Haven Money is a pay-what-you-want micro-savings and micro-investing platform targeted at socially conscious Millennials that want to put their finances on auto-pilot.
The two-year-old company based out of Silicon Valley boasts its business transparency and indicates that 10% of its earnings are donated to GiveDirectly, a charity that sends money to people living in poverty. The Haven Money app offers a free dashboard, automated savings and investing, and high-yield accounts.
- A fee-based model keeps costs low
- Emphasis on giving is good for the socially conscious
- Get advice from a human advisor
- Not great for active investors
- Financial advisors only for +$25K accounts
How Haven Money Works
When you sign up with Haven Money, you will be asked to connect your existing bank account. In addition, you can connect other accounts like credit cards and investments. This way the app can evaluate your financial situation. For each product you open with Haven, you will choose a monthly payment which will come out of your linked bank account.
Like most other robo-advisors, Haven Money uses low-cost ETFs based on an individual’s risk tolerance and employs modern-portfolio theory to build diversified portfolios.
The platform also offers a free analysis of your 401(k)s to minimize fees and “put you in an age-appropriate mix of stocks and bonds.” The paid 401(k) service aims to “suss out any high-fees or poor allocation someone may have in an employer-sponsored retirement account or IRA,” according to a company representative.
Why Haven Money is Worth Your Time
Haven Money differentiates itself from other micro-deposit and micro-investment platforms with its Haven Copilot feature. The service promises to “put a financial advisor in your pocket.”
“Beyond our accounts, and our PFM [personal financial management software], Haven will have a wealth manager look into your finances (should you link up enough assets) and look for opportunities to help you earn more from your money and lose less of it,” said a company representative. To qualify for review by a Haven Money financial advisor, you need at least $25,000 in assets invested with them.
The program allows users to text a human financial advisor account questions. This human advisor will offer advice including which debt to pay off first, how to effectively allocate extra cash, and how to reduce high fees.
Haven Money incentivizes users to invite friends to the platform to earn higher interest returns on their cash account. Currently, the maximum APY that users can earn is 4%, about 40 times the traditional banking industry average. Before any promotions, Haven Money offers a 2.35% APY.
How to Get Started
After downloading Haven Money on the Apple App Store, Google Play or accessing the site via the web, the platform will ask for information based on the type of account you wish to open. For savings, Haven Money asks for basic information for a general profile and a mailing address to send you your statements.
According to a company representative, “if you want to make large transfers we ask for a SSN [social security number] for additional identity verification. For investments accounts we need the same information then ask a series of questions to establish an investment profile.”
Is Haven Money Free?
Signing up for Haven Money is free, and there is a $0 minimum on all accounts. The app’s dashboard, which offers a holistic picture of spending, recurring expenses, hidden fees and net worth based on linked accounts, is a zero-cost service.
For those who want to open savings and investment accounts, you will set your own monthly fee for each product. The company says its investing service aims for “super-low-cost funds,” with an average expense ratio of approximately 0.09%.
Haven Money’s 401k service costs $7.50 a month or $60 a year.
Is Haven Money Legit?
Although a company spokesperson says Haven Money is not prepared to share user numbers, it says it has “tens of thousands of users to date.”
The platform also promises not to sell your data or charge hidden fees. Customers can reach a representative from 7 AM to 7 PM PST, with an average response time of 5 minutes.
The app has a 4.8/5.0 rating on the iTunes App Store, based on 50 ratings. Haven Money is backed by investors including Lightspeed Ventures, Alumni Ventures Group, Total Access Fund, Unusual Ventures and Spike Ventures, according to Crunchbase.
Haven Money’s Savings account is held by Evolve Bank & Trust, Member FDIC, which has been around for over 90 years. On the investment side, the company is a registered SEC advisor that goes through routine audits and security checkups.
Haven Money’s up to 4% APY on savings accounts, pay-per-account model and unique 401k service is great for individuals seeking wealth management guidance typically reserved for higher net worth individuals.
The service is most likely not attractive for experienced investors or those seeking total control over their portfolio. Those needing financial guidance and a way to automate their financial lives should check out Haven Money.
For more on how to save, read our Micro-Investing: What It Is, Why It’s for You and How to Start.
*Investment advisory services offered by Haven Money, an SEC registered investment adviser. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk.
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