Decades ago, when I first delved into the world of personal finance blogging, a good savings account interest rate was easier to come by. I remember accounts that would grant you a 3-4% APY without any fuss. This rate, while not a fortune-maker, meant that your emergency fund was at least inflation-resistant year-on-year.
Fast forward to today and finding a savings account with even a 0.50% APY is considered a stroke of luck. Holding your money in conventional banks seems almost disadvantageous.
But as they say, as one door closes, another opens. Nowadays, we have alternatives such as cryptocurrency savings accounts, investment apps, and real estate crowdfunding platforms. I’ve personally ventured into the realm of crypto savings and am now reaping an 8.8% APY on my stablecoins. True, it’s a recent concept with its own set of risks, but the interest I’ve accumulated over two months surpasses what I earned in my conventional savings account throughout the previous year.
I’ve also tried my hand at real estate crowdfunding via platforms like Groundfloor, enjoying almost a 10% return on my investments. So far, it has proven fruitful.
Speaking of Groundfloor, they’ve launched a new investment platform named ‘Stairs by Groundfloor.’ This app enables you to yield 4-6% APY on your funds, without the long-term commitments typical of other platforms. Set up your transfers, earn, and withdraw whenever you wish.
Join me as we dive deep into the offerings of this “savesting” service in this comprehensive Stairs app review.
Understanding the Stairs App
At its core, Stairs by Groundfloor is designed to let you garner a stable 4-6% interest on your deposits. While technically an investment platform, its interface and features mirror that of a standard savings app.
Deposit, earn interest, and feel free to withdraw anytime.
However, what sets it apart is its investment avenue. You’re essentially placing your money into non-traded, secured debt notes through Groundfloor. These notes are anchored in tangible assets, primarily real estate. This not only lets you earn a competitive interest compared to banks but also ensures steadier returns compared to volatile market investments.
Brian Dally, co-founder and CEO, remarks, “GROUNDFLOOR was conceived eight years ago as a revolutionary concept. It democratized direct real estate investments. And now, with Stairs, we’re further refining the savings and investment landscape, allowing everyone to benefit from alternative investments secured by real estate loans.”
For those already familiar with Groundfloor, you might recognize Groundfloor Notes, secured notes backed by the company’s assets. While these notes might offer slightly better returns, they lack the liquidity provided by Stairs. Your investment in the former could be tied up for as long as 12 months, while Stairs provides flexibility even if it means a tad reduced rate. This can be invaluable for those who want good short-term returns while maintaining liquidity.
Merging Saving & Investing: Savesting Defined
Stairs was conceptualized to bridge the gap between conventional savings accounts and the unpredictability of short-term stock market ventures. Why expose yourself to market whims when there’s a better way?
By marrying the accessibility of a savings account with the tangible returns of real estate investments, Stairs has given birth to the concept of “savesting.”
Getting Started with Stairs
Creating a Stairs account is a breeze. All you need is a smartphone, as it’s exclusively available on Android and iOS. Simply:
- Follow the provided link to download the Stairs App.
- Set up your account or use existing Groundfloor credentials.
- Link your bank account using Plaid.
- Make your inaugural deposit.
From my experience, the entire setup was swift, and I was able to kickstart my investment journey immediately.
Interest Earnings Simplified
Eager to know your potential returns? Here’s the breakdown:
- Every deposit earns a 4% APY.
- Enable recurring transfers to add an extra 1% APY, effective after 90 days.
- Activate the “round-ups” feature for another 1% APY boost, again after a 90-day window.
In essence, with the right settings, you can amass up to 6% APY.
Streamlining Your Investments
You can automate your investments in two ways for added interest:
- Recurring Investment: Define an amount and a specific day for monthly transfers.
- Round-ups: Activate this feature to let Stairs round up your purchases to the nearest dollar from your linked account, investing the difference. For instance, a $3.50 coffee purchase will see an extra $0.50 invested.
Safety of Stairs App
Given the plethora of scams, it’s natural to wonder about the legitimacy of Stairs. To set the record straight, Stairs is the brainchild of Groundfloor, a stalwart in real estate crowdfunding for over seven years. I’ve been their patron for years and can vouch for their authenticity.
That said, while your investments in Stairs are safeguarded by tangible real estate assets, remember they aren’t FDIC insured. However, they are backed by non-traded secured debt notes, making them relatively safe.
Fee Structure and Limits at Stairs
Considering any investment platform, it’s pivotal to understand its cost. Stairs impresses with:
- No minimum account balance.
- Zero fees.
- A deposit limit of $5,000 per week.
- Hassle-free withdrawals.
Deposits or withdrawals usually reflect within 1-3 business days.
Final Thoughts on Stairs by Groundfloor
Seeking an avenue for lucrative returns without locking your money away? Stairs emerges as a robust contender, especially if you value liquidity. Its returns might not match the giants in the long-run, but for short-term gains without market volatility, it’s worth a glance.
For those seeking even better returns and can compromise on liquidity, its parent company, Groundfloor, promises returns close to 10%. Dive into our detailed review for insights.
FAQs
- What is Stairs by Groundfloor?
An investment app offering 4-6% APY. - Fees associated with Stairs?
Absolutely none. - Available platforms?
Android and iOS. No desktop variant as of now. - Savings or Investment app?
A fusion, leaning more towards investment backed by non-traded secured debt notes. - FDIC insured?
No, it’s an investment platform, not a conventional bank account. - Expected Interest?
4% APY for all, with up to 6% APY with specific features. - Can I access my funds anytime?
Absolutely, with funds typically reflecting in your bank in 1-3 business days.
