APY GUY: Maximize Your Savings & Earnings

Motley Fool Review: Should you pay for the premium service


If you struggle to pick individual stocks with the potential to provide excellent returns, you aren’t alone. Most people interested in the stock market understand that they can create a portfolio of stocks that outperform many fund managers. They simply need the knowledge, skills, and time to choose undervalued companies. 

Portfolio service subscriptions offer timely stock advice aimed at helping investors make money in the stock market. While you could research stocks on your own, you can easily access investment recommendations from experts who’ve been right over and over. 

What is The Motley Fool?

The Motley Fool started offering investment advice in 1993. The company is now one of the world’s largest financial media businesses. Founded by David Gardner and Tom Garder (brothers who still run the company), the site offers free financial news and premium services like subscription-only newsletters with investment advice. 

The Motley Fool employs 47 of the world’s top stock analysts across seven offices located across the globe. They research and identify the most significant opportunities for growth in the stock market. 

Motley Fool is one of the top financial companies in the marketplace, and they back their stock picks with in-depth research. The Starter Stocks Report included with your subscription can help you build a strong portfolio from the ground up if you are new to investing.

The “Best Stocks to Buy” series offers a list of recent Stock Advisor picks that are still viable. 

What Information Can I Find on the Motley Fool Website?

There’s a large amount of free educational material available on The Motley Fool website. You’ll find timely articles about investing basics, the stock market, retirement, and personal finance. If you are interested in a certain type of stock or a particular industry, you can dive into those categories to find a wealth of free information on the site, as well. 

The Motley Fool isn’t stingy with their stock advice. Check out The Top 21 Stocks to Buy in 2021 (And the 1 Ultimate Stock) to get a snapshot of how The Motley Fool’s stock picks may look if you decide to subscribe to one of their premium services. 

The Motley Fool doesn’t currently have an app. They are in the process of removing their outdated app from the Apple and Android app store. 

Are Motley Fool Stock Picks Any Good? 

Yes. Motley Fool Stock picks include growth stocks that routinely outperform the stock market. 

In November 2018, Motley Fool Stock Advisor recommended that subscribers buy Amazon, Stitch Fix, Apple, Booking Holdings, Arista Networks, and Shopify. These stocks are wildly successful investments. Shopify sold for $134.45 per share in late 2018, and is now selling for $1,247 per share. 

Motley Fool’s stock picks may work for you if:

  • You plan to leave your investments alone for at least five years
  • You have a stable personal financial situation and understand when it makes sense to buy stocks
  • You have a few thousand dollars set aside to invest in the stock market, and can afford to make ongoing investments
  • You understand that an analyst’s risk tolerance may differ from yours and feel comfortable making unilateral decisions about your money that are in your best interests, even if those decisions contradict an “expert”
  • You understand that you could lose money when you invest in the stock market

Motley Fool Review: A Warning About Stock Advice Subscriptions

Motley Fool’s menu of stock picking services operates on the buy-and-hold philosophy of stock market investing. If you want help becoming a successful day trader, move on. 

Motley Fool’s menu of stock advisor services renews automatically. Make sure you are comfortable with Motley Fool automatically charging your credit card for the total amount of the yearly subscription service every 365 days. 

Many of the subscription services work best if you can afford to invest at least $25,000 in the stock market. Suppose you have a small budget for investing and can’t afford to put money into the stock market each month. In that case, you may be better off reading the free information offered by Motley Fool writers on their website and using that knowledge to make investing choices. 

The Motley Fool is prohibited from offering personalized investment advice, so they provide equal access to information for anyone who subscribes to one of their services. Their strategies appeal to different investment styles and interests, but they don’t offer a one-size-fits-all solution. 

Details About Motley Fool’s Premium Subscription Services

You have a wide range of choices with Motley Fool’s premium subscription services. Here, we’ll highlight the subscriptions that offer information about stock picks’ performance since inception. 

Rule Breakers: High Growth Stock Recommendations and Research

Rule Breakers informed subscribers about growth stocks including Tesla, Mercado Libre, and Under Armour before mainstream investors understood their potential. 

Rule Breakers beat the S&P 500 three to one over the past 15 years by finding and investing in overlooked companies poised for success. 

Philosophy: Buy at least 25 stocks. Hold them for at least five years. 

Performance Since Inception: +322%

Membership includes:

  • Two growth stock recommendations monthly from the Motley Fool analyst team
  • Sell notices
  • Best Buys Now; top opportunities among existing Rule Breakers recommendations
  • Regular email updates
  • Access to the Rule Breakers library of expert stock picks

Price for new subscribers: $99 ($1.90 per week) with a 30-day membership refund period, or you can choose one month of Rule Breakers for just $39 (non-refundable). All memberships automatically renew at $299 per year

Stock Advisor

Motley Fool’s Stock Advisor stock picks beat the market average by more than 90%. They’ve recommended Priceline.com, Costco, Gilead, and Amazon. Stock Advisor’s average stock recommendations return 566%. 

Their services are inexpensive at $199 per year compared to other stock picking subscriptions. Motley Fool frequently runs new subscriber discounts, giving you access to their stock picks for just $99 per year. 

Philosophy: Buy and hold for at least three to five years. 

Performance Since Inception: +566%

Membership includes:

  • Two growth stock recommendations monthly
  • Sell notices
  • Best Buys Now; top opportunities among existing Stock Advisor recommendations
  • Regular email updates

Price for new subscribers: $99 ($1.90 per week) with a 30-day membership refund period, or you can choose one month of Rule Breakers for just $39 (non-refundable). All memberships automatically renew at $199 per year

Motley Fool offers a bundle that includes their Stock Advisor and Rule Breakers subscriptions for $498 per year. You’ll get Motley Fool’s 15 “Best Buys Now” stocks via email each month along with access to Motley Fool’s advice about which disruptive stocks have maximum upside potential. 

Supernova

Supernova works best for investors with a portfolio of $90,000 or more. This service offers a look into real-money model portfolios built around investing themes.

Philosophy: Invest in aggressive growth stocks with higher than average volatility and risk 

Performance Since Inception: +327.6%

Membership includes:

  • 3-5 Timely Trade Alerts with explanations from the Supernova Portfolios each month
  • “Exploration Missions” where analysts choose favorite theme-based or Best Buys Now stocks
  • Allocation Calculator to help you calculate funds to match analyst’ model portfolios
  • Regular email updates
  • Supernova discussion boards

Price for new subscribers: Supernova is not currently accepting new subscribers. 

Discovery: Everlasting Portfolio

Tom Gardner, CEO (and one of Motley Fool’s founders), offers a look into his portfolio of publicly traded stocks along with quarterly buy and sell advice. Discovery: Everlasting Portfolio is designed for investors with at least $100,000 invested in the stock market who want to update their investments just a few times each year. 

In 2012, Tom Gardner sold his publicly traded stocks and pledged to invest his own money into the Everlasting Portfolio. 

As of 2021, The Motley Fool has more than $15 million of its investment capital in the Everlasting Portfolio’s recommended stocks. The fund is up 579%. 

Philosophy:  “Be fearful when others are greedy and greedy when others are fearful.”

Performance Since Inception: +580.4%

Membership includes:

  • Timely Trade Alerts with explanations
  • Allocation Calculator to help investors match the Everlasting Portfolio positions
  • “Best of the Best” stocks from across Motley Fool’s investing services
  • Investor Action Guide including How to Know When to Sell, Tom’s Principals for Selling, and Tom’s Everlasting Portfolio Guidebook

Price for new subscribers: $2,999 per year, automatically renewable every 365 days; no refunds or credit transfers

Fool ONE: An exclusive top-tier service providing access to all of Motley Fool’s stock picking services in one place

Fool ONE offers complete access to all of Motley Fool’s premium US services as well as international premium services, excluding Mogul. You’ll also get exclusive access to member events and early access to the newest services. 

