The news: Save, a fintech that offers high-yield savings accounts and debit cards, will launch the Wealth credit card in partnership with Visa next month, per a press release.
Here’s how it works: The Wealth credit card doesn’t offer cash back or points—it matches users’ spending with investments in a chosen portfolio. They can select a portfolio strategy focused on globally diversified markets, sustainability, or alternative assets, which includes cryptocurrencies. There are no spending requirements, category restrictions, or caps on rewards, and cardholders can pocket the returns on their investments after one year, minus Save’s 0.79% management fee.
Why it’s worth watching: The pandemic forced a financial reckoning that made many consumers focus more on saving and planning for the future.
The big takeaway: Save’s Wealth card offers an innovative rewards structure that can appeal to some consumers—and it may also inform strategies for legacy card issuers as they look to revamp their products and bring in new customers.
But the Wealth card’s steep price point might not justify its potential returns—especially compared with other similarly priced cards on the market. For example, Amex’s ultra-premium Platinum card offers plush “traditional” rewards and benefits and has an annual fee of $695.
Related content: Interested in learning about other strategies card issuers are using to appeal to consumers? Check out the “Credit Cards in the ‘Next Normal’” report.