If you’ve got a bit of spare cash available at the end of each month, you’ll know first-hand that traditional savings accounts still pay virtually nothing. In fact, with central bank interest rates at all-time lows, you’ll be lucky to earn more than 1% per year.
As such, you might be considering an alternative investment strategy to increase your annual yield.
One such provider that appears to be increasing its client base is that of Iban Wallet.
The online platform allows you to invest in a range of different accounts – each of which comes with an estimated fixed return. This includes a dedicated account that can pay up to 6% per year. The team at Iban will then manage your investments for you, so there’s no need to actively buy, sell, or trade your holdings.
If this sounds like something that you’d like to explore further, be sure to read our in-depth Iban Wallet review. Within it, we’ll explain the ins and outs of what Iban Wallet actually is, how it works, whether your money is safe, who is eligible, and more.
Iban Wallet at a Glance
- 1 Iban Wallet at a Glance
- 2 What is Iban Wallet?
- 3 What Does Iban do With Your Money?
- 4 How Much Can I Earn at Iban Wallet?
- 5 Is my Money Safe at Iban Wallet?
- 6 Iban Wallet Supported Countries
- 7 Depositing and Withdrawing Funds
- 8 Iban Wallet Fees
- 9 Customer Support & Public Reviews
- 10 Iban Wallet Review: The Verdict?
- 11 Iban Wallet
- 12 Pros
- 13 Cons
|Iban Wallet Visit|
|Product Type||Automated Investments|
|Potential Return||2.5% - 6% Per Year|
|Min Investment||$1 Standard Account / $1000 One Account|
|Available to||Europe (Not UK), Argentina, Australia, Brazil, Canada, Chile, China, |
Japan, Mexico, Taiwan, United States of America
What is Iban Wallet?
In its most basic form, Iban Wallet is an online platform that acts as a passively managed investment portfolio. The platform allows you to deposit funds into a number of different account types, each of which comes with a projected annual yield.
This starts at 2.5% per year, up to a maximum of 6%.
The key word here is ‘projected’, as there is no guarantee that you will get the exact interest rate that is offered. However, this is common with investment accounts anyway, as annual yields can change at any given time. If opting for the standard account at Iban, your interest will be paid out on a daily basis, and the platform allows you to make a withdrawal whenever you like.
This is one of the main benefits of using the provider, as you won’t be locked into lengthy investment terms. However, Iban also offers accounts that come with minimum terms, albeit, these offer higher rates of interest.
When it comes to the investments itself, the team at Iban Wallet focus on crowdlending opportunities. Upon browsing through its website, Iban does not make it 100% clear what happens to your money once invested, so we’ve outlined the fundamentals below.
- You deposit funds into Iban
- Iban will then loan the funds out to third-parties
- Those borrowing the funds will need to put assets up as collateral
- This ensures that the loan agreement is backed by real-world assets
- Borrowers repay the money to the underwriter, who then forwards the cash to Iban
As you can see from the above example, you are essentially engaging in a peer-to-peer loan program. However, the overarching benefit of doing this through Iban Wallet is that the entire process is managed on your behalf.
You will not be given the opportunity to choose who you lend the money too, nor will you need to worry about collecting payments. Instead, Iban has been set up for those that seek passive income.
When it comes to the company itself, Iban Wallet was first launched in 2016. As the platform is primarily targeted to Europeans, your funds are held in an Electronic Money Institution (EMI), which in turn is regulated by the European Central Bank.
Don’t worry, we’ll discuss the ins and outs of the safety of your funds further down in our review.
What Does Iban do With Your Money?
Although we briefly explained what happens to your money in the above section, it is crucial that we now give you a full breakdown. This is because the Iban Wallet model is somewhat complex at first glance. Here’s what you need to know.
Iban Wallet is a Third-Party
First and foremost, Iban Wallet is not a bank or investment house. On the contrary, they are merely a middleman between you and those that seek to borrow money. As such, when you deposit funds into Iban, your money will then be used to fund external loans.
This operates in a similar nature to a conventional peer-to-peer lending site. The key difference is that you will not get to choose who you lend the money too. Instead, Iban does all of the hard work for you.
Loans are Issued by the Underwriter, not Iban
To clarify, Iban Wallet does not issue loans itself. Instead, it partners with a number of third-party underwriters, who then deal directly with the end borrower.
As such, it is the underwriter themselves that will perform the required due diligence on the borrower. This includes the fundamentals surrounding creditworthiness, affordability, and interest rates.
Loan Agreements are Backed by Assets
Unlike other peer-to-peer lending sites, the underwriters that are partnered with Iban only issue asset-backed loans. In other words, those borrowing funds will do so by putting up collateral. This mirrors that of a secured loan, meaning that the borrower will either need to put a house, car, or money upfront before receiving the funds.
