APY GUY: Maximize Your Savings & Earnings

Groundfloor – Averaging 10.5% APY for Investors!


This infographic shows the flow of funds with a Groundfloor investment. Image credit: groundfloor.us

The real estate market has seen a huge boom over the last year, thanks to bottom-rung mortgage rates and a rise in long-term remote work in a wide range of fields. This is especially true for owner-occupied and investment properties, which in hot markets can be rented to tourists on a short-term basis for high rates of return.

And, real estate purchases aren’t the only property-related transactions that are booming. Real estate crowdfunding, which lets investors pool their collective funds together and lend companies the money for real estate transactions via private REITs. This type of alt-investing can be a great way for companies to crowdsource funds for large real estate purchases, as traditional lenders aren’t always open to offering this type of funding.

Real estate crowdfunding can also be great for investors, who stand to make a high rate of returns on this type of investment. But, while real estate crowdfunding can be lucrative, it isn’t generally offered by your traditional brokerages. If you want to get into real estate crowdfunding, your best bet is to take advantage of what a real estate investing platform like Groundfloor can offer you. Groundfloor offers easy access to short-term, high-yield real estate debt investments to the general public — and you can start investing on this platform with as little as $10.

The Groundfloor platform offers a number of other user perks as well, and may even offer what you’re looking for if you’ve been considering adding real estate to your portfolio. Read on to find out how this real estate investing platform can help you conquer the world of real estate investing without the laborious accreditation requirements or large financial commitments you’ll face with other platforms.

What is Groundfloor and who is behind it?

Groundfloor is a real estate investing platform aimed at both borrowers and investors. This platform specializes in offering short-term residential property loans that individual investors can fractionally invest in to real estate developers and independent home builders. Borrowers can use the money from these loans for new construction or renovation projects. Once the projects are complete, the borrowers either sell the property to repay the loan or refinance the loan money and keep the property to be leased out to tenants, while investors in the projects receive a return on their investment.

This company was first established in 2013 and is headquartered in Atlanta, Georgia. This platform is used by both borrowers who are in need of funding for real estate projects and by novice and high-volume investors alike to make short-term, high-yield, short-term real estate DEBT investments.

The minds behind this business are some of the best in the business, starting with CEO Brian Dally, a Harvard MBA and law grad, who has worked for startups in Silicon Valley, Boston, and London prior to helping co-found Groundfloor alongside Nick Bhargava, who has a financial services background.

While Groundfloor is hardly the only real estate investing platform available to investors, it does offer some unique perks to both investors and borrowers. For starters, Groundfloor was the first company to be qualified by the U.S. Securities & Exchange Commission to offer direct real estate debt investments for both non-accredited and accredited investors alike.

The investments on Groundfloor also have shorter terms than the competition. Most real estate investment platforms that allow investors to own an equity stake in real estate property via eREITS or other types of funds tend to have long investment terms. In general, it takes about three to five years to see returns or repayments from competitors.

That’s not the case with Groundfloor. The investment options on this platform are based on secured, collateralized real estate debt, and all have shorter terms. The average investment time from investment to return and repayment on Groundfloor is generally about 12-18 months. That short turnaround time is a huge perk for investors, who may not be able to tie up their money for years on end.

That’s not the only upside to a shorter investment term, either. In general, shorter investments tend to carry less risk for both the company and the investor, and that pays off in spades. According to Groundfloor, the platform has been able to generate consistent 10% returns for its investors for at least the past six years, and investor repayments are generally received in six to nine months on average.

All of these unique perks have led to a steady investment by users interested in helping to fund real estate projects. Since 2018, a total of 5,000 shareholders have invested over $16 million in the platform to help fund real estate projects.

Some of that popularity may be due to the low buy-in that Groundfloor offers. While other REIT or real estate crowdfunding platforms require at least a few hundred dollars minimum to invest, Groundfloor cuts that buy-in price to just $10.

That, coupled with a high rate of return and easy-to-navigate investments, have kept the investor money flowing for borrowers on this platform.

Features and benefits 

The main benefit of Groundfloor is that the platform offers the chance for real estate entrepreneurs and investors to invest in the residential fix-and-flip and new construction markets. This is done investing in the loans that Groundfloor offers to real estate developers. The draw of these loans is the option for borrower-friendly terms, like deferred payment options, which can give developers more control over their cash flow.

When borrowers fund a construction project through Groundfloor, they’ll get a hard-money loan for each project. The money is fronted by Groundfloor initially to the borrower, who receives the funds after their application is approved.

Once the loan is originated and the money is distributed to the borrower, the loan is transformed into a security known as a limited recourse obligation (LRO). Then, the loan is placed on the platform and made available for investment.

After the loan is available on the platform, investors can choose to invest in the projects that fit their specific parameters, $10 at a time. When an investor invests in an LRO, they are essentially “sold” a piece of the loan that was made to the borrower to finance their project.

Here are some of Groundfloor’s recent repaid investments (above).

These types of loans tend to be safer than offering money for personal loans or other types of loans because the real estate loan is backed by the tangible property that the loan is funding. Plus, the projects that these loans are funding are all projected to produce a profit, which will be used to repay the loan quickly. That makes the risk much less great than it would be with many other types of investments, including stocks or alt-coins.

As mentioned, the average time to recoup both the initial investment made with Groundfloor and the return on the investment averages between 12 and 18 months. That’s a much shorter term than you’d get with a competing platform like DiversyFund, which requires investors to tie up their money for five years, with no dividends or interest paid out during that time.

Plus, there are other benefits to using Groundfloor to invest in real estate. These include:

  • A $10 initial investment: At minimum, other real estate investment platforms require at least a few hundred dollars to get started. Groundfloor, on the other hand, lets you start investing with as little as $10. Not only is that attainable for most investors, it’s much, much lower than the $1,000 to $25,000 minimum that is required by most private REITs. It’s important to note that the minimum investment with Groundfloor is also a lot lower than the price on most reliable stock shares. 
  • Choices and control: Rather than using investor funds to invest in projects that Groundfloor deems a fit, the investors on the platform have choices of what to invest in. They can choose the LRO that fits their requirements and choose how much to invest in each project. That gives investors total control of what their money is funding.
  • Monthly interest payments: The borrowers on the platform pay a monthly interest fee, which is of benefit to the investors, who stand to make at least some return on their money while waiting for repayment of the loan.
  • A fractional system for investors: The main reason why the investment requirements are so low with this platform is because Groundfloor allows for fractional investments. As touched on above, the loans are basically divided up and funded by the totality of the investments, so there is no need for investors to come up with a large sum of money to solely fund a project.
  • Open to both accredited and non-accredited investors: Unlike most traditional REITs, Groundfloor does not require investors to be accredited before they can invest. This can be an extremely useful feature for lower-volume investors, who may have trouble meeting the accreditation requirement set by the SEC for individual investors. 

