Affirm started out as a short-term installment loan company, allowing online shoppers to spread out payments for items purchased at a wide variety of retailers. And in recent years it has started to expand its offerings into banking services.
Affirm launched its savings account in June 2020. With this account, Affirm says it seeks to make banking more transparent for the younger consumers the company claims are skeptical of traditional bank fees.
Additional transparency could benefit Affirm, which offers minimal details of its account in an online landscape packed with robust feature lists offered by its competitors. Here’s what you should know before signing up for an Affirm savings account.
Account Basics
Savings
The Affirm savings account is the only bank account currently available alongside the company’s buy now, pay later service. You may apply for a savings account online or through the Affirm app, available for iOS and Android.
No minimum deposit is required to open an account, and Affirm charges no fees for its savings account.
The account earns 4.35% APY, or annual percentage yield. No minimum balance is required to earn interest on your savings. You’ll receive the interest you earn each month and see it in your account on the last day of the month.
You can make up to six withdrawals or transfers from your savings account each month, per the Federal Reserve’s Regulation D, even though the Fed lifted that limit in April 2020. You can deposit from a linked bank account into your Affirm savings account as much as you like.
Affirm offers an optional auto-deposit feature that allows you to schedule one-time, weekly or monthly auto transfers from a linked bank account to your Affirm savings account.
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Access on the Go
Affirm’s savings account is available online and via its mobile app. Monthly statements detailing your activity, interest earned and current APY are available in the app, which is rated 4.9 out of 5 stars in the App Store and 4.8 out of 5 on Google Play.
The Affirm savings account does not come with a debit card—you must link a bank account to transfer money. You can link multiple accounts to your Affirm savings account for deposits and withdrawals.
Pros
- Competitive interest rate among online savings account options
- No minimum deposit and no maintenance fees
- Limited features keep the app clean and easy to navigate
Cons
- Affirm’s installment payments are still its primary feature, which could distract you from your savings goals.
- There’s no checking account option for those looking for all-in-one online banking.
How Affirm Stacks Up
Affirm’s savings account seems tangential to its mission of offering convenient payment plans. But the addition of a saving option shows the company is interested in being involved more holistically in customers’ financial lives.
If you’re already familiar with Affirm, its savings account is worth a look for its ease of use and very competitive APY. But if you don’t plan to ever use its buy now, pay later services, you may find Affirm’s banking features too limited to fit your needs.
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Frequently Asked Questions (FAQs)
Where can I find the amount I’ve earned from interest?
First, check your available balance in the app. Below your balance, you’ll see the interest you’ve earned during the current year. The interest you earn is compounded daily and credited to your account at the end of each month.
Is my money safe at Affirm?
Yes. Affirm savings accounts are FDIC insured up to $250,000 per depositor, for each account ownership category, in the event of a bank failure, and are held by Cross River Bank (FDIC certificate No. 58410).
Are joint savings accounts available?
Joint savings accounts with Affirm are not available at this time.
Will Affirm check my credit?
Opening or closing an Affirm savings account won’t impact your credit, as Affirm does not conduct a credit check to open your savings account.
If, however, you use Affirm’s buy now, pay later service for making purchases—which is separate from the Affirm savings account—then your loan and payments may affect your credit score.
