Rize is a micro-savings app which launched in 2015 and is based out of Arlington, Virginia. The company’s mission is to unify spending, saving and investing on one simple “intelligent savings” platform. Rize allows users to automatically put aside money every month to reach an unlimited number of financial goals.
How It Works
After each paycheck, the platform moves money from your checking account to your Rize account and applies it to your savings or investment goals. For short-term goals, users earn 1.93% APY (subject to change), which according to the Apple iTunes Store is about 50 times the national average for savings accounts.
The platform also offers automation and tools including “Power-Ups” such as Boost and Accelerate, intended to help you reach financial targets faster. By choosing the “accelerate” power-up, you will automatically increase your monthly savings by 1%. The “Boost” feature monitors your checking account and pulls out spare change when it makes sense, once or twice a week at a limit of 5% of monthly savings or $5.
For longer-term goals, Rize Invest builds users a broad exchange-traded funds (ETF) index fund based portfolio customized for risk tolerance and time horizon, according to the company’s website. This year, Rize says it’s launching joint and individual checking, savings and investing all in one place.
Why Rize is Worth Your Time
Rize allows you to set multiple savings goals with the amount and frequency of your savings via a simple platform. The company promises to pass 100% of interest savings back to you.
Getting Started
To set up an account, you’ll need to submit your birth date and social security number. There are no minimums or fees to open an account, though you obviously can’t save with nothing in the account.
Once your account is approved, you will choose your goals, set your schedule, and connect to your bank account. You can even set up automatic savings.
Is Rize Free?
Rize Saving offers unlimited goal setting and bank transfers free of charge. Instead, the company uses a “pay what you want” model.
If you think the service should be $2 per month, then you pay that amount. The same goes if you think it should be free. That said, Rize Invest has an annual management fee of 0.25% and it’s “How much does Rize cost” page says Rizers must pay a minimum contribution of $2 per month.
There is no charge for closing an account. As for overdraft protection, Rize will not make a deposit if it will leave your checking account with under $50, or whatever you indicate.
The app checks the balance on the day of the transfer. If the funds are not available within two business days, a reversed transaction by your bank will cost $30.
Is Rize Legit?
Rize Money is run by Rize Advisors LLC, an SEC Registered Investment Advisor. Accounts are technically investment accounts rather than deposit accounts and SIPC insurance covers accounts up to $500,000.
The brokerage services are provided by Apex Clearing Corp., the clearinghouse for many brokerages and micro-investing apps such as Acorns and Robinhood. Apex will need to verify your identity with Equifax to comply with federal regulations.
Rize currently has a 3.9/5.0 rating on the iTunes App Store, based on 61 reviews.
Final Thoughts
Rize is great for individuals who want to hit multiple savings targets, and need a hand in managing their savings with automatic money management tools, goals-based updates and advice. For those who want to keep their savings in cash, the platform pays an attractive interest rate.
While Rize is great for goal-oriented investors or new savers who can take advantage of a PWYW model, more advanced investors or those with longer-term horizons would be wise to look elsewhere.
For more on how to save, read our Micro-Investing: What It Is, Why It’s for You and How to Start.
