Are your bank’s savings accounts returning close to zero returns? Are you concerned about your money sitting idle at the bank while other people put their money to better use? Let me then introduce you to Iban wallet, a new kind of online investment account where you can earn between 2.5% and 6% yearly on the money deposited.
❔ What is Iban wallet?
Iban wallet is a European fintech company that provides an online investment platform that allows users to invest in different accounts with different interest rates and terms by offering a hassle-free, passive management experience. Iban’s projected returns range from 2.5% to 6%.
Iban is a global online marketplace for investment. They provide investors with an easy and transparent way to get a return on their savings. Their mission is to facilitate the free and efficient movement of capital. With Iban, investors can invest in different types of asset-backed investment products with different terms and returns.
Iban acts as an intermediary to the lending process, providing the tools and security for all involved. Borrowers can easily apply for a loan, supported by their credit information and collateral. Loan originators working with Iban will select only the best applicants and present these loans to Iban. Unlike many other P2P marketplaces, instead of allowing you to invest in a specific loan, they do the hard work for you and aggregate many loans together – you have access to a much simpler approach: an investment account.
👥 How do users become investors with Iban wallet?
This platform boasts a sleek design and seamless experience across all devices (web, android, and iOS). Iban wallet has country-specific websites with an experience tailored to the user’s nationality and account currency. Customer support is offered in more than 3 languages and they are aiming to expand to even more.
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Creating an account in less than 5 minutes:
Requirements: to be at least 18 years old and be a resident in one of the countries in which Iban offers its services.
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Adding funds to your account:
The minimum investment amount is as little as 1€/$ !
To fund the account the investor can either use debit/credit card (only needs to insert card details) or choose a SEPA transfer.
Iban currently offers accounts in EUR, USD, and MXN. - Platform experience:
The investor can select one of the four accounts available. These accounts have different expected fixed interest rates (up to 6% AER), minimum investment amounts and terms.
💶 What are the fees?
There are no fees for you as a user, including transfers and withdrawals. This is great news, as we are seeing lots of banks nowadays trying to fleece their clients with monthly fees, set up fees and penalties for closing their account. You’ll get none of that crap with Iban wallet.
🤺 How is the user protected?
Iban wallet protects users’ funds via 3 methods:
- Your funds are deposited in an Electronic Money Institution (EMI) regulated by the European Central Bank.
- All investments are backed by collateral (asset/property).
- All loans are protected by a Buyback Guarantee and a Safeguard Trust.
Let’s get deeper:
We can start with the concept of diversification – Iban wallet works with an extensive pool of
loan originators from various geographies, who offer multiple types of loans, return rates and
deposit terms. Iban also checks, through an extensive due diligence process that every loan originator follow strict risk standards.
On top of that, when you invest with Iban, all of the funds are automatically deposited in an EMI (Electronic Money Institution) which complies with the corresponding European Regulations.
Another way to mitigate risk is by reinforcing and building new investor protections. All of the loans Iban invests in are asset-backed. What does this mean? It means that Iban only invests in loans that have collateral – if the borrower were to fail the repayment of the loan they hold, the loan originator would redeem the property (collateral) in order to settle the debt.
Furthermore, every Iban loan is covered with a buyback guarantee, therefore, should a borrower incur a delay of 90 or more days, the loan originator would be obliged to repurchase the loan from the investor at the nominal value of the principal and the accrued interest income till the date of repurchase.
On top of the above-mentioned security layers, Iban wallet also offers the safeguard trust – a provision of funds set aside on a monthly basis which would be used to cover losses that the other protections in place were not to be able to fully mitigate.
🗄️ What types of accounts are offered?
Iban accounts are investment accounts providing interest paid on a daily basis. By opening an Iban account you can invest with an interest rate starting with 2.5% AER.
Accounts are invested in asset-backed loans, have a Buyback Guarantee and a Safeguard Trust which has covered all bad loans since it launched. The Buyback Guarantee allows Iban wallet to offer a fixed interest rate making their accounts the perfect products to grow your savings.
As mentioned earlier, you can start investing by just putting €1, so you can feel free to test out these accounts with small amounts and hence extremely low risk. Interest is paid every day and there is no minimum term for the Iban account, so nobody is going to stop you from taking out your money when you desire to do so.
So let’s take a look at the options offered:
The basic account is called Iban account and is the one that’s recommended to start off with for the first few days and weeks while you test out the waters. If you’re happy with how everything works, you can put in more money and access better returns, like those offered by the One, Market, and Dynamic accounts.
