Fintech startup Blossom launches new product targeting 7.00% p.a. as Aussies prioritise ‘loud budgeting’ goals
Blossom, the Australian fixed income app, today announced it has expanded its product suite with Blossom Plus. The offering, driven by investor demand for loud budgeting, aims to provide a higher return solution to grow wealth amidst the escalating cost of living.
Blossom Plus will provide Australians access to bond investments targeting returns of 7.00% p.a., a significant uptick on their existing, everyday product Blossom Save which targets 5.95% p.a.
The launch of the new product coincides with sticky inflation and increased interest rates which are impacting Australians’ savings goals.
The social media trend, ‘loud budgeting’ which emerged late last year encourages people to be vocal about their money goals. The trend highlights that younger Australians are increasingly becoming conscious of their spending and redirecting their money into savings in response to the rising cost of living.
Everyday Australians can invest in the professionally managed Blossom Plus Fund through the Blossom app which has a $5,000 minimum and offers quarterly withdrawals.
The new offering aims to provide investors with an alternative investment option for those wanting to build a significant savings portion for longer term financial goals, while targeting a stable, higher return.
Blossom Co-Founder and CEO Gaby Rosenberg (pictured) said the new offering is well positioned to help hard-saving Australians squeeze more value out of their dollar.
“We’re thrilled to announce the launch of Blossom Plus to our app, to help investors maximise the value of their loud budgeting efforts, boosted by the power of fixed income to earn a higher return. Australians now more than ever are focused on building their wealth as seen through ‘loud budgeting’, where Australians are making commitments to spending less, and saving their money,” said Gaby.
“The next step after developing a budget that works is to make sure those savings are being put to work.
“Our classic Blossom Save offering is highly accessible for Gen Z investors with a $5 minimum investment and acts as a stepping stone to then achieve our boosted offering of a 7.00% target in the Blossom Plus product.
“Blossom Plus has been designed for investors wanting to lock up their funds for longer and earn a higher return creating a piggybank effect.
“We see this dual offering as an incentivisation mechanism for investors to build their Blossom account value as opposed to penalising their return for not reaching minimum requirements.”
The launch of Blossom Plus is part of a larger journey towards providing investors with comprehensive tools to build their wealth.
Gaby added, “Since inception, our existing investment options have been well received by users.
“Users have indicated their demand for a higher rate with steady returns, and we are excited to now be able to provide this on the app with Blossom Plus.
“Blossom has an exciting roadmap ahead for 2024 with further announcements on their way.”
2023 was a successful year for Blossom, reaching key business growth milestones of doubling funds under management to reach $50 million in FUM, and 13,000 sign-ups on the platform.