Philosophy: Buy and hold investing with a three to five year timeline with a high tolerance for risk and a relatively large investing budget

Performance Since Inception: +580.4%

Membership includes:

  • All Motley Fool stock services at a discount
  • All stock investing services launching in the upcoming year
  • Access to stock-ranking database including evern stock that the Motley Fool analyst team recommends and tracks

Price for new subscribers: Motley Fool ONE’s price isn’t published. If you are interested in learning more about the service, please contact the Motley Fool Investor Solutions team via email: InvestorSolutions@fool.com.

Options: Trades designed to generate income

With Motley Fool’s Options subscription, you’ll get emails alerting you to timely advice that includes fully-vetted options opportunities from Motley Fool’s analysts. Adding options investments to an established portfolio can significantly increase returns. 

Detailed investment advice helps you decide whether the trade is a good choice for your portfolio. If you choose to proceed, you simply click “Get the Details” in the email for instructions about how to place the trade. 

Since its inception, Motley Fool’s Options recommendations have an 84+% win rate. This service works best for investors with at least $50,000 in their portfolio. 

Philosophy: Master options investing for financial success

Performance Since Inception: +322%

Membership includes:

  • At least four recommended options trades each month
  • Access to online educational resources; Options U
  • Access to Options discussion boards
  • Regular email updates

Price for new subscribers: $899 with the option to transfer credit to a different Motley Fool portfolio service within 30-days of purchasing the subscription. Motley Fool Options is non-refundable. Subscription renews automatically every 365 days at $999.

Which Motley Fool Premium Subscription Offers the Best Value?

Motley Fool’s Stock Advisor is one of their most popular subscription services. It has a low introductory price of $99 for new users and an 18-year track record of beating the market. Stock prices can fluctuate wildly, so the Stock Advisor subscription comes with instructions to buy at least 25 stocks and hold on to them for a minimum of five years. 

Stock Advisor picks include stocks from every industry. Motley Fool analysts choose overlooked and undervalued companies ready to soar in value. Subscribers get immediate access to 191 stock recommendations that have a history of 100%+ returns. 

Stock Advisor’s Stock Picks

Two new high-growth stock picks come via email each month from Tom and David Gardner, so there is a constant flow of solid advice about which stocks to buy next. 

The “starter stocks” report offers a list of 10 stocks with a history of providing excellent returns. This report is ideal for new investors who want to diversify their portfolios by investing in time-tested stocks. 

The “Best Stocks to Buy” list offers advice about Stock Advisor’s recent stock picks that are still a good buy. Subscribers can add these stocks to their portfolios right away. 

On average, Stock Advisor recommendations returned more than 566%, compared to 103% from the S&P 500. 

Stock Advisor Research

All of the stocks recommended by the Gardner brothers are researched extensively. Each stock comes with a report explaining the rationale behind the recommendation. You’ll get a taste of how The Motley Fool chooses specific stocks by diving into Stock Advisor research. 

Stock Advisor Education

The Stock Advisor’s education resources offer general investment lessons and information about research methodology for those interested in learning more about choosing winning investments. 

Stock Advisor Community Forum

Stock Advisor members can discuss investing and stock picks in the community forum. This is a great way to connect with like-minded investors, learn more about how others get the most from their Stock Advisor subscription and ask questions. The forum is active, so it’s easy to get timely feedback from other users.

Is Motley Fool Worth it For New Investors?

Maybe. Before you subscribe to Stock Advisor, check out The Motley Fool’s How to Invest Guide. You’ll get a feel for The Motley Fool’s philosophy about investing, including when it’s smart to buy stocks, how to establish an emergency fund to protect your financial stability, and how to allocate assets. 

New investors may want to start by investing in a diversified fund like the Vanguard Total World Stock Index Fund EFT (NYSEMKT:VT), recommended by The Motley Fool’s stock analysts as a set it and forget it fund that works well for investors who need to learn more about the stock market, but don’t want to wait to invest. 

Motley Fool Customer Reviews

Before you spend your money on a stock advising service, it’s wise to read online reviews from verified customers. The Motley Fool marketing team makes excellent use of reviews from customers who are thrilled with the subscription services. It’s crucial to expand your research into areas of the internet beyond The Motley Fool website to get a balanced view of customer sentiment. 

The Motley Fool Suffers on Trustpilot

The Motley Fool has 1,242 reviews on Trustpilot:

  • Excellent: 33%
  • Great: 10%
  • Average: 5%
  • Poor: 5%
  • Bad: 47%

The customers posting negative reviews complain that they experienced losses in the stock market after following Motley Fool’s advice to purchase certain investments. However, Motley Fool repeatedly states that they recommend that investors buy a minimum of 25 individual stocks with plans to hold those investments for at least five years to “counteract the whims of the market.” Investors who get nervous when stock prices dip and sell at a loss are understandably upset. 

Many of the negative reviews point to information found in Motley Fool’s free content, generated by in-house analysts and contracted experts. Motley Fool encourages investors to conduct their research before deciding whether an analyst’s advice works for their situation. 

The Motley Fool customer service team responds to each negative review to solve any ongoing problems. 

Motley Fool Stock Advisor Customers Sound Off on Reddit

Reddit users have a lot to say when asked,”Is Motley Fool worth it?” Many users posted responses to a question posed by a curious Motley Fool user who was on the fence about whether to pay for a premium subscription. 

Investors who purchased shares of FICO, Shopify, Wix, and Amazon before they were well-known successful companies offer glowing reviews of the paid-for subscription services. New subscribers point out that even if they make just a few hundred dollars following Motley Fool’s advice, it will be worth the Stock Advisor service subscription price. “…at least the Gardner brothers know what they are doing (they outperform the market consistently)” -lame_corprus

Other Reddit commenters point out that unless you have a hefty sum of money to invest, you may not fare well with Motley Fool’s stock picks. “The problem was, that some of the lesser expensive ones, tanked, and the more expensive stocks, were the ones that doubled, or tripled in value. So, if you didn’t buy the “whole set” and trade exactly what and when suggested . . . you were likely to lose out.” -PhesteringSoars

The Motley Fool Responds to All Customer Complaints on the BBB Website

The Motley Fool Inc. has 160 published customer reviews on the Better Business Bureau (BBB) website. The company has an average rating of 4.03 stars out of five. The BBB closed 123 customer complaints in the past three years and 66 in the past 12 months. Customers complain about various hardships, including a lack of response from Motley Fool’s customer service department. 

Many of the customer complaints on the BBB website have to do with trouble logging in, not receiving a free report via email as promised, or automatic renewals. Customers complain that Motley Fool emails them with special offers too much and that they can’t get a full refund after they’ve signed up for Motley Fool’s non-refundable offers. 

The Motley Fool customer service representatives offer this explanation for their lack of accessibility: “We have been experiencing unusually high call and email volume; we sincerely apologize for any inconvenience this may have caused. Our team is working diligently to respond to each email.”

Motley Fool representatives respond to each complaint filed with the BBB with a detailed explanation of precisely what happened along with an immediate resolution. 

Is Motley Fool Worth it? 

If you decide to try a Motley Fool subscription to level up your investing game, don’t get so excited that you skim over the Important Notes right above the green “Submit My Order” button. Make sure you understand the price of your subscription as well as how and when it renews. The rate you pay for year one could be significantly lower than the amount you pay in subsequent years. 

You must be willing to open a brokerage account (if you don’t already have one), purchase the stocks recommended by Motley Fool’s analysts, and leave those investments alone for at least five years. Before you decide to invest in a Motley Fool premium subscription, consider your budget, investing style, tolerance for risk, and willingness to follow the advice. The service should meet your needs without pushing you to make investments that are too far out of your comfort zone. 

