Twine Savings and Investment App Review
What is Twine?
Twine is a savings and investment app currently available for download on iOS. Twine doesn't have an Android app just yet but, according to the Twine website, "..it's on our roadmap for the future".
Twine hits a sweet spot between a typical micro-savings app and robo-advisor investment apps. However, its most unique selling point is the ability for couples to share a savings or investment account while maintaining separate profiles. This allows for partners to work together towards shared financial goals. That said, Twine also allows for individual use.
Twine launched in 2017 and is backed by the Boston insurance giant, John Hancock. John Hancock has over 150 years worth of history, experience, and stability when it comes to financial services and insurance. Twine aims to create long lasting relationships over their platform and is meant to simplify savings and investing options for both couples and individuals alike.
First and foremost, Twine takes its goals of simplification and accessibility seriously. The platform is sleek and minimalistic. It is designed to make the process of investing and saving simple and unobstructed by unnecessary information or crowded drop-down menus.
The ability to sign up and start working towards shared goals with a partner is streamlined and takes minutes. Furthermore, the savings feature is free to use and twine makes it easy to set up automatic monthly goals so that deposits are made weekly. This can be paused and restarted at any time.
Investment portfolios are also designed to keep everything clean and easy. Depending on your risk tolerance, Twine offers three options for investing: conservative, moderate and aggressive. All are ETF based with conservative portfolios consisting of funds more focused on securities over stocks with aggressive portfolios putting more money into stocks but still maintaining a stable flow into securities. Aggressive is more volatile and risky but offers bigger returns and vice versa for the conservative accounts.
Furthermore, it is FDIC insured for up to $250,000 and investments are insured against broker failure for up to $500,000 by the SPIC. It is safe to use and data is encrypted.
Twine's simplification also means that options are limited and valuable information like past performance history and other detailed analytics are not available. Furthermore, contact information is difficult to find and you may struggle to get support from an actual human being. There is also no live advice from actual experts.
Though savings accounts are free, the investment fee is 0.60% for every $5,000 invested a month which is significantly more than competing platforms like Betterment (0.25% to 0.50%) or M1 Finance which offer zero management fees.
What makes Twine a unique experience is the ability for couples and partners to set up individual accounts and then link them together to reach your goals. That is their main selling point and it's a good one. It is also a clean, very easy to use, and minimalistic. This is always welcome in a world that gets often gets overly complicated and messy.
That said, investing with Twine is expensive compared to other apps and its lack of past performance history obscures an investor's ability to predict results. Overall, the simplification of the process comes at the price of not actually learning much about finance and investment. It is a set and forget style app. If you are looking to work towards a financial goal with a partner then Twine is certainly one of your best options. However, if you're an individual looking to save money, invest, and learn at a fair price it's in your best interest to shop around for a platform that could serve you better.