American Express Personal Savings Account 0.40% APY + 0.55% APY CDs

Lauren Graves
December 2, 2021

[Update December 2021: Yields remain the same for both variable and fixed rate deposit accounts at American Express National Bank. Interest rate hikes, however, may come next year according to recent FED statements which may benefit savers looking for FDIC insured deposit products.]

American Express National Bank is the 25th largest bank in the U.S. by asset size with just over $130 billion.

Known by most as a credit card company—American Express—this financial corporation was approved to become a commercial bank with the name American Express National Bank in 2008 and has been a part of the digital banking sector ever since.

Within this relatively short period of time, American Express National Bank has racked up over $78 billion in consumer deposits.

Their current deposit suite consists of a personal high yield savings account and seven standard term CDs (certificates of deposit). The personal savings account comes with an APY that consistently places within the top yields from FDIC-insured, online banks with nationwide acceptance.

American Express National Bank is an online-only bank, so there are no physical branches. If you’re considering opening the personal online savings account from American Express, be sure you are comfortable with online banking. They also have no native apps available on IOS or Android so you will have to use a web browser on your PC, tablet or smartphone to manage your account(s).

To learn more, read our complete review of their personal savings account and certificate of deposit products below.

American Express Personal Savings Account Details + APY

The personal high yield savings account by American Express National Bank comes with zero monthly maintenance fees, and no minimum balance or deposit requirements. American Express Bank is member FDIC and all consumer deposits are federally insured up to the applicable limits.

American Express Personal Savings Account APY

Minimum Balance	APY
$0	0.40%

To put this offer in perspective, the current national average for savings accounts sits at just 0.06% APY. However, a number of online institutions still offer slightly higher APYs such as the Citi Accelerate savings account, but remember, rates on these accounts are variable and can change at anytime without notice.

Fees, Minimum Balance Requirements, and Compounding Interest

The American Express Personal Savings account does not charge monthly maintenance fees nor does it require an average daily minimum balance. To earn the advertised interest rate and APY, you just need to maintain a balance of $1 or more.

There is no minimum opening deposit required either, but accounts that remain with a $0 balance for 180 days will be closed. These flexible terms put this savings product within reach of just about anyone, regardless of net worth or income.

Dividends on this high-yield account are compounded daily and credited monthly to your account.

You can make no more than 6 withdrawals or deposits into this account per month, per federal regulation D.

How to Open a Savings Account with American Express Bank

The online application is a 4-step process that can be completed in minutes.

The account opening process is simple and straightforward. To get started, navigate to the high yield savings account page on the American Express Bank website (link above).

From here you will click on the blue “Apply” button, then it is a four step process that can be completed in minutes. If you have already begun the process you will also be able to access your saved application here.

The steps are:

Account set up.
Going through the terms and conditions.
Funding the account.
Online access set up.

For step 1, you will need the following information:

Full name and date of birth (drivers license)
Address
Phone number
Email
Social security number

Once you arrive at step 3 you will need a few pieces of information from the bank in which you will be funding the savings account.

This information includes:

Routing number of bank
Your account number

Once your account is activated and funded you’ll be ready to start earning interest on your balance. As time goes on you will likely need access to these funds. You can learn more about your account access and monitoring your funds below.

Accessing and Monitoring your Funds

You can access your account online either on a desktop, tablet or phone 24 hours per day, 7 days per week. If you’re using your mobile phone you may use the web browser to access your account. American Express does not currently have an IOS or Android app for their savings account. They do, however, for credit cards, but those accounts are not in any way linked to the banking side. More on that below.

For moving funds about, you’ll want to link an external bank account. American Express allows you to link up to 3 external bank accounts. If you initiate this through American Express, this will take 3 or more business days. If you initiate this through the bank from which funds are being pulled, this will take just 1 or 2 business days.

A standard verification process will take place where American Express will send you small micro payments (typically two) in which you will then confirm to complete the syncing of your accounts. After this is completed, you’ll be able to transfer or deposit funds from or into your American Express savings account. Just keep in mind it generally takes one to three business days for new funds to be reflected in your account.

American Express Bank CD Rates + Account Details

American Express certificates of deposit aren’t nearly as competitive as the American Express Personal savings account with their rates, but they do offer APYs that sit well above the national average for their respective terms.

American Express CD Rates

CD Term	APY
6 months	0.10%
12 months	0.20%
18 months	0.30%
24 months	0.40%
36 months	0.45%
48 months	0.50%
60 months	0.55%

To put these yields in perspective, the national average for a 12 month CD and a 60 month CD sit at just 0.14% and 0.24% APY, respectively according to recent FDIC data.

American Express’s certificates of deposit still feature ascending rates with ascending terms – meaning the longer you lock up your funds, the higher the rate you will receive. While this is standard and to be expected in normal market conditions, it is not what we presently see with a number of online banks and credit unions.

There is no minimum deposit or balance requirement to open and maintain an American Express CD. Any positive balance will earn the fixed APY on the account and you’ll never be charged a fee. You just need to deposit funds within 30 days of being approved for an account.

Dividends are compounded daily and credited monthly. Your interest will default to being deposited back into the certificate account, but you can choose instead to have it transferred automatically to your:

1) American Express Personal Savings account,

2) transferred automatically to a linked external account, or

3) mailed to you by check monthly, quarterly, or annually.

Partial withdrawals are not permitted. Early withdrawal policies for this bank are strict and the fees high, so do your best to wait until your certificate matures to withdraw funds or do so within the permitted window. There is a 10 day grace period within which you may deposit more money after issuance and make changes to your account after renewal. Here are all possible early withdrawal charges:

90 days’ interest for terms of less than 12 months
270 days’ interest for terms greater than 12 and less than 48 months
365 days’ interest for terms greater than 48 and less than 60 months
540 days’ interest for terms greater than 60 months

Keep in mind also that American Express reserves the right to deduct the difference from your principal if your CD does not have enough interest to pay the early withdrawal fee.

American Express Banking Experience + Customer Satisfaction

You won’t be able to withdraw or deposit savings account funds at in-network ATMs because an American Express Personal Savings account does not come with an ATM card and there is no Amex checking account. So really, these ATMs are for credit card users only.

The digital bank’s customer satisfaction is rather high. Out of 266 reviews on DepositAccounts, American Express Bank scored a rating of 4. Many reviewers go out of their way to mention the superior customer service—helpful representatives, reasonably short wait times, easy process, etc.—they have received with this bank and express their appreciation for the user-friendly online banking platform. Most have only good feedback for the company.

Unfortunately for those hoping to conduct their banking through a mobile app, the Amex mobile app is also only for credit card customers. Hopefully, though, you will agree with the majority of other users that say that the American Express online portal is convenient and easy to use.

To contact customer service—available 24 hours a day, 7 days a week—call 1-(800)446-6307, fax 1-(800)-542-0779, or send checks/correspondence to the below address: American Express National Bank P.O. Box 30384 Salt Lake City, Utah 84130

Are American Express Credit Cards associated with American Express National Bank?

A common question among current American Express credit card holders is whether or not their account and information are tied (or will be tied) to American Express National Bank if they choose to open a personal savings account or CD.

The answer to that is NO.

American Express Credit Cards and American Express National Bank accounts like the Personal Savings Account or any of their CDs are offered by two separate entities.

On top of that, the login credentials for your Amex card(s) and the login credentials for your personal savings account or CD will be separate and used for two different websites. These systems do not share any personal information, balance or transaction data with one another.

Final Thoughts

American Express Bank isn’t trying to replace your other banks by becoming your number one.

It doesn’t offer a checking account and it doesn’t have in-person branches. In fact, this institution will likely be more supplementary than anything else.

With that said, their longer term deposit accounts and personal savings accounts are fee-free and competitive, so if you’re after higher than average yields American Express National Bank may be worth considering.

20+ Best Debit Cards for Kids & Teens for December 2021

Lauren Graves
December 1, 2021

Full disclosure: We may receive financial compensation when you click on links and are approved for products from our advertising partners. Opinions and product recommendations on APYGUY are those of our writers and have not been influenced, reviewed or approved by any advertiser. Learn more about how we make money.

Although most banks and credit unions won’t let kids or teens open an account until they’re at least 18 years old, parents can set up sub-accounts from their current checking account that should provide a free debit card for their child.

However, many parents are choosing a prepaid debit card for their kid(s) rather than a debit card linked to a checking account for a couple reasons:

A debit card with a checking account is generally only available to teens (13 – 17) while kids’ prepaid cards are available to children as young as 6 years old.
Today, there are a plethora of prepaid options on the market that offer rich feature sets via an app. Things like chores and allowance features, fun quizzes, educational tools, parental guardrails on spending limits that can be customized for certain retailers, unique card art and even investment services are all features that can be found with today’s top offers.

If you’re in the market for a debit card for your kid or teen and want a comprehensive look at all of your options, then continue reading our guide below.

Greenlight Kids’ Debit Card

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.

Quick Facts:

Target Age: 8 – 22
Cost: $4.99/month for debit cards up to 5 kids. Free trial for 1 month.
For Parents: Chore management app, auto transfer allowance, pay interest on savings, send money instantly, real time transaction notifications, ATM parental controls, ability to switch card(s) on and off, retail and online store specific spending controls, open investment accounts for kids and approve every stock trade, and more.
For Kids: Set personal savings goals, get interest on savings, save your change with Round Ups, educational financial literacy app, invest in stocks (with parental approval), add funds via direct deposit (when employed), create custom card designs with photos, and more.

Greenlight is our best overall pick and certainly one of the most popular options out there. As of April of this year they have signed up more than 3 million people according to TechCrunch.

Greenlight lets you create a chore list that your child can work through to earn money and other perks. You can also set up automatic deposits on a weekly or monthly basis and if you ever need to fund their account quickly, 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 they are and are not allowed to use their money.

Your kids will be doing valuable learning themselves as they track their spending and savings 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.

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

Current Debit Card for Teens

Quick Facts:

Target Age: 13 – 22
Cost: $36.00/year per teen. Current premium accounts cost an extra $4.99/month.
For Parents: Receive notifications for all purchases, set spending limits, set chores, block specific merchants.
For Kids: No overdraft fees up to $100 with Current premium, receive paychecks up to 2 days early with Current premium, earn up to 15x points at over 14k locations across the US which are redeemable for cash in your Current account.

You and your child will both like the Current debit card for teens. They will like 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.

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

You can learn more by reading our comprehensive review of Current.

