Mylo App Review (2020): No-Brainer Automatic Savings for Canadians

Mylo App Review
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Updated: February 8, 2020

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Do you struggle with saving money?

According to a recent poll, 39% of non-retired Canadians do not have any savings at all. Absolutely zero savings! What a frightening scenario.

By the time you blow the candles on your 60th birthday, you should be planning how you want to live your retired life – not worrying about what you will do to meet your basic needs.

Luckily, the Mylo App can help you achieve this goal without any hassle. The app is designed to help you save cash every month by automating your savings in a simple, convenient, and seamless manner.

You won’t experience a drastic change to your day-to-day routine, and you won’t have to bother with understanding the complexities of portfolio management.

I’ve used Mylo App to help me save 40% of my income. While Mylo isn’t the entire reason why I can save so much money, it helps contribute to my savings every year. Read this Mylo App review to find out more.

39% of non-retired Canadians have ZERO savings!

Review of: Mylo App

Use: Automated Savings App – Canada

Wealthawesome Score: 4.3/5

HIGHLIGHTS

  • Easy signup process: Sign up takes only a few minutes, right from your phone.
  • Automatic savings: Once you select your preferences and set up the rules, it will automate savings seamlessly.
  • Easy and safe investments: Your savings are invested into secure investment options and you don’t need to have investment knowledge for this.
  • Easy withdrawals: Withdrawing your amount is easy, and it doesn’t entail penalties or fees.
From $1/Month

Company History

Mylo Financial Technologies Inc. is a fintech company based in Canada. If you have watched Dragons’ Den, you might remember its creator, Phil Barrar. He came to the show in 2017 with Dr. Liam Chueng!

Mylo acquired investment firm Tactex Asset Management in mid- 2017. By the start of 2018, the fintech company managed to secure substantial money in seed funding from Desjardins Capital, Robert Raich, and Ferst Capital Partners. The $2 million raised by Mylo have been put to good use as we all know.

The Mylo app is Canada’s first automated goal-based savings and investing app. It offers Canadians a convenient way to boost their wealth by consolidating and investing their loose change. The company recently launched “Round Up to Give,” a way to make donations to your favorite charities using the Mylo App.

Mylo App Review: How does it work?

One of the best things about the Mylo app is that signing up and letting it get to work is a matter of just three steps:

  1. Sign up
  2. Connect to your bank account
  3. Let it save your money and invest it automatically

The initial set up is pretty straightforward. The first two steps are simple, but there are several other options that this app offers, which you can use for the third step.

To help you understand the meat of the matter, I am going to explain some of the main features of the Mylo app and how they work. By the time you’re done reading this section, you will completely understand how to make the most out of your Mylo account.

Mylo App – Goals

Mylo is a goal-based savings app. Before you start saving, it will ask you to come up with a goal or multiple goals. The purpose of setting goals is to help you understand:

  • What you are saving for
  • The amount you want to save
  • An estimated timeline to reach your goal

You can adjust your goals any time you want.

Here are some of the goals you can set:

  • Create a custom goal
  • Traveling
  • Saving for retirement
  • Building an emergency fund
  • Donate to charity

The roundups will be allocated to each goal automatically. You have the option of disabling roundups for any of your goals whenever you want.

Mylo App – Roundups

Speaking of roundups, we come to the main feature of the app. Mylo’s ingenious method to help you save money without any inconvenience and that requires you to use your spare change.

Every time you buy something, Mylo rounds up the amount to the nearest dollar. The spare change goes into your account.

For instance, if you spend $2.40, Mylo will round it up to $3 and automatically save the $0.60.

If you have three goals assigned with the roundups enabled, Mylo will save $0.60 into all three. Altogether, Mylo will put aside $1.8. Pretty simple, isn’t it?

The amount is insignificant, and you will not notice it leave your account. If you think that the roundups are working too slow, you have the option of multiplying your roundups. The multiplier makes it more interesting if you want to speed up the path to achieving your goals whether it’s saving for a nice gift to yourself, or planning a vacation.

You can multiply the roundups from a multiple of two, all the way up to ten through the app.

If your account balance ever goes below $25, Mylo will not transfer money out of your account. You have the option of overriding it in the settings. If you ever feel like taking a break from savings, you can turn off the roundups altogether until you want to start saving again. The multipliers can be a nice way to earn a little extra income.

Try Mylo Today

Recurring Deposits

Roundups and multipliers offer a single option for saving money. If you want to reach your goals faster, you have the recurring deposits to leverage.

You can turn on the recurring deposit feature and set a particular amount. Mylo will withdraw that amount every week and automatically deposit it into your Mylo account.

  1. Set the goal you want recurring deposits to go towards.
  2. Tap the three dots on the top corner on the right.
  3. Select the funding rules based on your requirements.

