Vimvest Review: Invest, Save, Give With One Deposit

Photo by Mathieu Turle on Unsplash
Disclosure: We’re letting you know that this post contains sponsored links which The Smart Wallet receives compensation for, which may impact their order of appearance because talking about money should always be an honest discussion.

Vimvest offers micro-savings, micro-investing and micro-giving via its mobile app. The company targets goals-based savers who want to create unique milestones and browse through Vimvest’s ideas marketplace to find new ones.

According to a company spokesperson, while the app is currently only available on iOS, a browser-based experience and Android compatibility are on the way. Vimvest has been promoting its app since January of this year.

Monthly Cost
$0
for basic accounts
Management Fees
0.25%
for accounts over $100K
Minimum Deposit
$0

Pros
  • No account minimum
  • Automatic contributions nudge you to save
  • Charitable giving is a unique feature
Cons
  • Stripped-down interface not for active investors
  • No Android or desktop options to date
  • No banking functions yet – coming soon

How Vimvest Works

Vimvest allows users to set their own goals or get inspiration from a “custom curated and ever-growing Marketplace,” which showcases vacations, events, items, long-term goals, milestones, and thousands of nonprofits with their stories included.

For shorter-term goals, Vimvest will put your money in a brokerage account fully held in cash. For longer-term goals, such as retirement savings or children’s education, the platform will invest the money with “Nobel-Prize-based scientific investing features.”

Vimvest chooses among 100 diversified, automatically rebalanced portfolios based on an individual’s unique goals and aversion to risk. Users will have the option to choose between a few customized portfolio options. “As of right now, our long-term (investing) goals have a range of structured ETFs designed to match individual goals and people to the best portfolio,” according to a representative.

Once you find a goal or want to create one from scratch, the process is straightforward. If you want to use automatic deposits to reach the goal by your target date, the app will calculate what you need and add it to your Split Deposit.

Vimvest’s Split Deposit feature is a differentiator and lets you invest, save and give all at once with just one deposit, automatically divvying up your pre-set amounts for you. Much like rival platforms such as Acorns, Vimvest offers a feature which automatically puts aside a discrete amount every time you swipe your card.

Why Vimvest is Worth Your Time

Vimvest’s charitable giving option differentiates itself from competitors and appeals to Millennials interested in themed-based and impact-driven investing. The “Pinterest-like” app is also easy-to-use and makes budgeting and financial planning more “fun” for new investors.

How to Get Started with Vimvest

Right now, the Vimvest app is limited to U.S. citizens who are 18 and up. There is no minimum to start an account.

Once you download the Vimvest app on an Apple device and create a profile, you will head over to the Marketplace, which is a lot like shopping, but for goals and charitable giving. From there, you can pick goals or create them from scratch. You will then sync the app with your bank account and choose one-time deposits, automatic deposits and Split Deposits.

Is Vimvest Free?

At first, Vimvest is free to use. Once you have over $100K invested, there is a fee of 0.25% on total assets, typical of other robo-advisors.

There is currently no monthly management fee to open any type of account with Vimvest for accounts under $100,000.

“In the future, as we increase features and options, we will add a paid tier of services. That will be, in part, how Vimvest makes money in the long-term,” said the company.

Is Vimvest Legit?

Vimvest is an SEC registered investment advisor whose clearing, custody and other brokerage services are provided to clients by Apex Clearing Corp. Investments are not FDIC insured, yet are protected by the SIPC up to $500,000.

Vimvest is rated 4.2/5.0 on the iTunes App Store, based on 40 reviews.

The company has a 24/hr helpline and bank-level security. Vimvest says it is currently in a capital funding round, while its previous funding numbers have not been shared publicly.

Final Thoughts on Vimvest

Vimvest is a good option for individuals with a goals-based approach to saving, and for those who are interested in charitable giving as a part of their financial strategy. Given the company says “it’s not about charts and numbers,” the platform may not be best suited for the hands-on or experienced investor, rather for those who are less interested in the technical side.

Lastly, as the company is still working on rolling out checking and savings accounts, people who want to save higher levels of cash should look into rival platforms that boast above market APYs.

For more on how to save, read our Micro-Investing: What It Is, Why It’s for You and How to Start.

Sign up for our newsletter to learn more ways to make and save money

Thank you for signing up!