FamZoo Prepaid Debit Card

Quick Facts:

Target Age: 6 – 22
Cost: $5.99/month for up to 4 debit cards, $2 per card after that. You can also pay in advance for a year for $30. 1 month free trial available.
For Parents: Receive notifications for all purchases, set spending limits, move money between family members, IOU accounts to track how much you owe each kid, automated bookkeeping for allowance and chores, add loans to your kid(s).
For Kids: Financial literacy tools.

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. They can establish a payroll for their kids, loan money, set up automatic deposits, and even pay interest on savings.

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

BusyKid Visa Prepaid Spend Card

Quick Facts:

Target Age: 12 – 18
Cost: $19.99/year for 1 card. $7.99/year for each additional card.
For Parents: Chore management app that comes pre-loaded with chores based on your child’s age (which can be customized), link checking account and release funds once chore(s) are completed, match savings in child’s saving account.
For Kids: receive funds in 3 buckets – save, spend, share. Parents can match the funds in your ‘save’ bucket, invest in actual stocks, and support charities from the ‘share’ bucket. With parental approval, kids can purchase fractional shares of real companies like Netflix and Amazon.

If you have kid(s) between the ages of 5 and 16, you may be interested in the BusyKid Visa Prepaid Spend Card.

BusyKid uses a chores-based system that allocates money based on chores completed.

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 their finances.

You can read our review here if you’d like to learn more.

Copper Debit Card

Quick Facts:

Target Age: 18 – 22
Cost: $0
For Parents: Free debit card for kids and teens with digital checking account. Monitor activity with real time notifications, set up recurring deposits, request and send funds between linked accounts.
For Kids: Fun financial literacy quizzes built into the app, receive interest on your savings (albeit just 0.001% APY currently).

Copper is on a mission to create the first financially successful generation by giving them the tools and resources to take control of their financial futures.

Copper requires no minimum deposit to open and does not charge an annual fee, overdraft fees or maintenance fees which makes it one of the best fee-free offers out there.

[Update December 2021: Copper has seen consistent growth since their inception in 2020. They recently announced that they surpassed 400,000 members as of November 2021.]

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 review here.

Akimbo Prepaid Mastercard

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 kids have total control over their money but gives you the final say in what they can and can’t spend. Their account will be a sub account of your own, so you can decide how much money to put on it.

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 does have the essentials. You’ll be notified when they spend their money and, as the account manager, what they spend it on.

Each Akimbo account may have up to four 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

A MONEY teen checking account with Capital One is a great choice for kids 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 their card instantly.

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

American Express Serve Prepaid Debit Cards

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

It 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. As far as teen debit cards go, this is a bit steep. Also, a card is free to order online but may cost up to $3.95 if you go to a physical 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 which you can link to your own.

Alliant Credit Union Free Teen Checking

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. Teenagers 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. They can set their own budget 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 kids 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.

Gohenry Debit Card

The Gohenry 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 plus add chores with a price tag for each one.

You can also set limits on how much they spend in a given week and can change these as needed. They can save, spend, or donate their money to Boys & Girls Clubs of America. They can also set as many savings goals as they want for larger purchases.

A Gohenry account costs $3.99 per month each. 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.

Gohenry, a UK-based company with US operations, was one of the first to market with their offer when it launched in 2007. You can read our full review for more information.

Step Banking for Teens

Step is an app and card that is backed by founders with experience at Google and Square. Step has the standard functions of allowing parents to monitor spending and send kids money on the go.

Unlike some of the other offers on this list, Step also adds one of the best features of a kids’ credit card ie: the ability to start building credit early. The best part of this feature is that Step prevents your kids from spending more than they have while letting them establish a positive credit history.

Step’s banking services are provided by their partner-bank, Evolve Bank & Trust, which also allows Step to leverage their FDIC coverage.

Step accounts are protected by bank-grade encryption and authentication and because the debit card is a Visa it benefits from fraud protection and zero-liability guarantee. You can read our full review to learn more.

Family Money by Verizon

On June 15, 2021 Verizon announced the launch of Family Money, an app for kids to learn about personal finance. Verizon worked with fintech firm Galileo to develop the family-centric financial product and it comes with a “spending account,” a “savings vault” and a prepaid debit card for kids issued by Metropolitan Commercial Bank. Parents can monitor their spending activity from the app, set limits and stop or freeze the card if it gets lost or stolen.

Families that are not Verizon customers are still eligible for this product. It can be downloaded from the Google Play and Apple App Store. You’ll just need to create a Verizon Family Money account and link a verified bank account after you download it. Once you’ve done that, you’ll get a 30 day trial period.

At the end of the 30-day trial period, the service auto-renews for $5.99 per month (so be sure to set a reminder if you don’t plan on paying for it!).

The $5.99 fee, which includes up to 5 kids, will be debited from the parent’s Wallet in the app, not charged to your Verizon account (if currently a customer). You must be 18 years or older to create a parent profile in the app and Verizon states that kids accounts are designed for children ages 8-17.

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. They can open a linked Mango savings account with a deposit of just $25 and earn up to 6% APY (to qualify for this rate, they would need 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.

Till Financial

Till Financial is another new one on the list. This collaborative family banking platform is a savings and budgeting product first, but does come with a debit card that is attached to the child’s “Spend Balance” which is why we included it in our list.

Till was named the Best App for Teaching Teens to Budget in 2021 by U.S. News & World Report.

You can learn more about Till in our full review.

Visa Buxx Card

The Visa Buxx Card is a fairly basic debit card for kids and teens offered through Navy Federal Credit Union or TD Bank. For NFCU, you must first be a member of the credit union to open the Visa Buxx Card, but membership is available nationwide. Both offer parents the ability to reload the card from their phone as well as monitor spending. The Navy Federal Credit Union Buxx Card also has a few different designs to choose from whereas the TD Bank Buxx card does not.

Fidelity Youth Account

The Fidelity Youth Account was just launched in May of 2021 by the reputable financial services firm. It comes with a debit card – issued by PNC bank – and the ability to both save and invest. Kids and teens are limited to the type of securities they can invest in and the product comes with solid parental controls and features. You can learn more in our full review.

Chase First Banking

Chase First Banking is also 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.

Kachinga Prepaid Debit Card + Chore App

Much like the other offers on this list, the Kachinga prepaid debit card comes with a chore app where parents can track chore progress, set alerts and spending limits as well as teach kids general financial literacy.

The app + debit card costs $36 per year per child which is a little bit pricier than other options on this list with a larger feature set.

Mazoola Virtual Debit Card

The Mazoola Virtual Mastercard debit card for kids is managed by parents and comes with a flat subscription fee of $9.99/month for the whole family. They also have a 1% purchase fee and charge $0.11 as a loading fee which can make it a more costly product to use than the other options. You can read more about their fees in our full review.

As a parent you can activate a virtual and secure debit card for each child and create flexible and individual spending controls. You can also assign & track chores and the rewards for completing them and set up automatic allowance payments. You can also provide them with financial literacy resources, but you can not require them to read them before unlocking allowance payments. Wouldn’t that be neat. For kids, you can use Apple Pay, set savings goals, manage chores and shop online (with restrictions). You can also make p2p payments to friends and family.

Wingocard Prepaid Visa Card

The Wingocard just launched in May of 2021 and is gaining traction quickly with over 75,000 users on the platform so far.

They only have a mobile app on IOS at the moment however, but are looking to launch the android version soon.

Read more about this up-and-comer in our full review.

Goalsetter: Family Banking

Goalsetter and the Cashola debit card is an education based banking solution for the family. It comes with a savings account and different card art for kids to choose from. It also has some fun quizzes that can be tied to cash rewards and are mapped to financial literacy standards. “Learn before you burn” allows your tween to take quizzes before they get to use their debit card.

USAA Youth Spending Account

This one may not have all the bells and whistles like chore apps, financial literacy tools and quizzes, or the like, but it is a simple and free card that gets the job done if you’re just looking for basics.

It’s geared towards kids and teens ages 13 – 18, comes with a Visa debit card and has absolutely no maintenance fees or monthly fees of any kind. You’ll also get free ATM usage both in network and out of network, although 3rd party ATMs may charge you up to $2 per withdrawal. You can learn more about the USAA Youth Spending Account in our review.

Axos Bank First Checking Account + Debit Card

Like the USAA Youth Spending account, the Axos Bank First Checking account is a free checking account and debit card that keeps things simple and leaves most of the bells and whistles behind.

There are no chore apps, allowance distribution features, financial literacy tools and even limited parental controls.

That said, parents can still receive notifications of all purchases and can turn the card on and off from the dashboard. But you can not toggle with withdrawal limits as these are set by Axos bank, nor can you restrict certain merchants. For more information read our full review.

Movo Digital Cash Card

Although this is more of a general prepaid debit card than one specifically geared towards kids and teens, we put it on the list because of a unique feature for those who hold cryptocurrency and would like to convert it to cash.

MOVO Chain is a proprietary technology that allows you to convert your cryptocurrency to cash which can then be loaded onto your Movo prepaid digital cash card.

You must be at least 18 years old to get the card and use the crypto-to-cash feature, but kids and teens can be added as authorized users to a parent’s card. Learn more in our full review here.

Revolut Junior Prepaid Card

Revolut, based out of London, UK, and their debit card for kids is another option for families. Just note that this is one of the most expensive options on the market and doesn’t offer any features that most of the competitors do not.

Families with 2 kids or more can easily pay more than $100/year for these cards PLUS at least one of the parents or guardians has to already have an account with Revolut. On the off chance you fall in this category you’re likely better off with another option above. You can learn more about the Revolut card here.

Can You Get a Debit Card for Kids Under 13 Years Old?

Debit cards for kids under 13 are perfectly legal for banks and companies to issue, and ultimately up to the parents to decide.

It doesn’t matter whether a kid is getting money from an allowance, saving money they’ve received for birthdays or holidays, or earning an income from a job. It is common for kids to start earning money at around 10 or 12 years old, so this may be a good time to start thinking about kid-friendly debit cards.

Some financial products geared toward kids, such as the BusyKids Visa Prepaid Spend Card, permit users as young as 5 to join. More common, however, is a minimum age of 8 years old. There are also several cards designed specifically for teens that do not permit users under the age of 13 to create an account.

It may also be a good idea to wait until your child has had some experience handling cash to give them a debit card. This way, they will feel more comfortable keeping track of it and spending money in the real world – since they’ve had a warm up with cash.

