CrowdStreet – Averaging 17.1% Annual Returns for Investors

Angelica Leicht
June 27, 2021

Diversifying your portfolio is an important step to take whether you’re an amateur investor or have decades of experience. And while you may think that diversifying the types of stocks, bonds or ETFs you buy will cut it, it may not be the most well-rounded plan for 2021 as many “alternative investments” have changed the landscape for everyday investors.

Take, for example, cryptocurrencies like Bitcoin and its rise — this is one of the prime examples of how alternative investments can be a lucrative, albeit risky, way to invest.

Surely, crypto has created a lot of wealth for many people in recent years, but many still find it too risky to add to their portfolio.

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

One of the more popular real estate crowdfunding options is CrowdStreet, a platform that makes it simple to invest in commercial real estate projects across the country by connecting investors with “sponsors” (project developers) looking to fund a project.

CrowdSteet Platform Quick Facts:

Expected Annual Rate of Return (IRR)	17.10%
Equity Multiple (expected ROI to investor)	1.39x
Hold Period (how long your money will held)	2.3 years
Fees	0.50% – 2.50%
Investment Minimum	$25,000

If you’re looking for a platform to get started in real estate investing, CrowdStreet is certainly worth looking into. Here’s what this real estate investing platform can offer.

What is CrowdStreet and Who is Behind It

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

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

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

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

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

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

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

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

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

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

Features and Benefits

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

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

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

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

More platform benefits include:

A direct investment: Unlike other platforms, you deal directly with the sponsor if you opt to invest that way. This works in favor of the sponsor too, who is offered a more personal relationship with the investors using the platform.

A very thorough vetting process: CrowdStreet has an incredibly thorough vetting process it uses to determine legitimate projects and sponsors. It’s worth noting that only ~5% of submitted projects get approved for the platform. But, the vetting process doesn’t stop there. The platform also vets the investors, too — so both the investor and the sponsor can rest assured that the deals and funding are legit.

A culture of transparency: Investing in real estate crowdfunding deals can be intimidating, especially on this platform — where the minimum amount you’re investing is much higher than it would be on other platforms. CrowdStreet makes the process transparent, though, by offering documents and research on each deal.

The option to buy into CrowdStreet’s fund: Another benefit is the option to buy into CrowdStreet’s fund, which, as mentioned, acts much like a mutual fund in that it uses your money to buy into a wide range of real estate projects. This option is great for investors who aren’t comfortable with the one-on-one interaction with sponsors — or for those who want to fund a wide range of projects without buying into each one individually.

Tons of investment options: As one of the largest real estate crowdfunding platforms, CrowdStreet offers investors a massive range of commercial real estate projects to choose from. There are between five to 15 private equity investment opportunities on its marketplace, including both single-asset projects and funds.

Easy access to project research: One very unique feature of CrowdStreet is that you get access to all of the information you need to make a decision on a project. For example, each investment opportunity on the website gives you a detailed video with information about the project. This feature gives you a very simple way to both vet the project and understand what the purpose and goal of the project is. You can watch these videos and understand where your money is going — and why — to ensure you’re doing your due diligence before forking over any cash. Plus, you also have the option to submit questions to the sponsor, which can help you further understand the goal of the project — and decide whether the investment makes sense for you.

Access to a ton of resources: In addition to the easily accessible research, you’ll also get easy access to a ton of resources in the website’s research section. You can find instructional videos, articles, investing topics, and other resources in this section — along with access to the Quick Start Guide, which can help you navigate the platform.

Average Return to Investors

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

Another major perk of this platform is that it makes return information easily accessible to users. According to the website, CrowdStreet’s investors have made, on average, about 17.1% IRR as of June 2021, which is the annualized return metric that spreads cash flows and equity return over the course of the entire holding period.

Furthermore, according to CrowdStreet’s data, investors, on average, receive a 1.39x equity multiple, which is the total cash distributions received from an investment, divided by the total equity invested.

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

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

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

Potential Drawbacks

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

Limited to accredited investors: Right now, CrowdStreet is mainly limited to accredited investors. That means that anyone who cannot meet the accreditation standards set by the SEC is out of luck. There are other platform options to choose from, of course, but CrowdStreet isn’t a viable option for anyone who would struggle to meet accreditation standards.

A long investment term: The payoff for using CrowdStreet can be extremely high, but you’ll have to leave your money sitting in the investment for a period of years before you realize it. It takes about two-and-a-half years for most investments on this platform to mature, so if you can’t leave your funds tied up for that long, you may want to steer clear of this one.

A high minimum investment: In general, the minimum investment on this platform is $25,000 for the marketplace but this goes up to $250,000 for a CrowdStreet Advisors account which is privately managed.

Costs

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

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

How are CrowdStreet’s Investments Sourced

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

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

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

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

Background checks using industry-leading platforms. These background checks are run on the firm and the principals involved in the potential deal.

A track record review. CrowdStreet wants to know the history of the companies behind the potential deals, so they look into any past deals to find successfully executed projects in the asset type they are looking to bring to the marketplace. This gives them an idea of whether the past projects have been actualized in a sufficient manner.

Sponsor designation. Each sponsor is placed into a category based on background and experience.

