Fintech company Save partners with Visa to release a new high-yield credit card | ZDNet

Save and Visa announced last week that they are partnering to release a high-yield credit card. The Save Wealth Card will be released in February 2022 and is expected to have an annual fee of $750 with an average annual return of 6% with no purchase restrictions.

The card will offer increased investments and yield returns for purchases made with Save’s preferred brands. Brands include Tesla, Amazon, Microsoft, Apple, Samsung, and more.

In the press release, Save explains that the card will “match customers’ spending” and invest into “globally diversified allocations, sustainable investments, and alternative assets with managed crypto exposure.”

Cardholders keep all returns on the investments aside from a Save Wealth management fee of 0.79%. The returns are deposited into cardholders’ bank accounts as cash, and Save serves as a fiduciary advisor to manage customers’ investments on their behalf.

According to Save, for every dollar cardholders spend, Save will invest $2.17 into a linked security.

The Save Wealth Premium card will have a steep annual fee of $750. However, if you compare its earning potential with other top credit cards, it’s one of the most rewarding. And potentially the most rewarding card without any bonus category restrictions.

Most credit cards without any bonus categories are capped at around 2% cash back. Other cards that do feature bonus categories typically have higher returns but are limited to where they earn rewards. 

For example, the American Express Blue Cash Preferred card earns 6% cash back at select U.S. supermarkets (up to $6,000 spent annually, then 1%) and for select streaming services, but 1% cash back for most other purchases. It does have a much lower annual fee, however, at $95 annually, and it’s waived for the first year.

“The Wealth card is designed for consumers who are looking for the potential of better economic value from their credit card in a low-interest rate environment, and with high inflation,” said Michael Nelskyla, Founder and CEO of Save, in the press release.

The card includes access to Save’s enhanced FDIC-insured cash management tools including a Premium Market Savings account and a high-yield checking account. The card will also come with “typical premium card benefits,” though the company hasn’t announced exactly what they may be.

Consumers can order the card here. Early adopters will receive $10,000 in equivalent investments for signing up, and existing customers can receive $5,000 in equivalent portfolio investments for referring others.