    The SEC requires a net worth of more than $1 million — not including your residence — or an annual income of at least $200,000 per individual for at least two years to become accredited. What that means for the average Joe is that it is extremely hard, if not impossible, to become accredited. That can limit investment options, but luckily, there’s no need to worry about that with this platform.  
  • A culture of transparency: Transparency is the name of the game with Groundfloor. The company regularly publishes detailed information regarding their portfolio performance, along with monthly overviews of loan repayments and asset management activities. All of this information is available right on its blog, which means it’s easy for both potential and current investors to access.
  • Diligent and thorough asset management: GROUNDFLOOR employs proactive asset management processes to help ensure that projects stay on track. Their team carefully monitors each and every loan from start to finish, measuring project progress against the stated plan and budget to help identify and catch any potential or anticipated problems, and they remain in close communication with borrowers to ensure timely follow up and completion of deadlines. GROUNDFLOOR is clear that their goal is not to never have a loan default; in fact, they often proactively place loans in default to encourage the borrower to get the project back on track.
  • Automatic investment options: One of the best perks of this platform is the automatic investing feature, which allows you to set the options for how much you want to invest in each loan — and how much you want to invest in each loan grade. Once you’ve set the parameters, Groundfloor’s system will automatically make investments for you based on your criteria once new loans become available.

    Even better? This feature can be used with automatic transfers and to reinvest the principal and interest payments you receive on your investments.

Average return to investors

As with most real estate crowdfunding investments, the returns made on Groundfloor investments can be extremely lucrative. According to Groundfloor, the platform has been able to generate consistent 10% to 10.5% returns for its investors. That figure has remained consistent over the past six years.

Plus, Groundfloor originates 60 to 70 loans a month, which means there are numerous opportunities each month to invest in the LROs that fit your needs. In total, over $12,600,000 in interest has been paid out to investors on this platform since its inception.

The return on this platform is based heavily on the grade of loan you invest in. Grade A loans, for example, offer returns of about 6% on average — as they’re the most safe bets you can make.

Grade G loans, on the other hand, are more risky. With that risk can come reward. With Grade G loans, you’ll generally be offered returns of up to 25%.

The typical rate of return for each loan grade is as follows:

  • Grade A: 6%
  • Grade B: 8%
  • Grade C: 11%
  • Grade D: 14%
  • Grade E: 18%
  • Grade F: 21%
  • Grade G: 25%

Potential drawbacks

While there are opportunities for a healthy return on your investment with this platform, there are also potential drawbacks. These include:

A higher rate of default: The general nature of hard-money lending — which is what Groundfloor does with borrowers — means that there is a higher rate of default than you’d see with your typical residential loans. That isn’t unique to Groundfloor; it’s a drawback of hard-money lending across the board.

That said, about 2% of the properties Groundfloor has funded through its portfolio have gone through foreclosure in the past. That is much higher than the national foreclosure rate during that time, which was about 0.6%. So, there is some risk with this type of investment, whether you’re using Groundfloor or another platform or REIT.

Groundfloor returns the pro rata net proceeds of such recoveries to investors. This has been necessary in only approximately 1% of the loans they’ve originated, and because of their lien on the underlying property, this has translated into a loss ratio of just 0.62% of total invested principal.

They also stress diversification and this is one reasons they have that $10 minimum – it allows for the ability to vastly diversify across multiple projects.

No mobile app: There is currently no mobile app associated with Groundfloor. They have one slated to launch this year, but for now you’re stuck with their mobile web presence if you want to manage your account on the go.

The potential for a long foreclosure process: If the borrower stops paying on their loan, Groundfloor attempts to negotiate with them before jumping into the foreclosure process. If the negotiation fails, the foreclosure process has to happen, which is expensive — and long. It can take months to make its way through court. After the property is foreclosed on, Groundfloor will then oversee the rehab and sale of the property.

The risk for high LTVs on properties: While the return on these investments can be lucrative, the reality is that there are properties with higher loan-to-value ratios on the platform. These types of loans can be risky, as investors may not recoup the money expected in the sale of the property.

Cost associated with Groundfloor

There are no costs for investors on the platform. Groundfloor makes its money by charging the borrower fees instead. The fees are based on the loan grade — the riskier the loan, the higher the fees — and the costs range between 2% and 4.5% of the loan’s principal.

Anyone with at least $10 in their pockets and interested in loaning money for real estate fix-and-flip deals can take part in this type of investment, which means that there’s a significant draw to investing on this platform.

Other than the initial investment requirement of $10 and any additional money you invest, the only costs are on the borrower end of this equation. You won’t have to foot the bill for management costs or other hidden fees, either — but the borrowers who use this platform will.

How are Groundfloor’s investments sourced?

As with most traditional lenders, Groundfloor’s borrowers find them — not the other way around. Groundfloor is a direct lender offering crowdsourced capital for short-term residential real estate loans, and the borrowers who want to obtain financing through this lender simply need to apply and be approved.

Groundfloor currently offers 6, 9, and 12 month loans to real estate investors for 1-4 Unit properties. Borrowers and properties must currently be located in the following 31 states or territories to qualify:

  • Alabama
  • Arkansas
  • Arizona
  • Colorado
  • Connecticut
  • Washington, DC
  • Florida
  • Georgia
  • Illinois
  • Kansas
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Missouri
  • North Carolina
  • Nevada
  • New Hampshire
  • New Jersey
  • Ohio
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Texas
  • Utah
  • Virginia
  • Washington
  • Wisconsin

Groundfloor is attractive to borrowers because it offers up to 100% loan-to-cost borrowing, depending on experience and true deferred payments. The closing turnaround is short, too. It can take as little as three weeks to close on a loan through this lender — which is another perk that keeps borrowers flocking to this source of funding.

Who is this platform for?

In general, the Groundfloor platform is a great option for all types of investors — especially those who are interested in real estate crowdfunding and the perks it offers to investors. It’s also great for borrowers, who may have an easier time obtaining funding when compared to traditional lending options.

This platform isn’t a traditional REIT, so it’s also great for investors who want to invest in real estate but can’t meet the accreditation parameters set by the SEC. The number of platforms that allow non-accredited investors to buy into REITs or real estate crowdfunding are limited.

It’s also a smart move for investors who don’t have much to gamble with. The minimum investment of $10 is attainable to nearly everyone, which is part of what sets Groundfloor apart from the other investment opportunities.

Investors may also find this platform useful if they’re new to real estate investing and want to dip their toes in before making any major moves. With such a low requirement, this platform can help novice investors feel secure in this type of investing before taking a dive into a much more costly venture.

Is Groundfloor safe?

All investments can be risky. While Groundfloor can offer 10% returns on your investment, it can also cost you. If a borrower defaults, or if a property is sold for less than expected, your return may not be as high as expected. Or, in cases of foreclosure, it can take much longer to see your initial investment money returned to you.

That said, Groundfloor is a generally safe way to invest in real estate. You’ll need to hedge your bets on smart investments, but you have full control over where your money goes on this platform, and there’s ample opportunity to diversify with their low minimum of just $10. You’ll be given the information on the loan grade, and you can choose what you’re comfortable with — and what return you’re aiming for.

That grading system and the control of your investments is, more than anything, what determines how “safe” this platform is for you. You’ll have to decide whether your money is safe with a high-grade loan, or whether you’re willing to bet it all on more risky loans to reap the potential benefits.

How Groundfloor differs from the competition

The main difference between Groundfloor and the competition is that Groundfloor allows non-accredited investors to put money into real estate transactions. There aren’t many options out there that allow for this — not in the real estate investment capacity anyway, and certainly not when it comes to private REITs.