If you plan to purchase stocks regularly, want to learn more about how to make the right investments to help you reach your financial goals, and don’t have the time or knowledge to do your research, it’s wise to look into a stock advisor subscription. Motley Fool stock advice subscriptions consistently outpace the stock market as a whole. If you pay for a subscription, you will receive the information you need to invest in stocks with a high probability of providing a great return.

RealtyMogul Review – a passive real estate investing platform


ReatlyMogul is averaging 4.50% – 6.0% yields on their REITs and up to 15% on private placements.

Investing in general can be a tricky landscape to navigate. The stock market has seen its share of ups and downs over the last couple of years, and crypto investing, while potentially lucrative, can be a volatile gamble for investors. There are other, safer options you can utilize to help your money make money, of course — things like high-yield savings accounts, bonds, or low-risk funds — but these less risky investments don’t typically offer the high returns many investors seek.

The drive to find a good balance between risk and reward has led many investors to take an alternate route via real estate investing.

Thanks largely to matured start-ups reaching mass adoption like Airbnb and Vrbo, there has been an explosion in real estate investing nationwide as buyers snatch up properties for short-term rentals in hot markets, which has led to a shortage of inventory in these markets. Competition is now extremely tough for properties in many areas, making it even harder to land the right type of investment.

While short-term rental properties are extremely popular options for investing, many investors would prefer passive investment options in real estate.

That is where platforms like RealtyMogul come in. RealtyMogul allows you to invest your money passively in vetted commercial real estate properties that have the potential to generate income and grow in value.

To see if this real estate investment platform is right for you, continue reading our comprehensive review below.

What is RealtyMogul and who is behind it?

While perhaps not as well-known as platforms like CrowdStreet or DiversyFund, RealtyMogul is one of the earlier entrants into the hot market of crowd sourced real estate investment platforms.

The site was founded in 2012 by Jilliene Helman and Justin Hughes as part of the Microsoft/TechStars Accelerator event in Seattle, and was officially launched in 2013.

Helman, who has underwritten over $5 billion of real estate and acts as the CEO of the company, sits on RealtyMogul’s board. She is responsible for the company’s strategic direction and operations, and has plenty of experience with these tasks, thanks to her prior experience as a Vice President at Union Bank, where she spent time in Wealth Management, Finance and Risk Management.

Hughes is the co-founder of RealtyMogul and is a licensed real estate professional in California. Prior to helping launch RealtyMogul, Hughes ran an independent consultancy in Los Angeles that managed on-line communities and built web presences.

Helman and Hughes launched this platform with the idea that it would bring investors and real estate investment sponsors and borrowers together in order to create real estate investment opportunities that were mutually beneficial for both parties.

On the surface, the platform works similarly to many of the other real estate investment platforms. Investors buy “shares” into commercial real estate projects that are sold on the marketplace. This process allows developers to “crowdsource” the funds they need to complete their commercial project(s) from many investors who want a decent return on their invested capital and like the prospects of the project.

Investors who use RealtyMogul are able to choose from a wide range of individual commercial real estate investments. This could include projects like multi-family dwellings, office buildings, industrial sites, storage units, and retail or medical buildings — or any mix of other commercial projects, depending on what needs funding.

Prior to being allowed access to the RealtyMogul marketplace, each project is vetted to ensure the individuals behind the deal, and their project, meet the rigorous standards outlined by the company. A tenured group of real estate veterans with contracts across the US both seek out deals for the platform and vet deals submitted for inclusion.

According to RealtyMogul, they review thousands of deals each year and less than 1 percent of those end up on the marketplace.

There are other options for investing in commercial property via RealtyMarket, too. In addition to the private investments listed on the platform’s market, accredited investors can also opt into real estate investment trusts, or REITs, and 1031 eligible private placement investments on this platform.

REITs are available to non-accredited investors while private placements are not. Image credit: realtymogul.com

REITs are a popular choice among real estate investors because they allow you to invest in companies that own, operate, or finance income-producing properties — which can result in much higher returns than other types of investments. We’ll talk more about these types of investments below.

Features and Benefits

There are a wide range of benefits for investors, but perhaps the largest one is that it offers investors multiple avenues for investing in commercial real estate. Investors who use this platform get access to a variety of both public, non-traded REITs and private placements, which allows both accredited and non-accredited investors to take advantage of what RealtyMogul has to offer.

This is a significant perk for smaller investors, who may not be able to meet the laborious requirements for accreditation that are required by other platforms. It can be nearly impossible for smaller retail investors to meet the accreditation requirements set by the SEC, and that can put other platforms out of reach.

If you’re not sure why accreditation would be out of reach for smaller investors, here’s why: the SEC requires accredited investors to meet one of the following to be officially accredited:

  • Individuals: Must have income of more than $200,000 per year for each of the last two years with expectations to exceed that threshold for current year.
  • Spouses: Must have joint income between spouses of more than $300,000 per year for each of the last two years, with expectations to exceed the threshold in the current year.
  • A net worth exceeding $1M, excluding your primary residence, either individually or jointly with your spouse.
  • An investment on behalf of an entity with at least $5M in assets or an entity in which all the equity owners are accredited investors.

These accreditation requirements make it tough for small retail investors to take advantage of public, non-traded REITs, which are subject to oversight by the SEC.

But that’s where platforms like RealtyMogul (or DiversyFund) differ. They offer investors the option to buy into private market offerings, which are projects offered by individual borrowers that need funding. It also offers two different public, non-traded REITs, which gives investors even more options.

Another great feature of RealtyMogul is the vetting process. Rather than focussing on riskier projects in hopes of higher returns, RealtyMogul looks for safer “value-add”deals, particularly in multi-family housing. In most cases, the properties listed on the platform already have cash flows to help fund them, but could use a cash boost from private investors to help generate higher returns.

RealtyMogul REIT Offerings

RealtyMogul has two different REITs available to investors: the MogulREIT I and the MogulREIT II.

  • MogulREIT I: According to RealtyMogul, the MogulREIT I is a “public, non-traded REIT making debt and equity investments in commercial real estate properties diversified by investment, geography and property type.” This REIT’s primary focus is on providing regular income to investors. To do this, it rigorously evaluates investment opportunities to find ones that can support the REIT’s distribution target.

    The goal of this REIT is to help investors earn passive income by investing in a range of investments across property types and geographies. By diversifying the types of properties in the REIT, it helps to reduce risk and maximize returns for investors. This REIT pays out to investors on a monthly basis.
  • MogulREIT II: The MogulREIT II is also a public non-traded REIT. The main difference between the MogulREIT I and II is that MogulREIT II focuses on longer-term appreciation, and in turn, only pays out dividends to investors on a quarterly basis. 

The MogulREIT II generally invests in common and preferred equity investments in multifamily apartments. The historical dividends for MogulREIT II are lower than MogulREIT I, but that’s because, according to RealtyMogul, it aims for “significant value appreciation” in its share prices over time.

Access for non-accredited investors

While private placements are limited to accredited investors, both the MogulREIT I and II are available to both accredited and non-accredited investors alike. This means that investors have a choice of what they want to put their money into. In many cases, REITs are limited to accredited investors, so having two REITs available for non-accredited investors is a substantial perk.

Through the RealtyMogul platform, investors have the opportunity to invest in real estate opportunities online through a private, secure website. Investors can browse investments, review due diligence materials and sign legal documents securely online. Once invested, investors have access to an investor dashboard, giving them 24/7 access to monitor their money at work.

