Many of us are familiar with the pay yourself first philosophy, so why are more than 80 million millennials still save nothing? Maybe they need to get acquainted with a web app called Rize.
Rize is different from some of the other popular savings products available today. Instead of doing round-ups or rules or purely algorithmic savings, Rize is modeled on the 401k, which is a proven saving mechanism that really helps people save lots of money because it forces you to pay yourself first.
Rize gives you the ability to save for goals you set that add value in your life, like retirement, a vacation, or a future purchase. You can have multiple savings goals at once which all help
you start building a saving habit and separate this behavior from spending.
Rize differentiates itself from traditional brick and mortar banks by offering higher interest, in fact, 15X higher.
Cost? Rize uses a pay what you want model (PWYW) so you decide what the use of the app cost. Ready to sign up? Let’s dig in.
Rize Sign Up
The registration process is straightforward, supply your personal information including name, address, date of birth, Social Security number, (needed because Rize is on brokerage side of the banking world) connect your bank (account details needed). Choose a goal, pick how much you want to save, schedule when you want to save (weekly, bi-weekly, monthly). Typically following a pay-check deposit. That’s it in a nutshell. You can make an account without connecting your bank too, if you just want to check it out without committing to saving, just yet.
As mentioned Rize uses a pay what you want model (PWYW) model. It is the very last step of the onboarding process. You can pay Rize, $0/month, $2/month, etc. whatever you want. Rize believes that if they give their users a product they truly value, they will help them make it into an even better one!
Rize now offers a $5 referral program. If a friend signs up using your referral link you get $5 and they get $5. It’s a win-win. (Please consider using my I love getting $5 from random people)
Rise is a web app and accessible on any mobile or tablet browser. Currently, there is no Rize app for iOS or Android, but they do expect to release a Rize mobile app in the future.
Rize Adds New Features
As of July 2017, Rize has updated their web app to include the following features:
Accelerate: Accelerate automatically increases your monthly savings by 1% (rounded to the nearest whole dollar) each month. For example, if you are saving $100 each month towards your goals, the next month you will be saving $101. This will help you save more and more each month!
Boost: Boost finds spare change and randomly transfers the small amounts of money to your goals throughout the week. Don’t worry, Rize will watch your account and only put it out when it makes sense!
These two features can be turned on or off in the application.
Rize will always notify you a few days before moving money so that you know when it’s going to happen, and you can pause the transfer or change the amount at any time. Plus, Rize automatically double-checks the balance in your checking account before moving money to make sure you have sufficient funds to save.
When you sign up, your money goes into a brokerage account. Rize is starting off as a saving platform but eventually expanding to suggesting/investing in smart investments for you. They focus on short and long-term savings that earn a high-interest rate.
Rize has been built on the brokerage side of the world instead of the bank side (hence the SIPC insurance up to $250,000, instead of FDIC). For our customers, it looks exactly the same, but being on the brokerage side will ultimately give us the ability to provide customers more functionality, a higher interest rate, and more regulatory and compliance clarity.
The fact that Rize is online-only, they don’t have all the costs that a big bank has (branches, lots of employees, etc.). There’s no big secret about how Rize is able to offer a higher interest rate: they just pass all of the interest on your money directly back to you. They don’t keep any of it. Simple as that.
There more good news too, anyone can use it not only millennials.
Have you heard of Rize? If so what do you think? If not, would you consider using it to help pay yourself first?