With that, we’ve covered how the savings and deposits work. The real beauty of Mylo lies in the fact that it does more than just letting that cash sit idle in your Mylo account.

Investing Your Savings

Here’s how your investment portfolio can look.

Your Mylo account savings are managed by a registered Canadian portfolio manager working at Tactex Asset Management, the same firm acquired by Mylo Financial Technologies Inc. in 2018.

The portfolio manager takes on the responsibility of investing your money through a portfolio that consists of low-cost exchange-traded funds (ETFs). Tactex manages well over $110 million in client assets. Rest assured, the funds accumulating in your Mylo account will be taken care of and managed by a professional.

There are five basic types of investment portfolios offered by the Mylo app.

  • Conservative – 100% amount in savings
  • Conservative Moderate – 40% amount in savings and 60% in bonds
  • Moderate – 60% amount in bonds and 40% amount in stocks
  • Moderate-Aggressive – 40% amount in bonds and 60% in stocks
  • Aggressive – 20% amount in bonds and 80% amount in stocks

Initially, Mylo worked with only non-registered investment accounts. Now, the Mylo app also accommodates tax-free savings accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs) as well.

Your portfolio type will be based on your investor profile, investment horizon, goals, and tolerance for risk. You can always learn more about your portfolio type through customer support or by reaching out to the dedicated portfolio manager.

Invest With Mylo Today

Mylo – What accounts can I use it for?

As I mentioned in the previous section, Mylo initially worked on non-registered investment accounts. It has since been updated and offers more features through Mylo Advantage.

Mylo gives you access to standard features like roundups and savings multipliers. It also gives you the ability to save and invest using your TFSA and RRSP.

With Mylo Advantage, you get more than the tax benefits:

  • Access to socially responsible investing that ensures your investments align with your beliefs.
  • Cashback earning from stores like Amazon, Starbucks, Netflix, etc.
  • The ability to withdraw funds within one business day through Interac e-Transfer.

The fees for Mylo’s standard app and Mylo Advantage differ. I will cover that later.

Is My Money Safe with Mylo?

Mylo Financial Technologies Inc. utilizes high security and encryption measures, similar to what your bank uses. Your funds are not just protected by top-notch security measures. Mylo is insured by the Canadian Investor Protection Fund. It means that even if the company itself goes bankrupt, your funds will be protected up to a value of $1 million.

Mylo – Signup Process

I loved how easy it is to sign up with Mylo. It takes a few minutes to set everything up.

  1. The first thing you need to do is visit the Mylo website.
  2. Enter your number so they can text you the app.
  3. Download and open the app on your phone.
  4. Link your account and set everything up.
  5. Start watching your savings grow.

Mylo App – Fees and Costs

There are two accounts from Mylo that you can use, and both of them are paid:

  • Mylo basic account
  • Mylo Advantage account

The fee structure is quite simple, with both account types without any hidden charges. The Mylo basic account costs $1 per month, whereas the Mylo Advantage account costs $3 per month. The amount you pay for using Mylo does not change whether you’ve saved $50 in your account or $50,000.

Try Mylo Today

Mylo App – How to Withdraw Your Money

Making withdrawals from your Mylo account is easy. You can do it whenever you want to without worrying about any fees or penalties.

One thing I would like to point out is that it takes two to eight business days to withdraw your funds. It is a reasonable amount of time since your dedicated portfolio manager will need this much time to sell all your investments and deposit the funds into your account.

Mylo App – How to Delete

If the app does not work for you, you can easily withdraw your funds at any time. You can close the account by contacting a representative from Mylo through the app itself or by emailing your account deletion request to [email protected].

To contact Mylo to delete your account, just head to the “Overview” section. Scroll down until you find the “Chat with us!” option and get in touch with them.

Mylo – Is Mylo Right For You?

Mylo is perfect for Canadians who:

  • Have difficulty saving anything or are in debt, as this could be a simple solution to building good saving habits.
  • Want a way to save without even thinking.
  • Want to learn about ETF investing but not sure how to start
  • Mylo can be a good supplement to an online bank high-interest savings account such as Motusbank.

Mylo – Who This App is NOT For

You might not want to get Mylo if:

  • You already have a do-it-yourself portfolio of ETFs or stocks in a discount brokerage, you might find Mylo more of a novelty instead of something practical.
  • Someone who will abuse the concept of automatic savings, and spend more money because they think they will save more. This defeats the whole purpose of having Mylo app.

Conclusion

Mylo is a great way to build savings and learn about investing without having to change any of your habits.

Will you give Mylo a try?

Comment below to let me know how it goes!

Sign Up For Mylo

<a href="https://wealthawesome.com/author/christopher-liew/" target="_self">Christopher Liew, CFA</a>

Christopher Liew, CFA

Creator of Wealth Awesome

A Canadian CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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