CASHBEE: A POWERFUL TOOL TO OPTIMIZE YOUR SAVINGS!

Choosing where to save your money when you are an entrepreneur is essential and yet, not all entrepreneurs take the time to look into the issue.

I’m Ilhem, I’m part of the LiveMentor team, and I’m looking for the best solutions to help entrepreneurs. In today’s article, I’m talking about a savings solution to make your money work for you.

Cashbee is an application that allows you to manage and invest your savings easily and intelligently. 

There are basically four ways to become rich: work hard, inherit, win the lottery or make your money work for you. And this is where LiveMentor’s personal finance training will come in handy.

We suspect that if you are reading this article, you are fully focused on the first one. Your entrepreneurial project is your life. Many entrepreneurs can easily spend more than 12 hours a day, and a good part of the weekend, running their business . 

As a result, there is little time left to devote to the fourth way: optimizing savings. And then do we really want to devote the little free time we have left to “doing paperwork” and immersing ourselves in an opaque world, full of barbaric acronyms, like PEA, SCPI, ETF, ISR, flat tax and so on?

Good reading !

1) THE POWER OF SAVINGS!

However, it is a powerful way to:

  • increase your income , 
  • build up a financial emergency fund , in case your professional activity goes through a difficult period, or requires a working capital requirement and 
  • prepare for retirement (another vast subject that we don’t think much about when we have our heads in control on a daily basis).

Let’s take a simple example: €100,000 placed in a bank account (currently at 0.10%) will be worth approximately €101,000 after 10 years and €102,000 in 20 years. Suffice to say that with even very low inflation, you will have lost purchasing power.

This same amount, placed on a 5% return, will represent more than €160,000 after 10 years and more than €260,000 after 20 years. So it’s worth looking into the subject!

And that’s good, because helping the French save more and better is the mission that our friends Marc Tempelman (former investment banker), Cyril Garbois (former strategy consultant) and Chaker Nakhli (still a doctor in computer science and CTO) have set themselves by creating the fintech Cashbee in 2019.

Their (free!) app provides some quick and easy solutions that we should all adopt to save money, and most importantly, to make it work for us. And this, whatever your monthly income!

2) CONCRETELY, WHAT IS CASHBEE?

Cashbee was born from a paradoxical observation: on the one hand, the French are the champions at putting their money aside, but on the other hand, they don’t really know how and where to invest it. As a result, more than 1,000 billion euros are now in low- or no-interest accounts, such as current accounts or Livret A savings accounts.

During the recent lockdowns alone, the French have added more than 100 billion to this dormant savings. Cashbee is the simple savings platform that helps you save efficiently, securely and responsibly. 

3) HOW CASHBEE WORKS?

First, a paid account!

The Cashbee app allows its users to put their dormant money to work in less than 5 minutes, by opening — free of charge and from their smartphones — a current savings account, in their name, in a French bank.

This account pays 2% interest for 3 months*, then 0.6%, with no limit on amount. Which constitutes an undeniable advantage compared to Livret A, capped at 22,950 euros per person and which pays 0.5% interest (net of taxes). And a huge advantage compared to the current account, which pays no interest! 

Once registered, the Cashbee user can at any time put aside in their Cashbee savings account (and thus earn interest) or, on the contrary, withdraw the savings and return them to their current account if necessary. Transfers are also free, because Cashbee is paid by its partner bank, My Money Bank.

*The 2% bonus rate applies up to 75,000 euros

SAFETY FIRST !

Note that the savings thus constituted are perfectly secure. The saver’s money is always in an account in his name. My Money Bank is a French bank, very comfortably capitalized and regulated by the Bank of France.

In addition, deposits are covered by the Deposit Guarantee Fund, which ensures the reimbursement of deposits (up to a limit of 100,000 euros per customer) in the event of a bank default. Cashbee is also regulated as a payment institution. Its IT systems and procedures are therefore subject to the highest security standards applicable to the financial sector. 

THEN, MORE DYNAMIC INVESTMENT SOLUTIONS OFFERED BY CASHBEE:

In addition to the remunerated account, ideal for everyday savings — those that must be available quickly — Cashbee also offers solutions for long-term savings. Via the same app of course.

A 100% mobile and responsible life insurance contract.

