Update: As of 10/27/23, the 6% APY savings account is no longer showing as available on the free tier. You must be on the $79/month tier to get it now. I wonder if they will grandfather the existing users, otherwise that is a bad look for a supposedly reliable firm that you are trusting with financial advice… Definitely will avoid now.
Original post:
Let’s welcome Domain Money to the “small fintech with big ambitions” club. Their primary goal is to provide a suite of financial services including unlimited advice from CFPs (Certified Financial Planners) and income tax preparation, all for a flat $79 a month. However, some of their perks including model portfolios and a 6% APY savings account are available at no monthly fee as a sort of teaser:
6% APY is a nice number, and this is the first savings account I’ve seen reach it (other than some rewards checking accounts that require a bunch of debit card transactions, hat tip to Doctor of Credit), but it comes with some concerns. They are a relatively new startup that recently pivoted from crypto and stock trading. The terms stipulate that you can only initiate fund transfers from within the app, and it must be to/from a linked bank account that they approve. Cash and check deposits are not allowed. (They do not provide a routing number or account number.) It’s a savings account, so the interest rate can change at any time. 6% APY is high enough over the current funds rate that it essentially a “bonus” in that they are losing money, so taken altogether it is a big question as to how long the rate will last. Cash deposits are held with Georgia Banking Company, Member FDIC.
On the positive side, I did notice that the founder was previously Head of Product at Marcus by Goldman Sachs, and I liked the user interface over at Marcus. They must also have some good relationships with folks within the Apple App Store, as they have earned “App of the Day”, “Best Apps for Investing”, and “Essential Finance Apps” honors despite a very short track record.
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How do I open up a savings account w 6% APY?
I believe you’ll have to open an account with Domain Money. I don’t plan on opening one myself at this time.
It looks like the free 6% savings account is no longer available.
Thanks for the tip. That was fast! No longer available on their free tier. I wonder if they will grandfather old users, otherwise that isn’t very cool.
I signed up when it was 6% on the free version:
I just got this email “Your Domain Money Deposit Account Terms and Conditions (“Deposit Account Terms”) are changing. On January 1, 2024, the interest rate on your savings account will decrease to 3.92% with an annual percentage yield of 4.00%, however we have an exciting promotion to share with you.
If you become a client of one of Domain Money’s financial planning services, we’ll deposit a bonus of $500 into your savings account.
In addition, when you refer a friend to our financial planning service and they pay for one of the plans, we’ll deposit an additional $500 into your savings account. ”
This is why you should go to an actual BANK not a startup – they will constantly change things depending on investors as they grow/decline. Lesson LEARNED.