The other noteworthy difference is the low minimum investment required by this platform. For just $10, anyone interested in real estate investing can become a part of this platform. That’s a unique feature, one that could help level the playing field between novice or low-volume investors and the big guys.

Couple that with the high rate of return, the lack of fees, and the control you get over your investment strategy, and you may find that this platform is a real standout against the competition. Where else can you start out with a $10 investment with no additional fees tacked on?

Final thoughts

In a sea of crowdfunding platforms, Groundfloor is a real standout. This real estate investing platform offers a high rate of return and total transparency, which is certainly not standard in this industry. Plus, the shorter investment terms of 12 to 18 months, along with monthly interest payments to investors, can mean a quick turnaround between investment and payoff. If you’re willing to take on more risk for the higher returns, this platform could be the right move for you.

On the other hand, if you’re going to need access to your money in a shorter time frame, or if you’re worried about the risk of defaults, you may want to think twice about using this platform. While it can be a great move for some, it can prove too risky or too long-term for others.

Either way, just make sure you do your homework and understand the risks and benefits of this, or any other real estate crowdfunding platform, before investing.

CrowdStreet – Averaging 18% Annual Returns for Investors


image credit: crowdstreet.com

Diversifying your portfolio is an important step to take, whether you’re an amateur or have years or decades of experience. While you may think that diversifying the types of stocks you buy will cut it, it may not be an optimal plan. Plus, there are a lot more options to take advantage of.

Take, for example, alt coins like Bitcoin and its rise over recent years — this is one of the prime examples of how cryptocurrency can be a lucrative, albeit risky, way to invest outside of the stock market.

But, while crypto has undoubtedly made many risk averse individuals rich, it may be too risky to rely on for diversification.

Luckily, there’s another option with commercial real estate investment via crowdsourcing platforms. Real estate investing, in general, is a lot more stable than crypto or other alt investments, and dozens of real estate investment marketplaces have emerged after Congress eased the securities regulations back in 2012 with the JOBS act. These platforms, like DiversyFund or GroundFloor, have made it extremely simple for novice real estate investors to take part.

One of the more popular real estate crowdfunding options is CrowdStreet, a platform that makes it simple to invest in commercial real estate projects across the nation by connecting investors with project sponsors looking for funding. If you’re looking for a platform to get started in real estate investing, CrowdStreet is certainly worth looking into. Here’s what this real estate investing platform can offer.

What is CrowdStreet and Who is Behind It

Founded in 2013, CrowdStreet is one of the oldest and largest real estate crowdfunding platforms available to investors. It’s also one of the highest volume marketplaces — at least in terms of standalone crowdfunded real estate deals. Since its inception, CrowdStreet has hosted 367 commercial real estate offerings from project sponsors looking for funding from small and large investors.

The number of real estate offerings on this platform isn’t the only reason for its popularity, either. The company’s co-founders, Darren Powderly and Tore Steen, are both industry veterans who have helped to establish CrowdStreet as a legitimate investment opportunity.

Prior to founding CrowdStreet, Powderly served as President of Compass Commercial, a full-service commercial real estate services company. Since that point, Powderly has transacted billions of dollars’ worth of commercial real estate investments and enterprise software contracts.

Steen, on the other hand, led the product, sales, marketing, and business development efforts for Janrain prior to launching CrowdStreet. Steen is widely recognized for helping guide Janrain from its phases to a recognized leader in the social identity space with a full user management platform.

Both Powderly and Steen are still at the helm of the massive platform, with Steen acting as Chief Executive Officer and Powderly as Vice President of Capital Markets.

And, the duo’s combined expertise has clearly paid off. CrowdStreet currently offers the largest number of investment offerings in this market at any given time — helping to set it apart from the competition.

That’s not the only thing setting CrowdStreet apart, either. What’s unique about CrowdStreet is that unlike other platforms, CrowdStreet acts as an intermediary, taking a small fee (between 0.50% and 2.75% depending on the project) while connecting project sponsors — who they vet thoroughly via background checks and references — directly with investors.

This gives both the investors and the project sponsors the freedom to manage the relationship with each other. It also helps keep issues with communication or delayed funding to a minimum that you would generally find with SPVs or special purpose vehicles, which are frequently formed entities in commercial real estate deals.

With CrowdStreet, you can choose between individual properties or CrowdStreet’s funds, which act much like mutual funds with a diverse range of real estate projects. Those features aren’t standard on other platforms.

These less common features, coupled with a potential for a high rate of return, have helped build CrowdStreet into one of the mainstays in the real estate crowdfunding space.

Features and Benefits

One of the more obvious benefits of the CrowdStreet platform is that it allows investors to pick and choose what real estate crowdfunding projects they’d like to buy into. If a savvy investor feels capable of picking individual real estate projects and navigating the relationship with the sponsor, that’s an option on this platform.

Or, if the investor is a little more gun shy and would prefer a safer bet, the CrowdStreet fund may be a better option. Having both options to choose from — along with a highly-integrated investment management platform — makes this platform user-friendly for a wide range of investors.

It’s also friendly to sponsors or real estate development groups who are looking to fund their projects. As of 2021, more than 250 large commercial real estate developers and operators had utilized CrowdStreet’s technology to raise the funds necessary for their projects. That is a substantially higher number of funded projects than many of the smaller platforms have hosted, lending credibility to the idea that both the investor and the project sponsors can benefit from CrowdStreet.

The platform also offers a wide range of investment opportunities for investors. In recent years, investors were able to choose from new construction rental projects, charter school projects, multifamily developments, and other real estate projects. Many of these projects are unavailable on other real estate crowdsourcing platforms — which further helps CrowdStreet to stand out against the competition. Whatever type of project you’re looking to invest in, CrowdStreet likely offers it.

More platform benefits include:

  • A direct investment: Unlike other platforms, you deal directly with the project sponsor if you opt to invest that way. This works in favor of the sponsor too, who is offered a more personal relationship with the investors using the platform.
  • A very thorough vetting process: CrowdStreet has an incredibly thorough vetting process it uses to determine legitimate projects and project sponsors. It’s worth noting that only ~5% of submitted projects get approved for the platform. But, the vetting process doesn’t stop there. The platform also vets the investors, too — so both the investor and the sponsor can rest assured that the deals and funding are legit.
  • A culture of transparency: Investing in real estate crowdfunding deals can be intimidating, especially on this platform — where the minimum amount you’re investing is much higher than it would be on other platforms. CrowdStreet makes the process transparent, though, by offering documents and research on each deal.
  • The option to buy into CrowdStreet’s fund: Another benefit is the option to buy into CrowdStreet’s fund, which, as mentioned, acts much like a mutual fund in that it uses your money to buy into a wide range of real estate projects. This option is great for investors who aren’t comfortable with the one-on-one interaction with project sponsors — or for those who want to fund a wide range of projects without buying into each one individually.
  • Tons of investment options: As one of the largest real estate crowdfunding platforms, CrowdStreet offers investors a massive range of commercial real estate projects to choose from. There are between five to 15 private equity investment opportunities on its marketplace, including both single-asset projects and funds.
  • Easy access to project research: One very unique feature of CrowdStreet is that you get access to all of the information you need to make a decision on a project. For example, each investment opportunity on the website gives you a detailed video with information about the project. This feature gives you a very simple way to both vet the project and understand what the purpose and goal of the project is. You can watch these videos and understand where your money is going — and why — to ensure you’re doing your due diligence before forking over any cash. Plus, you also have the option to submit questions to the project sponsor, which can help you further understand the goal of the project — and decide whether the investment makes sense for you.
  • Access to a ton of resources: In addition to the easily accessible research, you’ll also get easy access to a ton of resources in the website’s research section. You can find instructional videos, articles, investing topics, and other resources in this section — along with access to the Quick Start Guide, which can help you navigate the platform.

