Clink is a micro – saving service whose main target is Millennial, so as to make them invest and save. The service is free of cost and there is a choice of single asset allocation only. The service was mainly built for 20-somethings and make saving and investment easy and entertaining. Clink service basically connects to shopping and dining. While doing shopping or dining a percentage of the bill will automatically add to your Clink account and later invested in stock portfolio account.
The basic idea of creating the service was given by Eyal Fruchtman to attract Millennial whose saving rate is always negative. Clink was founded in February 2014 and officially launched in the year 2016. The service is for all those who want to have secure future regardless of their age. But the major users of the service are in the age group 20 to 35 years.
Main requirements which Millennial wanted through Clink were:
- They require a saving app in which there is no need of minimum deposit to start.
- It show detailed budget statement.
- A service which is fully accessible by mobile phone.
- A service which works easily and has no ongoing fees.
- They want a service through which they can save small amounts of money every month.
How to open an Account on Clink?
You can sign up to clink by the website or by the app. For creating an account you have to download the application and enter the details required for opening the account and connect your account to the clink for starting investment. Clink account is also accessed online and you can provide all your details for making investments so as to make your future secure.
By linking your account to clink account the user can decide how much amount of money he would like to contribute to his portfolio. The scheduler at Clink service decides you to choose the days when you want to add money to clink account and choose a set amount. The two major ways of investment are:
- You can choose a fixed amount like $5 dollars in a week or $1 Dollar per day which is credited to your clink account from checking account and invested in ETF based portfolio which work on Modern Portfolio theory.
- Another way is you can link your credit card and set up a fixed percentage which is deducted every time when you use your card.
Where are the Clink Funds Invested?
The money in the clink account is used for investment in various ETFs (Exchange Traded Funds) which is basically an investment fund traded on the stock exchange and contains various assets such bonds, commodities and stocks. The algorithm at Clink which manages your investment chooses a low-risk portfolio which is best suitable for you. The main aim of the theory is to provide the maximum return at minimum risk. The theory focuses on the point that higher the risks, higher the gains. However, the investments are not guaranteed at clink. There are chances of even losing principal amount also.
The asset allocation is made in the following ways:
|1. US Stocks||Vanguard 500 ETF(VOO)|
|2. European Stocks||Vanguard FTSE(VGK)|
|3. Emerging markets||Vanguard FTSE Emerging Markets ETF(VWO)|
|4. World Bonds||Vanguard Total Bond Market ETF (BND)|
|5. US Corporate Bonds||Vanguard Intermediate-Term Corp Bonds ETF (VCIT)|
With the clink, there is a choice of only one portfolio and you cannot switch to another one but all the funds at clink track their index very closely.
Security level at Clink
Clink offer security measures at banking level and protect your personal information in the best possible way. The password and Social Security Number are secured with SSL and 256—bit encryption. The personal information is not stored at clink. The banking credentials are used once for the verification of your account and credit card information is secured by Yodlee whose main function is to provide wealth management technology and variety of services to investment advisors.
All the investments up to $50,000 are secured with SIPC and in case, the security fails in that case you will be paid an amount up to $50,000.
Important Features of the Clink
The important features of clink which make it different from other saving devices are:
- No need of Minimum Deposit: There is no need of depositing a single penny in your clink account unlike other saving devices such as Acron and Digit which charge $1 per month and 0.25 percent per year for accounts above $5,000 and either makes money by charging interest on your savings.
- Flexible options to save and invest: You can save and invest in your clink account every time you go for shopping or dining.
- SIPC insured investments: All the investments in your clink account are SIPC insured and if there is a failure in security then you can recover up to $50,000.
- IFully accessible from mobile and website: The app is easily used by mobile interface users and work well with Android, I-Phone and also accessible by the website.
- Scheduled savings and Amount of savings: You can set the time to save i.e. every day, weekly, monthly etc. Also, you can choose the amount of money $1, $5, $10, $20, $50 and so on.
So, we can say that Clink is an intuitive free of cost application which provides you with easily accessible platform where you can invest money in wide varieties of the portfolio. It is the best option to get started for those who have never invested money before and don’t even have knowledge about where to invest. With Clink, you can start investing small amounts of money on the regular basis without any affect on your lifestyle.
Clink invests your money in a variety of ETFs and other investment vehicles. ETFs are very easy to trade and low cost as compared to mutual funds and provide you with the chances of investing in many assets. The clink is basically designed by keeping in mind busy Millennial which are out there and it offers larger deposits at low cost with retirement accounts also. Clink is recently planning to introduce a new saving feature in 2016 which will allow the users to save while buying with online affiliates through a loyalty program.