1031 exchange eligible properties

RealtyMogul also offers 1031 exchange eligible properties to investors, which helps cut down on costs associated with buying and selling properties. A 1031 exchange is a procedure that allows the owner of an investment property to sell it and buy like-kind property all while deferring capital gains tax.

By using RealtyMogul, you can find and invest in properties eligible for this type of capital gains tax deferment. This helps cut down on tax penalties incurred from buying and selling investment properties.

The benefits of using this exchange are as follows:

  • You can defer capital gains taxes on the sale of your property, and invest in cash flowing properties.
  • You can ensure certainty of closing and avoid property management headaches.
  • You can diversify your portfolio with a broad range of geography and property types.

Lower-risk deals

As touched on above, the deals on this platform tend to be lower risk than what you’d get with some of the other real estate crowdfunding platforms. While no investment is without risk, the upside of using RealtyMogul is that there is a lot of due diligence that goes into vetting the investment opportunities on this platform.

We’ll get into more on the safety measures in place for this platform below, but what you need to know is that generally, you’ll encounter investments with lower risk.

The option to auto-invest

Not all platforms offer the option to auto invest, but RealtyMogul does. After the initial investment into one of the REITs, you can auto-invest as little as $250 per month into your chosen REIT to continue building your investment on a monthly basis.

The Share Repurchase Program

If you aren’t happy with your REIT investment on this platform, or if you need access to your capital and can’t wait out the term of your REIT, you have the option to opt into the Share Repurchase Program.

This program allows shareholders to sell their MogulREIT I and MogulREIT II investments back to RealtyMogul for a reduced price after a year. One thing to note, though, is that these repurchases are “subject to availability of capital,” according to RealtyMogul.

If you want to sell back your REIT shares to RealtyMogul, here’s what you’re looking at on the repurchase price:

  • Less than one year: No repurchase allowed 
  • 1 to 2 years: 98% repurchase
  • 2 to 3 years: 99% repurchase
  • 3 or more years: 100% repurchase

Average Return to Investors

The average return varies by the type of investment you make. That said, the good thing about RealtyMogul is that they provide clear data and information on average returns since inception.

Here’s how the ROIs (return on investment) look per product:

  • MogulREIT I: The minimum initial investment amount for this type of REIT is $5,000 and the return is a 6% annualized rate of return.

    Dividends on this REIT are paid monthly, so what you get in return for your investment will depend on how much you invest. It’s important to remember that the dividends are paid out monthly, and the total you receive is 6% per year.

    If you want to know more about the historical returns for this REIT, you can find the monthly distribution information broken down by share here.
  • MogulREIT II: As with the MogulREIT I, the minimum initial investment amount for the REIT II is $5,000. The return is 4.50% annualized.

    Dividends on this REIT are paid quarterly, which means that you’ll get dividends equal to one-quarter of the 4.5% annualized rate for each quarter.

    If you want to learn more about the historical returns for the MogulREIT II, you can find the monthly distribution information per share here.  
  • Private placements: The average return information on private placements isn’t readily available. According to RealtyMogul, the average return on private placements can range from 0% to 15% annualized — which is admittedly a pretty wide range.

That variable rate of return is due mostly to the fact that individual properties vary widely from one another. What you stand to earn on your investment will be affected by a wide range of factors, including the total amount invested, the length of the investment, the type of project, the risk associated with the project, and of course other macro factors that deal with the health of the economy in general.

Potential Drawbacks

Any type of investment you pursue will have some drawbacks, and that’s true for RealtyMogul as well. The potential drawbacks of using this platform include:

  • Accreditation requirement for private placements: If you want to invest in private placements as a non-accredited investor, this isn’t the right platform for your needs. You have to be accredited to invest in RealtyMogul’s private placements, but you do have the REIT options if you want to pursue them.
  • A high minimum for investments: RealtyMogul requires you to invest at least $5,000 in its REITs and other investment opportunities, which means that you need to have a lot of spare cash on hand to invest via this platform. If you’re short on funds, or just aren’t ready to take the plunge, you may want to opt for an alternative platform.
  • Fees: We’ll talk more on these fees in the section below, but you should note that there are fees associated with using this platform.

Cost Associated With RealtyMogul

As mentioned above, there are some fees to pay when using this platform.

The fees you may encounter when using this platform for private placements include:

  • A technology services fee for private placements.
  • A 1% administrative services fee for private placements.

REIT fees include:

  • Operating fees of up to 3% of equity raised from REIT investors.
  • Asset management fees of 1% annualized, which is based on the average investment value.
  • A disposition fee of up to 2% of the contract sales price for each sold asset
  • An undisclosed promoted interest fee.
  • A servicing fee for performing investments, which amounts to 0.5% of the principal balance and accrued interest.
  • A special servicing fee for non-performing assets — which is 1% of the original value.

These fees can be costly depending on what you invest in, how it performs, and how much money you have invested in the platform. So, keep this in mind and be sure to do the math of what your investment will cost before you pull the trigger.

How are RealtyMogul’s Investments Sourced?

RealtyMogul’s investments come from two places: 1.) directly from borrowers, who submit deals to be considered and vetted by the platform; and 2.) via an in-house team that finds the investments that may fit its platform and market.

The potential deals that are presented to RealtyMogul are vetted to gain insights into things like the potential partner’s background, their experience, their references, etc. Background and criminal checks are also conducted to identify any pending litigation or items of concern.

Any and all assets that were previously acquired by the potential real estate partner company are then examined and compared to the scope of the proposed project. RealtyMogul also consults references to find out more about the potential partner(s) before any investment opportunities are listed on the marketplace.

How are the properties vetted

The quality of the property is obviously a huge point of consideration before accepting or rejecting it onto the marketplace.

RealtyMogul evaluates the property in 3 ways before coming to their determination. These are:

  1. Physical state of the property. The current physical condition of the property is assessed as well as the business plan or capital expenditure plan to renovate the property.
  2. Income generated and occupancy relative to market. RealtyMogul thoroughly evaluates the tenant population, the vacancy and rental rates of the asset, and then benchmarks these figures against comparables in the local market.
  3. Site visit. A RealtyMogul representative visits the property ALWAYS. This is a core tenant of RealtyMogul’s due diligence.

Who Is This Platform For?

This platform caters to a wide range of investors because it offers opportunities for both accredited and non-accredited investors. That said, while you can invest in the opportunities offered by RealtyMogul, you’ll have to have enough spare cash to do so.

The minimum investment on this site is $5,000, which means it’s geared toward investors who are both able to come up with the minimum requirement and unafraid of making larger investments. That can be limiting in many cases, as smaller or novice retail investors are welcome, but may not be able to meet the requirements for the minimum investment.

Otherwise, it’s a great way for investors to find individual projects to fund or to take advantage of what the REITs offer. If you can meet the minimum investment requirement, there’s likely an opportunity for you to invest on this site.

Is RealtyMogul Safe?

As we noted above, RealtyMogul does a deep dive into the backgrounds of the potential partners and the projects they’re presenting. The focus with this platform is on safer investment opportunities, so if you’re looking for a “safe” real estate investment opportunity, chances are good that the ones on this platform have been thoroughly vetted.

In addition to the vetting process, investors are also offered deal-specific information so that they can perform their own due diligence on the investment opportunities offered on the site, which adds another layer of protection to the mix.

RealtyMogul also works to protect the privacy and confidentiality of information transmitted through its platform. Some of the central features of its security program include:

  • Internal and external review of public and non-public sites and services.
  • The use of specialized technologies such as firewalls and encryption.
  • Rigorous multi-stage testing of the operability of products and features and updates for known vulnerabilities.
  • Monitoring of systems infrastructure to detect weaknesses and potential intrusions.

