How good are you at saving? It’s not always that easy for many people to put a set amount aside every month and with low interest rates, what is the incentive? If you look at the UK, statistics from the bank of England show that an Instant Access account only pays a rate of 0.19–0.21% and a fixed rate, one-year ISA 1.24%. The BoE official bank rate is 0.50% in 2018.
A report in The Guardian in February pointed out, “Interest rates on savings accounts are finally starting to creep upwards, but savers are still losing more to inflation than they are earning from interest.” The challenger banks, such as Metro are offering some of the best deals, but some of the banks offering higher interest rates require hefty deposits, such as a minimum of £5,000.
But, fintech may have arrived at the right time to save the savers. In particular, the millennial generation is more inclined towards managing their finances through accessible technology-led solutions. As Indian business Affordplan says: “Fintech companies are helping make payments, lending, and management of personal finances easier for individuals. It puts the focus back on the customer by unbundling and aggregating financial products by segment, allowing 24x7 access, reducing the complexity and ambiguity of the traditional banking experience.”
Lendo’s Savings Account
Lendo wants to help its members save. That’s why it will be introducing an ELT Savings Account. This account will incentivise ELT holders to keep their coins out of circulation by providing a savings account that pays for the ELT to be locked in the vault for lengthy periods. The holders gain in two ways: they get a steady monthly income of ELT and as the price of ELT increases the value of their savings also rises.
It is different from Lendo’s current account because it is only for ELT tokens and these tokens can’t be touched until the end of the agreed savings period. However, and here is the bonus; each month the savings account holder will be remunerated in ELT for having kept the ELT tokens out of circulation that month.
Your Lendo savings account will be controlled by a smart contract that will guarantee the return of the funds to the account holder at the end of the stipulated period. The ELT will be put in cold storage for additional security.