Average Return to Investors

Targeted Returns on the above properties range from 12.9% IRR to 18.7% IRR. IRR = APY (annual percentage yield)

Another major perk of this platform is that it makes return information easily accessible to users. According to the website, CrowdStreet’s investors have made, on average, about 18% IRR as of April 2021, which is the annualized return metric that spreads cash flows and equity return over the course of the entire holding period.

Furthermore, according to CrowdStreet’s data, investors, on average, receive a 1.40x equity multiple, which is the total cash distributions received from an investment, divided by the total equity invested.

Both of these numbers are based on a 2.3 year hold period, which is the amount of time from the date of the purchase to the date of the sale.

Those are just the current numbers, though. Thus far, CrowdStreet says it has successfully funded 485 deals on the site, of which 47 of have realized (sold).

As more deals work through their holding periods, the numbers will be updated to reflect the latest metrics, which are calculated to be net of fees.

Potential Drawbacks

While there are opportunities for a very healthy return on your investment of 18% or more with this platform, there are also potential drawbacks to using CrowdStreet to invest. These include:

  • Limited to accredited investors: Right now, CrowdStreet is mainly limited to accredited investors. That means that anyone who cannot meet the accreditation standards set by the SEC is out of luck. There are other platform options to choose from, of course, but CrowdStreet isn’t a viable option for anyone who would struggle to meet accreditation standards. 
  • A long investment term: The payoff for using CrowdStreet can be extremely high, but you’ll have to leave your money sitting in the investment for a period of years before you realize it. It takes about two-and-a-half years for most investments on this platform to mature, so if you can’t leave your funds tied up for that long, you may want to steer clear of this one.
  • A high minimum investment: In general, the minimum investment on this platform is $25,000 for the marketplace but this goes up to $250,000 for a CrowdStreet Advisors account which is privately managed.

Costs

CrowdStreet charges a 1% management fee for investing in its Blended Portfolio. It also charges a 1.75% management fee on the REITs, along with a 1% financing fee.

There are also fees for managed investments, which carry a 2% to 2.75% fee on the assets that are under management for the first year. After the first 365 days, that management fee drops to 0.25%, but the costs are still significant given the amount you’re investing in this platform.

How are CrowdStreet’s Investments Sourced

Unlike many of the smaller real estate crowdfunding platforms, investors don’t typically seek out CrowdStreet. Rather, the company’s “Capital Markets” team has a presence in every region of the nation and is always looking for deals worthy of making it onto the platform.

When the team finds a potential deal worth featuring, the opportunity is taken to the investments team, which puts the project sponsor and the deal through a rigorous review process. This helps them determine whether the deal is a prime fit for the CrowdStreet marketplace.

According to CrowdStreet, out of every 100 deals that makes it in front of the investor team, only five will make it onto the marketplace for investors to buy into. It’s evidence of how extremely thorough and, dare we say, picky, CrowdStreet is with the investment opportunities it promotes.

CrowdStreet puts each of its potential investment opportunities through the same objective review process, which includes:

  • Background checks using industry-leading platforms. These background checks are run on the firm and the principals involved in the potential deal.
  • A track record review. CrowdStreet wants to know the history of the companies behind the potential deals, so they look into any past deals to find successfully executed projects in the asset type they are looking to bring to the marketplace. This gives them an idea of whether the past projects have been actualized in a sufficient manner.
  • Sponsor designation. Each project sponsor is placed into a category based on background and experience.

These categories include emerging, seasoned, and tenured to help prospective investors understand the experience level and size of the sponsor or real estate firm they will be working with.

Below is a table breaking down the categories and what the sponsor requirements are for each.

CategorySponsor Requirements
EmergingRequires 2–5 years worth of experience with portfolio activity up to $100 million, as well as experience in both the geographical region and proposed asset class.
SeasonedRequires 5 or more years worth of experience with portfolio activity over $100 million. Must also have an existing network of repeat investors and established banking relationships.
TenuredRequires 10 or more years’ experience with portfolio activity of over $500 million, with principals who have invested together through multiple real estate cycles. The company must also have a dedicated staff for investor relations and accounting.

Any red flags, including “bad actor” violations or any pending material litigation, are grounds for immediate rejection — which is part of why only 5 out of 100 projects make it onto the marketplace.

Who is CrowdStreet For

While other platforms allow non-accredited investors to buy into projects, CrowdStreet primarily caters to accredited investors. This limits the opportunities to those who can meet the laborious accreditation standards set by the SEC.

In order to become accredited, the SEC requires a net worth of more than $1 million — not including your residence — or an annual income of at least $200,000 per individual for at least two years. CrowdStreet makes it clear that their platform is geared toward investors who can meet these standards — which can block out the little guys from the equation.

Accreditation isn’t the only requirement, though. Right now, only U.S. citizens and green card holders can invest in CrowdStreet, so if you’re outside of the United States, you’re likely out of luck.

You also have to be in this investment for the long haul. You won’t see a quick return on your investment with this platform, so anyone interested in using CrowdStreet to invest needs to be ready to leave their money tied up in a project for a couple of years at minimum. This can be tough if you need the cash unexpectedly, so before you take a dive into this platform, make sure you’re OK with tying up your funds for a few years at least.

And, CrowdStreet can pay off, but it can also be risky. If you’re risk-averse, you may not want to invest in real estate crowdfunding on any platform. The potential payoff is large because there’s risk involved with funding other people’s projects. You don’t have much control of what happens after you part with your capital.

But, if you’re willing to take the risk and do your homework on the projects you’re considering funding, this platform can be a great way to get into real estate crowdfunding — especially if you value choice and options in the projects you invest in.

Is CrowdStreet Safe

As mentioned above, if you’re going to invest in real estate crowdfunding, you’re going to take a risk. It’s important to remember that a good chunk of change is going into these projects — generally about $25,000 at minimum — so be sure this figure works within your overall portfolio. If it takes up a sizable portion of the pie, this probably isn’t for you.

And, as with any investment, you’re at risk of losing money with this platform. That’s the reality of investing. There’s a payoff because there’s risk. If a project you funded fails to pan out as expected, you may not make as much as you expected.

That said, CrowdStreet is transparent with the results of the past investments from the marketplace. You’re able to see what the results of each project were right on the website. 

The recent performance results show that most of the individual investments tend to outperform the blended portfolio options, but individual projects are by far much riskier than blended portfolios. When investing in an individual project, you run the risk of losing some or all of your capital.

How CrowdStreet Differs from the Competition

CrowdStreet makes it easy for accredited investors to shop around for commercial real estate projects to add to their portfolio. They have one of the largest platforms in terms of active deals on the market. You can browse projects by region, view incredibly in depth videos, see key statistics such as estimated time lock requirements, targeted cash yields, IRR (Internal Rate of Return) estimates, etc.

