Savings App Promised up to 7% APY; Now Customers can’t get their Money
Savings app Beam promises customers up to 4% APY on their savings account, but now some customers are having trouble accessing their money. The funds were supposed to be accessible by October 30th, though customers are still reporting that they are unable to access their accounts.
CNBC reports that the company is being sued by three vendors and its corporation status in Delaware has been revoked. The company says it remains operational.
Beam’s system for determining a user’s actual savings rate is bizarre. Customers can invite friends to join Beam’s mailing list in order to earn “Billies”. Each Billie can go towards boosting your savings rate just for one day. When your friends start using Beam, your rate boost can become permanent.
Users start at a base rate of just 0.04% when first downloading the app, but that rate increases as you refer friends. In other words, you earn higher returns when you bring other investors in. Sound familiar?
Beam is still operational but only lists two employees on LinkedIn. The first is the CEO, Aaron Du, who just goes by “Aaron D.” on LinkedIn. The second is a software engineer based in Turkey.
Customers have expressed their frustration on the company’s App Store page with several one-star reviews, like the one below.
CNBC previously featured the app in September 2019 as a good way “to give savers more control over their money.”