How RealtyMogul Differs From the Competition

We’ve pitted RealtyMogul against the largest and most popular crowd sourced real estate platforms on the web to give you an idea of how they stack up against the competition on some key metrics.

PlatformFeesMinimum InvestmentAnnual Returns
DiversyFund$0$50011 – 18%
Crowdstreet0.50% – 2.50%$25,00018%
Fundrise1%$5009.47%
RealtyMogul0.50% – 3.0%$5,000up to 15%

We should also note that the Share Repurchase Program is unusual for these types of companies and investment products. It’s not typically easy to get out of a longer-term investment once you’re locked in, but this platform offers a way for investors to do that with minimal loss after one year.fdiver

Discover Bank CD Rates – Still up to 0.60% APY!


image credit: discover.com

[Update June 2021: The APY (annual percentage yield) on Discover Bank’s CDs have not changed for any CD term throughout all of 2021. See below for current rates. The national average for CDs sit at just 0.14% APY for 12 month CDs and 0.27% APY for 60 month CDs according to June FDIC data.]

Ever since Sears first introduced the Discover Credit Card back in 1985, the Discover Bank brand has largely become a household name.

Although the bank is often associated with their popular credit cards, they also have a suite of deposit products featuring annual percentage yields considerably above the current national average(s). This suite comes with an online savings account, money market accounts and certificate of deposits with wide-ranging terms.

In this review we will just focus on Discover Bank’s CDs. Terms range from 3 months to 10 years and, like all of Discover Bank’s deposit products, are federally insured by the FDIC up to $250,000.

If you’re in the market for an FDIC insured bank CD, Discover Bank is certainly worth exploring.

Discover Bank CD Rates

Discover Bank CDs require a minimum deposit of $2,500 to open an account. All CD accounts are federally insured by the FDIC up to the applicable limits.

CD TermAPY
3 months0.20%
6 months0.25%
9 months0.30%
12 months0.50%
18 months0.50%
24 months0.50%
30 months0.55%
3 years0.55%
4 years0.55%
5 years0.60%
7 years0.60%
10 years0.60%

To put Discover Bank’s CD Rates in perspective, the current national average for a 12 month and a 60 month CD sit at just 0.14% APY and 0.27% APY, respectively, according to recent FDIC data.

Discover Bank still has ascending rates with longer terms, albeit not by much. We saw this curve flatten over the course of 2020 with many online banks and credit unions and expect it to remain flat through 2021.

How Do Discover Bank CDs Stack Up Against The Competition?

As mentioned, all of Discover Bank’s CD accounts come with a minimum deposit requirement of $2,500. This is steeper than most online banks which generally feature minimum deposits between $0.01 – $1,000.

Their APYs (annual percentage yields) are on par with other online banks at the moment and are comfortably ahead of the big banks.

That said, there are still several online banks and a handful of nationally available credit unions that offer better yields on fixed rate deposits.

Discover Bank isn’t shy about benchmarking their deposit rates against the competition either.

Discover Bank lets you compare their deposit rates to other competing banks.

In fact, on the CD section of Discover Bank’s website (shown above), they have a very helpful interactive widget that allows you to add other banks and compare current deposit rates.

They have a couple banks defaulted into the module when you start – US Bank, Bank of America and Capital One, but you can choose up to 6 different banks to compare (only 3 at a time).

Unfortunately no credit unions can be added to the comparison module at this time.

Opening your Discover Bank CD

Once you’ve found the right CD term for you, you can navigate to Discover Bank’s online CD page here and click the orange “Open an Account” button found at the top right of the page and directly in the center under the words “Lock in your future.”

When you begin the application process, you’ll want to have some personal information readily available. Be prepared with the following:

  • full name
  • home address
  • date of birth
  • phone number
  • Social Security number
  • employment status (employer and length of employment may be requested)
  • driver’s license, passport or other form of photo ID

After your application is completed and accepted you can fund the account.

Funding your Discover Bank CD

Upon completing the application you will have exactly 45 days to fund this account. The account can be funded in one of 4 ways. Here are the 4 ways in which you can fund your account:

  1. Transfer funds from another bank account via an online transfer.
  2. Transfer funds from another bank account via telephone. This function is only available for your initial transfer. Call 1-800-347-7000 to get started.
  3. Download their mobile app from iTunes or the Google Play store and complete a mobile check deposit.
  4. Make a check out to yourself and send it via snail mail to the following address: Discover Bank P.O. Box 30417 Salt Lake City, UT 84130

Discover Bank CD Account Details

There are a few details to your Discover Bank CD that you should be aware of.

First, your deposit is federally insured by the FDIC up to $250,000 in case of bank insolvency during your deposit term.

Second, fees. While this account has very little to worry about in terms of fee’s there are a couple you should be aware of – most notably early withdrawal fees. If you need your funds in the case of an emergency an early withdrawal fee will be applied. That said, this is quite standard with any Bank CD and Discover Bank’s fees in this regard are on par with other major banks.

Discover Bank’s early withdrawal fee structure:

CD TermPenalty
less than 1 year3 months simple interest
1 – 4 years6 months simple interest
4 – 5 years9 months simple interest
5 – 7 years18 months simple interest
7 – 10 years24 months simple interest

The only other fee you’ll need to be aware of is for outgoing wires. If you plan on moving any money out of the CD upon maturity you’ll incur a $30 fee per wire.

What Happens When Your Discover Bank CD Matures?

Exactly 30 days prior to your Discover Bank CD maturing, Discover Bank will send you a notification making you aware of the date.

Upon maturity you will enter what is referred to as a grace period. The grace period with Discover Bank CDs is 9 days. During these 9 days you can make additional deposits, withdraw any interest or principal or change the term of your deposit. However, once you take any of the aforementioned actions, this will trigger the end of your grace period, even if the full 9 days are not up.

If you do nothing during the 9 day grace period your CD will automatically renew into the same CD term you had before with whatever current APY Discover Bank is offering on said term.

Earning and Allocating Interest On Your Discover Bank CD

You’ll start earning interest on your deposit the same day it is funded. The interest is compounded daily and returned to the deposit (or another Discover Bank account) once per month.

With the interest earned you can do one of two things:

  1. The do nothing / default option places the interest back into the CD to compound until maturity.
  2. If you’re living off of the interest as income, or for whatever reason want the interest to be accessible, you may have it transferred to another Discover bank account.

Discover Bank Customer Sentiment + Account Features

Discover’s performance as a bank is above average with user reviews hovering around ​4 out of 5 stars on the top review sites​.

The online institution simply has a reputation for being a stand-up company with total transparency, and it’s known for having a team of customer service representatives that are as helpful as they are speedy. User reviews reflect satisfaction with the bank, with only the occasional angry customer reporting excessively long transfer holds, unexpected account closures, and the like.

Likewise, the Discover app is top-notch. Millions of Apple and Android users agree that this mobile banking app deserves a near 5 star rating for a platform that’s almost as simple to use as it is functional. If you’ve read our mobile app reviews of other online banks you’ll quickly notice this is far from the norm. Discover Bank has native apps for both IOS and Android.

Overall, Discover online and mobile banking platforms are user-friendly and representatives are knowledgeable and friendly.

Discover has multiple phone lines devoted to various banking needs, and these are all open 24/7 year-round. To open or manage an account, call 1-800-347-7000. For online banking tech support, call 1-800-290-9885. For everything else, visit ​this page​ for the right number. Mail can be addressed to:

General Correspondence Discover Bank
P.O. Box 30416
Salt Lake City, UT 84130

Discover has only one branch (the bank’s headquarters in Delaware), but there is a sizable network of ATMs​ from which you can service your accounts at no cost.

Discover will allow you to make incoming or outgoing ACH transfers of up to $250,000 per month.

