San Francisco-based digital lending company Affirm Inc. is launching a no-fee savings account with a 2% annual interest rate and no minimum balance, a company spokesperson confirmed.
The move brings Affirm a step closer to offering full banking services. The savings account will begin a pilot during the first quarter and will enable users to deposit money using the company's mobile app.
"Based on user feedback and strong consumer interest, we’re working on a pilot that gives existing Affirm users the ability to put money into a savings account via our app," Affirm CEO Max Levchin said in a statement. "We are taking a thoughtful approach and are excited to get user feedback on the experience when the time is right."
Affirm is a point-of-sale finance company that specializes in small loans with short-term repayment plans with rates up to 30%.
Levchin, who founded Affirm, was also a co-founder of PayPal. Affirm is backed by venture capital firm Andreessen Horowitz.