As you can see, with the latter three accounts you get higher returns. You will, however, have to agree to a minimum term (1, 3, or 5 years respectively). I think that’s fine. If you have a net worth in the six or seven figures, you can easily afford to park €50,000 or more of that into an account for 5 years when in return you’re getting 6%. If your cash net worth is more like €80,000, then I would suggest sticking to the One or Market accounts.
When you put your money in Iban, it’s best to adopt a long-term perspective. This is no get-rich-quick scheme and it’s very clear on the website that investor protection and sustainable returns are what Iban wallet is after, for everyone’s benefit. It’s helpful to use the interactive
📱 Iban wallet Mobile Application
The Iban wallet mobile app is an easy way to manage your investment and keep on top of things without needing to login to the website. It’s much more convenient in my opinion and a plus for this investment platform.
It is available for both Apple and Android devices, so nobody is left out.
⚖️ Pros and Cons of Investing with Iban wallet
Now that we’ve discussed Iban wallet, at some length, let’s summarise the pros and cons of investing your money with Iban wallet.
Pros
- Low investment requirement – start with €1 with no term limit
- Strong investor protection
- Great app for both Android and iOS
- Daily interest
- High liquidity
Cons
- Interest rates lower than those on pure P2P lending platforms (such as Mintos, Twino, Grupeer, PeerBerry etc)
🤔 My Thoughts on Iban wallet
I think Iban wallet need to improve their wording and make a clear distinction between the basic Iban account and the rest of their investment options. There are some restrictions on the other accounts that should be made clearer from the start. For example, on all accounts apart from the Iban account, you have an early termination fee of 2.5% (exceed the accrued interest at the time of the cancellation, so you always keep your initial investment).
Having said that, I think this platform is an excellent alternative to keeping money in the traditional bank accounts which don’t give us any interest anymore, and on top of that charge fees like monthly fees, set up fees, closing fees and transfer fees.
Banks are no longer the safe havens they once were; we’ve all seen how many of them went into trouble during the past financial crisis. They are still safe places to store money, but nowadays I try to diversify as much as possible, especially now that I’m young and I am chasing returns rather than just parking my money somewhere and letting it be devalued through the effects of inflation.
That’s why I think that it’s a great idea to put money into a platform like Iban wallet, which is a slightly riskier place to put your cash compared to a bank, but on the other hand, it gives much higher returns.
When you invest with Iban, they take the role of expert and manage your investments for you, selecting the best market opportunities, which often adds far greater protection than when the investor chooses individually the loans to invest in.
On top of this, they secure your funds with multiple protection layers, such as asset-backed loans, underwriting policies and buyback guarantees. However, they offer an extra protection layer – the safeguard trust – a provision of funds set aside on a monthly basis which could be used to cover any losses that the other protections in place aren’t able to fully mitigate.
Remember that with investments, one of the fundamental principles is diversification. Iban wallet allows you to have passive portfolio management as opposed to risky, variable returns and active management portfolios.
📣 Campaign of the Month
The promo code LOVE1 is active. Every reader who joins Iban with this code and invests €300 (or more) will get a 1% bonus on their Iban Account for 90 days! Remember the code needs to be inserted after the registration process, at “top up the account” step.
Have you invested with Iban Wallet? How is it going for you?
Iban wallet
Summary
I like what Iban wallet are doing. They have created a different take on P2P lending and packaged it in a format that most people are more used to, that of savings accounts. It’s important to understand that these are different savings accounts than those that your bank provides, and that the risk is higher. However, the returns are also correspondingly much higher, and I feel that it’s a good trade-off.
Pros
- Very innovative platform
- Good support
- Excellent website
- Different risk profiles catered for
Cons
- Platform is quite new
Thank you!
– If you deposit 1.000 euros in the first account, you mean that really every day you see an interest on your account? How many decimals are displayed, as 1.000 * 2.5% / 365 is a very very small amount 🙂
– if for testing purposes you register for the first iban, can you later in the month ‘migrate’ it to a higher return account? Or you need to create a second iban?
– the bank account where you have to make the deposits is based in which country?
Thank you!
Hi Jean
Interesting stuff! Thanks for the post.
I tried to top-up with your code, but it tells me that the auction code is not active. Has it already expired?
Thanks,
Philippe
Thanks Philippe, the code should work, did you get any error message?
I tried again to top up and enter the Promo code into the field below the amount field. It says: “Inactive promotion”
I’ll check with Ibanwallet and post back here once it’s fixed.
Hi Philippe, I’ve updated the post with the latest promo code.
Hello Jean.am from Uganda East Africa and I have been trying to open up an account with Ivan but failed,, isn’t because its not in my country
I’m not sure if investors from Uganda are allowed to join, please contact Iban to see if they have any restrictions at the moment.