From the perspective of you as an investor, this adds an element of security on the loan, insofar that the underwriter will have the legal remit to seize the asset in the event of non-payment. However, asset seizures are not only costly, but timely, too. The good news for you is that Iban Wallet offers a buyback guarantee, which we’ll cover in more detail further down.
How Much Can I Earn at Iban Wallet?
If you’re considering an alternative investment platform such as Iban Wallet, then you’re probably doing so because you want to earn a higher amount of interest.
When you first visit the Iban website, you’ll see that the platform offers between 2.5% AER and 6% AER. Not only will the specific amount varies depending on how much you are willing to invest, but these figures are projections.
To give you an idea of how each account type differs, we’ve broken down the fundamentals below.
When you first open an account at the platform, you will automatically be placed on to its standard Iban Account. This allows you to get started with an investment of just $1.
In doing so, you will earn a projected annual yield of 2.5% AER, which itself is typically more than you’ll earn in a traditional checking or savings account.
Note: Depending on your country of residence, your account currency will be stated in either USD or EUR. For the purpose of this review, we’ll state all figures in USD.
The interest earned on this account will be paid on a daily basis. In terms of accessing your money, the standard Iban Wallet account is the only account type that does not come with an early termination fee. As such, you are free to withdraw your cash at any given time without penalization.
If you’re looking to earn a higher amount of interest, then you might want to consider the One account. This pays a projected annual yield of 3% AER. There are a number of factors that you need to be made aware of in choosing the One account over the standard account.
Firstly, you will need to make a minimum deposit of at least $1,000. Although the interest amounts to 3% annually, this is compounded on an annual basis, while the standard account does this daily.
The most important consideration that you need to make with the One account is that of the minimum term. While the standard account allows you to make withdrawals at any given time, you will be locked into a 1-year term. If you find that you need to access your cash before the term concludes, then you will be penalized.
This amounts to 2.5% of the amount held in your account, which is huge. However, the fee cannot exceed your original investment, so you will always get at least what you put in. Nevertheless, if you feel that there is a chance that you will need to access your cash early, you’ll be best to stick with the standard Iban account.
Next up is that of the Market account, which offers a projected annual yield of 4% AER. Much like the One account, the Market account requires a minimum deposit of $1,000. However, this is where the similarities stop.
Firstly, the Market account requires a minimum term of 3 years. This means that you will be hit with the 2.5% early activation fee in the event you need to access your cash early.
The second consideration that you need to make is that the Market account only begins to pay interest daily once the 3-year term has concluded. With that being said, a projected annual yield of 4% more than makes up for this.
The highest paying account type at Iban Wallet is that of its Dynamic account. This will give you the chance to earn up to 6% AER, which is huge. However, there are a number of factors that you need to consider with the Dynamic account.
Crucially, you will need to deposit at least $50,000 to be eligible. This will be out of reach for the vast majority of us. Even if you can afford to invest $50,000, you need to ask yourself whether you’re comfortable with the risk.
Moving on, the Dynamic account also requires a minimum term of 5 years. As is the case with both the One and Market accounts, early access to your cash will come with a 2.5% fee.
Finally, while all other account types at Iban will compound the interest, the Dynamic account applies a simple interest calculation. On the flip side, the Dynamic account will pay interest on a daily basis, so there’s no need to wait for the term to mature like the One and Market accounts.
So now that you have a firm grasp of the four account types offered by Iban Wallet, in the next section we are going to explore how safe your money is.
Is my Money Safe at Iban Wallet?
If you’re a seasoned investor, then you’ll know that there is often a trade-off between risk and yield. In other words, the more interest that your investment attracts, the more risk that you will typically need to take. As such, it’s crucial that you have a full understanding of how safe your money is at Iban.
Iban offers a number of protections and safeguards on your funds, which we’ve broken down in more detail below.
Electronic Money Institution (EMI)
When you deposit funds into your Iban Wallet account, the money is initially placed into an Electronic Money Institution (EMI). Although the specific institution is not given, Iban states that the entity is regulated by the European Central Bank. This ensures that the EMI complies with all relevant laws and regulations surrounding consumer protections.
As we briefly noted earlier, all of the loans issued by Iban-partnered underwriters are backed by assets. This adds an extra layer of security of your funds, not least because the underwriter will have the legal remit to seize the assets if the borrower defaults.
As great as asset-backed loans sound, it is important to recognize that the seizure process is fraught with red-tape. Not only does it take a significant amount of time to seize the collateral in question, but the underwriter would then need to sell the assets at auction.
The good news is that Iban Wallet offers a buyback guarantee on all of its account types, meaning that you won’t need to worry about the recovery of your funds.
