There are lots of new financial apps on the market which can hold, spend or invest your money. Here are 7 things you should think about before you start handing over any cool cash...
Anyone holding your money should be insured by your government (FDIC and SIPC in the USA). This insurance means that if your “financial institution” disappears into the dirt in the middle of the night, you should be able to recoup the market value of the money which they held for you from your government.
Limit money held with any institution without this insurance to money you can afford to lose.
Governments put a max on the amount they will insure. They are likely to limit it by institution and by the type of account. You may be able to extend your insurance amount by having different types of accounts.
Even if they are insured, consider the accessibility and reliability of their customer service.
If you are looking for a digital bank, re-visit some of the old guard. I've been banking with Chase for instance since I was a teenager. They have evolved their technology enough to keep me as a customer; I am able to keep multiple accounts to help me divvy up my spending and savings for accountability and I trade stocks for zero commission as they are part of YouInvest platform.
"Whichever "bank" you decided on, pooling funds in one institution can help you reduce fees but stay aware of limitations on deposit insurance.
Safety deposit boxes are not insured nor is the money stuffed in your mattress. If you are holding emergency cash at home, consider a fire/water proof safe.
You worked hard for that money and you are on the right track with your savings. Spend the time to ensure it is safe.