Many or all of the companies featured provide compensation to LendEDU. These commissions are how we maintain our free service for consumers. Compensation, along with hours of in-depth editorial research, determines where & how companies appear on our site.
- A low maintenance microsavings app that rewards users when they achieve goals
- Free to use: No fees or minimum balance requirements
- Unique rules get users to save from everyday happenings
Qapital is a microsavings app that helps consumers save money passively. Daily activities such as spending less money or liking a social media post will generate an automatic money deposit into a consumers’ Qapital savings account.
At a time when many Americans are neglecting to save, this may be an easy way to start. According to a March 2018 Bankrate Survey, 20 percent of respondents said they aren’t saving anything while 39 percent said expenses are the greatest obstacle to savings.
To help you learn whether the Qapital app is right for you, let’s explore details of its features.
|Pros||Spending Account & Qapital debit card|
$5 referral bonus
|Cons||Low interest on Spending Account|
Delay in withdrawals
|Bottom Line||Great option for passive savings for short-term goals|
How Does Qapital Work?
To start, users will download the Qapital app and create a funding account. Users can link this account to their checking account to get funds. Qapital requires that checking accounts be from a U.S.-based bank or credit union, and users must be 18 years of age or older.
A deposit of two cents is made for account verification which can take up to three business days for the transaction to appear in checking accounts. Then, users can verify their Qapital account from the app.
Next, users will set “goals” that will follow specific rules. For example, if your goal is to establish a $2,000 emergency fund, you can save for this by setting a rule to transfer $25 from the funding account to the Qapital Goals account each time you go grocery shopping. Or, you could set a rule transfers money every time you watch an NFL game on your phone.
The money saved through a Qapital account is deposited to an FDIC-insured Wells Fargo account, where it is held by Qapital.
As for Qapital’s costs, it’s free. There is no minimum account balance, no usage fees, and no monthly fees. However, if users have a Qapital debit card, they will incur the usual ATM fees.
Qapital main source of revenue does come from its debit cards, as it notes in its FAQs. When users swipe their cards, Qapital gets a cut of the small fee that Visa charges to vendors.
Qapital does offer some free benefits such as a newly added Spending Account linked to a Qapital debit card. It also provides a $5 referral bonus to both the referring user and the new user after the initial savings deposits to a set goal have been made.
Qapital’s reviews are generally positive, with high ratings of 4.8 in Apple Store’s and 4.4 in Android Store.
As for downsides, the Qapital Spending Account barely earns any interest on the account.
Seondly, Qapital does offer an investment option, Qapital Invest, but it’s hard to find on its website and is not heavily promoted. Some reviewers have noted difficulty in linking to a checking account to the app as well a rise in glitches since Qapital introduced its Spending Account, which is linked to its debit card. They’ve also reported delayed timing on withdrawing funds from external bank accounts toward savings goals.
Finally, Qapital is only available as an app, not a web platform.
Qapital has garnered a slew of positive reviews and may be considered a great option for passive savings for short-term goals. Beginning savers may like this app to jumpstart savings while others may find setting a savings goal and accomplishing it with minimum effort as satisfying. Essenally, Qapital’s advantages include:
- Earning interest on Qapital’s Spending Accounts
- Receiving instant access to funds upon goal completion
- No fees, which make Qapital an inexpensive alternative
Author: Debbie Baratz