Altruist is continuing its focus on attracting more RIAs to its custodian platform by launching a new high-yield cash product.
It comes as a Bankrate.com survey has revealed that 67% of American savers are getting less than 4% on their savings despite yields on savings accounts being at some of the highest rates in 15 years.
The Altruist offering, Altruist Cash, has an APY of 5.1%. The firm says it allows advisors to offer their clients an industry-leading yield without sending them to a third-party cash management account and whichever custodian they use. There’s also no minimum balance requirements and no annual fees although other fees may apply.
The firm recently announced that advisors using its software will have access to new integrations to help simply and streamline processes without the need for duplication of tasks.
The personal saving rate is subdued currently as households struggle with the cost of living. Figures from the Bureau of Economic Analysis show that the savings rate declined to 3.7% in December 2023 from more than 4% in the previous two months, however it recovered slightly to 3.8% in January 2024.
Although estimated stats show that personal income increased $233.7 billion (1% at a monthly rate) in January and disposable personal income increased $67.6 billion (0.3%), personal consumption expenditures increased $43.9 billion (0.2%) and the PCE price index increased 0.3%. Personal saving was $779.3 billion in January. Updated figures are due on March 29.
Recent research from Allianz Life also highlights the challenges faced by millions of Americans, with 69% of respondents saying they are unable to maintain their usual savings contributions as a result of inflation with 74% of millennials reporting decreased savings, compared to 69% of Gen Xers and 63% of baby boomers. More than four in ten are dipping into their retirement savings to make ends meet.
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