Yahoo Finance launches app to save money together

Yahoo Finance has released Tanda, an application to save money together. Everyone regularly deposits a certain amount, after which the members are paid out in turn. This should make it easier for people to save.

The application is already available for everyone to download via the Play Store for Android, but for the time being an American bank account is required; it must be linked to the app. It is still unclear if and when Yahoo Finance plans to release Tanda in Europe.

Americans can sign up for a savings circle, which can consist of five or nine people in total. Everyone periodically deposits a certain amount, and when the amount to be reached is paid, it is paid out to a person. The process repeats until everyone has been paid once. Yahoo makes its money because the first two payout positions incur a commission; respectively 8 percent and 7 percent of the total amount goes to Yahoo. If you are patient enough to be paid out last, you will receive a 2 percent bonus.

Yahoo Finance promises that the application is safe to use and users will not lose their investment. Should one of the members of a savings circle decide to renounce and no longer invest, the app itself jumps in with the financial contributions. This gives users the guarantee that they will eventually get their investment back.

The idea is that the social component makes it easier for people to save money; as a result, it seems that the app is primarily aimed at people who have a hole in their hand or have trouble saving for some other reason. In addition, Yahoo gives people who successfully close a savings circle access to circles with a higher payout.