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I heard about Qapital before but in January, I decided to try it out side-by-side with Digit (talk about cutting into my fun money). So after trying out the app for the last 4 months, I'm ready to tell you my thoughts.
What is it?
Qapital is an app that gives you the opportunity to save money by setting up rules based on your goals. Qapital actually holds your funds in a FDIC insured account at Wells Fargo Bank.
How does it work?
Once you sign up for Qapital you will be prompted to connect your checking account as your funding source for your savings.
Then you set your savings goal and your savings rule. You have several to choose from but here are few of them:
Round up - This one is similar to Bank of America's Keep the Change which I love. When you make a purchase it rounded up to a preset dollar amount, and the difference will be put into your savings account. For example, if you make a purchase for $1.50 and your rule is set to round up to a $1.00, $.50 will be put into your savings.
You can also set rules to save when you purchase certain items or spend less than a certain amount.
You can also save toward multiple goals. If you have a rule that saves toward a debt payoff and savings goal, the amount saved will split between the two. So if you have your Qapital set up to save $20 every week, $10 will go toward debt payoff and $10 toward savings.
Because Qapital is rules based you have the opportunity to use multiple aspects of your life to trigger savings. Using If This Then That (IFTTT) you can trigger savings when you go to the gym,
Qapital also helps you to get everyone savings, by allowing you to set up shared goals with your family and friends.
Withdrawals - You can easily request a withdrawal through the app and it takes 2 business days for the funds to be transferred to the checking account connected to Qapital.
Interested in saving with Qapital, click here to signup for FREE!
How I use it?
As I mentioned above my Qapital account is connected to my Fun Money account, which is currently being siphon for savings by 4 different accounts. The goal I set was the roundup plan since I was testing the waters but now that I actually plan to keep Qapital, I plan to add other savings goals that so I can save more.
Since I have been using Qapital I have not withdrawn any money and I am actually determining the actual goal of the account since I already have an emergency fund and regular savings. I might use it as a gift fund or to fund the kid's senior year of high school expenses.
What I like about it
The App. What's great about the app is that it has a clean interface, it's easy to use and it has the ability to provide you with your Qapital balance along with your checking account balance, and any other accounts you add. You're able to add/change your savings rules and see your recent purchases in your checking account. The app also notifies you how much money you saved the day before and the best thing of all is the security pin. You must enter your pin each time you open the app.
When it comes to security, Qaptial states that they "...use the industry-standard partners trusted by banks and financial institutions throughout the US to transfer money online".
Overdraft Protection - If your checking account balance is under $100, Qapital will pause savings to ensure you don't overdraft your account. They send you an email and a notification from the app letting you know that they paused savings due to a low checking account balance. You will also receive an email and app notification when they start saving for you again.
I don't have to worry about my account being overdraft because as soon as your account hits $100 that's it. One time I had some weird balance in my fun money account like $99.97 (I can't remember the exact amount but this is close). Qapital shut savings down.
You can also pause the account yourself at any time by clicking on the wallet feature in the app. You can also cancel a scheduled transfer.
The 52 Week Challenge - I love that they have this option available. The 52-week challenge is very popular and it is a great way to save an extra $1,378 a year. The app will automatically pull your weekly contributions on Sundays, for you, which changes it from active savings to passive savings. Making savings challenges easy is always a bonus. I always made the savings challenges easy for me by taking total amount saved at the end of the year and dividing it by 26 (number of paydays in a year if you're paid bi-weekly). Now I don't have to do it because Qapital does it for me.
What I don't like
Changing the funding account requires that you have to talk to Qapital's Customer Success Team. I love to do everything online so I would prefer to change my bank without talking to anyone.
New accounts (opened after February 1, 2016) does not pay interest (which is why I will use it as a gift fund) Qapital pays you for referrals instead. I prefer interest, mainly because referral payments depends on whether or not someone signs up. Interest is paid on your average daily balance regardless of if someone signs up or not.
My overall thoughts
I really like saving with Qapital overall, especially since it is a free savings option, that allows you to save without thinking. I actually had to look up my rule because I just set it and really forgot it. I love all of the different savings options so I am going to definitely keep using Qapital and beef up my savings using the app. I am also going to add another rule or two to beef up savings. If you are looking to save automatically I definitely recommend adding this app to your savings arsenal.
If you’re interested in signing up for Qapital click here, use code hf2e3773 and we will both receive $5.
Update: Qapital is no longer free for new signups. They now have 3 plans, Basic ($3/mo.), Complete ($6/mo) and Master ($12/mo). The Basic plan gives you all of the options I mention above, so you are able to save toward your goals. The Complete plan gives you the savings option but your are also able to use their VISA debit card, invest in their pre-built portfolios, set up their Payday Divvy feature that helps you save first, and find your Spending Sweet Spot. Your Spending Sweet Spot helps you create a customize budget based on your spending habits & income. Last but not least, the Master plan includes everthing in the Basic and Complete plan but the Master plan also gives you the option to join Money Missions and get access to exclusive webinars.
