Trust funds are typically associated with wealthy parents who can afford to keep up with minimum payments to ensure their child receives a considerable sum upon turning 18. Targeted at those with more modest incomes, TrustEgg provides a way for anyone to instantly set up a fund for their child with just USD 1, and enables them to easily source help from the people around them.
After receiving the green light from financial regulatory bodies, the startup has finally launched to the public, who can now set up a TrustEgg account for a child through the quick sign-up process. Once the minimum contribution is transferred, users can add friends and family members as trustees, who can add to the fund. All money is placed into a mutual fund and the company predict around six percent compound growth. The funds are protected by Nevada-based Summit Trust, of which TrustEgg is essentially a licensed product. As with a regular child trust fund, the total money saved and earned is released when the beneficiary reaches 18 years of age. TrustEgg also offers participants the ability to leave comments when they pay money in that are also released at the time of completion, providing the child with a time capsule of messages from their relatives.
We’ve already seen companies like Piggymojo harness the social aspects of the web to encourage customers to reach savings targets, and TrustEgg is now following suit. How else can financial services be adapted to the online world?
Spotted by: Murtaza Patel