Alfa Bank 'Invest Savings' Review: Worth the Risks?

A Good Idea, but Be Aware of the Risks and Rewards

summarizeEditor's Summary

I've been using Alfa Bank's 'invest savings' feature for a few months now, and it's been a total game-changer for saving money without having to think about it. The funds get invested in a way that's similar to a brokerage account, and it's crazy how fast the money piles up. But you gotta be aware of the risks and rewards – the returns aren't fixed, and you'll be paying taxes on the income. Still, it's worth every penny for the peace of mind and the potential for long-term growth.

settingsSpecifications

KararPozitif

Riskler7/10

Faydalar9/10

HizmetKalite8/10

I've been an Alfa Bank client for about a year now, and I'm closing my accounts. Before that, I had a similar experience with another bank, and I was pleasantly surprised. Their 'invest savings' thing is pretty simple: a small amount of money gets automatically transferred from your purchases into a separate account. You can choose which purchases to include, and even add cashback, interest from your savings accounts, or credit card balances.

I've been tracking my transfers, and it's crazy how fast the money piles up. I've included some screenshots for reference. I've been using this feature for a few months now, and it's been a game-changer for saving money without having to think about it.

These funds get invested in a way that's similar to a brokerage account. You can see the specific funds I've invested in on the screenshot. I've been impressed with the variety of options available, and the ability to adjust my investments as needed.

You can withdraw your money at any time, but be aware that there are risks involved. If the fund doesn't perform well, you might end up with a loss. I had a loss of 57 rubles when I closed my account, but that's not the point. The key is to understand the risks and rewards before investing.

One thing to keep in mind is that you can only withdraw your money during the bank's working hours. I've had no issues with the process, but it's essential to remember that the Moscow Exchange has limited hours. I've found it's best to plan ahead and withdraw my money when it suits me.

I initially set up my invest savings account to automatically transfer cashback, interest, and purchase amounts. However, I soon discovered that there's a commission involved, which made it less appealing. I've since adjusted my settings to only include small amounts from my purchases. It's worth noting that the bank's own investment funds can be purchased without commission, which is a plus.

As with any investment, there are risks involved. The income from your invest savings account is subject to a 13% tax. It's essential to factor this into your decision-making process and consider the potential impact on your returns.

I was disappointed with the bank's services and decided to close my accounts. I've withdrawn my money from the invest savings account, and I'll be closing that account as well. The idea of an invest savings account is good, but it's essential to monitor the conditions and adjust your strategy accordingly. The bank doesn't notify you of changes, so it's up to you to stay informed.

For clients of Alfa Bank, this might be an interesting option. If you want to save money but don't have a lot to spare, you can consider opening an invest savings account. Just be aware of the risks and the potential for losses. I've found it's essential to have a clear understanding of the terms and conditions before investing.

My review of the T-bank's invest savings account can be found here.

live_helpFeatured FAQ

How does Alfa Bank's 'invest savings' feature work?

The feature automatically transfers a small amount of money from your purchases into a separate account, where it gets invested in a way that's similar to a brokerage account. You can choose which purchases to include and even add cashback, interest from savings accounts, or credit card balances.

Is my money safe with Alfa Bank?

Alfa Bank is a reputable financial institution, and your money is insured up to a certain amount. However, as with any investment, there are risks involved, and you could lose some or all of your money.

Can I withdraw my money at any time?

Yes, you can withdraw your money at any time, but keep in mind that you might face penalties or taxes on the income.

How do I get started with Alfa Bank's 'invest savings' feature?

To get started, simply sign up for an Alfa Bank account and link it to the feature. You can then choose which purchases to include and set up the automatic transfers.

Is Alfa Bank's 'invest savings' feature suitable for beginners?

While the feature is easy to use, it's not necessarily suitable for beginners who are new to investing. You'll need to do some research to understand how it works and make the most of it.

Can I use Alfa Bank's 'invest savings' feature with other financial products?

Yes, you can use Alfa Bank's 'invest savings' feature with other financial products, such as credit cards or savings accounts.

How do I track my progress with Alfa Bank's 'invest savings' feature?

You can track your progress through the Alfa Bank app, which provides real-time updates on your investments and savings.

Is Alfa Bank's 'invest savings' feature available in my country?

Alfa Bank's 'invest savings' feature is available in certain countries, but availability may vary depending on your location. You can check the Alfa Bank website for more information.

check_circlePros

•Transfers money from your purchases into a separate account automatically, making it super easy to save.
•You can choose which purchases to include and even add cashback, interest from savings accounts, or credit card balances to boost your savings.
•Funds get invested in a way that's similar to a brokerage account, giving you a chance to grow your money over time.
•Easy to set up and use, even for those who aren't tech-savvy.
•Helps you develop a saving habit without much thought, which is a huge plus in my book.
•The app is solid – it works smoothly and looks great, making it a pleasure to use.

cancelCons

•Income is taxable, so you'll need to factor that into your savings plan.
•Returns aren't fixed, so you might not get the best rates, which can be a bummer.
•There are risks involved with investing, and you could lose some or all of your money, so it's not for the faint of heart.
•No insurance protection for the funds, which is something to consider.
•Not suitable for everyone, especially those who are risk-averse or new to investing.
•You'll need to do some research to understand how it works and make the most of it, which can be time-consuming.