Millennials often have big wants but tiny budgets.
A new banking app hopes to change that by allowing users to save money by transferring small increments into a savings account every time a specific action happens, whether it be buying a coffee or walking a mile.
Qapital was designed to help people organize their financial goals around their needs and wants through the convenience of a smartphone.
Users set up FDIC-insured Qapital savings accounts into which they automatically send money from their existing bank accounts to save up for big-ticket items, such as a new car or trip to Europe.
Qapital’s new IFTTT (If This Then That) functionality allows people to set up actions that automatically trigger money transfers. The triggers can serve as a reward for a job well done, such as exercising for 30 minutes, or as a reminder that you should think twice about buying another pair of shoes.
Qapital savings accounts are aimed directly at cash-strapped millennials under age 40 seeking to “Save small. Live large.’’
Just name a goal, choose a photo (to keep you emotionally invested) and watch your savings grow.
“Over time, Qapital helps you see how much time and effort it takes to actually get the things you want, and reprioritize your needs,’’ Qapital’s website says.
Qapital’s mobile app is available only for iOS but is coming to Android by the end of the year. The service works best for customers of Citi, Chase, US Bank, Wells Fargo or Bank and America, who get instant authorization to create an account.
Other customers of U.S.-based financial institutions can also use some of Qapital’s features, but the set up takes a little longer.
Founded in 2012, the Swedish startup launched its saving service in the United States in March. It’s free to sign up but may evolve to a subscription model in the future and will make its money off of its Qapital Visa debit card coming later this year.
