Introduction of the Iban Wallet
Iban Wallet is an investment platform for automated investments into loans, offering between 2.5 – 6% annual returns. Highlights can include include zero fees, fast account opening, and hands-off investing.
What is Iban Wallet exactly?
Iban Wallet is a FinTech startup that offers investment products with various terms and projected interest rates for their users. The company has four different account types with projected returns ranging from 2.5% to 6% per year depending on the product.
As such, their investment products share several similarities with traditional savings accounts, but they’re actually not the same. Iban Wallet investment products allow users to invest in a variety of opportunities that offer individual terms and projected returns for investors.
Interest rates are paid daily, and you can request to withdraw and deposit money at any point. Projected fixed returns in combination with immediate liquidity can make Iban Wallet an interesting choice for investors interested in reaping immediate rewards.
Investing as an Alternative to Bank Savings Accounts
Traditional bank loans are notoriously difficult to qualify for. The process involves mounds of paperwork, an extensive check of your credit history, and an interview process with the bank itself. If even one hair on your head stands out of place, there’s a good chance your loan application will be rejected.
Iban puts a spin to the lending/investing process. While it can still be challenging to obtain a loan , practically anyone can join the platform as an investor. Simply invest your money in the lending app, and Iban will take over from there. That said, Iban is not a savings account, and there are risks associated with allowing the service to invest and access your money. However, these risks are no greater or no less than what you should come to expect when engaging in any investment venture.
How Does Iban Wallet work?
If you made if this far in the Iban Wallet review, you might be wondering: How does the platform actually work? It’s actually more complicated than it appears on the surface. Iban is an online investment platform that unites borrowers and lenders.
Borrowers apply for loans by staking collateral and their personal credit through Loan Originators, who then select the best loans and present these to Iban to be approved.
In turn, Iban Wallet users i.e. lenders can invest in a variety of asset-backed investment products with a range of terms and interest rates. Once the investment has been made, users can sit back and collect a steady cash flow.
Iban doesn’t allow users to invest in individual loans. Instead, they aggregate numerous loans together and make investments on your behalf. While this takes away a measure of control from the investor, it also allows them to passively earn interest daily without putting in much effort.
Iban Wallet Investment Accounts Comparison
Iban has four investment account types that allow investors to earn interest daily. Each account tier offers different interest rates, with the lowest projected rate at 2.5% and the highest at 6%.
Let’s take a closer look at each account type:
The lowest tier option is the Iban Account. This is the account you should sign up for if you’re feeling the app out for the first time. Because the minimum investment is only €1, the risk is practically nonexistent.
The Iban account offers a projected fixed interest rate of 2.5% AER and is the only account that doesn’t require a set term. You can deposit or pull out your money at any point, hassle-free. Once you’ve become comfortable with the app, you can invest more money to start seeing more significant returns.
One, Market and Dynamic
With the next three accounts, you will get increasingly higher returns, as you can see from the above screenshot.
This comes with a tradeoff, however, as you will have to agree to a minimum term of 1, 3, or 5 years respectively.
While this may seem like a negative when compared to the Iban account, you can greatly increase the potential of growing your money over a longer period of time, especially if you’re investing a more substantial sum.
Let’s say you sign up for the Dynamic account and invest $50,000 for five years. At a projected 6% return, you’ll be seeing a significant profit by the end of the term.
The dynamic investment account, however, is for investors who have access to significant capital. The average Iban user likely won’t have that type of cash on hand and thus would be better served by either the Iban One account or the Iban Market account.
These accounts require a €1,000 minimum investment, but provide great options for investors who are looking for moderate returns.
Concluding the Iban Wallet Review: Is it Worth Your Time and Money?
Iban’s biggest strength is the fact that its investment accounts combine daily interest payments with immediate liquidity. That means if you have immediate needs, they can be taken care of right now and not some time distant time in the future.
Though Iban has low-interest rates compared to its competitors, this balances out with the immediacy of the service. As such, this is an excellent option for those who want fast access to cash on short notice.
That said, some competitors offer more than double the interest rates of Iban’s top tier investment account. If you’re interested in growing your money over the long-term, Iban Wallet may not be the best option for you.
However, you’re still highly encouraged to give the service a try to make your own determination.
With Iban Wallet you can start saving from as little as one euro. So create an account right here!