It also requires a hefty investment. You’ll need at least $25,000 to invest in this platform, though minimum investments can be much higher depending on what you’re investing in. That can limit who uses this platform to invest. Many competing platforms have much lower thresholds, some as low as $500.

Final Thoughts

CrowdStreet is one of the big players for a reason. This platform offers everything from video briefs on projects to clear and transparent vetting and project information on who it works with, from the individual investors to the deal sponsors. All sides are on equal footing with this platform, which is a pretty unique feature for the industry.

But, while the platform offers everything, it doesn’t offer everything to everybody. Smaller investors who can’t meet accreditation standards may feel boxed out.

That said, if you can meet current accreditation standards, the risk may be well worth it. With an average of an 18% return on investments, this platform offers a very high rate of return especially when pitted against other traditional saving vehicles.

Current Visa Debit Card Review


image credit: current.com

Current was founded in 2015 as a modern solution to an age-old problem of inaccessibility in banking. By taking advantage of innovative technology and creating transparency in their products, Current’s goal is to make banking easier and more flexible. And it seems to have accomplished that, especially with its teen bank account.

The Current Visa debit card for kids aims to find that middle ground between giving teens the financial independence they crave and parents the ability to steer them in the right direction. This is a product that gets it right in a lot of ways, and we’ll talk about those—as well as how the Current debit card potentially falls short—here.

After reading our review of the Current Visa Debit card you might want to see where it stacks up against the competition in our rundown of the best debit cards for kids and teens in 2021.

Who’s It For

Average age: 13-18

Good Candidate: Teens that earn an allowance and want to spend, save, and donate their money.

There is no minimum age requirement for this product, so teens of all ages are welcome. The Current app is easy enough for younger teens to use and comprehensive enough for older teens to benefit from. 

There are a lot of ways teens can use their money besides just spending and a lot of ways for parents to intervene.

Features and Benefits

Kids with Current debit cards can spend, save, or give their money. Parents can oversee all of their kids’ activity, step in when they want to offer guidance, and easily transfer funds between accounts.

The Current banking experience is something between a traditional checking account and a checking account for kids. Teens can earn allowance and move their money into different categories, options you’ll commonly see with debit products for kids, but will be able to use their card in more ways than less sophisticated products allow (i.e. Apple Pay and Current Pay).

For Parents

Parents can easily pay their teens for completed chores through the Current app. They can set chores for their teens at their desired price, see what chores their teens have completed, and approve chores for payment. Allowance for these can be paid out on a daily, weekly, bi-weekly, or monthly basis. 

Chores are assigned and paid on a weekly basis. Parents can create a list of chores for their kids to complete in their own time throughout the week. Chore payments and allowance payments are not related. If a teen doesn’t complete all of their assigned chores, their parents may choose to pay them less for chores that week.

Multiple parents are eligible to manage and contribute money to one teen account. Co-parents can have their own chores lists, allowances, funding sources, etc.

Transferring money from a parent account to a teen account is easy and instant. Once parents have set up funding into their own account and their teen has registered for Current themselves, the parent can link to their teen’s account by selecting this option from their screen and sharing the code with their child. Parents can initiate withdrawals from their funding account into their Current account from the Current app.

Parents may qualify for instant transfers if their Current account is in good standing and they have made several successful transfers in the past.

Parents can control their kids’ spending by prohibiting them from making purchases at specific merchants, setting overall spending limits, or turning their card off from the app. 

Many parents also choose to receive account alerts. With these, they will receive push notifications showing when and where their child is using their money. 

For Kids

Teens have a lot of flexibility in how they use the money in their Current account and their experience is highly customizable.

💰 Earning: To earn more money, teens can complete chores and mark them complete through the Current app. Teens can also request chores for themselves. If a teen would like additional help funding their account outside of allowance and chore completion, they can send a request to their parent or parents for the amount they need. If their parent approves, this money will be transferred from the parent’s wallet to the kid’s.

Current users can send and request money between their accounts using Current Pay. This is a free P2P feature that gives users QR codes they can use to either pay someone money or request money from them. Current users can also find each other by searching their names through the app.

Teens can link direct deposit to their account if they are earning money for themselves or use the mobile check deposit feature to fund their account with paper checks.

💸 Spending:  Teens cannot spend or withdraw more than what is available on their card, and only funds not in a Savings or Giving Pod can be spent. Users can withdraw funds at no cost from any Visa Interlink or Maestro ATM. There are over 55,000 ATMs that are free to Current users. Users can also withdraw cash from merchants that are part of Visa’s Interlink or Maestro network. 

There is a maximum daily purchase limit of $2,000, a maximum ATM withdrawal limit of $500, and a $5,000 limit for Current Pay transactions. 

A Current debit card can be used almost anywhere Visa is accepted. Users can also use their cards through Apple Pay. Teens can lock and unlock their cards from the app.

Saving: Teens can save money easily with Current by setting savings goals. Funds allocated to a Savings Pod are not eligible to be spent using the Current debit card. After a user reaches a savings goal, they can move the money into their available checking account balance to spend.

Giving: Teens can also donate their money by moving funds into their Giving Balance. They can then select from a number of pre-chosen charities and set goals toward their charity or charities of choice. Much like the Savings Pods, they will be able to see their progress toward a given goal from their Current account and see all transactions toward them.

Another great feature for saving or donating is the Round Up setting. By enabling this, teens can save or donate a little money every time they spend. This feature rounds all transactions up to the nearest dollar and automatically deposits this money into either a Saving or Giving goal. Teens can choose which of their goals they’d like round ups to go toward and change this as needed.

Users can move their money to different pods at any time, no parent approval required.

Current Debit Card Cost(s) and Fees

Fees: No fees for low balance, no fee for inactivity, no fees for transfers, no fees for overdrafts, no fee for transactions at in-network ATMs, up to $2.50 per transaction at out-of-network ATMs, $5 per replacement card.

The subscription fee for the Current debit card is $36 per teen, charged annually. This is a flat rate that includes all Current services and products for your kids—every teen gets their own card and account—, and cannot be waived.

Give the 30-day free trial a shot if you want to see if the product is worth this price.

Current VS Competitors

Current beats its competition in a few important ways. 

The first one is the round up feature. Although not something offered by many traditional checking accounts, this option will make it easier for teens to reach their goals. It will help them get into the habit of putting money away toward saving and giving before they have a checking account by themselves and no longer have this feature built in.

Another pro to the Current debit card for kids is how much control it gives parents. By letting them set spending limits, merchant restrictions, and chores and allowances, Current allows parents to play a more active role in their kids’ spending than other products like it.

Current also has flexibility for teen users going for it. Teens can spend, save, or give their money to charity easily through the app and use their card to make purchases in-person or online, withdraw money from an ATM, link to Apple Pay, or transfer money to or accept money from other Current users. 

Current is straightforward with its pricing structure as well. Although an annual fee of $36 is not ideal, this account doesn’t come with unnecessary fees for things like card reloads or declined transactions due to low balance.

Potential Drawbacks

One of the main disadvantages of Current is the price. The subscription fee may also turn some families away, especially families with multiple teens. Many banks offer the ability to link a teen to a checking account for free, though this usually comes with fewer features and customization capabilities. 