Starting with Cashbee+, the first 100% mobile and responsible life insurance contract. In a few minutes, users can subscribe to one of the 5 Cashbee+ profiles, all made up of funds labeled Socially Responsible Investment (SRI), according to their convictions:  

  • Cashbee+ Climate for those who wish to contribute to the fight against global warming
  • Cashbee+ Inclusion for those who want to boost inclusion and social equity
  • Cashbee+ Tech who wish to focus on technological innovation in the service of the planet
  • Cashbee+ Impact for those who want to combine the three themes above
  • Cashbee+ for those who do not wish to color their investments (while remaining SRI)

These contracts are opened with the insurer Generali, and the savings entrusted are managed by their experts. But within the framework of the guidelines that you will have set, through your choice of profile. And taking into account your investor personality, according to three axes: your knowledge of finance, your taste for risk and your investment horizon.

AND/OR A PLACEMENT IN STONE

Always with the aim of helping users to better diversify their savings, and in order to make investment in real estate accessible to as many people as possible, Cashbee+ Immo has enriched the shelf. It allows you to invest in real estate, through two Organizations for Collective Investment in Real Estate (OPCI), one with the ISR label, the other in the process of being certified.

Unlike buying an apartment or a building, you don’t need to be a millionaire to get started. A thousand euros is enough to subscribe to Cashbee+ Immo, which offers portfolios of real estate assets designed by BNP Paribas and Sofidy (a subsidiary of Tikehau).

AND ALSO A SOLUTION FOR BUSINESS TREASURY: CASHBEE PRO

If personal current accounts are not remunerated, company current accounts become more and more expensive. Account maintenance fees are constantly increasing (what are these fees for anyway?) and some banks even go so far as to charge deposits above a certain amount – the equivalent of a rate of negative interest.

Cashbee, which counts many entrepreneurs, freelancers and liberal professions among its customers, recently decided to also tackle this problem. By designing Cashbee Pro.

FLEXIBLE AND REMUNERATED TERM ACCOUNTS ON CASHBEE

Via Cashbee Pro, legal entities can open one or more term accounts from 20,000 euros and thus put their cash to work, without taking any risks. Because here too, the funds end up in the coffers of Cashbee’s partner bank, My Money Bank. 

The maturities offered range from 6 months to 5 years, with interest rates which increase with the maturity chosen, from 0.20% to 0.45%. It may not seem like much, but it’s always better than nothing (or even less than nothing)!

And just because you have placed your cash in a term account does not mean it is frozen. In fact, in the event of an unexpected need for cash, you can “break” the account and request a refund of the funds in it. They will be returned to you 31 days later. The interest rate will be reduced to reflect the early repayment, but will remain positive. 

Please note: when you interrupt a term account, it is necessarily for the entire amount. So if the amount to be worked is large, you might as well place it in several term accounts. If necessary, you can then break one or two of the contracts, while letting the others run.

The cherry on the cake is that Cashbee Pro is free for the user because, here too, Cashbee is paid by the bank.

RIGOROUS FUNDAMENTAL PRINCIPLES

All the savings solutions offered by the application always respond to three fundamental principles: 

  • Simplicity: 100% mobile experience to open, monitor and manage your savings pockets. A few clicks are enough to transfer money from one investment to another, or to bring it back to your current account, according to your desires or needs, and always free of charge
  • Flexibility: savings are always accessible. At any time for those in the remunerated account, in 72 hours for Cashbee+ and Cashbee+ Immo, and in 31 days for Cashbee Pro term accounts. Ten euros are enough to open the Cashbee booklet; Cashbee+ and Cashbee+ Immo are accessible from 1000 euros. For Cashbee Pro a minimum of 20,000 euros is required. 
  • Responsibility & profitability: Cashbee’s founders are convinced that profitability and responsibility can and must go hand in hand. Let’s be clear, investment solutions primarily aim for financial performance. But they are combined with a sustainable approach, making it possible to give meaning to savings, according to each person’s convictions.

4) WHAT FEES FOR USERS ON CASHBEE?

The Cashbee remunerated account as well as the Cashbee Pro term accounts are completely free for users. There are no fees. Cashbee is remunerated by its partner bank to which the deposits it needs are provided. 

For Cashbee+ life insurance, there are no entry, transfer or exit fees. However, the insurance partner Generali charges between 0.75% and 1% in annual contract management fees, of which Cashbee receives a portion.

For Cashbee+ Immo, there are additional entry fees of around 3%. These are so-called “fund-acquired” fees that are used to pay the costs associated with property purchases, such as notary and registration fees.

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