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Your Guide to the Twine App: An Ultimate Savings Solution for A Couple

Susan Kelly

Dec 13, 2023

Twine, launched in 2017 by Steve Dorval, emerges as a cutting-edge robo-investing platform primarily aimed at couples who plan their savings together. Twine, a financial technology company spun off from John Hancock, has a unique presence in the industry.

How to Get Started with Twine

Twine is easy to join for U.S. citizens or permanent residents over 18. A few minutes are needed to register. If you want to save or invest with someone else, a joint account is better than an individual account. Notably, a joint account does not require a romantic relationship or marriage.

Initial steps on Twine include entering your email and password. Start your Twine journey with this step. Next in the Twine app review is setting a savings or investment goal. Connect your bank account to Twine to finance your new cash or investment accounts.

Finally, Twine requires your full name, address, date of birth, and Social Security Number to complete the account setup. This comprehensive but straightforward process starts with the Twine app.

Process of Setting Shared Goals in Twine

The first step in using Twine is choosing a financial goal. Goals like saving for a large down payment, planning a wedding, or planning a vacation are examples. The app offers predefined goals for child savings, emergency funds, general savings, vacations, major purchases, home buying, and wedding planning.

Twine simplifies financial goals. Simply set a monthly savings amount, and the app will automatically transfer funds from your linked bank account weekly. This optimizes saving, ensuring steady progress toward your goal.

The app lets you choose your saving method. You can select a basic savings account that only accepts cash deposits and earns interest or an investment account based on your financial strategy.

Optimizing Short-Term Savings with Twine

Twine's cash account is a secure choice if you aim to save for a short-term goal. You can start with a minimal amount, even as low as $5. Keeping a cash-based account with Twine means your money earns a variable interest rate. While it might not be the highest rate you can find, it typically outperforms many traditional bank savings accounts.

The interest rate offered by Twine, although not the top in the market, is significantly better than what many banks provide. To put this in perspective, consider the common situation of earning a meager 0.07% interest in standard bank savings accounts.

Throughout this Twine app review, it’s evident that Twine offers a user-friendly, efficient, and flexible approach to saving for various financial goals, whether short-term or long-term, making it an appealing choice for savvy savers.

Long-Term Investment Strategy

When saving for the long term, an investment portfolio may be better than cash. Start this project with $100. With three portfolios for conservative, moderate, and aggressive risk tolerance, the Twine app makes investing effortless. Financial circumstances and investment duration will determine the best combination for you. Each option will be examined in detail:

Conservative Portfolio Strategy

The conservative portfolio seeks steady growth and risk reduction. Be cautious about annual capital loss. This strategy favors bonds and cash over stocks because of their consistent returns.

Balanced Approach with Moderate Portfolio

Risk and growth are balanced in the moderate portfolio. It is less volatile than more significant stock market investments. This bond and money market fund portfolio seeks average growth with low risk.

Twine Pricing

The Twine pricing structure is straightforward and user-friendly. For those who prefer cash savings, Twine offers a free service. You can deposit, save, and withdraw without fees. Your cash savings will earn 1.05% annually. This eliminates hidden fees, ensuring transparency.

Twine charges 0.60% per year on the average daily balance of your savings account to manage them—comparison: Each $500 allocated costs 25 cents per month. While not the lowest rate among automated investment advisors, it is competitive with online investment tools. The pricing shows Twine's commitment to cost-effectiveness and quality service.

Benefits of the Twine

Easy Automated Savings with Twine

Twine makes saving easy. Users can set up automatic transfers to save for specific goals. This method makes keeping a priority, like paying a bill, but with savings. Twine app reviews praise this feature for eliminating the hassle of manually saving money. It helps people who struggle to keep by making it easy and consistent.

No Twine Savings Account Fees

Its no-fee savings account makes Twine appealing. Users can save for their goals without extra fees. This feature is appealing compared to fee-based savings options. No fees mean your savings grow unimpeded; every cent helps you reach your goals.

Affordable Interest Rates

Twine offers higher interest rates than most banks. Twine accounts grow savings faster than bank accounts. Twine offers competitive rates and a user-friendly app, unlike some online-only accounts.

Collaborative Goal Setting

Twine is ideal for individuals, partners, friends, and business colleagues with shared financial goals. Both people can contribute and track progress, but their funds are in separate accounts. This feature helps those who don't want to merge finances but want to collaborate.

Safety and insurance

Twine protects savings. If Twine fails, the FDIC insures your savings account up to $250,000. SIPC insurance protects investment accounts up to $500,000 if Twine fails. Remember that SIPC insurance does not cover investment value losses.

Drawbacks of the Twine App

High Investment Fees

The Twine app's investment account charges 0.60% annually. Many leading robo-advisors charge under 0.50%, but this fee is higher. Twine users pay more for investment services than others. ETFs can be invested in without Twine's fees. This Twine app review suggests other investment options may be cheaper.

Limited Account Options

A key drawback of Twine is its limited account options. Twine does not offer tax-advantaged college or retirement accounts like other platforms. Popular options include 529 College Savings Plans and Roth IRAs. Twine may not suit investors who value these investments. This Twine review emphasizes the importance of long-term financial goals when choosing an investment platform.

Absence of Android Support

Twine lacks an Android app, which is a significant drawback. Twine is available on desktop and iOS, but Android users cannot manage their finances via smartphone. Android users who prefer mobile financial management may consider this accessibility gap. Android users should view this Twine app review point.

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