Affirm is a publicly-traded fintech company based out of California. Affirm was founded in 2012 and made its name offering installment loans for consumer purchases.
Affirm is best known for financing, but in this post, we’ll focus on the company’s newest addition — the Affirm Savings Account.
The account has been available since June of 2020 and aims to provide a low-cost digital platform for high-yield online savings.
To get started, let’s take a look at all of the most impressive features that come along with an Affirm Savings Account.
Affirm Savings Account Features
Affirm is just one of the latest non-bank companies to dive headfirst into consumer bank accounts.
These neobank accounts typically come with some common characteristics — you can generally expect few fees, a high-interest rate, and limited supplementary product offerings.
Overall the Affirm Savings Account checks these same boxes. The account is pretty lean and comes to play as an easy-to-use, barebones high-yield savings account.
The account is still pretty new, and we can expect that additional features, and potentially additional accounts, are coming in the future.
For now, let’s take a look at everything that Affirm has to offer today.
The savings account is available through the Affirm mobile app, which is available on iOS and Android.
The banking app is extremely well-liked on both platforms and has a near-perfect rating of 4.9 stars (out of 5) in the App Store. It isn’t trending far behind with 4.7 stars (out of 5) in the Google Play Store.
If you’re already an Affirm user, you’ll have access to your online savings accounts and any installment plans you have within the same app.
Affirm is an entirely mobile platform, so you can sign up for your new account through the app.
To add money to your account, you can make a transfer from a linked bank account, which will take one to five business days to show up in your account.
There’s no mobile check deposit available just yet, so an external account is necessary to add checks.
Withdrawing money is similarly simple, with the option to transfer money from your Affirm account into any linked savings or checking account.
When it comes to the best savings accounts out there, the calling card is a high annual percentage yield (APY). Fortunately for Affirm, the APY here is well above the national average.
Affirm’s 0.65% APY is available on any balance, with no maximum earning potential. Interest is calculated based on your daily balance and is credited to your account monthly.
Like most interest rates, it’s subject to go up or down over time, and you can view the current available rate in the app.
At the moment, 0.65% is one of the best available savings rates nationwide. Affirm’s rate is well above the offerings from big banks like Chase and even outpaces other online-only options like Marcus by Goldman Sachs and Synchrony.
Considering Affirm is a relatively new player in the digital banking space, a high-earning APY is a step in the right direction.
One of the biggest draws of the Affirm Savings account, like most online banking options, is the complete absence of typical banking fees.
You won’t see any monthly maintenance fees, minimum balance requirements, or low account balance fees.
It’s important to note that some of the absence of fees is due to limited functionality.
The account doesn’t come with a debit card or ATM card, so there’s no way to run into charges at the ATM.
The account also doesn’t support other fee-bearing actions like wire transfers.
To open a new Affirm Savings Account, you’ll need to download the Affirm app. From there, it’s about as simple as it gets.
Just open up the app, head to the Manage tab, and under Savings, click Learn More.
Then, just hit Sign Up, agree to any account disclosures, and you’ll get an immediate decision on your application.
Once you’re in, you can add funds and start earning interest.
Plus, Affirm doesn’t perform any sort of credit check to open an account, so no need to worry about your credit score taking a negative hit.
At the moment, there are no bonus incentives for opening a new account.
Again, this is a new product, so there’s reason to expect that there could be promotions in the future.
Be sure to check back, as we’ll keep this post updated to reflect any new offers.
Affirm Savings accounts are FDIC-insured through the company’s partner, Cross River Bank.
This means that even though Affirm is not a bank itself, your deposits are still protected as if it was.
Affirm utilizes firewalls and data encryption to protect your digital information, so all of your sensitive information is covered.
As an entirely digital platform, Affirm approaches customer service through online tools.
If you need help with your account, your first stop should be its online help center, which houses a wide range of FAQs and troubleshooting solutions to get you the answers you need.
Unfortunately, if you still need help, there isn’t an option for live chat or a phone number to call.
The only choice you have is to submit a form online, and Affirm provides the disclaimer that the response could be a bit slow.
Affirm may continue its minimalist approach to service, but if it continues to expand on banking products, customers will likely find more options down the road.
That said, something seems to be working, as Affirm currently holds an impressive service rating of 4.6 stars (out of 5) on TrustPilot.
Pros & Cons
- High APY
- No fees
- Excellent mobile app
- Easy transfers to and from external accounts
- No other deposit account options
- Limited functionality
- No ATM use or physical branches
- No sign-up bonus
Alternatives to Affirm Savings Account
If you like the looks of Affirm’s high-yield offering but need a little bit more out of a banking partner, you can look into full-service online banks like Ally and Axos.
These banks offer high savings account rates, plus a wide variety of other financial products.
It’s also worth looking into member-NCUA credit unions like Alliant and Consumers Credit Union.
Just like banks, credit unions offer accounts, credit cards, loans, and more.
Will my Affirm APY ever change?
Yes. It’s a variable rate, so your APY will fluctuate based on overall market conditions. Like most savings rates, your Affirm APY is dictated by the Federal Reserve.
Is Affirm legit?
Yes. The Affirm Savings account is backed by Cross River Bank, a member-FDIC financial institution. FDIC insurance is an easy indicator of a bank account’s legitimacy.
Is Affirm worth it?
Yes, especially considering it’s free to sign up and there are no monthly fees.
While it doesn’t have enough functionality to serve as your only bank account, the high APY makes it a great place to store your emergency fund and supplement your other savings goals.
Is the Affirm Savings Account Right For You?
The Affirm Savings account offers a modern, straightforward approach to savings.
While it won’t check all the boxes of your personal finance picture, the account should still serve you well.
What makes Affirm stand out are two things that represent digital savings as a whole — low fees and a high APY.
That’s enough to make any account worth your attention. There is no need to worry about minimum deposit requirements or monthly fees, and with a competitive rate, you can put away funds for a down payment or dream vacation and watch them grow.
On the other hand, the account might feel a little too lean for some. Features are limited, and without additional account options, Affirm simply isn’t at the level of more comprehensive online banking platforms.
There are no checking accounts, money market accounts, credit cards, or other standard financial products.
Overall, the Affirm Savings account is a simple, exciting option that earns a high rate on your savings now.
It remains to be seen what Affirm will do down the line, but as far as initial attempts go, it’s on the right track.
Whether you’re willing to give it a shot now or wait and see what comes next, you should now be in a good spot to decide.