Additional Features You May Want to Consider

You’ll want to have a conversation with your kid(s) about the responsibilities (and liabilities) that come with having a debit card and ultimately what you’re trying to achieve beyond just access to money.

Take a look at some additional features to consider.

Savings Account

Many debit cards for kids allow users to save and spend their money all under one account. They may do this by allowing users to choose how much of their money to put into savings and how much of their money to load to their card.

In such cases, the saved money does not go into a separate savings account and remains accessible at any time, but it can’t be immediately spent with the card.

This is the most basic way that a product may create savings opportunities, but there are a number of other additional features out there. For example, some debit card platforms give users the option of creating distinct savings goals and show them their progress.

Some products even let parents or account holders award bonuses when a user contributes to a goal they created or pay interest on balances. And if you want your child earning interest but would prefer not to pay it yourself, you may want to think about an interest-bearing product like the Mango Prepaid Debit Card (albeit savings rates are abysmally low at the moment).

On the opposite side of the spectrum, some products do not make room for this feature. With such platforms, if a child wants to save, they have to do so by refraining from spending. This may be much more challenging for them, especially if they are inexperienced with money management.

If encouraging your kids to hold onto their money and save it for larger purchases and goals is a priority, then a debit card and platform that encourages this in a variety of ways is probably best.

Allowance and Budgeting

How important is it to you to be able to pay your child an allowance and pay them for chores all in one place?

Chores are the focal point of many kids’ money management apps. Parents can assign chores for their kids to encourage them to take charge of their finances and kids can earn money for themselves and start to understand the importance of budgeting and restraint.

All this to say that financial products for kids, especially for young users between the ages of 6 and 13, commonly feature chores management capabilities. These vary in complexity. Here are some questions to consider as you review the choices:

Do you want to be able to require your kids to complete certain chores or give them a list of options to choose from?
Do you want to set fixed prices for every chore or create recurring chores that cost the same every time?
Do you want to approve chores as your child completes them or arrange for them to be paid instantly when they mark a chore as complete?

You may also pay your kids a fixed allowance each week instead of or in addition to paying them for individual chores. This ability is not guaranteed with all apps, so choose wisely.

And if you don’t want your child spending all the money they’ve earned in one place, you probably want a product with budgeting features. You may feel that setting spending limits for them is the best way to set them up for success in the real world. After all, no one knows better than you what is best for your child, and a lot of kids’ financial platforms agree.

Parental Controls and Safety

Have a conversation with your kid(s) and let them know minors are prime targets for identity theft. Most cards will only require the parent’s social security number but some may require the child’s as well. Be on the lookout for credit card applications that come for your child or unsolicited phone calls. Learn more at the FTC on how to protect your family against identity theft.

If monitoring your child’s activity and creating custom controls for their spending is important to you, be sure to look for a product that lets you easily do this.

You should also think about how involved you’d like to be. Start with the following questions:

Do you want to approve your child’s purchases and transfers or would you rather trust them to make good decisions?
Do you want to allow them to set their own budgets or create spending limits for them?
Do you want the ability to automate payments into your child’s account or do you want to initiate transfers each time?
Do you want to receive real-time push notifications of their activity?

Beyond just parental controls to help your kids grow into prepared and knowledgeable spenders, consider parental responsibilities too.

Most financial products for kids require parents or guardians to fund the account. Often, this means funding their own account, the main account, and transferring money into their children’s accounts from there.

This means you should also think about what funding options are most convenient for you. Read the fine print on every product. If you’re looking for a particular funding option, be sure that it is actually available (you may be surprised by how many accounts don’t allow cash reloads or direct deposit transfers). Some products are extremely limiting when it comes to funding and may only permit ACH transfers or card transactions.

Also look into how many account managers a product allows. If you and your co-parent want equal access to your child’s account, it is important to find a product that can give you this. Some have strict one-parent policies but others are more generous when it comes to adding more adult users and may even allow for the inclusion of other members of the family.

Introduction to Stocks and Investments

There aren’t a lot of financial products for kids that allow them to invest their money in real companies, but looking for only those that do can help you filter through the ever-growing list of options.

The Fidelity Youth Account and the BusyKid Visa Prepaid Spend Card made this list for a lot of reasons, but one of these was the ability to invest. Giving kids the opportunity to make investments can show them that there is more to money management than spending and budgeting. You can help them choose their investments or let them make their own investing decisions.

Charitable Giving

You may also like the idea of your child donating their money to charity. Apps that allow kids to donate typically do so by pre-selecting a number of reputable organizations and giving users the option of giving charitably to these. Users may then donate a percentage of their entire balance or make donations of fixed amounts.

Parents can decide to take it one step further by awarding account bonuses if their kid makes the decision to donate to charity for themselves. Some apps even let kids set up donation goals just as they would savings goals.

12 Best Stock Picking Services, Subscriptions, Websites and Apps in 2021

Rachel Morey
November 15, 2021

Many investors choose to pay for a stock-picking subscription to help them research potential investments. There are plenty of newsletters, stock-picking subscriptions, and investment information sites designed to help people who want to buy individual stocks make good decisions.

Whether you are new to stock market investing or you just want to make more informed decisions without dedicating your free time to researching stocks, a subscription to a stock picking service or stock information website could provide the boost you need to build a profitable portfolio of growth stocks.

Why Subscribe To A Stock Picking Service?

Paying for advice about which stocks to pick can be a great time saver. It’s crucial that you trust your source of information, however. Subscribing to a stock picking service requires an investment, which can be tough to justify if the service doesn’t have a long and dependable track record of choosing up-and-coming companies.

To get your money’s worth, you’ll need to take the service’s advice and buy the stocks they recommend. Stock picking services make the most sense for investors who already have some money in the stock market and have the extra money and confidence it takes to buy individual stocks.

Even with a stock picking service, you’ll need to know enough about how the stock market works to determine whether a specific stock is a good fit for your portfolio. If you are new to buying stocks, it’s wise to spend time learning about how other investors research stocks. The Khan Academy offers a great deal of free and unbiased education about stocks and bonds in their Finance and Capital markets section.

What To Look For In A Stock Picking Subscription

🥇 Track record: The stock picking service should produce returns for subscribers that purchase recommended stocks. Look for how the service’s choices performed compared to a benchmark index. Growth stocks should perform over time.

💸 Price: Some stock picking services cost thousands of dollars each year. Look for a modestly priced service; not one that you couldn’t cover the cost of with gains from your portfolio.

📈 Results you can reproduce: Some of the best-performing investments aren’t available unless you are an institutional investor. They may be able to buy stocks at a lower price before it goes public. If you can’t reproduce the results in your portfolio, the service has no value to you.

📚 Education: A good stock picking service doesn’t just periodically send you the names of stocks to buy. You should gain knowledge when you read about how and why they chose a specific stock. The service should help you build the skills you need to evaluate recommendations based on your unique criteria, investment goals, and risk tolerance.

Top 12 Stock Picking Services, Subscriptions, and Websites of 2021

Below are the best stock picking services we’ve found and evaluated for 2021. The services vary based on the type of investing and/or trading you intend to do.

Best Stock Picking Service for Buy and Hold Investors: Motley Fool Stock Advisor

Motley Fool Stock Advisor concentrates on well-established companies with the potential to create wealth inside a portfolio. In the past, they’ve recommended Disney, Amazon and Netflix among others.

Stock Advisor track record: During the past 17 years, Stock Advisor has done five times better than the S&P 500.

Subscribers can see every recommendation offered by Stock Advisor throughout the entire history of the service.

Stock Advisor investor returns vs S&P500.

What you’ll get with Stock Advisor: Access to the full history of Stock Advisor recommendations, “Starter Stocks” recommendations to help build a foundation of solid growth stocks in your portfolio, two new monthly stock picks, access to the service’s “10 Best Buys Now” list chosen from 300 stocks on the service’s watchlist, access to a community of like-minded investors.

Motley Fool Stock Advisor price: $99 per year after a 30-day trial period

Best for: Investors who want to buy stocks in established companies with the intention of holding those investments for at least five years

Motley Fool Stock Advisor may be a good fit for you if:

You prefer to buy and hold stocks
You want to invest in undervalued companies with a track record of success
You have money to invest at least $10,000 in the stock market and can continue to add new stocks to your portfolio each month

Learn More

Best Stock Picking Service for Finding Undervalued Stocks: Motley Fool Rule Breakers

Motley Fool Rule Breakers is one of several subscription stock picking services provided by the financial media company. They recommend stocks in emerging industries that have a sustainable advantage along with competent management. Rule Breakers’ advisors look for companies with strong consumer appeal that are currently undervalued.

Rule Breakers Basics

Motley Fool Rule Breakers track record: Rule Breakers has a 15-year track record of beating the market.

Rule Breakers investor returns vs S&P500.

What you’ll get with Rule Breakers: Starter Stocks list to help establish a portfolio, five “Best Buys Now” stock recommendations per month, and two new stock pick recommendations per month.

Motley Fool Rule Breakers price: $99 per year after a 30-day trial period

Best for: Investors who want to consistently invest in growth stocks

Motley Fool Rule Breakers may be a good fit for you if:

You prefer to buy and hold stocks
You have enough disposable income to invest in at least two new stocks each month
You are financially stable enough to invest and hold stocks for at least five years

Learn More

Best Stock Picking Service for Day Traders: Trade Ideas Premium Plan

The Trade Ideas Premium Plan uses an artificial intelligence (AI) assistant to help subscribers research potentially lucrative investments. The AI assistant runs more than one million simulated trades using over 70 proprietary algorithms each night before the markets open.

Scan results, curated by real people before they become official stock picks on the Trade Ideas platform, include the method used to choose the stock, why it may perform well and how to find similar stocks.

A live simulated reading room allows subscribers to see how the stock-picking service’s recommendations perform without risk. Users have access to real-time streaming ideas to facilitate skill-building.

What you’ll get with Trade Ideas Premium Plan: Price alerts, Trade of the Week newsletter, five new trade ideas each Sunday night, Rules-based virtual trading room for active traders and long-term investors, fully-functioning AI assistant (Holly) that you can connect to your separate brokerage account to execute trades automatically.

Trade Ideas Premium price: $2,268 per year or Standard for $1068.

