Credit card startup Upgrade is releasing a new savings account with what it says is the country’s top interest rate as competition for deposits heats up, CNBC has learned.
The fintech firm’s Premier Savings account is being launched Thursday with a 3.5% annual percentage yield, according to CEO Renaud Laplanche. That is higher than any account currently tracked by Bankrate.com, senior analyst Ted Rossman said in an email.
Most of that increase stemmed from steep growth in the San Francisco-based company’s revenue, which climbed 70% between June and October, the two fundraising periods, CEO Renaud Laplanche said. Upgrade’s main product is a card that turns purchases into fixed-rate installment loans, making the start-up the latest company to benefit from the “buy now, pay later” trend in fintech.
The online lender founded by Renaud Laplanche is now a full-fledged challenger bank that can offer generous checking terms because, it says, it can count on its loans for profits.