Buy now, pay later services are a staple of online shopping these days.
Instead of purchasing the item today, you set aside money in an account each week or month.
Participating companies chip in with rewards as an incentive to help you meet your savings goal.
Check out our review of thebest high-yield savings accountsto see how much you can earn.
But the fintech startup is still in its infancy and only available at about 30 or so small retailers.
Heres what you gotta know.
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What Is Accrue Savings?
How Does Accrue Savings Work?
Did you know?
Its a fintech company with banking services provided by Blue Ridge Bank.
You also get the option to skip a payment or pause your payment plan.
Accrue Savings doesnt pay interest on your deposits like a traditional savings account.
Instead, the company pays rewards once you reach your savings goal.
Rewards vary by merchant, but can be as high as 20% of the purchase price.
Accrue Savings can be a great option for people with poor credit or no credit.
That means yourcredit reportwont be impacted.
Theres no cost to use Accrue Savings either.
it’s possible for you to take your money out at any time without penalty.
No fees or hidden costs is always nice.
You also get the option to invite friends and family to help contribute toward your goal.
Leveraging crowdfunding can help you get the item you want faster.
A lot of them are luxury jewelry, fashion and sunglasses brands.
Theres a good chance the item you want to buy isnt eligible for Accrue Savings.
But for now, the selection is limited.
Finally, finding information about Accrue Savings is somewhat difficult.
If youre eyeing a big ticket purchase, there are a few other ways to pay for it.
High interest rates are great news for savers.
You wont earn a ton of extra money this way unless you make a big initial deposit.
But every little bit helps, right?
Some people see it as an attractive alternative to high-interest credit cards.
But buy now, pay later isnt free money.
Its a short-term loan, and the business model has faced criticism from regulators and consumer protection advocates.
Its easy to overextend yourself by taking out several buy now, pay later loans in a row.
Just proceed with caution.
Layaway
Layaway plans are the OG way to finance a big purchase over time.
You pay a deposit to put the item on hold at a store.
(The seller may charge you a fee for the service).
Its similar to Accrue Savings, except you dont earn rewards along the way.
Layaway options arent as common as they used to be.
Walmart, for example, offered a layaway program for years until it ditched the practice in 2021.
Several retailers only offer layaway plans during the holiday season.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
She focuses on retirement, investing, taxes and life insurance.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