In a nutshell, if the end-borrower defaults for more than 90 days, the buyback guarantee will kick-in. This means that you will receive your original investment back in full. The buyback guarantee is initiated by the underwriter, who subsequently settles the loan with Iban, who then distributes the funds to its investors.
The underwriter is able to do this because it charges its borrowers more interest than you receive from Iban. As such, the underwriter will install a reserve fund to cover potential defaults.
Iban offers an additional layer of security on your funds in the form of a Safeguard Trust. This is available on all account types apart from the Dynamic account.
The trust acts as a reserve fund, and it is managed by Iban itself. This is to protect investors from a potential default of the underwriter, meaning that the Safeguard Trust covers the buyback guarantee.
All-in-all, although there is never any guarantee on the safety of your funds, Iban Wallet has installed a number of protections to cover all potential issues.
Multi-Step Identity Protection
On top of providing a range of investor protections, Iban Wallet also offers institutional-grade security on your account. If you’re logging in with your mobile phone, then you will have the option of setting up biometric protections.
This includes fingerprint or facial recognition. If you choose to log in with your desktop device, then you will need to pass two-factor authentication, which is compulsory.
Iban Wallet Supported Countries
Although Iban Wallet was initially created for residents of mainland Europe, the platform has since extended to other parts of the world. Notably, this includes the US, but excludes the UK.
We have listed all of the countries that Iban currently supports below.
- Czech Republic
- United States of America
You can open an account as an individual or a business. If opting for the former, you will need to be aged at least 18 years old.
In order to remain compliant with all relevant laws surrounding anti-money laundering and terrorist financing, Iban Wallet is required to identify each and every user that opens an account.
Known as ‘KYC’ (Know Your Customer), you will initially need to confirm your mobile number via an SMS code. Next, you will then be asked to upload a copy of your government-issued ID.
This can usually be a passport, driver’s license, or residency card. Take note, your ID must be from one of the supported countries listed above. If it isn’t, you won’t be able to open an account.
Iban Wallet also notes that it might be required to request additional information from you. This will definitely be the case if you proceed with the $50,000 minimum deposit that comes with the Dynamic account. You should expect to upload a proof of address in this event, as well as a proof of source of funds.
Depositing and Withdrawing Funds
When it comes to depositing funds at Iban Wallet, you can do this via a debit/credit card or bank transfer. The latter will go through the SEPA network if you’re based in the Euro Zone, meaning that transfers are both free and fast.
If you’re based outside of Europe, this will need to go through SWIFT. While Iban will not charge you for making a bank transfer via SWIFT, the sending bank likely will. Both SEPA and SWIFT transfers are usually credited within 24 hours of Iban receiving the funds.
If opting for a debit/credit card payment, then this is usually credited instantly.
In terms of withdrawing funds out of Iban, this needs to be sent back to the same bank account that you used to make a deposit. If you deposited funds with a debit/credit card, then you’ll need to link your bank account before a withdrawal can be made.
There are no fees to make a withdrawal, but do remember that you will pay a 2.5% early activation fee if cashing out before your respective Iban account term matures.
Iban Wallet Fees
Iban Wallet does not charge any fees to invest, nor will you pay anything to deposit and withdraw funds. The only fee that you need to be made aware of is that of the early termination fee.
Customer Support & Public Reviews
Iban Wallet offers a number of customer support channels. The easiest way to make contact with the customer service team is via live chat. Iban also offers a number of local toll numbers if you prefer to speak with somebody over the phone.
Alternatively, you can send Iban an email at email@example.com, or make contact via social media. This includes Facebook, Instagram, Linkedin, and Twitter.
When it comes to reviews available in the public domain, Iban Wallet has a “Great” TrustPilot score of 4/5.
Iban Wallet Review: The Verdict?
If you’ve read our review from start to finish, you should now be able to make an informed decision as to whether or not Iban Wallet is right for you.
With projected investment yields of between 2.5% AER and 6% AER, Iban offers the opportunity to make attractive gains.
Although it should be noted they are not as high as other similar products such as Mintos, Bondora, Grupeer & Swaper but those platforms require a bit more work on your end and the risks could be higher.
Although the provider falls within the remit of a crowdfunding platform, Iban is different from its competitors. Notably, you will not be required to choose who you lend your money to, meaning that you can treat the investment as passive income.
While there is never any guarantee on the safety of your investment, we do like the consumer safeguards that Iban has installed. This starts at the very offset, as the loans are backed by assets put up by the borrower. Iban also offers a buyback guarantee, which will see the underwriter settle the loan agreement with Iban in the event the borrower fails to make a payment within 90 days.
We also like the Safeguard Trust that Iban has set up, which is a reserve pot to cover the unlikely event that the underwriter backs out of its buyback guarantee.
All-in-all, Iban Wallet is well worth considering if you are looking for an alternative investment platform that will allow you to earn more than traditional checking and saving accounts offer.