Qapital Savings Rating:  

2020 Qapital Savings account review: annual and monthly maintenance fees, ATM fee, interest rates, required minimum daily balance, pros and cons. Is Qapital FDIC insured?

Saving Money With Qapital App

With well-known behavioral economist Dan Ariely on its side, Qapital is a new personal financial company trying to change the way people save for the future. Let’s check it out.


Qapital Fees on Monthly Plans

To start saving, you need to open a Qapital Goals account. It must be connected to an external checking account, and this external account will be charged a monthly fee by Qapital.

The monthly fee pays for one of three Qapital memberships: Basic, Complete, or Master. The Basic plan costs $3 per month. At this price, you get an unlimited number of personalized savings goals and triggers for automatic savings (more on both of those topics in a minute).

The Complete plan costs $6 per month. It comes with a Visa debit card. It also entitles the account holder to open a Qapital Invest account, which is a robo advisor. Finally, the Master package costs $12 per month and comes with first access to new features, admittance to exclusive webinars, and more.

Account Details

Qapital’s cash management features are broken down into two accounts: a Goals account (designed for saving) and a Spending account. The Spending account is the one with the debit card. This account is essentially a checking account with unlimited withdrawals (money can be sent to the Savings/Goals account). The Spending account charges no overdraft or monthly fees (other than the Qapital membership fee).

Qapital Savings Review

Both the Goals account and the Spending account pay interest, although the APY is just 0.1% currently. Both accounts are actually held at a partner bank, and they are both insured by the FDIC.

The Qapital Invest account can conveniently be linked to the Spending account and receive transfers from it. However, only low-cost ETF’s are available for purchase.

Savings Rules and Triggers

Qapital uses savings rules and triggers to move money from an external checking account, a credit card, or a PayPal account into the Goals account. Regular transfers can be setup for the external checking account. Spending triggers can be set up for any of the three.

Qapital Bank Rules

Spending triggers are events that take place that will automatically activate a withdrawal from one of the three linked accounts. For example, a round-up trigger will automatically round up a purchase with a linked credit card and send the difference to the Goals account. Let’s say you spend $7.13 on a cappuccino. This figure will be rounded up to $8 or $9, and $0.87 or $1.87 will be sent to your Goals account.

The spend-less trigger will send any amount below a maximum level to the Goals account. So if you spend $70 at Wal-Mart instead of $80 (the target), the difference ($10) will be sent to your Qapital account.

Mobile App

To open an account and set up savings triggers, you’ll need to install the Qapital app. The company doesn’t offer any website functionality, although its site does have some useful FAQ’s. During our trial of the platform, we were offered a 30-day free trial, but then had difficulty figuring out how to cancel the trial. If you need any help on the app, there is a robo-chat function that can provide some assistance. It can be found in the account section (person icon on the right-hand side of the menu).

To create a Goals account, you’ll need to actually set a goal on the app. To do this, you can tap on a tile that has a goal, such as take a vacation, pay down a debt, or buy a specific item. Then you’ll link your external checking account, and this is how the monthly membership gets paid.

Comparison and Recommendations

What’s the point of establishing triggers to save money every month in an account that only pays 0.10% interest? Saving by definition is supposed to at least keep up with inflation, which Qapital’s Spending and Goals accounts can’t do.

Consumer Credit Union Rewards Checking that pays 4.09% APY right now, more than 20 times the current rate on the Qapital Goals account. Moreover, recurring automatic transfers into CIT’s savings account bet easily be setup on the bank’s website; and there are no fees for the transfers or the account.

Goldman Sachs’ online savings account currently pays 1.20% interest with no monthly membership fee.

It seems to us easier to directly deposit a paycheck into a linked checking account and then set up recurring transfers (with no monthly fees) into a high-yield savings account. The amount transferred could be 10% of take-home pay.

Qapital Savings Review Judgment

Qapital’s savings rules and triggers create a novel way to save money every day. But higher yielding alternatives are out there with lower fees, which means that people who really want to save have better options.

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