Final Thoughts

Discover Bank CDs consistently feature APYs that are significantly higher than the national average – usually just a handful of basis points away from the highest yielding accounts.

They have invested considerable time and resources into developing one of the most straight and easy to navigate online banks with account perks that outdo many of their competitors.

If you like all of your accounts under one roof, then Discover Bank is definitely worth the look. From online savings accounts, checking accounts, credit cards and CDs, Discover Bank has it all.

TD Bank CD Rates – Remain the same in 2021


image credit: td.com

[Update June 2021: TD Bank CD rates remain unchanged for all of 2021. The last rate change was in the Fall of last year. The current national average for a 12 month and a 60 month CD sit at 0.14% APY and 0.27% APY, respectively. TD Bank’s CD rates remain under the national average for each respective term.]

TD Bank is the 8th largest bank in the country by assets despite mostly operating on the east coast. They have over 1,200 locations in 15 US states plus Washington D.C. and are headquartered in Cherry Hill, New Jersey.

For savers looking for fixed-rate deposit products, TD Bank offers three different types of certificates of deposit to choose from. They are:

  1. TD Choice Promotional CDs
  2. TD No-Catch CDs
  3. TD Step Rate CDs

All of TD Bank deposits are federally insured by the FDIC up to $250,000 per depositor. We will breakdown the APYs, terms, conditions and details of all of TD Bank’s CDs in our review below.

When viewing TD Bank’s CD rates on their website, you will first be prompted to enter your location.

After you’ve entered your location you will be able to click through their CD accounts options and view their current rates. That said, we ran this scenario in three separate locations and found the exact same annual percentage yields for each. The locations we sampled are:

  1. Boca Raton, Florida
  2. Washington D.C.
  3. Boston, Massachusetts

TD Choice Promotional CDs

Top APY on these accounts is just 0.10% currently.

Like all of TD Bank CDs, the TD Choice Promotional CDs feature a tiered interest rate and APY based on your deposit amount. They also feature a “relationship bump rate” which allows you to earn a slightly higher APY if you also have a TD bank checking account.

Terms range from 3 months to 5 years and come with a minimum deposit requirement of $250.

TD Choice Promotional CD Rates

CD TermDeposit AmountStandard APYRelationship APY
3 month$250 – $9,999.990.05%0.05%
3 month$10,000 +0.05%0.10%
6 month$250 – $9,999.990.05%0.05%
6 month$10,000 +0.05%0.10%
9 month$250 – $9,999.990.05%0.05%
9 month$10,000 +0.05%0.05%
12 month$250 – $9,999.990.05%0.05%
12 month$10,000 +0.05%0.10%
18 month$250 – $9,999.990.05%0.05%
18 month$10,000 +0.05%0.05%
2 years$250 – $9,999.990.05%0.05%
2 years$10,000 +0.05%0.05%
3 years$250 – $9,999.990.05%0.05%
3 years$10,000 +0.05%0.05%
5 years$250 – $9,999.990.05%0.05%
5 years$10,000 +0.05%0.05%

To give these offers above some context, the current national average for a 12 month CD sits at 0.14% APY and the average yield on a 5 year CD sits at 0.27% according to recent FDIC data.

While TD Bank calls these deposit products “promotional” their current yields are anything but. If you do decide to open one of these, please remember your money will be locked up for the duration of the deposit’s term. If you need access to your funds prior to maturity, an early withdrawal penalty will apply. If you foresee a chance that you will need these funds prior to maturity, you may want to open a “TD No-Catch CD” which allows for one penalty-free withdrawal per term.

Early Withdrawal Penalties:

Withdrawing funds from your TD Choice Promotional CD prior to maturity will cost you some or all of your interest earned. Below is a breakdown of TD Bank’s early withdrawal penalties.

  • For CDs with terms of 7 to 89 days, TD Bank will deduct all accrued interest.
  • For CDs with terms of 90 days to one year, TD will deduct three months’ interest.
  • For CDs with terms between 1 and 2 years, TD will deduct six months’ interest.
  • For CDs with terms between 2 and 3 years, TD will deduct nine months’ interest.
  • For CDs with terms between 3 and 4 years, TD will deduct twelve months’ interest.
  • For CDs with terms between 4 and 5 years, TD will deduct eighteen months’ interest.

Compounding Interest:

TD Bank does not state the compounding schedule on their website, however according to their CD rate calculator interest appears to be compounded monthly. Many banks, both online and brick and mortar, compound interest daily resulting in a higher annual percentage yield.

Grace Period:

As with most banks and credit unions, TD Bank has a 10 day grace period in which you can withdraw or add money to your CD penalty free. TD Bank will send you a notification prior to your deposit’s maturity, but you may want to have your own reminders set as well. If nothing is done during this grace period, your funds will roll into another CD of the same term and current APY.

TD Bank No-Catch CDs

Top APY on these accounts is just 0.05%.

The “No-Catch” CDs offered by TD Bank currently come with only two deposit terms to choose from: 6 months and 12 months. Although these products have featured tiered APYs in the past based on deposit amount, they all feature the same lackluster yield currently.

The major difference with these accounts is that they allow for one penalty-free withdrawal per term.

TD Bank No-Catch CD Rates

CD TermAPY
6 month0.05%
12 month0.05%

The minimum deposit requirement is $250.

Interest is compounded presumably monthly on these CDs as well and the same grace period applies. All of these CDs will automatically renew if nothing is done during the grace period.

TD Step Rate CDs

Top APY on these accounts is 0.25%.

TD Bank’s Step Rate CDs function exactly as their name implies in that your interest rate takes a ‘step up’ on your anniversary each year. You have just two terms to choose from with these products: a 3 year term or a 5 year term.

As an added bonus, the Step Rate CD also come with a similar feature as the “No-Catch CD.” Upon each yearly anniversary of your CD, you will be given a 10 calendar day window in which you can add or withdraw funds penalty-free. You may withdraw any amount at this time whether it be all of your funds or just a partial amount.

3 Year TD Step Rate CD

YearAPY
Composite APY0.10%
Year 10.05%
Year 20.10%
Year 30.15%

The composite APY is simply the blended APY you will have received at the maturity of your deposit term.

5 year TD Step Rate CD

CD TermAPY
Composite APY0.15%
Year 10.05%
Year 20.10%
Year 30.15%
Year 40.20%
Year 50.25%

While the 5 year TD Step Rate CD features the highest yield of any TD Bank CD, better APYs can still be found with online banks and nationally available credit unions.

Final Thoughts

TD Bank has certainly offered decent yields and promotional CDs in the past, but their current offers are far less competitive than even the national average.

In normal interest rate environments, their tiered balances and relationship bonus allow for consumers to lock in even higher yields on their savings, but today these offers add very little incentive.

If you decide to go with a TD bank CD, the quickest way to open one of these products is online. If you’d prefer to speak to a representative you will have to go into one of their 1,200 branch locations across 15 states plus Washington D.C.

Aspiration: Up to 1.0% APY + 10% cash back on purchases!


image credit: aspiration.com

Aspiration is not a bank but rather a financial services company that has come up with quite the aspirational product – a hybrid checking/savings account with the goal of making the world a better place.

Aspiration has taken the best features of checking and savings accounts (ie cash back on debit purchases, unlimited ATM reimbursements and a solid APY on idle cash) and combined that with a streamlined way of investing in ethical companies.

The Aspiration Spend & Save account was named one of the best cash management accounts on the market for 2020 by NerdWallet— “it lets you invest sustainably and save while you do it.”

