french startup Lydia Known as the premier app for peer-to-peer payments. But the company is adding features like debit cards, account aggregation, donations, money pots and more. This week, the company is adding savings accounts Thank you for partnering with French fintech startup cashby.
If you are not familiar with Cashbee, the company lets you open savings accounts through the mobile app. After linking your bank account with CashBee, you can transfer money back and forth between your bank account and a savings account.
Now, Cashbee has partnered with my money bank For savings accounts. CashBee does not hold your money, it just acts as an intermediary between your bank account and My Money Bank. With those savings accounts, users can expect an interest rate of 0.6% followed by an introductory rate of 2% for a few months.
Lydia basically offers the same terms and conditions with some differences. Instead of earning 2% interest for the first three months, Lydia users only earn more interest during the first two months.
The other big difference is that Lydia asks you to put at least €1,000 in your savings account when you open it. If you go through Cashbee’s app, you only need to put in €10 or more. But after that, when it comes to setting aside some money and withdrawing money from a savings account, users can do whatever they want.
But the fact that Cashbee is seamlessly integrated into Lydia is interesting. This is going to expose Cashbee to a lot more users as Lydia has over 5 million users. This is also an important feature if Lydia wants to be a financial super app.
This savings facility competes with Livret A, the most popular savings account in France. Anyone can open Livrate A in a retail bank. You get 0.5% net interest rate of taxes. On paper, 0.6% is better than 0.5%. But Cashbee’s savings accounts are not exempt from taxes.
If you’re a student and don’t pay any taxes, this is a better deal. But many people pay a 30% tax on the interest earned, which means you earn 0.42% in net interest after taxes with a CashBee account.
But it’s hard to beat the simplicity of Lydia’s solution here. For example, you can save up to €1,000,000 in your savings account while Livret A is limited to €22,950. In other words, if you’re already using Lydia to send, receive, and spend money, you might want to look into those savings accounts.