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A savings account with guaranteed 4% interest rate?

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  • A savings account with guaranteed 4% interest rate?

    While scrolling through Facebook today, I came across an ad for a savings account called Beam with a guaranteed 4% interest rate.  I can't imagine this being possible.  Thoughts?  (this appears to be a legitimate link, not a phishing site, as far as I can tell)

  • #2
    Looks like it's a guaranteed 2% per the faq section with an additional 2% if you use their mobile features... Whatever that means.

    Anyways, FDIC insured.. So I signed up.. #8529

    They do offer referral rewards up to 7%.. ????


    • #3
      Yeah, I'm highly skeptical but I signed up too.  They didn't really describe what their competitive advantage is - how they can keep costs lower than the next guy.  Looks like we're not going to be learning anything until October:


      • #4

        Be patient. Don’t get smoked out chasing yield.
        Click to expand...

        I agree that if it looks too good to be true, it usually is.  I've been patient with P2P lending and Real Estate Crowdfunding, and I have no problem being patient with a suspicious high-yield savings account.


        • #5
          Found this:

          According to they have raised funds from IDG-Accel China Team and are led by Aaron Du(formerly at JP Morgan Chase).


          • #6
            Another is how you get 7%:

            By Beam's launch date, the overall Top 10 referrers (by verified email) will receive a 7% APY interest reward for 100 days.


            • #7
              So it's like multi level marketing for a savings account?


              • #8
                I registered, though until such time as I have some understanding of the other side of its book, I won't be trying to get friends to join.  There is a difference between early adopter and foolish and more information is needed by me to determine where this product/opportunity falls.


                • #9
                  Just an update to this thread.  Got this email today.  I think with 2-3 more referrals I *may* crack the top 100.     Beam


                  Dear Beam-liever,

                  We are pleased to inform you that you are one of the Top 30,000 on the Beam waitlist based on your current position as of March 16, 2018. As you may know, Top 10 on the Beam’s waitlist will be awarded with a 7% APY interest reward for the first 100 days from our initial launch date.

                  So when’s our “launch date”? Beginning end of this month (March), Beam will begin its phased rollout for its Private Beta, a feature-limited version of Beam. In order to ensure that we have an accurate count of who will be awarded with the Top 10 honor, we want to clarify the following rules:

                  First, the effective Evaluation Date for the Top 10 position will be March 27, 2018 at 3pm PDT / 6pm EST. We will promptly tabulate the results based on your position at the Evaluation Date, not before or after.


                  • #10
                    I wouldn't go near this. Beam is not an FDIC institution!

                    They claim they will be partnering with a FDIC bank. Yet they have refused to identify this bank. There is no guarantee that your funds at any given time will be in a FDIC bank or in a pooled BEAM sweep account.


                    • #11
                      It's like rewards checking. You have to jump through some hoops and then it's only on a limited amount of money. They're not going to let me put $500K in there and forget about it.
                      Helping those who wear the white coat get a fair shake on Wall Street since 2011


                      • #12

                        I wouldn’t go near this. Beam is not an FDIC institution!

                        They claim they will be partnering with a FDIC bank. Yet they have refused to identify this bank. There is no guarantee that your funds at any given time will be in a FDIC bank or in a pooled BEAM sweep account.
                        Click to expand...

                        We'll find out in a few weeks. :|


                        • #13
                          Dear Fellow Beam-Liever,

                          At last, we are pleased to announce the launch of the Private Beta of the Beam app for iOS users! Preview it here.

                          Starting today we will begin onboarding waitlisters weekly, beginning with those at the top of the list and adding others on a rolling basis. Though the Private Beta will initially only be available to iOS users, Android users will be granted access when the Android app launches in a few months.

                          64% of our community on the Beam waitlist use an iOS/iPhone device, which is why we have decided to launch the iOS app first. If you’re an Android user, don’t worry: You won’t lose your spot in line. Though you will be passed over for the moment, as soon as the Android app is released, you will be taken off of the waitlist in the same order as the iOS users.


                          Beaming + Evolving

                          We are excited to officially announce that we have partnered with Evolve Bank & Trust, member FDIC, and Synapse Financial Technologies for our present limited-feature Private Beta.

                          Headquartered in West Memphis, Arkansas, Evolve has a long history of innovation, with history dating back to 1925. Your funds at Beam will be presently held at Evolve Bank & Trust, and is therefore FDIC-insured.

                          Whether you recently signed up for the waitlist or have been an early supporter, we sincerely appreciate and value what each and every one of you bring to the Beam community. It is your confidence and steadfast belief in our mission of “bringing Justice and Simplicity to banking” that motivates us to work very hard each day to bring Beam to you as soon as possible.

                          Don’t hesitate to reach out to us directly at [email protected] if you have any other questions. We’re listening.

                          With ♥ from San Francisco,

                          Beam Team


                          • #14
                            Saw this soon to launch FDIC guaranteed 2%: (full disclosure: my referral link so I can test it out sooner).

                            Not sure this beats my Ally account enough to care but the concept is a practically no service account so that they can offer a decent rate.

                            What FDIC insured rate would make you go through the inconvenience of changing things?


                            • #15
                              I would consider switching for half a percent increase on FDIC insured savings, maybe even a quarter of a percent, but I have a way too large cash reserve fund at 10% of net worth.  I would want to see consistently high rates over time rather than short term teaser rates though.  Currently I am with Ally for many years.