Today, the Spend & Save account by Aspiration comes with two plans to choose from:

  • Aspiration – free – 3 to 5% cash back on conscious coalition purchases.
  • Aspiration Plus – $7.99/mo or $5.99/mo if you pay annually. Earn up to 1.0% APY on savings plus up to 10% cash back on conscious coalition purchases AND Aspiration will offset your carbon footprint every time you drive.

If you’re in the market for a cash management account that is as personally fulfilling as it is financially rewarding, continue reading our review of both plans below.

Aspiration Spend and Save at a Glance

The Aspiration Spend and Save account is a cash management account that is divided up into two plans – Aspiration and Aspiration Plus.

As mentioned, the regular Aspiration plan is free and has several noteworthy benefits. These include:

  • An Aspiration Debit Card issued by Coastal Community Bank, based in Washington State.
  • A guarantee your deposits won’t fund fossil fuel exploration or production
  • 55,000 free in-network ATMs using Allpoint locations (found in Walgreens, CVS and Target)
  • 3-5% cash back on Conscience Coalition purchases
  • Personal impact score to help you shop to match your values
  • Option to plant a tree with every purchase roundup
  • FDIC insurance up to $2.46 million using bank sweep programs which “sweep” your funds up into member FDIC banks to leverage their FDIC insurance
  • pay whatever monthly fee you think is fair (even if it’s zero)

The fact that the Aspiration Spend and Save account will never be used to pay for fossil fuel exploration or production is taking direct aim at America’s largest banks. The four leading banks in the U.S. — Chase, Wells Fargo, Citi, and Bank of America — are responsible for the most fossil fuel production by any banks in the world.

If you opt for the Aspiration Plus plan at $7/mo or $69/annually you have the ability to unlock more features and rewards. On top of all the bulleted items listed above, the Aspiration Plus plan will also include:

  • 10% cash back on Conscience Coalition purchases
  • Up to 1.00% APY on your savings up to $10,000
  • Planet Protection which purchases carbon offsets to balance out your gas consumption. Drive all you want with a clear conscience!

Both the 10% cash back on Conscience Coalition purchases and the Planet Protection program are novel benefits and unique differentiators for Aspiration.

All Aspiration Spend and Save customers will be able to see their spending impact in the form of an impact score which not only gives you spending bonuses but also shows you how the companies you’ve supported use their profits to do social and environmental good.

Conscience Coalition Partners

Aspiration has teamed up with companies “that do right.”

Aspiration has teamed up with corporations that put morals and ethics at the heart of their business.

Every Conscience Coalition partner that Aspiration has is an impact leader. These companies achieve high scores on the Aspiration Impact Measurement (AIM) tool. These companies are made up of pioneers in giving, sustainability, workplace equality, or transparency.

Remember, when purchasing form these companies your cash back will vary based on your Aspiration plan. If you’re on the regular, free plan you’ll earn between 3 and 5 percent cash back and if you’re on the Aspiration Plus plan you’ll earn 10% cash back.

Planet Protection

Drive your car without hurting the planet!

It’s no secret that driving our cars is one of the biggest contributors to climate change. With the Aspiration Planet Protection program; however, you’ll be able to drive your car as much as you want with a clean and clear conscience.

The Aspiration Planet Protection program purchases carbon offsets based on every gallon of gas you purchase with your debit card. This means that regardless of what kind of car you drive, you can rest assured that Aspiration will be neutralizing your carbon output.

This feature is only available with the Aspiration Plus plan.

Spend and Save Rate (APY) + Details

For the Aspiration Plus plan members, you have the chance to earn one of the highest APYs on the market at 1.00% on balances up to $10,000.

The biggest “catch” with earning the exceptional APY is that the plan requires you to also spend $1000 or more, monthly, with your Aspiration debit card. If this requirement is not met your balance will earn a more modest 0.25% APY.

A minimum deposit of just $10 is required to open to open the account, but you must enroll in Aspiration Plus to earn the APY.

Aspiration Plus APY

BalanceAPY
$10 – $10,0001.0%
$10,001 +0.25%

To put these yields in perspective, the current national average for a savings account and an interest checking account are just 0.06% APY and 0.04% APY, respectively.

Aspiration APY

BalanceAPY
$10 – $10,0000%
$10,000 +0%

The regular Aspiration plan does not provide any yield on your balance.

FDIC Insurance up to $2.46 Million

Aspiration deposits are insured up to $2.46 million per depositor by the FDIC. This is just shy of 10x what a typical bank provides. This is possible through the use of the FDIC Deposit Sweep Program, which “sweeps” your funds into FDIC-insured bank accounts at day’s end to protect them.

Operating as your custodian and agent, Aspiration will select these banks for you from a long list of at least 10 participating Program Banks. They will post a Priority List of these selections for your viewing. This list will tell you which banks your funds will be put into and what the priority will look like (i.e. which bank will get the first tranche, second tranche, third and so on until all your money is safely parked).

As mentioned, at the end of each business day your cash balance is “swept up,” and distributed amongst, one or more of Aspiration’s partner banks up to $246,500 per bank.

Here is a current list of Aspiration’s current Program Bank members. All are members of the FDIC:

  • Coastal Community Bank
  • EagleBank
  • Ion Bank
  • Bremer Bank, NA
  • ProgressBank
  • Bank of New Hampshire
  • Manufacturers Bank
  • C3Bank, NA
  • The Freedom Bank of Virginia
  • Bridgewater Bank
  • Nano Banc

If the $2.46m is exceeded, you will have an excess bank for this additional amount. Deposits in the Excess Bank will not be insured. Contact Aspiration at (800) 683-8529 if you are over this limit in one or more of the banks on this list or if you would like to alter your Priority List.

Though your money won’t be held at Aspiration, it can still be accessed as usual through Aspiration. A Spend and Save account is not technically a deposit account, so deposits into it need to be distributed into other deposit accounts in order to still receive insurance coverage.

Accessing Your Funds

Accessing your funds is simple and straightforward and on par with many online bank savings accounts and money market accounts. The following methods are allowed.

Depositing funds can be down via:

  1. ACH Transfer
  2. Wire transfer
  3. Mailed check
  4. Mobile-deposited check

Withdrawing funds can be down via:

  1. ACH transfer
  2. Wire transfer
  3. Request a mailed check
  4. ATM withdrawal
  5. Point-of-sale withdrawal

Account Fees

Aspiration’s “Pay What is Fair” fee is certainly an interesting approach to fees. They simply state that you choose their fee.

They’re confident in their ability to bring you best in class digital financial products and in return they hope you will be kind enough to pay them something for the value you received. But you certainly don’t have to and the ball is entirely in your court. The fee you pay can be $0 for as long as you’re with them if you so choose.

Aspiration Spend and Save Fee Schedule

TypeFee
Monthly MaintenancePay what is fair
Minimum to Open$10
ATM Withdrawal$0
OverdraftNA. The account won’t allow it.
Stop Payment$0
Insufficient Funds$0
Domestic Wires (In and Out)$0.82 each
International Wire In$2.50
International Wire Out$15
Return Item Charges$1.15 per item under $5,000
$5.33 per item over $5,000
Foreign Item Collection$30 plus the foreign bank’s fees
Canadian Item Collection$5
Expedited Debit Card$35
Account ResearchFree

You may write checks with an Aspiration Spend and Save, but you will need to order paper checks. Aspiration tries to be as environmentally friendly as possible, so you’ll have to go out of your way to get paper.

Sustainable Investing

Invest in ethically and environmentally sound companies.

Aspiration also makes investing easy by offerings users professionally managed funds that are 100% free of any fossil fuel investment(s).

If you utilize this service your money is placed in the redwood fund (REDWX) which only invests in companies with sustainable environmental and employee practices. A $10,000 minimum is required.

Retirement

Aspiration also allows its users to open an IRA through Redwood IRA. The same investment principles apply in that they only invest in sustainable businesses and companies who care about their employees. A $10,000 minimum is required.