Compare features below:

Best for: Long-term investors and day traders who want access to robust technology and also want to learn how to invest

Trade Ideas Premium Plan may be a good fit for you if:

You have an established portfolio and plan to purchase larger volumes of stocks
You want to learn how to invest and trade using a simulated trading platform
You are comfortable allowing technology to execute trades on your behalf
You are currently engaged in day trading or are interested in learning more about how to become a successful day trader

Best Stock Picking Service for Fundamental Investors: Zack’s Investment Research Premium Subscription

Based in Chicago, Zack’s Investment Research offers constant monitoring of stocks to help investors decide whether to buy, hold, or sell individual investments. You can access the investment research software on Zack’s Investment Research site for free. Bull and Bear of the Day provide insights about two stocks (one Bull and one Bear) to help investors decide which stocks to hold or buy and which to sell.

Zack’s rates stocks from one (strong buy) to five (strong sell) along with ratings for value and growth and momentum. Subscribers can enter their current stocks and funds to get up-to-date ratings 24/7.

What you’ll get with Zack’s Investment Research: Focus List including long-term stock recommendations, Equity Research reports, Custom Stock Screener, and The Zacks #1 Rank List.

Zack’s Investment Research Premium track record: Stocks rated as a #1 Strong Buy beat the S&P 500 by more than 14% (on average) for the past three decades. Stocks rated as a #5 Strong Sell underperformed the market by 8%.

Zack’s Investment Research Premium price: $249 per year after a 30-day trial

Best for: Fundamental investors

Zack’s Investment Research may be a good fit for you if:

You have an active portfolio and aren’t afraid to buy or sell stocks to maintain growth
Have the experience and knowledge needed to make independent decisions about your portfolio
Are willing to devote time and money to the pursuit of creating a profitable portfolio

Best Stock Picking Service App for Momentum Investors: Seeking Alpha App Premium Subscription

Seeking Alpha’s app provides comprehensive investment news along with the opinions of thousands of experienced traders. Subscribers to Seeking Alpha’s Premium Tier app can opt into push notifications, email alerts, and texts to stay on top of breaking news in the world of stock market investing.

Premium subscribers can create watch lists using the stock tracking portion of the app to get a custom feed.

Seeking Alpha Premium App track record: Quant performance beats the market by four-to-one, stocks rated as very bullish created a 1,369% return over the S&P 500 and had an average annualized return of 29%.

What you’ll get with Seeking Alpha Premium app subscription: Stock quant ratings, stock dividend grades, author ratings, author performance, unlimited access to all Premium content, watch list creation, news alerts, fewer ads than the free limited version of the app, and conference call transcripts.

Seeking Alpha Premium app price: $19.99 per month

Best for: Research-driven investors

Seeking Alpha Premium app may be a good fit for you if:

You want original stock news (not news-aggregator)
You want to interact with other investors about strategy
You base your investment decisions on ideas from other investors and original news

Read our full review of Seeking Alpha here.

Best Stock Picking Service For Comprehensive Investment Analysis: The Maley Report

The Maley Report offers no-frills information about stocks, including fundamental, macro, and technical analysis. Matt Maley has more than 35 years of experience trading on Wall Street and is now a market strategist at Miller Tabak + Co. Subscribers to The Maley Report have access to his analysis of what’s happening in the stock market.

What you’ll get with The Maley Report: Aggregates of Matt Maley’s videos, blog posts, and trade alerts, educational resources to help investors learn Maley’s strategy, a regular email newsletter with an overall outlook on the market and discussion of what’s to come.

The Maley Report price: $49 per month or $490 per year with a 30-day money-back guarantee

Best for: Fundamental investors

The Maley Report may be a good fit for you if:

You want actionable stock insights based on a number of factors
You want information from an experienced investor willing to discuss his methods for choosing high-performing stocks

Best Stock Picking Service For Active Traders: Pilot Trading

Pilot Trading uses artificial intelligence to watch other day traders in real time and make predictions about how the market may change from one minute to the next. Subscribers can create a custom watchlist or choose a pre-made one in the app. Link to a brokerage account to use the stock research app and make trades through the app.

What you’ll get with Pilot Trading: Information about real-time trading activity, alerts when market sentiment shifts, and the ability to link brokerage accounts.

Pilot Trading price: $19.95 per month after a 14-day free trial

Best for: Forex, futures, crypto, and stock traders

Pilot Trading may be a good fit for you if:

You are an active trader interested in cryptocurrency investment, futures, or forex
You want in-app trading that connects to stock trading platforms

Best Stock Picking Service For Day Traders: Scanz

Scanz offers two ways to get information to inform day trading activity. The Scanz News Streamer offers SEC filing on NASDAQ, NYS, and AMEX alerts. It also provides two broker integrations and streaming charges. The Trade Scanner offers Level 1 and Level 2 data on NYSE, AMEX, and NASDAQ with unlimited watchlists, a montage window, streaming charges, and breakout alerts.

Subscribers can choose between the services or bundle them to get a discount.

What you’ll get with Scanz: Access to customized alerts for price changes, percentage changes, volume changes, and important company news.

Scanz price: $79 per month for news only, $99 per month for scanner only, $149 per month for news and scanner; seven-day free trial

Scanz may be a good fit for you if:

You are an active day trader who wants up-to-the-minute breaking news that’s curated to help you reach your goals
You want to filter stocks based on a predetermined set of criteria, including penny stocks

Best Stock Picking Service For Penny Stock Day Traders: Tim Alerts

Tim Alerts is a platform created by Tim Sykes. The successful penny stock investor started with just $12,000 and in about ten years became a multimillionaire. Skyes started Tim Alerts to help penny stock investors learn how to make money in the stock market by purchasing penny stocks. The platform provides finance services, training for retail investors, and educational content.

What you’ll get with Tim Alerts: Access to a chat room with a paired trading app, daily penny stock picks newsletter with stock watchlists, and customizable push notifications.

Tim Alerts price: $679 per year

Best for: Penny stock traders

Tim Alerts may be a good fit for you if:

You are curious about investing in penny stocks and want to learn from someone with documented and ongoing success
You want daily stock picks delivered to your inbox
You learn best by interacting with other investors

Best Stock Picking Service For Income Investing: AAII Dividend Investing

AAII Dividend Investing provides direction to investors who want to build a portfolio of dividend-paying stocks. The platform provides subscribers with research and information produced by its proprietary stock picking process. AAII searches for and highlights stocks providing a mix of asset and yield quality. It also looks closely at recommended company’s management teams to make sure that the stock is likely to pay out dividends for years to come.

What you’ll get with AAII Dividend Investing: Access to a target portfolio with a mix of Geographical Exposure and GISC Sector investments, weekly webinars, and access to weekly stock ideas and the lead analyst.

AAII Dividend Investing price: $2 for the first 30 days and then $199 per year or $359 for two years

Best for: Dividend investors

AAII Dividend Investing may be a good fit for you if:

You want reliable information about low-risk dividend-paying stocks
You want instant access to the information you need to build a portfolio with fully vetted dividend stocks

Best Stock Picking Service For Swing Trading: Mindful Trader

Mindful Trader helps swing traders make confident decisions about when to buy and sell stocks. Short-term movements in the stock market can be hard to follow, even for devoted traders. Mindful Trader offers up to 15 text or email alerts each week to help traders manage an active portfolio of investments.

What you’ll get with Mindful Trader: Stock trade alerts via text and email, between five and 15 trade alerts each week, clear guidance about when it may be smart to open or close positions, and historical data on every recommended trade since Mindful Trader’s inception.

Mindful Trader price: $47 per month; cancel anytime

Best for: Swing traders

Mindful Trader may be a good fit for you if:

You want an easy way to take advantage of quick movements in the market
You want access to live positions in a portfolio with historical data

Best Stock Picking Service For REIT Stocks: Millionacres Real Estate Winners

Investors involved in real estate investing and REITs may find that the valuable and condensed information included with a Millionacres Real Estate Winners subscription helps them level up their investing game.

Millionacres Real Estate Winners aims to help investors understand the complicated world of real estate investment with recommendations and stock picks to help you create a portfolio of money-making stocks.

What you’ll get with Millionacres Real Estate Winners: Investing ideas with guidance on how to get started in the real estate market, monthly new stock recommendations, updates on previously recommended stocks, “Top 10 Investment Alerts” quarterly, unlimited access to education resources on the Millionacres site.

Millionacres Real Estate Winners price: $149 per year

Best for: Buy and hold REIT investors and those curious about getting started with REITs

Millionacres Real Estate Winners may be a good fit for you if:

You are a beginning investor interested in making successful REIT trades
You are an experienced investor seeking bit-sized monthly investment alerts about real estate equities and REITs to support your current trading activity
You want to use real estate investments to create a portfolio that produces consistent and reliable results for years to come.

Bottom Line

Stock picking services should help you build the skills you need to make independent decisions about your portfolio. Even if you only subscribe to a single stock picking service, it’s wise to gather information from a number of sources before you decide to buy or sell any single stock. Many of the services listed here offer free information and resources. Always research stock picks on your own and make sure they are a good fit for your portfolio.

If you decide to try out a stock-picking service, take full advantage of the service during the free trial (if there is one) before you commit.

Top 11 Crypto Savings Accounts for November 2021

Jeremy Wagner
November 6, 2021

Earn between 3.20% and 12% APY on your crypto holdings.

Bitcoin started November out just above the $60k mark and has held steady since. The rally was sparked last month when FED Chairman Powell stated he has ‘no intention’ of banning cryptocurrency.

So if you own some cryptocurrency yourself, then you may be interested in a crypto savings account to give these holdings an added boost in earning power.

These types of “savings accounts” or “interest accounts” are relatively new, as with crypto itself, but the rate of return is eye-catching and certainly puts the top yields issued by FDIC-insured banks to shame.

That said, while these products can be exciting, they do come with underlying risks that typical savings accounts offered by banks or credit unions do not. So, if you’re considering investing in cryptocurrency just for the high yield, then you may want to conduct further research to see if these digital currencies are right for you. But if you already own crypto and want to get a fabulous interest rate on these holdings, continue reading our comprehensive guide below.

BlockFi – Best Overall

November 2021 Bonus: Get up to a $250 in crypto with a deposit of $100 or more into a BlockFi interest account!

Learn more here.

Plus, earn up to 9.5% APY (annual percentage yield) on stablecoins, 4.5% APY on bitcoin and 5.0% APY on Ethereum with BlockFi!

BlockFi is a crypto custodian that was founded in 2017 and just landed $350 million in funding (March 2021) which pegged the company at a $3 billion valuation.

This platform has exploded in growth since their inception and currently offers retail and institutional-facing products.

