38x the return of average savings

Market-linked federally insured saving

According to Samuel Cherkas, in Equity markets drive Market Savings returns in 2023,

The average National Deposit Rate in January 2023 was around 0.30% and is now 0.42%, according to the FDIC. In comparison, Save’s S&P 500 Risk-Controlled portfolio has produced annualized returns for a 1-year Market Savings program of 15.9%a,b.

Let’s explain:

The first half of 2023 saw a big equity rally, while bonds and commodities struggled. This is good news for equity-focused portfolios, and mixed news for multi-asset, diversified portfolios (which generate returns from all asset classes).

For a 1-year Market Savings program, the S&P 500 Risk-Controlled portfolio is on course to deliver +15.9% on an annualized basis, with other portfolios producing annualized returns ranging from 1.0% to 9.3%. For context, the average National Deposit Rate in January 2023 was around 0.30%, according to the FDIC.

1-year Market Savings program extrapolated 2023 full-year return:

S&P 500 Risk-Controlled portfolio: 15.9%

My own investment with Save is 100% invested in their S&P 500 (SPY) linked account:

So far I’ve gotten a 9.15% return — federally insured principal, tax efficient returns, and a yield this year of 38x the average savings alternative (and more than 38x on an after tax basis). Even better? With this link you get the yield off of an additional $5k (they keep that principal but you get the returns — that money isn’t only riskless principal, it is riskless return without even any opportunity cost. It is literally as close as it gets to free money).