Another disadvantage of the Current debit card is that it’s not like a regular checking account. Although this is a product geared toward teens, it is actually pretty similar to products geared toward kids in that it lets users put their money in different buckets, complete chores, and the like. Current will probably help your kids become more responsible, but it won’t give them an accurate depiction of how adult checking accounts typically operate, if that’s your goal.

Consumer Sentiment

Current seems to do pretty well in the customer service department, though this wasn’t always the case. If you go to review boards, you will see complaints from a few years back about trouble reaching customer service representatives and issues with suspicious account activity. Today, however, users praise Current’s customer service—which the company seems to have corrected—and its level of security.

The Current mobile app is eye-catching and well organized. Its minimalistic design makes it easy to find what you’re looking for and use different features. This app has a rating of 4.6 out of 5 stars on Google Play and 4.7 out of 5 stars in the App Store.

To reach Current customer support, you can email support@current.com or call 1 (888) 851-1172 Monday through Friday between 9 AM and 6 PM. You can also chat with an agent live through the app 24/7 Monday through Friday or between 9 AM and 8 PM EST on Saturday and Sunday

Is It Safe

All Current checking accounts are covered by up to $250,000 of FDIC insurance.

Current also uses both fingerprint and facial recognition software to protect each account. 

You are not liable to pay for unauthorized transactions as long as you notify Current of suspicious activity within two days. Otherwise, you may pay up to $500.

How to Sign Up

To sign up for a parent Current account, enter your phone number on the Current home page and you will be sent a link to finish registering. You’ll just need to enter your personal information, no credit check required. You will be automatically enrolled in the 30-day free trial when you register.

Your teen will need to sign up for an account too. One you have both registered, you can link your account with your teen’s and start giving them money, assigning them chores, etc. You’ll need to pay the annual fee for every teen you add after linking your accounts. 

You can add cash via: 

  • ACH transfer
  • Direct deposit 
  • PayPal transfer or
  • Bill pay

There is no minimum balance required at any time for your account or your teen’s, but there is a maximum balance of $10,000 for a teen’s account.

Final Thoughts

Current is a great joint checking account for parents and teens. Both kids and their parents are likely to be happy with the options they are afforded by Current—freedom for the teens and control for the parents—, and this is a modern product that can be used in a number of ways. If a checking account with a debit card is more appealing to your family than a more restrictive prepaid debit card, then Current is a good place to start your search. 

For its reasonable terms and transparency with pricing, Current is an excellent option all around.

Fidelity CD Rates – Up to 1.80% APY!


image credit: fidelity.com

Fidelity is a multi-national financial services corporation based out of Boston, Massachusetts. They are one of the top 10 AMC (asset management companies) in the world with $2.46 trillion in assets under management and a combined customer asset value of $6.7 trillion.

Fidelity offers a wide range of services, products and tools to suit investors of varying experience levels and risk tolerances.

In this review we will focus on the brokered CDs offered through Fidelity. These can be found under their fixed income and bonds category.

It is important to note that Fidelity is not a bank, but a brokerage firm. Therefore Fidelity does not issue any certificates of deposit themselves, but rather “brokers” or resells them to their clients. The deposits are still obligations of the issuing bank, and thus come with FDIC-insurance up to $250,000 per depositor. That said, because Fidelity is a brokerage service, you can hold multiple CDs in your brokerage account with them, effectively expanding your FDIC coverage past the $250,000 limit. This is also true for their cash management account which allows for FDIC coverage up to $1.25 million.

You can open new issue CDs and/or secondary market CDs through Fidelity. New issue CDs are typically sold at par and clients do not pay a trading fee to purchase them. Purchases (and sales) of secondary CDs incur a trading fee of $1 per CD (1 CD = $1,000 par value). Download Fidelity’s CD disclosure document for a full understanding of their terms and conditions.

Fidelity CD Rates + Account Details

Fidelity offers ten standard term New Issue CDs ranging from 3 months to 5 years that come with a minimum deposit requirement of $1,000.

New Issue CDs by Top Rates:

TermExpected APY
3 months0.05%
6 months0.05%
9 months0.02%
1 year0.10%
18 month—
2 years0.20%
3 years0.30%
4 years0.60%
5 years0.95%
10 years1.80%

To give Fidelity’s new issue certificate of deposit rates some context, the current national average for a 12 month CD and 5 year CD sit at just 0.14% and 0.31% APY, respectively.

How is Interest Calculated?

Interest on new issue Fidelity CDs do not compound. This is true with most brokered CDs as they require an immediate distribution of interest.

Fidelity CDs that are purchased on the secondary market may be based on other interest rate calculations. You will need to contact the Firm with questions concerning the interest rate calculation on a secondary market CD.

Fidelity Auto Roll Program

Fidelity also has an “Auto Roll Program” that comes with some helpful features. The most notable being the ability to make early withdrawals on your CD without incurring steep fees. This is in contrast to bank or credit union CDs which generally take a portion of your interest as a fine.

The second stand-out feature of the Auto Roll Program is that it allows you to sell part of your CD (or add to it) prior to its maturity date.

You can also keep track of your earnings, set up alerts and auto-renew your CDs based on your chosen asset allocation.

If you would not like to be a part of the Auto Roll Program, you may cancel at any time.

Fidelity Brokered CDs: Pros and Cons

Brokered CDs offered through Fidelity come with some benefits and downsides. For starters, the current rates offered (shown above) are less competitive than those found at top online banks and credit unions.

Second, while new CDs don’t come with any fees, CDs purchased on the secondary market will be subject to a trading fee similar to buying or selling a stock.

Fidelity’s brokered CDs also come with some distinct advantages.

The biggest being liquidity. If you need your funds prior to maturity you can simply sell it during any trading day on the open market. Keep in mind though that the market prices will fluctuate based on rates. This means it’s also possible to sell your deposit for less (or more) than you purchased it for.

For example, if you open a 5 year deposit and need the funds after year 2, during which time interest rates have risen considerably, you may have a tough time selling your deposit for your full purchase price because consumers can get better rates through new issue CDs.

Conversely, if you purchase a 5 year deposit and rates drop significantly (which they have) then you may find investors willing to offer a premium on your CD in the secondary market.

First Republic Bank CD Rates – Still up to 0.55% APY!


image credit: firstrepublic.com

First Republic Bank got its start in 1985 as a small thrift company. Today, the firm offers personal banking, business banking, and wealth and trust management services.

They have ~70 branch locations in 6 states (California, Connecticut, Florida, Massachusetts, New York and Oregon) with most being centered in major metropolitan areas.

Because they cater to high net-worth, low risk individuals, many of their banking products come with steeper minimum deposit requirements than those at other online banks and/or nationally available credit unions.

First Republic bank offers a full suite of deposit products. They offer checking accounts, money market accounts, savings accounts and CDs (certificates of deposit).

In our review below we will focus on the 12 certificates of deposit products sold by First Republic Bank.

First Republic Bank’s CDs are federally insured by the FDIC up to $250,000 per depositor or $500,000 for joint accounts. All of their CDs come with a minimum deposit requirement of $10,000.

First Republic Bank CD Rates + Account Details

First Republic Bank Rate Finder tool.