On the retail side of its platform, people can use its mobile app to earn a yield on their crypto holdings (4.5% on Bitcoin, 9.5% on stablecoins). You can currently earn impressive yields on the following:

BTC,
ETH,
LTC,
PAXG
USDC,
USDT,
GUSD,
PAX

The BlockFi interest account features rates up to 9.5% on stablecoins and 4.5% on bitcoin. Sign up here and get the $250 bonus too!

The lowest APY BlockFi offers is just 0.10% for deposits greater than 0.35 BTC. The more Bitcoin you deposit, the less interest you earn with BlockFi.

BlockFi Complete APY Chart (APY = annual percentage yield).

Crytpo	Amount	APY
BTC (Tier 1)	0 – 0.10	4.5%
BTC (Tier 2)	0.1 – 0.35 BTC	1%
BTC (Tier 3)	0.35 BTC +	0.10%
LINK	0 +	3.5%
ETH (Tier 1)	0 – 1.5 ETH	5%
ETH (Tier 2)	1.5 – 50 ETH	1.5%
ETH (Tier 3)	50 ETH or more	0.25%
LTC	0 +	4.75%
USDC	0 +	9.0%
GUSD	0 +	9.0%
PAX	0 +	9.0%
PAXG	0 +	3.25%
USDT	0 +	9.50%
BUSD	0 +	9.0%

You can learn more about how BlockFi’s interest works on their website, but in a nutshell they generate interest by lending your assets to trusted institutional and corporate borrowers for a certain period of time. They only lend the crypto on over-collateralized terms with an automated risk management system that monitors positions 24/7.

Get a $250 Bonus when you deposit just $100 or more in crypto with BlockFi! Limited time offer.

Coinbase – Best for Newbies Holding USD Coins

[October 2021 Update: Coinbase dropped their interest rate products.]

~~Earn up to 4% on USD coins.~~

Coinbase is one of the most well recognized brand names for holding and trading cryptocurrency.

The coinbase digital wallet lets users earn up to ~~0.15% on their idle USD coins~~ while you wait to make new trades. You also have less restrictions when it comes to withdrawing funds in your Coinbase digital wallet as Coinbase doesn’t loan your USD coins out to borrowers.

Celsius Network – Best for High Yield + Sign Up Bonuses

The Celsius Network offers noteworthy yields and even sign up bonuses, however, the very best rates can not be attained by U.S. residents.

Celsius has a loyalty rewards program that pays rewards in tiers with its own native currency (the CEL token). Those in the rewards program have access to Celsius’s highest rate of 17.78% however, the rewards program is not currently offered to U.S. residents. We will update this post when/if that changes.

APYs for U.S. residents range from 0.50% to 17.78% APY.

There are no minimum deposit requirements and interest payments are made weekly.

There’s currently a number of sign up bonus for new customers that transfer their crypto over to the Celsius network!

Here’s some of the promotions going on in October to give you an idea (see full list here):

Transfer $400 or more of PAXG to your Celsius account and receive $60 in PAXG
Transfer $25,000 or more of PAXG to your Celsius account and receive $600 in PAXG
Transfer $400 or more in UNI to your Celsius account and receive $60 bonus in UNI
Transfer $400 or more in BNB to your Celsius account and receive $40 bonus in BNB
Transfer $100 or more of any supported asset(s) to your Celsius account and receive $10 in BTC
Transfer $400 or more of any supported asset(s) to your Celsius account and receive $50 in BTC
Transfer $400 or more in ADA to your Celsius account and receive $40 in ADA
Transfer $20k or more in ADA to your Celsius account and receive $500 in ADA

Linus – Best for Liquidity

Earn up to 4.5% APY + withdraw funds at any time with Linus.

If you’re looking for a solid rate plus easy access to your funds and limited withdrawal restrictions then Linus might be your best bet.

Many crypto savings accounts come with fees or restrictions when you attempt to withdraw funds prior to a specific date. This is not the case with Linus. Linus differentiates itself by allowing their customers to withdraw funds at any time, penalty free. If you need help, humans are available via online chat.

Linus provides an interest rate of 4.5% APY on your crypto stash. Linus generates interest by lending your assets to borrowers via smart contracts.

Crypto.com – Best for Cryptocurrency Diversity

Earn between 3% and 14.5% APY with Crypto.com.

If you hold some cryptocurrencies that aren’t the major household names and would like to earn interest on your holdings, then Crypto.com might be a good place to look. They currently offer great interest rates on the widest range of cryptocurrencies which currently feature 26 cryptocurrencies and 8 stablecoins.

Here are some of their rates for cornerstone crypto currencies this month:

Bitcoin – up to 8.5% APY
Ethereum – up to 8.5% APY
USDC – up to 14.5%

Simple daily interest is applied and deposited into your account weekly. Rates depend on the term of your deposit which can be flexible (you can withdraw anytime) up to 3 months long.

Nexo – Best for Rapid Payments

Earn up to 12% APY (paid daily) with Nexo.

Nexo’s claim to fame is limited lock-up times of just 24 hours or less. That means your interest payments are paid out daily.

Nexo has already racked up over 1 million users since its inception in 2017.

Nexo also has $375 million in insurance on all custodial assets.

There are no monthly fees or minimum deposit requirements to open an account.

Outlet Finance – Best for Dealing in US Dollars

If you do not study cryptocurrency trends but still want to dabble in the space and earn a handsome return while you do it, then Outlet Finance may be your best option.

You don’t need to know much about Crypto with this platform as they deal with U.S. dollars. Users deposit funds in USD and users earn interest in USD.

How it works: Outlet Finance converts your investment to stablecoin and then connects it with their overcollateralized lending partners, matching it with the highest yield.

Overcollateralized means their partners must put up 120% of their loan request. In the event that they default, this gets liquidated to pay the investor (you) which helps mitigate your risk.

The company advertises APYs up to 6%.

YouHodler – Jack of All Trades

YouHodler is a Swiss company that gets its name from the playful misspelling of the word “HOLD” which later utilized the acronym “Hold On for Dear Life” and was adopted by the investment community as a term to ‘hold’ or not sell your investment.

It makes sense then that YouHodler is designed to help long term crypto holders get additional earnings from their holdings.

YouHodler boasts yields between 3% and 12.3% depending on currency and investors can get started with as little as $100.

We awarded this platform with the Jack of All Trades title because it excels in most categories consumers care about: 1. Access to funds / liquidity. 2. High paying yields. 3. Diversity of coins accepted. Savings accounts and exceptional APYs are offered on 22 cryptocurrencies currently with YouHodler.

Interest payments are paid every week.

Gemini – Best for Security

Gemini claims to be operating with a security-first mentality since day 1.

Once you deposit your crypto with Gemini the majority of it is held in their “offline, air-gapped cold storage system” which helps prevent theft by hackers and/or malware. Only a small portion of your deposited crypto will be held in their online “hot wallet” and it is insured. You can get a full rundown of their security measures here.

APYs range from 1.54% to 8.05% depending on currency.

Interest is paid daily.

CoinLoan – Security and Safety Runner-Up

CoinLoan is an Estonian firm that specializes in security and safety like Gemini.

They also do a great job in supporting a wide range of cryptocurrencies, which currently sits at 17.

Their APYs range from 5% to 12.3% depending on cryptocurrency.

There are no minimum deposit requirements and interest is paid monthly.

Hodlnaut – Runner-up for Liquidity

Hodlnaut is another play on words with the term HODL, which is a common misspelling for HOLD plus the word Astronaut, to get Hodlnaut.

They are based out of Singapore and only accept deposits in 5 cryptocurrencies currently. These are BTC, DAI, ETH, USDC and USDT.

Hodlnaut does not currently hold any regulatory licenses in Singapore but is applying for them under the new regime. Visit their FAQ section to read more.

Interest is paid out weekly, every Monday.

APYs range from 6.2% to 12.73% depending on cryptocurrency.

What are Crypto-Based Savings Accounts

Before you open a crypto-based savings account it is probably a good idea to fully understand what these products are and how they differ from traditional savings accounts.

First, these accounts provide a yield on your crypto holdings, not U.S. dollars. There are several crypto banks offering fantastic APYs (annual percentage yields) on the USDC coin which is pinned to the U.S. dollar and generally trades in parallel, but it is not the actual USD.

In fact, these accounts should be viewed as investments rather than savings accounts, because that is really what they are at their core.

You invest in crypto currency and then lend out your keys to a third party in exchange for interest.

The precise activities going on under the hood with your crypto keys vary depending on which platform and account you choose.

We’ll touch on the mechanics and risks to these investments further on, but first, aside from the high interest rate, let’s look at some of the positive impacts crypto savings accounts are having to the overall cryptocurrency economy.

For starters, it’s an automated way to grow crypto portfolios over time. For example, if you are already fully invested in bitcoin, you can deposit that bitcoin into a crypto savings account and earn additional interest paid in bitcoin.

Also, crypto savings accounts continue to be an on-ramp for getting people to deposit their USD, CAD, AUD, and GBPs and convert them into a crypto savings account. By drawing in more participants to the crypto economy, greater liquidity can be attained leading to eventual price stability for the new asset.

Also, long time holders of crypto are incentivized to move their crypto out of storage and into the markets facilitating adoption and helping innovate new use cases for crypto.

In the end, interest rates are important in financial markets because they fill the gap between people with surplus assets they can’t use and the people who need the assets because they have a productive use. High interest rates being offered can be seen as demand for the underlying crypto assets.

How Much Can You Earn with Crypto-Based Savings Accounts

There are two main factors that are going to affect your overall earnings (or losses) from a crypto-based savings account:

The cryptocurrency’s price in U.S. dollars.
Interest rate paid on your crypto savings account(s).

The first main factor is likely going to be the biggest variable in determining your overall gains or losses. This becomes a bigger risk if you hold your savings account for a long period of time.

Cryptocurrencies are highly volatile, un-regulated, risky investments that are not backed by the government like standard currencies are. Therefore, if the cryptocurrency you are holding in your savings account goes down in value while your crypto savings account is active, it is quite possible to lose a portion of your principal.

This is a similar concept we discussed with the inherent risks of foreign currency CDs, where a great interest rate can be negated entirely if the currency you are holding goes down in value against the U.S. dollar.

The second variable is APY paid on your crypto savings. This varies widely on a number of factors.

Currently some of the top crypto banks outlined in this article are paying between 3.2% and 12% APY. To put this in perspective, the average savings account yield sits at just 0.05% APY according to recent FDIC data.

