French startup Lydia is best known as the dominant app for peer-to-peer funds. However, the company has included additional options, resembling a debit card, aggregation of accounts, donations, prize pools and more. This week, the company is including savings accounts thanks to a partnership with French fintech startup Cashbee.
For those unfamiliar with Cashbee, the company allows you to open financial savings accounts through a mobile app. After connecting your checking account to Cashbee, you can optionally switch between your checking account and a financial savings account.
Currently, Cashbee is partnering with My Money Bank for financial savings accounts. Cashbee does not keep your money, it simply acts as a central person between your checking account and My Cash. With these financial savings accounts, customers can count on an interest rate of 0.6% after an entry fee of 2% for several months.
Lydia mainly gives the same sentences and situations with a number of variations. Instead of 2% interest income for the first three months, Lydia customers only earn more interest in the first two months.
The other big difference is that Lydia asks you to put at least € 1,000 into your savings account every time you open it. For those who submit to the Cashbee application, you only need to put in € 10 or more. However, customers can do whatever they need after that to put money aside and withdraw money from the savings account.
However, the fact that Cashbee is seamlessly integrated with Lydia is fascinating. This will reveal Cashbee to many more customers, as Lydia has over 5 million customers. It’s also a vital function if Lydia is to become a great financial app.
This financial savings function competes with the Livret A, essentially the most widely used financial savings account in France. Anyone can open a Livret A at a retail financial institution. You benefit from an interest rate of 0.5% web taxes. On paper, 0.6% is better than 0.5%. However, Cashbee’s financial savings accounts are not a tax web.
For those who are students and who do not pay taxes, it is much more. However, many people pay 30% tax on accrued activities, which means you end up with 0.42% income in tax activities with a Cashbee account.
But surely it’s laborious to beat the simplicity of Lydia’s response here. By way of illustration, it can save you up to € 1,000,000 on your financial savings account while the Livret A is prohibited at € 22,950. In other words, if you’re already using Lydia to send, buy, and spend money, you might want to take a look at these savings accounts.