Aspiration Spend and Save Reviews + Customer Sentiment

Customer satisfaction with this financial firm is mixed and fairly average overall. This cash management product comes through for users with competitive rates, high FDIC-insurance and simplicity, but some users are frustrated with how often rewards, rates, and features change.

Customer service is said to be good and accessible and the online banking platform is generally thought to be more than sufficient—easy to use and complete.

To reach a customer support representative, call (800) 683-8529 during business hours of 6 AM – 6PM Pacific Time Monday through Friday and 8 AM – 4 PM Saturday and Sunday. You can also follow the corporation on Twitter, Facebook, and YouTube.

The mobile app for this firm is well-liked. The Aspiration app for Apple devices has a 4.8 star rating on the App Store and for Android devices has a 4.5 star rating on Google Play.

Final Thoughts

This account is a clear winner for anyone that wants to use their money to better the world.

The Spend and Save account (along with membership to Aspiration Plus) has everything a good cash management account should. They feature good rates of return, great perks, and the convenience of spending, saving, and investing all under the same umbrella.

PenFed Credit Union CD Rates – Up to 0.75% APY + 0.45% APY Online Savings!


PenFed headquarters in Tysons, Virginia.

Pentagon Federal Credit Union,​ commonly referred to as “PenFed,” is the third largest credit union in the nation—and the second largest federal credit union—with 1.75 million members across the world and $25 billion in assets.

PenFed, originally called the War Department Federal Credit Union by the group of ten civilian War Department employees that founded it in 1935, is headquartered in Virginia today but started out in the Munitions Building on the Mall in Washington, D.C.

Though technically a military credit union, you don’t actually have to be a military member or dependent to join. There are a number of ways to qualify for membership with PenFed outside of this, including becoming a member of the nonprofit National Military Family Association for $17 or Voices for America’s Troops if you don’t meet any of the other requirements. Once a member, you’ll have access to modest rates on multiple savings products from this NCUA-insured credit union.

PenFed CD Rates + Account Details

PenFed offers a slightly wider range of certificate products than most credit unions with nine terms to choose from ranging from six months to seven years. Their CDs, called money market ​certificates,​ provide very good returns compared to the current national average(s). These accounts are federally insured by the NCUA up to $250,000 per depositor or $500,000 for joint accounts.

They are very easy to open, especially for credit union standards. Once you’re a member, certificates can be opened online within minutes.

PenFed Money Market Certificate Rates (CD Rates)

CD TermAPY
6 month0.25%
12 month0.45%
15 month0.45%
18 month0.45%
2 year0.50%
3 year0.55%
4 year0.60%
5 year0.70%
7 year0.75%

Although PenFed’s CD rates still beat the current national average(s) for their respective terms by a significant margin, slightly better CD rates can be found through online banks or with other credit unions.

To put their 12 month and 5 year CD in perspective, the current national average for those terms sit at just 0.14% APY and 0.24% APY, respectively.

You’ll need a minimum of $1,000 to open any money market certificate account with PenFed.

Compounding and Crediting Interest

Dividends are compounded daily and paid monthly – except for the 6 month certificate – which earns only simple interest, paid at maturity, on the principal.

You can choose to have your dividends deposited into a separate account if you’re using these proceeds for income, or it can be returned to the CD account to compound further. The latter is the default option.

Early Withdrawal Penalties

  • For a 6 month certificate, you’ll have to pay 90 days’ interest;
  • for any other certificate (from 12 months to seven years), you’ll pay 365 days’ interest if you withdraw ​within a​ year of issuance and 30% of the gross interest earned if you withdraw after a​ year of issuance but before maturity.

PenFed Money Market Rates + Account Details

A money market account with PenFed requires an opening deposit of just $25, however their rates are quite low and do not compete with other banks we’ve covered such as Vio Bank or Discover Bank.

PenFed Money Market Rates

BalanceAPY
$25 – $9,9990.05%
$10k – $99,9990.10%
$100k +0.15%

The national average for money market rates sits at just 0.06%, so unless you have more than $100,000 lying around, you can expect below average payouts, paid and compounded monthly.

A PenFed money market savings account does not come with a monthly service fee or balance requirement. You are allowed no more than six withdrawals per month and you will be charged a fee of $10 for every excessive transaction. You may withdraw funds from a non-PenFed ATM, but you’ll have to pay $1.50 per.

Other Savings Accounts Offered by PenFed

PenFed offers regular savings and premium online savings accounts.

For a $5 deposit, you become a member of PenFed, purchase a share in the credit union, and open a regular savings account all at once. But this savings account is called “regular” instead of “premium” for good reason: it pays a rate of just 0.05% on any balance. For comparison, that’s 0.02% below average.

Dividends are paid and compounded monthly and you do have the option of withdrawing funds from an ATM with this account type. There is no monthly maintenance fee for a PenFed regular or premium savings account, but there are other fees you’ll want to watch out for. You will be charged an insufficient funds fee of $30 every time you try to overdraft your account and there is no overdraft transfer service, so stay on top of your account balances if you plan to join PenFed.

PenFed Premium Savings Account – 0.45% APY

Minimum DepositAPY
$50.45%

PenFed’s “premium savings account” offers an excellent APY of 0.55%. Interest is compounded and credited monthly and the account requires just $5 to open. Keep in mind this savings account does not allow for ATM transactions, so you will not be able to conduct any regular banking activity out of the account.

About PenFed Credit Union + Eligibility

In its 2018 Annual Report, PenFed reported growing by 80,000 members and $170 million in net worth for that year. Today, PenFed has 1.75 million members across the world and over $25 billion in total assets. It has members in every U.S. state as well as the territories of Guam and Puerto Rico and the prefecture Okinawa.

There are only 50 PenFed branch locations in select cities and states, but over 60,000 ATMs nationwide. To find ATMs and/or branch locations start here. You are more than likely within a mile of several ​ATMs accepted by PenFed.​ Some of these surcharge-free ATMs are branded as PenFed Credit Union and some of them are not. However, like other large credit unions, PenFed DOES NOT participate in shared or co-op branching. Branches can be found in Washington, D.C., Florida, Hawaii, Maryland, New York, North Carolina, Oregon, Tennessee, Texas, and Virginia.

PenFed membership eligibility is inclusive to just about everyone regardless of military affiliation. You can qualify for membership in any of the following ways:

  1. You are an active-duty or retired military member
  2. You are employed at a qualifying organization (such as a veterans service organization)
  3. You belong to a qualifying association (such as the American Red Cross)
  4. You are a United States government employee
  5. You live or work in a qualifying location

For a complete list of qualifying organizations, associations, and locations, go ​here. If you are not eligible in any of these ways, you can access membership by joining either the ​National Military Family Association ​for $17 or Voices for America’s Troops ​for $14.

The goal of both of these organizations is to help military members feel seen and heard. The National Military Family Association supports military families by bringing pressing issues that service members and dependents face to the attention of Congress and other decision-making officials when it matters most. Voices for America’s Troops advocates for career incentives in order to make a life serving in the military a sustainable option for soldiers and their families.

PenFed banking can be done in-person at a branch, ​online, or through the ​PenFed mobile app.​

Final Thoughts

There are pretty clear pros and cons of PenFed membership when you look at the numbers alone. For a certificate or premium online savings accounts, PenFed has attractive rates. For a regular savings or money market savings account, PenFed is not appealing.

Outside of just rates though, there are no membership or maintenance fees and there are countless ​discounts through partner organizations, such as TurboTax and Sprint, that PenFed members can take advantage of.

PenFed is one of the most inclusive credit unions in the country opening their doors to nearly any US citizen or resident.