Who are these providers I’m lending my keys out to?

Exchanges and lenders are the businesses who take your keys and lend your crypto assets to others. These institutions will loan out the crypto assets to other borrowers who may be individuals or institutions who need liquidity and don’t want to sell their cryptocurrency. Most traditional banks are unwilling to take crypto assets as collateral for a loan which has opened the door for these exchanges and crypto lenders.

Currently, interest rates are relatively high as users can earn up to 12% in some cases. Additionally, by offering the high yield it helps attract and on-board more people into the crypto economy. This is because in order to earn the high rate of interest, you need to convert your fiat currency over into bitcoin or another cryptocurrency to get started.

That high rate of return has likely succeeded in attracting more people into the crypto economy. According to Statistia, 20 million bitcoin wallets were created from February 2020 to January 2021. This represents a 43% increase from the number of wallets a year ago.

Why would a business want to borrow at 8-12% annual interest?

It is great that savers like us get to benefit from earning a high interest rate. Who would be willing to pay 8-12% annual to borrow the cryptocurrencies?

Institutions are a large driver of crypto borrowing. If they have a mismatch on the timing of their debits and credits, they can park collateral with the lender, then pull out a short-term crypto loan to fund the mismatch.

Market makers and crypto dealers are a great example of this. If you make a large buy order of bitcoin, the market maker or dealer probably does not have bitcoin as it is highly unlikely somebody else is selling to them that exact amount at that same time. These market makers want to be neutral and not be exposed to a directional risk in bitcoin.

Therefore, they will take on a short-term loan of bitcoin until sell orders come in. At that point, they will repay the loan back with their new sell orders from their clients.

As another example, one of the benefits of cryptocurrency investment is the decentralized marketplace. There are many different places you can go to buy, sell, and exchange your crypto.

As a result, the pricing of bitcoin (and other cryptocurrencies) may not be EXACTLY the same and might vary by 1% or so at each of these venues. Arbitrage traders will look to profit from the difference in pricing from the various locations.

However, those arbitrage traders might not have the right cryptocurrency located at the venue where the mismatch occurs. Therefore, these traders would take on a short-term loan in their needed cryptocurrency to take advantage of those pricing dislocations.

The amount of interest the arbitrage traders pay in a year might be earned through their business in a few short weeks. Even though 8-12% of interest payable per year sounds like a lot, some business models are happy to pay for it which is to the saver’s benefit!

Lastly, some investors who feel the price appreciation of bitcoin or ethereum will be multiples greater than the 8-10% of interest they pay. As a result, they will consider depositing their crypto as collateral, then taking a US dollar loan out. They will then turn around and buy more crypto with the US dollars lent to them. As you can imagine, that is a risky move as you would be betting on the crypto you are purchasing will be more valuable later when you repay the loan. That is not always going to be the case.

Risks Associated with Crypto Savings Accounts

Though a crypto-based savings account has its benefits, there are risks of loss to investing in it. Let’s explore seven risks associated with these investments.

Exchange Rate Risk

Risk that the value of the underlying crypto goes down relative to your base currency (USD, GBP, etc). The value of a cryptocurrency is not backed by the government and is not legal tender. Additionally, the accounts to where the crypto is placed to earn interest are not subject to FDIC, SIPC, or other guarantees. If something happens to that cryptocurrency that would cause it to lose its underlying value, then you would lose your principal invested amount.

There are several different types of cryptocurrencies to earn interest on. The value of cryptocurrencies like bitcoin and ethereum are volatile and can easily lose their value quickly. Many crypto savings accounts pay their interest in crypto so not only is your underlying principal losing value, but the interest you are earning has less real value too. Of course, the opposite of that is true when you have an appreciating underlying asset.

As a result of volatile valuations, savors like to use stablecoins in their crypto savings accounts.

Risk of the Stablecoin Peg Breaking

Stablecoins are designed to hold a stable relative value to another asset, like the US dollar. If the stablecoin cannot hold its value relative to the assigned asset, then investors would lose trust in the stablecoin causing its value to potentially collapse.

It is important to note that not all stablecoins were created equal. Some stablecoins are centrally managed and promise to have US dollars locked away, in a vault with regular audits completed.

Other stablecoins are decentralized and are managed by computers and computer code rather than humans. It could be argued that each of these types of stablecoins bears their own unique risks.

In the former, the central institution could break their promise and mismanage the business causing the peg to the US dollar to break. In the case of the latter, an error in the coding could be discovered in the future that causes a break of the peg against the US dollar.

In case there is a break in the peg, investment may flee that stablecoin potentially causing loss of principal.

Lock Up Risk

Some crypto savings accounts are very flexible where you can withdraw at any time. Other crypto interest accounts may have lock up periods or additional fees for excessive withdrawal activity. Generally speaking, the more restrictive accounts will offer the higher interest rate while the more flexible accounts tend to offer the lower interest rates. Make sure to ask questions about a lock up period, withdrawal restrictions, and any additional fees before committing.

Pledge Risk

You no longer control the crypto and are pledging it as collateral. For example, when you deposit at a bank you are staking a claim to a bank’s liability. It is a similar situation with the crypto savings account (minus the government protections). If the crypto provider goes under due to a mismanagement of their business or an adverse market event, you will not be able to get your bitcoin or cryptocurrency back. This is because when you deposit the crypto into the savings account, you no longer own the crypto.

Loan Default Risk

If the value of the collateral backing the loan falls and is insufficient to pay back the lender, the load could be defaulted upon. Though this is a real risk, most crypto loans tend to be overcollateralized which greatly reduces the risk.

In other words, it is common for borrowers to maintain collateral equal to 150% of the loan amount. Therefore, if the value of the collateral decreases due to adverse market conditions, there is typically enough cushion to support the loan. It gives the borrower time to repay the loan or for the loaner to liquidate the position on the open market. The loan default risk could come into play if a rally harsh market correction drove the value of cryptocurrencies very low very fast. In essence, markets would have to crash 50% in a matter of minutes what hasn’t happened…yet.

Risk of Custodian Hack

A large risk factor is if the lending company’s custody provider (where the assets are stored) gets hacked. If you are utilizing an exchange’s crypto savings account, it is possible that a theft could occur due to a hack at their custodian.

Many people who are new to cryptocurrency are afraid of the blockchain getting hacked. However, the risk of a hack is not actually to the blockchain, but rather the institution’s security (or smart contract, see below) which is different from the blockchain.

It is important to understand that the ‘hack’ risk is increased when you are dealing with a newer institution or an institution whose investment in security is not as strong as others.

Typically, institutions that have been around longer tend to be stronger as they have stood the test of time.

Smart Contract Risk

Decentralized finance (Defi) lenders use automated coding called smart contracts to loan and allocate capital. This coding is viewable by everyone so it is quite transparent. Everyone is incentivized to make sure the coding is solid.

However, a previously undiscovered error in a smart contract may open the door for a hacker to find their way in. For example, a loophole in the code may cause the lender to lose the funds.

This has some similarities to the custodian hack risk as newer untested lenders may not have had their smart contracts battle tested. Though not exempt from the risk, lenders who have been around longer and whose products have stood the test of time are generally less likely to be exposed.

Crypto Savings VS Traditional Savings

Despite having the name ‘savings account’ in their title, crypto-based savings accounts have some very distinct differences from traditional savings accounts.

Above, we have touched on some unique qualities and risks to crypto-based savings. Below, we’ve outlined a side-by-side comparison.

	Traditional Savings	Crypto Savings
FDIC Insurance	Yes	No
Withdrawal Allowance	Generally unlimited	Can be Limited
Interest Calculation	Usually Compound	Usually Simple
Interest Deposited Best APY	Monthly ~0.3%	Daily or Weekly ~12.0%

FDIC Insurance

Variable rate deposit accounts including savings accounts, checking accounts and money market accounts opened with traditional banks or credit unions come with FDIC insurance (or NCUA insurance for credit unions) that protect your funds in the case of institutional insolvency while your money is held there.

FDIC and NCUA insurance cover deposits up to $250,000 per individual or $500,000 on joint accounts.

This is not the case with crypto-based savings accounts where it is possible to lose money – both interest and principal. Crypto investments are not covered by government insurance and are not considered legal tender.

However, many crypto institutions will provide insurance for certain risks of loss. Unfortunately, the biggest risk to loss is the exchange rate risk, which is uninsured. The exchange rate risk is why many crypto-based savers utilize stablecoins as they pin the value of the cryptocurrency to a standard fiat based currency (for example – USD, CAD, AUD, GBP).

Withdraw Limits

Per federal regulation D, variable rate deposit accounts at banks and credit unions no longer have limits to the number of transfers as of April 2020. The previous limit of 6 transfers was lifted in April 2020 as Covid-19 caused millions of Americans to lose their jobs, struggle to pay bills and needed to draw upon their savings in a time of crisis. Double check with your institution so you know what their limitations are so as to avoid excess transaction fees.

Crypto savings accounts, on the other hand, can have tighter restrictions on withdrawing funds. Some crypto-based deposits are contractual and you have to keep your deposit on hand for a certain time period limiting your ability to withdraw. Other crypto-based deposits may be flexible, but offer a lower rate of return for that flexibility. Lastly, some institutions charge set up fees too.

As crypto-based savings accounts are a relatively new product, regulation surrounding them hasn’t been established so check with the institution regarding their limitations and fees before making your deposit.

Interest Calculations and Interest Deposits

Another major difference in these accounts is how interest is calculated and when your interest gets deposited.

Most banks and credit unions compound interest daily, weekly or monthly on your deposits. Compounding interest allows for the interest you’ve accrued to also earn interest.

With crypto-based savings accounts however, simple interest is generally applied. That means your initial principal is the amount to which interest calculations are made.

One interesting advantage to crypto-based savings accounts is that many institutions actually deposit your interest in shorter time increments like daily or weekly rather than one interest deposit per month seen by banks and credit unions. This quicker release of the interest allows you to put it to use more quickly.

Final Thoughts

If you already hold cryptocurrencies, then moving your funds into an interest bearing account is a great strategy to earn while you hold.

That said, if you’re considering investing in cryptocurrency because of the enticing APYs you see on the savings side, be sure you fully understand the inherent risk of these highly volatile digital currencies.

You’ll also want to study each account and crypto bank carefully as terms and conditions, interest rates, minimum deposits, types of cryptocurrencies needed and lock-up periods vary widely from account to account.

