Envel is a financial technology company that uses automation to help its customers to manage their spending, save for different long and short-term goals and round up their purchases to build up a stock portfolio. While not a bank themselves, all their banking services are provided by the FDIC member NBKC bank.
What is Envel?
Envel bills itself as ‘banking for a new generation’ and extensively uses automation to help customers save and invest.
Users can access an Envel Visa debit card and an insulative banking app that uses automation to help them create savings goals, automatically save towards those goals, and invest money in stocks by rounding up purchases.
How Does Envel Work?
Envel has three essential functions, a debit card, savings automation, and stock investment. The debit card can be used anywhere Visa cards are accepted, and the associated banking services are provided by NBKC bank, Envel’s banking partner. You can manage your card through the Envel app.
Envel’s savings automation works by creating ‘envelopes.’ Each of these envelopes is a long-term or short-term savings goal. You link your Envel card to your paycheck, and when you get paid, the Autopilot automation system decides your paycheck between your various envelopes. This helps you focus on your savings and investment goals.
Finally, Envel’s stock investing feature helps you build a portfolio of stocks with minimal effort. When you purchase with one of Envel’s partner companies, currently Starbucks, Apple, Amazon, and Spotify, Envel rounds up your purchase to the nearest dollar and uses the difference to buy a fractional share of that company’s stock.
If you make a purchase with a company not partnered with Envel, then the rounded-up difference is used to purchase an exchange-traded fund (EFT) which is composed of a variety of stocks.
What Features Does Envel Have?
Envel offers a range of cutting-edge features, including:
AI-Powered Banking
Envel uses AI-powered automation to help you reach your short and long-term savings goals. The app lets users set up savings envelopes and link their paychecks to their Envel card.
The money is automatically divided among the specified envelopes when the user gets paid. These envelopes might include money set aside for bills, rent, groceries, and savings projects like college funds or vacations.
Envel Card
The Envel card is a Visa debit card provided by a registered FDIC member, NBKC bank. All Envel accounts are FDIC insured up to $250,000 and use high-level encryption and secure processes to ensure safety and security.
The Envel card allows users to make payments, withdraw cash at ATMs and make purchases in stores or online. There are no monthly account fees, overdrafts, or minimum balance requirements.
Automation
Envel’s automated saving system is its standout feature, allowing customers to consistently save towards long and short-term goals without micromanaging their accounts.
Investments
Using a fractional top-up strategy, Envel rounds up your purchases to the nearest whole dollar. It then uses the difference between your actual purchase and the rounded-up amount to buy a fractional share of a stock and an EFT.
If you purchase with an Envel partner company, like Starbucks, Apple, Amazon, and Spotify, then the investment system will buy a fractional share of stock in those companies.
If you purchase with a non-partner company, the system will buy an EFT, or exchange-traded fund, a portfolio of securities.
What are the Pros and Cons of Getting Envel?
Now that you’ve got a better idea of how the Envel app works let’s take a look at the pros and cons of using it:
Pros
- The AI Autopilot makes saving toward your long and short-term savings goals easy and hassle-free
- The Envel investment system is a great way to slowly build a stock portfolio in established companies without needing to do anything but make purchases.
- You can manage every aspect of your Envel account, from changing your pin to checking your investments through the streamlined and intuitive Envel app.
- Envel accounts have no monthly account fees, overdrafts, or minimum balance requirements.
Cons
- Envel offers limited banking functionality, only a debit card and AI savings assistance.
- Envel doesn’t provide any financial services beyond their investment products, which means you can’t access mortgages, lines of credit, etc., through the platform.
- The investment option isn’t free. You must pay a monthly subscription fee to access the AI investment tools.
What Makes Envel Stand Out?
The use of automation to enhance convenience is Envel’s primary selling point. The ability to sit back and let the AI automatically save your money for different goals and invest in stocks for you is a significant advantage for people who don’t have the time or energy to research and manage their own savings and investments.
What Customers are Saying About Envel
Envel reviews are primarily positive, with customers praising the ease of use and convenience provided by its features. While there have been some reports of technical glitches, overall customer satisfaction with Envel is high.
Is Envel Worth It?
If you want a hands-off saving and investment system that lets you save towards long-term goals and slowly accrue fractional stocks and EFTs when you make purchases, then Envel is worth it.
How to Get Started with Envel
On average, signing up for the Envel app takes less than 3 minutes and does not require a credit check. All you need to do is enter a valid phone number and follow the steps to open your account.