To view First Republic Bank’s current CD rates on their website, you’ll have to use their “Rate Finder” tool. This tool requires you to specify your region before populating a list of their going CD rates. That said, we’ve run this scenario for all available regions and found rates to be static across the board. In normal interest rate environments, however, these rates may vary slightly by region.

First Republic Bank currently has 12 CDs to choose from. They have 10 standard term CDs and 2 promotional CDs. The promotional CDs consist of a “4 Month Special” and an “8 Month Liquid CD.”

The 4 month special, for all intents and purposes, is just like a regular CD but it comes with a higher APY. Its current annual percentage yield is listed in our table below.

The liquid CD comes with the same guaranteed interest rate that a standard CD does, but allows you access to your funds without incurring a penalty. You are allowed to withdraw funds once per week (every 7 days), however you must maintain a minimum balance of $10,000 in this account. If you dip below this threshold First Republic Bank may close the CD and transfer the funds to another account.

First Republic Bank CD Rates

TermAPY
30 days0.05%
3 months0.15%
4 Month Special0.25%
6 months0.30%
8 Month Liquid Special0.20%
12 months0.35%
18 months0.40%
2 years0.40%
3 years0.45%
4 years0.45%
5 years0.55%
6 years0.55%

To give these offers above some context, the current national average for a 12 month CD and a 60 month CD sit at just 0.15% APY and 0.24% APY, respectively according to recent FDIC data.

Outside of the 8 month liquid CD all of First Bank Republic’s other CD options come with early withdrawal penalties if you need funds prior to maturity. It should also be noted that First Bank Republic’s early withdrawal penalties are more expensive than other banks and credit unions.

Early withdrawal penalties are as follows:

  • CDs with terms of 1 year or less have a penalty equal to six months’ interest on the amount you withdraw.
  • CDS with terms of 1 year or greater have a penalty equal to 15 months’ interest on the amount you withdraw.

The best way to access the funds from your CD is to wait until it matures. Consider locking in one of First Bank Republic’s shorter term deposits if you’re unsure whether or not you can keep your money tied up for longer periods of time.

Opening a CD with First Republic Bank

There are three ways to open a certificate of deposit with First Republic Bank, none of which are online.

  1. The first is to give the bank a call at (888) 408-0288. They have banking specialists available during regular working hours to get you set up with any CD you choose.
  2. The second option is to complete an online form and have the bank reach out to you. You can find this form here.
  3. The third would be to stop into a branch and speak with a representative in person. You can locate a First Republic Bank branch here.

When you speak with a representative either in person or via the phone you will need the following information to get your CD account open and funded:

  • Full name (drivers license)
  • Address
  • Phone Number
  • Email
  • Social Security Number

To fund the account you will need the routing number and account number of the institution and bank account that you will be transferring the funds from. You can also mail them or hand them a check (if meeting in person).

Final Thoughts

While in most cases First Republic Bank’s CD rates beat out the national average for each respective term, better yields can be found through online banks and nationally available credit unions.

Because First Republic Bank caters to higher net worth individuals, they impose steep minimum deposit requirements on their deposits and expensive early withdrawal penalties if you need access to your funds prior to maturity.

All of this should be considered before deciding to open a CD with First Republic Bank.

13 Best Debit Cards for Kids and Teens in 2021


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When shopping around for the right debit or prepaid card for your kid or teen you’re going to want to keep an eye out for several key features. Things like low fees, parental controls for reloading funds and monitoring and controlling spending activity are essential.

Depending on the age of your kid(s) though, you many want additional features such as automatic bill pay, or mobile direct deposit. These are great to have if your teen has a part time job and may even have bills to pay of their own such as a cell phone, iTunes, Netflix, etc.

In compiling this list below of the best debit cards for kids and teens, we’ve considered the following features and variables:

  • Does the account pay an interest on the balance?
  • What are the fees associated with this account – monthly fees, fees per cash reload, etc.?
  • Which cards are the best for households with multiple kids and/or teens?
  • Which offers provide the best security?
  • Which offers provide the best parental controls?
  • Which provides the best app and/or online experience?
  • Which debit cards feature the best card art?

If you’re considering applying for a debit or prepaid card for your child or teen, you’ll want to read our comprehensive and objective review of what we believe to be the best options below.

Greenlight Kids’ Debit Card

image credit: greenlightcard.com

The Greenlight debit card for kids is one of the most popular offers on the market and is perfect for teaching your children all the basics of earning, spending, and saving their money.

Greenlight lets you create a chore list that your child can work through to earn money and other perks. You can also set automatic allowance deposits on a weekly or monthly basis in addition or if you prefer giving  your children a set amount of money each week. And if you ever need to fund your child’s account in a matter of minutes, you can make an instant transfer through the app.

When your child spends money, you’ll receive a notification that their card was used moments after they’ve used it. You’ll be kept in the loop and you’ll have a say in where your child is allowed to use their money, but your kids will be doing valuable learning themselves as they track their spending and saving and build money management skills. Kids with Greenlight cards can use their funds to make purchases anywhere Mastercard is accepted or even to buy stock.

A Greenlight subscription costs $4.99 a month for your whole family, which can include up to five kids’ accounts.

You can learn more at about the Greenlight Debit card for kids on their website.

FamZoo Prepaid Debit Card

image credit: famzoo.com

The FamZoo Family Pack of Prepaid Cards gives parents control over how and what their children spend and kids opportunities to learn how to manage their money. FamZoo accounts use private family banking systems to give children hands-on learning experiences that are parent-directed.

With FamZoo, parents are “bankers” and their children are account holders. Parents can establish a payroll for their kids, loan money, set up automatic allowances, and even pay interest on savings.

This virtual family bank is great for families of all sizes and can be customized to meet your children’s specific needs. FamZoo is easy to use from both the parent and child perspective and the prepaid cards can be used safely anywhere where Mastercard is accepted.

FamZoo accounts cost $5.99 per month if you pay monthly, but you can save if you pay in advance. If you pay for 12 months, the cost will come out to around $3.33 per month. The first four debit cards are free and each card beyond this costs $2.

We go into further detail in our FamZoo review found here.

BusyKid Visa Prepaid Spend Card

image credit: busykid.com

If you have a child between the ages of five and 16, you may be interested in the BusyKid Visa Prepaid Spend Card. 

BusyKid uses a chores-based system to allocate money for your child so that they can see exactly where their money is coming from and where it is going. You can set rates for different chores and your children can mark them complete and see when they will be paid. Parents who use BusyKid appreciate that this system instills a sense of responsibility and ownership over spending and saving in their children.

Once your children have been paid for their chores, they can choose to spend, donate, or invest their money. Investments can be made into real companies like Netflix and Nike through Stockpile and kids can donate a percentage of their earnings into the charities of their choice. All purchases and spending is approved by parents before it goes through.

BusyKid prepaid debit cards can be used online and anywhere Visa is accepted. A BusyKid annual subscription costs $19.99 including a free card. Each additional card costs $7.99 a year.

This breaks down to a monthly cost of just $1.67 for one child or $2.33/month for two.

Copper Debit Card

image credit: getcopper.com

Copper debit cards are specifically designed to help your teenager learn good money habits, without being overly restrictive or charging fees for mistakes like overdrafts. Copper debit cards can be used online and in person anywhere Mastercard is accepted.