If you’re typically a conservative saver that generally invests in traditional CDs, savings accounts, money market accounts and the like, then these accounts probably aren’t going to be for you. They are also not a wise place to stash emergency funds or any funds you may need to convert to cash quickly.

Also keep in mind these are variable rate accounts that are subject to change at any time without notice.

Best Real Estate Crowdfunding Platforms: Compare Yields

Rachel Morey
November 4, 2021

Real estate crowdfunding provides investors with a new way to diversify their portfolios by investing in real estate. Some crowdfunding sites offer non-accredited investors access to investments that may have previously been available only to wealthy or knowledgeable individuals.

Real estate investing (like many other types of investing) is risky. Real estate investments don’t necessarily follow the ups and downs of the stock market, which is part of their attraction. In a portfolio with many different investment types, real estate could help protect investors from the stock market’s volatility.

Investors who would like to experience the potential advantages of real estate investing without having to finance, own, and manage properties may find the idea of real estate crowdfunding appealing. Even though real estate crowdfunding is relatively new, several real estate crowdfunding platforms have a track record of producing good returns for their investors.

The platforms listed here are in alphabetical order. There are many differences between the platforms identified here. Each may be “best” for certain investors, so we’ve identified the type of investor that may find the platform most appealing.

What Is Real Estate Crowdfunding?

Real estate crowdfunding allows individual investors to pool their resources with other investors to amass a large amount of money quickly. Crowdfunding sites facilitate investments by gathering money from multiple investors to fund a single investment opportunity. Each investor receives a return that’s in proportion to the amount of their investment. If there’s a loss, the investors share that misfortune, as well.

Investors benefit from real estate crowdfunding because it offers exposure to potentially lucrative investments that may be otherwise unaffordable. Many platforms provide automatic investing, which decreases the amount of time individuals must spend researching, vetting, and executing specific investments. Distributions or lump sum returns provide the potential for good returns from real estate crowdfunding investments.

It’s crucial to understand that if you decide to get involved with real estate crowdfunding, your money could be tied up for three to five years. This type of investment can be high risk when compared to other investments. Depending on the platform and investment, fees could be high, as well. Some investment platforms work only with accredited investors.

How Does Real Estate Crowdfunding Work?

Real estate investment platforms connect investment opportunities with funding. Most real estate crowdfunding deals have a sponsor, a crowdfunding platform, and investors.

Here’s a brief explanation of how real estate crowdfunding platforms work:

The sponsor acquires, manages, and eventually sells the investment. They are an individual or a company that takes responsibility for the entire project.
The crowdfunding platform makes connections between the sponsor and potentially interested investors. It handles regulatory issues, explains the terms of available deals to investors, and collects money from investors.
The investors offer money to fund the project in exchange for a share of the potential profits.

The Best Real Estate Crowdfunding Sites of 2021

Best Overall: CrowdStreet
Best REIT Option: DiversyFund
Best for Institutional Commercial Real Estate: EquityMultiple
Best for Beginners: Fundrise
Best for Investing in Loans: PeerStreet
Best Property Research: RealtyMogul

CrowdStreet: Best Overall

CrowdStreet offers accredited investors direct access to commercial real estate investment deals. Potential investors can review, compare, and choose individual deals that meet their investment criteria. More than 100,000 accredited investors across the United States have used the CrowdStreet platform to facilitate their real estate investments.

CrowdStreet has managed funds. Advisory services offer transparent access, and the platform makes it easy for investors to get involved in potentially lucrative deals outside of the stock market.

CrowdStreet fees range from 0.50% to 2.5% for CrowdStreet funds. Other funds are also available on the platform, and their fees vary by offering. There’s a minimum $25,000 investment required. Average annual returns are 17.3% as of 2021. Investors who choose to participate in a CrowdStreet investment deal may experience much lower or higher returns than the average 17.3% returns.

Choose from individual institutional-quality real estate deals or a professionally managed portfolio.

CrowdStreet’s headquarters are in Portland, Oregon. The company was founded in 2014 and has since published more than 540 commercial real estate offerings. As of 2021, 63 investments have been fully realized.

Pros

A helpful chatbot helps users navigate the platform
Institutional-quality offerings
Investment deals are easy to find after you sign up for an account

Cons

Open to accredited investors only
High investment minimums
Early withdrawals prohibited

Platform	Avg. annual returns
CrowdStreet	17.3%

DiversyFund: Best for REITs

Investors become co-owners in a portfolio of real estate assets with their first investment on the DiversyFund platform. The DiversyFund team finds, vets, and creates access to properties with a high potential for positive investment returns. They sell the assets, split profits among investors, and reinvest cash flows to create even more wealth.

Unlike similar platforms, DiversyFund actually purchases properties. They require a low minimum investment of just $500 for the DiversyFund Growth REIT, and you don’t have to be an institutional investor to get involved. However, investors never pay management or broker fees, and there is usually a 2% to 8% developer fee. Average annual returns across all investments on the DiversyFund platform range from 17% to 18%. Today, total investor distributions exceed $135 million.

Pros

Investors never pay management fees
Mobile app (unique among real estate crowdfunding platforms)
Low $500 minimum investment

Cons

Limited choices among investment types
Early withdrawals are prohibited
Investors receive payment at the end of the investment term

Platform	Avg. annual returns
DiversyFund	17% – 18%

EquityMultiple: Best for Institutional Commercial Real Estate

EquityMultiple has a straightforward three-step process that allows investors to access institutional-quality opportunities quickly.

Create a free account to see the details of each property. Review EquityMultiple Marketplace deals to locate one that lines up with investing goals.
Choose an investment amount and submit an investment offer. E-sign the appropriate documents for EquityMultiple approval and fund the offer.
Monitor the direct equity in commercial real estate property via the EquityMultiple online portal. Get updates from the property sponsor, choose a distribution method, and manage tax documentation from the main dashboard.

EquityMultiple charges a 1% fee on equity investments, and other fees depend on the terms of the individual investment. There may also be origination fees associated with fund offerings. The minimum investment amount is $5,000, and participants must be accredited investors.

Previous investors with EquityMultiple experienced average annual returns of 16.8%. Since this is an average across all investment types, it’s possible to receive a much lower or higher return if you decide to invest with EquityMultiple.

The platform provides access to commercial real estate deals, including senior debt, equity, and preferred equity. Investors can also participate in tax-advantaged deals like Opportunity Zones and 1031 exchange investments.

Distributions are monthly or quarterly.

Pros

Diverse investment selection
Intuitive platform
Variety of distribution schedules

Cons

Limited redemption options
Open only to accredited investors

Platform	Avg. annual returns
EquityMultiple	16.8%

Fundrise: Best for Beginners

Fundrise follows a value investing strategy of acquiring assets for less than their intrinsic value and replacement cost. Through partnerships with local operators and hands-on management, the Fundrise team works to increase the value of assets available on the platform.

Investment options include equity, debt, commercial, and residential assets.

Funrise was designed to withstand economic distress, making it ideal for investors that want to diversify to minimize the negative impact of stock market volatility on their portfolio. Extensive underwriting and a conservative approach make Fundrise one of the best platforms for beginning investors.

Investors may pay a .15% advisory fee as well as a .85% asset management fee. There’s a minimum investment for each account level that ranges from $10 to $100,000. Average annual returns for Fundrise investments are 7.31% to 16.11% between 2017 and 2021.

Fundrise currently manages more than $1.5 billion of equity for more than 170,000 investors. There are five account levels available on the platform; Starter, Basic, Core, Advanced, and Premium. Each investment tier has a minimum investment amount along with varying investment strategies.

Pros

Accreditation not required
Highly-rated mobile app
Share redemption requests available at any time, although redemption is not guaranteed

Cons

Investors receive nonqualified dividends (taxed at ordinary income rates)
Investments are illiquid

Platform	Avg. annual returns
Fundrise	7.31% – 16.11%

PeerStreet: Best for Investing in Loans

PeerStreet provides the largest two-sided marketplace where accredited investors can purchase real estate debt. The platform sources loans from a network of private brokers and lenders. They also aggregate, service, and manage loans for investors. PeerStreet provides investors with the chance to invest in real estate without owning property.

PeerStreet is the first marketplace that allows non-accredited individuals to invest in real estate debt. When investors put money into PeerStreet and borrowers pay back outstanding loans with interest, dividends go back to the investors.

Investors interested in PeerStreet can review individual investments to decide whether to become involved. The platform allows investors to automatically diversify their portfolios by choosing investments across various lenders, asset classes, LTV ratios, rates, terms, and geographies.

PeerStreet fees are typically 1%, with a minimum investment amount of $1,000. Investors receive average annual returns of 2% to 9%. Loans have a maximum term of 36 months.

Pros

Different product offerings
Flexible terms
Powerful technology-fueled platform

Cons

Accredited investors only
Investment types limited to real estate debt
May expose investors to higher risks than other real estate crowdfunding types

Platform	Avg. annual returns
PeerStreet	2% – 9%

RealtyMogul: Best Property Research

Investors get institutional-quality deals with the RealtyMogul platform. Both accredited and non-accredited investors can invest in commercial real estate deals. The platform has more than 200,000 registered members and has financed more than $2 billion in property value.

Non-accredited investors can choose between two public non-traded REITs and accredited investors can add private placement investments to their portfolio. The platform provides access to individual properties, including office, industrial, retail, medical offices, multifamily, and self-storage. Qualified investors may also have access to 1031 exchanges. Investors can choose from passive income, growth, and diversification objectives when they set up their accounts.

Fees range from 1% to 1.5%, and the minimum investment is $1,000. Average annual returns historically range from 4.5% to 8%. Investors can get involved with the RealtyMogul platform with a $250 per month auto-investing REIT plan.

RealtyMogul is well-known for its attention to detail when vetting potential properties. They examine every property in person and evaluate deals using proprietary models and methods. RealtyMogul does not invest in ground-up construction or raw land, which are non-cash-flowing investments.

Pros

Range of investment types
Excellent due diligence
Start investing with just $250 per month

Cons

Fees vary according to investment type
Investments are illiquid
Long hold periods

Platform	Avg. annual returns
RealtyMogul	4.5% – 8%

FAQs About Real Estate Crowdfunding

How can an investor get started with real estate crowdfunding?

Investors new to the real estate investment scene can start by researching crowdfunding platform options. The best platforms have a track record of solid returns for past investors. They vet new deals thoroughly and have transparent fee structures.

