Save Launches Market-Linked Cash Management Platform on Schwab Marketplace

Quick Summary

Save has launched its innovative market-linked cash management platform on Schwab Marketplace, allowing independent advisors to offer clients FDIC-insured safety combined with market-linked returns. This solution provides high-net-worth investors and family offices with same-day liquidity while targeting yields significantly higher than traditional money market accounts.

How Does Save Deliver Market-Linked Returns on Liquid Cash?

Save utilizes proprietary investment technology to bridge the gap between traditional savings and market growth. By keeping the deposited principal safe in FDIC-insured bank accounts, Save uses a separate securities account to provide exposure to ETFs tracking the S&P 500, Nasdaq, and Gold. This market-linked cash management approach ensures that the client's core capital is never at risk in the market, yet they benefit from the upside of major indices.

• 7.5% average returns for S&P 500-linked accounts over three years.
• Same-day liquidity maintained for all deposited funds.
• FDIC insurance coverage up to $100 million via reciprocal networks.

Why is the Schwab Marketplace Integration Significant for RIAs?

With Schwab custodying 54% of RIA assets, this integration places Save’s market-linked cash management tools directly in front of the largest pool of independent advisors in the U.S. Advisors can now access Save as a separately managed account (SMA), streamlining the process of optimizing client cash positions. This is particularly vital given that U.S. households hold nearly $20 trillion in cash and money-market shares, much of which is currently under-earning in standard sweep accounts.

What Results Can High-Net-Worth Investors Expect?

The program is specifically tailored for family offices and HNWIs who require immediate access to capital for real estate or private equity deployments. Success metrics show that a client placing $1 million in 2022 achieved a 6.34% annual return while maintaining full liquidity. By removing the "yield penalty" typically associated with liquid cash positions, Save allows advisors to enhance the overall performance of a client's portfolio without increasing the risk profile of their cash reserves.

"We liked the Save proposition so much that we moved our own operating cash under Save and also invested directly in the company. We see it as transformational to the wealth management industry known for grappling with streamlined solutions for cash management," said Sean O'Hara, co-founder of Pacer ETFs.

FF NEWS TAKE:

Save is tackling the "lazy cash" problem head-on. By wrapping market-linked returns in an FDIC-insured bow, they are giving RIAs a powerful tool to retain AUM that would otherwise sit in low-yield sweep accounts. This market-linked cash management approach is a game-changer for the industry. The Schwab integration is the key to scale; if Save can maintain these 7.5% averages, it will become a staple for HNW liquidity management.