we’re a better way to pay. Now, consumers get the same transparency in a savings account, so they can save more, faster.”

The Affirm Savings account comes with 1.30 percent APY, an optional auto-deposit, no fees or minimums, and security as “Affirm Savings is FDIC-insured and accounts are held by our bank partner, Cross River Bank, member FDIC,” per the announcement.

Affirm said that millennials and Generation Z comprise more than half of Affirm’s user base and are “especially suspicious of the fine print and hidden fees linked with traditional banking services.” As a result, it claims that many hope to steer clear of them.

The company also claims that millennials have an average of $5,000 in credit card debt and a majority have under $500 saved for emergencies. Additionally, it noted that 70 percent of Americans had less than $1,000 in savings in 2019.

As a result, the company said it “created a better way for consumers to save — one that is simple and transparent, and helps consumers reach their savings goals, whether for a big expense or something unexpected.”

In October, Affirm was launching a new app to provide customers with a method to shop at nearly any store and split their payments.

Affirm provides shoppers with payment plans for smaller items and lets them make their own personalized plans. The firm uses proprietary technology that looks beyond a credit score when analyzing a customer.