Before getting involved in real estate crowdfunding, be sure to read the rules about how and when it’s possible to make withdrawals from the account. Understand how redemptions work, as well.

With real estate crowdfunding, there are no ongoing costs to own real property. It’s easy to track investment performance on the platform, as well.

A number of the best real estate crowdfunding platforms only work with accredited investors, however. Before new investors can participate, they must submit net worth and income statements to prove they qualify.

Can you crowdfund in commercial real estate?

Yes, many real estate crowdfunding platforms provide individual investors with the tools and access they need to invest in commercial real estate projects like apartment complexes, self-storage, retail, hotels, and medical complexes. Crowdfunding makes these large investments accessible to qualified individuals.

Can you make money with real estate crowdfunding?

Yes, depending on the attributes of the individual investment or fund and the platform’s effectiveness, it’s possible to realize positive returns with real estate crowdfunding. Some experts estimate that real estate crowdfunding returns average 11% to 15% per year.

Even so, real estate crowdfunding is risky. There are no guaranteed returns, and it’s possible to lose an entire investment. Most importantly, with real estate crowdfunding, the investment could be illiquid for years. Investors who discover that they need access to the money they’ve turned over to real estate crowdfunding platforms could face steep fees and wait months to get access to their funds. IT’s crucial to research the platform, fees, redemption rules, and sponsor before committing to a real estate crowdfunding platform investment.

How does an investor become accredited?

An individual or entity must meet income and net worth guidelines stated in Rule 501 of Regulation D of the Securities Act of 1933. The Securities and Exchange Commission (SEC) defines accredited investors as:

“A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.”

And

“A natural person who has an individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person.”

There isn’t a single entity or agency that reviews an investor’s credentials to determine whether they can participate as an accredited investor. Companies that provide investment opportunities not registered with the SEC must determine a potential investors’ status as an institutional investor by conducting due diligence. Those seeking to participate in real estate crowdfunding investments reserved for accredited investors must provide the company with proof of their financial qualifications.

Real Estate Crowdfunding Platforms Provide Access to a Wide Variety of Investment Types

The Jumpstart Our Business Startups Act of 2013 (JOBS Act) was created to encourage funding of U.S. small businesses. The law eases many securities regulations, allowing companies like real estate crowdfunding platforms to use crowdfunding to issue securities. Before the JOBS Act, real estate investors had just two options; buy publicly-traded real estate investment trusts (REITs) or purchase property and pay to renovate, maintain, and manage it.

Now, real estate crowdfunding platforms provide an easy and safe way for investors to pool their money to purchase large properties or invest in real estate debt.

Are Real Estate Crowdfunding Platforms Worth It?

Maybe. It depends on your investment goals, your risk tolerance, how long you can afford to have your money tied up in an investment vehicle, and your comfort with new technology.

Accredited investors have more options when it comes to real estate crowdfunding investment opportunities. Still, non-accredited investors who would like to use this type of investment as a way to diversify a growing portfolio may find the potential for higher-than-average returns attractive.

If you want to try real estate crowdfunding and have access to money you can afford to have tied up in an investment for a while, it may be a worthwhile experiment. Be sure to take time to get comfortable with the platform. Understand the terms and fees before signing paperwork or committing funds to the investment. If you are interested in real estate as an investment but aren’t sure about crowdfunding platforms, you may find that publicly-traded REITs are a better fit.

Varo Money – Earn up to 3.0% APY!

editorial staff
October 27, 2021

Varo Bank is a trendy, one-hundred percent digital bank based out of San Francisco that offers its entire product suite through its mobile apps on IOS and Android.

Varo has two main accounts. An online checking account that comes with a Varo Debit card, and an online savings account.

The checking account is about as hassle-free as they come and provides many services for free that typical brick and mortar institutions generally do not. These include:

no monthly maintenance fees of any kind,
no transfer fees or debit card replacement fees and
no foreign transaction fees.

There is also no minimum balance requirement to keep the account open and you can activate it with a minimum deposit of just $0.01.

The online savings account features one of the top yields on the market for FDIC-insured accounts and has the ability to earn even more if you open and use the online checking account and its debit card.

With the savings account, you’ll immediately earn one of the top APY (annual percentage yields) on the market at 0.50% APY.

If you open it with a checking account, you’ll have the ability to earn up to 3.0% APY on balances under $5,000. You’ll have to meet a couple monthly requirements to earn the APY. The details are listed further below.

Like the checking account, the savings account has no fees or minimum deposit requirements and you can start earning the exceptional APY once you place your first deposit into the account.

Full details on both accounts and Varo Bank continue reading our review below.

Varo Money Online Savings Account Details + APY

Like other online banks, Varo is member FDIC and accounts are insured up to $250,000 combined.

Varo Bank’s online savings account offers tiered yields. You immediately start earning an APY of 0.50% but can earn up to 3.0% APY on balances of $5,000 and below if two specific conditions are met each month.

These are:

You must receive a minimum of $1,000 in qualifying direct deposits, AND
Keep a daily savings balance under $5,000 for each calendar month, AND
Keep at least 1 penny in both your Varo bank account and Varo savings account.

Varo Bank Online Savings Account Rate Tiers

Min Balance	APY	Conditions Met?
$0 – $5,000	3.0%	Yes
$0 – $5,000	0.50%	No

To give the yields above some context, the current national average for a savings account sits at just 0.06% APY according to recent FDIC data. That said, there are still a handful of online banks paying 0.40% – 0.50% APY on all balances, but they are growing slimmer by the day.

Outside of the exceptional yield, Varo’s savings account has some helpful tools that allow you to automate your savings (more in the features section below). Plus, package your savings and checking account together for better insights into your spending habits and how much you’re able to save each month.

Opening a Varo Checking Account

Getting your Varo Money checking account set-up is a fairly quick and straightforward process that can be done online in minutes.

To get started, navigate to the Varo checking account page and either submit your email, or click on the black “Get Started” button in the upper right. If you choose to submit your email, they will email you a link to navigate to the same sign-up page, but your email field will be filled out already.

When filling out your basic information you will want to have the following pieces of information handy:

email address (if you haven’t submitted it already)
full name
date of birth
address
social security number

After you complete the application process, you will be directed to download the app from the Apple or Google Play store to begin funding and managing your account(s). Remember, the entirety of this digital bank’s products and services are accessed and managed solely through their native apps.

Once you’ve downloaded the app and opened the checking account, you’ll be ready for your first deposit. If you have any questions or get stuck during this process you can email – help@varomoney.com – and you should receive a prompt response.

Varo Money Checking Account Features

Three noteworthy features of Varo’s online checking account.

The Varo Money checking account has several noteworthy features and very little drawbacks.

For starters, the nature of Varo Bank and its digital product suite allow for Varo to save on costs and pass these savings along to consumers in the form of no-fee accounts with above average interest rates. Without an expensive branch network, staff, rent and utilities, Varo is able to simplify its product offerings and make them extremely low cost.

Second, Varo Checking account consumers are provided a debit card that can be used for free at 55,000+ AllPoint ATMs around the country. These ATMs are generally found in places like Walgreens, CVS, and target.

If you have cash to deposit into the account, you can do this at any of the 90,000+ retail locations using Green Dot Reload. We should note that fees and cash deposit limitations will apply. You can see a complete breakdown of these fees by retailers in our table further below.

On top of this, you can easily transfer money freely between Varo accounts and even connect a popular payment app like Apple Pay™, Google Pay™, PayPal, Cash App, or Venmo to pay for everyday purchases.

No credit checks of any kind will be run by Varo to open their checking account. In some instances they may request identity documentation, but your credit report, history, or FICO score will not be checked.

If you set up direct deposits with Varo checking, you’ll also be provided access to your funds up to two days in advance.

If you choose to open the savings account along with the checking account, Varo has some great tools available that allow for automatic transfer from your checking to savings to allow idle cash to grow with a lucrative APY.

The two noteworthy automated savings features are:

Save Your Pay lets you choose and set up the automatic transfer of a certain percentage of your direct deposits to your savings account. This is similar to Wells Fargo’s Way2Save product, except in Varo’s case you get to select the percentage.
Save Your Change rounds up every transaction from your checking account to the nearest dollar and automatically transfers these funds to your savings.

ACH Transfers

As mentioned, Varo Money stands out from the pack with its lack of fees – especially when it comes to moving money around.

The average domestic wire charge in the US sits at a hefty $25. With Varo Money, you have the ability to move money around via ACH transfers for free.

There are two kinds of ACH transfers, both of which can be set up by Varo Money. These are:

ACH debit transactions “pull” the money from your account, like for an automatic bill payment.
ACH credit transactions “push” money into your account, like a direct deposit of your paycheck or tax refund.

To set up either of these kinds of ACH transfers, you will need your Varo Bank account number and the routing number of the other party’s financial institution.

The time frame in which the money is received is generally between 1 – 4 days. Here a more specific breakdown:

If you initiate the ACH transfer in your Varo app to or from an external bank account you own, it will take 2–4 business days.
If you initiate the ACH transfer from an external bank account to Varo, it will generally take 1–2 business days.

Potential Fees to Look Out For

Depending on where you use your debit card and how you add funds to your account, you may encounter fees from time to time.

If you plan on making cash deposits, you will encounter a fee each time. These fees will vary by retailer. Below is a list of fees and limitations when depositing cash into your Varo account. You can read more about the fees and limits listed below on Varo’s support page here.

Varo Cash Deposit Fees & Limits by Retailer

Retailer	Limit	Price
7-Eleven	$500	$4.95
Albertsons	$500	$4.95
ACE Cash Express	$1,500	$4.50
CVS	$500	$4.95
Dollar General	$500	$3.95
Dollar Tree	$500	$4.95
Family Dollar	$500	$3.95
Rite Aid	$500	$4.95
Safeway	$500	$4.95
Vons	$500	$4.95
Walgreens	$500	$4.95
Walmart	$1,000	$3.74

The other potential fee to look out for is usage of non-Allpoint ATMs. Varo imposes a $2.50 fee per transaction, but the bank or ATM owner may charge an additional fee on top of that.

Final Thoughts

The powerful checking/savings combo by Varo Money is hard to beat. On the checking side the lack of any and all fees make this product stand out from its peers.

On the savings side, Varo boasts one of the top APYs of any FDIC-insured institution, and also features no minimums or monthly fees of any kind.

That said, make sure you are perfectly comfortable going 100% digital as Varo Money provides no access to in-person banking or branches.