With Copper, your child is given the tools they need to make smart financial decisions for themselves and control over their own accounts to practice what they’re learning.  They can also take quizzes to test their knowledge and they’ll have access to expert advice whenever they need it. 

The Copper app provides a straightforward, comprehensive look at your teen’s spending and saving, lets them set savings goals, and makes it easy to manage their finances in one place. And as their parent, you can set up automatic payments into your child’s account and not have to worry about transferring money.

Copper requires no minimum deposit to open and does not charge an annual fee.

[Update April 2021: Copper has seen consistent growth since their inception in 2020. Their CEO and founder announced that they surpassed 130,000 members as of April 2, 2021.]

Copper CEO/Founder announcement on April 2, 2021 via LinkedIn.

Copper also has a promotion running where you can send $3.00 to each of your friends (which copper will pay for) plus you’ll receive $3.00 when/if they sign up.

You can learn more in our comprehensive review here.

Akimbo Prepaid Mastercard

image credit: akimbocard.com

An Akimbo prepaid Mastercard offers a safe way for your older children to learn the nuances of banking in a low-risk environment. This card lets your teens have total control over their money but gives you the final say in what they can and can’t spend. Your child’s card account will be a sub account within your own, so you can decide how much money you allocate to your teen’s card.

Akimbo doesn’t have all of the bells and whistles of some of the kids cards and apps talked about in this list, but it is as close as you can get to giving your child a bonafide debit card without surrendering your ability to see what they’re doing and help them. You’ll be notified when they spend their money and, as the account manager, what they spend it on. This is great for parents that want to play a role in teaching their children financial literacy lessons.

Each Akimbo account may have up to four prepaid cards. There is no monthly fee. However, reloading your card costs up to $5 each time and ATM withdrawals are around $2 each.

Capital One MONEY Teen Checking

image credit: capitalone.com

A MONEY teen checking account with Capital One is a great choice for kids and teens that have already learned the basics of money management and are ready for more independence with their cash. Kids eight years old or older qualify for this account.

The Capital One MONEY app lets your child track their earning and spending as well as set savings goals in different categories. If you choose to, you can reward them for reaching these goals with bonuses. And in cases of emergency, you can lock your child’s card instantly.

There are no monthly fees or account minimums with this account. Parents do not need to have a Capital One account to enroll their child in MONEY. This account earns an APY of 0.10% on any balance. 

Gohenry Debit Card

image credit: gohenry.com

The gohenry debit card is designed for kids between the ages of six and 18 years old, but it’s best for parents that want to start teaching their children young about the importance of smart budgeting.

The gohenry app lets you set up an automatic weekly allowance for your child and you can also add chores and set a price for these to let them earn more. Then, you set limits on how much your child can spend in a given week or trip and change these as needed. Your child can save, spend, or donate their money to Boys & Girls Clubs of America. They can set as many savings goals as they want for larger purchases.

A gohenry account costs $3.99 per month per child. This card is a little pricier than some of the others on this list because fees are charged per child, but it’s good for small families. These cards can be used online or anywhere Mastercard is accepted.

American Express Serve Prepaid Debit Cards

image credit: serve.com

The American Express Serve FREE Reloads prepaid debit card, while not marketed as a teen product, is great for teaching your teen financial literacy. 

A FREE Reloads debit card requires no minimum monthly balance and is free to use/reload at over 45,000 ATM and store locations. By giving your teen a certain amount of money and allowing them to decide when and how to spend it, this card encourages independence and offers all of the perks and protections of a true debit card.

This account charges a monthly fee of $6.95, which cannot be waived. A card is free to purchase online but may cost up to $3.95 if you go to a retail location. These can be used online or anywhere American Express is accepted. To avoid transfer fees, your teen will need their own American Express bank account, and many parents choose to link this to their own.

Alliant Credit Union Free Teen Checking

image credit: alliantcreditunion.org

You might want to look into getting an Alliant Credit Union free teen checking account if you’re a fan of the popular credit union, fee-free banking, or easy-to-use platforms. Teens between the ages of 13 and 17 are eligible to open an account.

This checking account is one of the best options out there for giving your teen a comprehensive banking experience that is safe and helpful. Teens can set their own budgets and even earn interest up to 0.25% APY when they save (you will need to enroll in eStatements and make one deposit per month into their account to access this feature); and parents can set ATM and spending limits for their teens and transfer money between accounts at no cost. On top of that, the Alliant mobile app is consistently rated at five stars.

If you’re looking for even more interest, they also have a kids savings account that features an APY of 0.55%. To put this in perspective, the current national average sits at just 0.07% APY.

There is no minimum monthly balance requirement or monthly fee with this account. Just a few of the perks offered include access to over 80,000 free ATMs, up to $20/month in ATM rebates, and the ability to make contactless Visa purchases.

Jassby Virtual Debit Card

The Jassby virtual debit card for kids offers all of the safety and convenience that a kids’ card should, with the added security of being fully digital. This card is best for families with multiple children because parents are in complete control of when the card is activated and for who. The card can only be used when active.

The Jassby virtual card is unique in that it is on your child’s phone, so you don’t have to worry about them losing a card, but they can still use it anywhere. You can use the Jassby Family Finance app to pay your child an allowance and for chores instantly without incurring fees.

There is no monthly fee for this account for the first six months and as long as the card is used once per month after this (otherwise the monthly charge is $2.99). This card can be used online or anywhere Mastercard is accepted.

Current Debit Card for Teens

image credit: current.com

You and your child will both love the Current debit card for teens. They will love the freedom to make purchases just about anywhere and save more effectively with round ups and savings goals, and you will love being able to keep them safe wherever they are using their card.

This card lets you set spending limits, assign chores, pay allowance, and transfer money to your teen with ease. You are immediately notified whenever your child uses their card. The Current app is user-friendly and easy to navigate, making it perfect for teaching your teen about banking without the stresses of a complicated interface. You also have the ability to block your child from using this card at certain merchants.

The price is $36 per teen annually. There is no minimum monthly balance fee, overdraft fee, or transfer fee. This card can be used online or anywhere Visa is accepted.

Mango Prepaid Debit Card

A Mango prepaid debit card is a stand-out option because it offers the opportunity to link a high-interest savings account to your card.

This account has a lot going for it, including the fact that it can be opened even if your teen doesn’t have a checking account of their own. Your teen can open a linked Mango savings account with a deposit of just $25 and earn up to 6% APY (to qualify for this rate, your teen needs to make signature purchases totaling $1,500 after opening the account and maintain a minimum monthly balance of $25 after). 

You can add funds to your teen’s card from your own checking account or load money onto it from a participating retailer like Walmart or Walgreens.

There is no activation fee, but there is a monthly charge of $5 and a $3 ATM withdrawal fee. This card can be used online or anywhere Mastercard is accepted. Mango can also be used virtually from your phone when you enable this from the app.

Chase First Banking

Chase First Banking is one of the newer offers on the list and is only available to current Chase customers. This product launched in 2020 in collaboration with Greenlight and is intended for kids between the ages of 6 and 17.

And although kids are eligible up to the age of 17, the product does not allow for direct deposit, so if your high school kid(s) are earning their own income, Chase First Banking won’t be a great fit.

That said, the product has a number of helpful parental controls and functions (most or all of which are powered by Greenlight). You can read more about them in our Chase First Banking review.