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

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

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

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

Who is CrowdStreet For

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

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

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

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

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

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

Is CrowdStreet Safe

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

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

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

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

How CrowdStreet Differs from the Competition

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

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

Final Thoughts

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

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

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

Top 11 Crypto Savings Accounts [June 2021 Edition]

Jeremy Wagner
June 22, 2021

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

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 Bitcoin was temporarily down below the $30,000 mark this June, many remain optimistic about its future. And if you own some cryptocurrency yourself, then you may be interested in a crypto savings account to give these holdings an added boost in earnings power.

These types of “savings 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.

However, if you already own cryptocurrency and want to couple this with fantastic yields, then continue reading our comprehensive guide to the best crypto savings accounts on the market in 2021.

BlockFi – Best Overall

BONUS as of June 2021! Get up to a $250 crypto bonus with a deposit of $100 or more in crypto! Learn more here.

Plus, earn up to 8.6% APY (annual percentage yield) on stablecoins and 5% APY on bitcoin 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 (6% on Bitcoin, 8.6% 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 8.6% on stablecoins and 5% on bitcoin. Sign up here.

The lowest APY BlockFi offers is just 0.50% for deposits of 20 BTC or more. The more Bitcoin you deposit, the less interest you earn with BlockFi. Other cryptocurrencies feature flat rates from 5.0% to 8.60% APY.

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

Crytpo	Amount	APY
BTC (Tier 1)	0 – 0.5	5%
BTC (Tier 2)	0.5 – 20 BTC	2%
BTC (Tier 3)	20 BTC +	0.5%
LINK	0 +	4.5%
ETH (Tier 1)	0 – 15 ETH	4.5%
ETH (Tier 2)	15 – 1000 ETH	2%
ETH (Tier 3)	1,000 ETH or more	0.5%
LTC	0 +	5.5%
USDC	0 +	8.6%
GUSD	0 +	8.6%
PAX	0 +	8.6%
PAXG	0 +	4%
USDT	0 +	9.3%
BUSD	0 +	8.6%

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.

Coinbase – Best for Newbies Holding USD Coins

Earn up to 1.25% 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 1.25% 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 2.50% to 17.78% APY.

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

There’s currently a $40 bitcoin sign up bonus for new customers too! Download the app here for the bonus.

Here’s what to do once you download the app: Use the promo code WEB40 to get $40 in Bitcoin after transferring $200 or more in crypto to your Celsius wallet and holding it there for at least 30 days. Minimum of $200 must be transferred in 1 transaction.

Linus – Best for Liquidity

Earn up to 4.50% 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 4.50% 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 3.0% and 14% 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.

You can earn a phenomenal APY of up to 13% on stablecoins and 6.5% APY on cornerstone cryptocurrencies like bitcoin. 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 $100 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 9%.

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% 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 7.40% 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 10.5% 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 12.0% 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.

Marcus Bank by Goldman Sachs Online Savings: 0.50% APY + 0.60% APY CDs

Lauren Graves
June 18, 2021

Update June 2021: Marcus Bank has not changed any rates on either their fixed rate CDs or their variable rate online savings account in all of 2021 thus far. To put their current yields in perspective (see rates below), we’ve highlighted current national averages for various products according to recent FDIC data.

Average yield on a money market account: 0.10% APY
Average yield on a savings account account: 0.06% APY
Average yield on an interest checking account: 0.03% APY
Average yield on an 12 month CD: 0.14% APY
Average yield on an 60 month CD: 0.27% APY

You’ve surely heard of Goldman Sachs, the global investment services firm, but you might not be familiar with their digital subsidiary, Marcus.

Marcus by Goldman Sachs is an online-only, FDIC-insured bank offering personal loans, a savings account, and CDs. Named after Goldman Sachs pioneer Marcus Goldman and founded in 2016, this bank is at the top of the game with its high-yield savings and deposit products.

Marcus was recognized as one of the “Best Banks for Savings in 2019 by Nerdwallet” and as one of the “Best Savings Accounts of 2020 by GOBankingRates.”

Marcus by Goldman Sachs consistently features high yields on its variable rate savings account, but does that mean you should sign up?

Find out more about their deposit products and customer experience before you commit to this trendy banking platform.

Marcus by Goldman Sachs Online Savings Account Rate + Details

The Marcus savings account holds a very respectable APY. To put the yield below in perspective the current national average for savings accounts sits at just 0.07% nationwide.

Min Deposit	APY
$0	0.50%

The no-hassle minimum deposit or daily active balance requirements make the account very stress free and widely available to all income groups.

To earn the noteworthy APY you just have to fund your account within 60 days of opening it, and maintain a positive balance after that.

There are four different ways you can make a deposit into this savings account.

You can:

1. link your savings account to an external bank account and transfer funds (Marcus won’t charge fees for this, but your other bank might),
2. set up direct deposit payments from your payroll or Social Security,
3. send a domestic wire transfer, or
4. mail a check to this address – Goldman Sachs Bank USA P.O. Box 4571 Carol Stream, IL 60197-4571

Once you’ve opened the account, you can move funds about via:

Wire transfer
Electronic transfer

Interest on the Marcus savings account is compounded daily and credited monthly.

Per the standard and federally-enforced limit, you can make up to six transactions from a savings account per month for free. There is no excessive withdrawal fee, but you won’t be allowed to go over this limit. These accounts do not come with hidden monthly maintenance fees.

Marcus does not offer a debit or ATM card for its savings accounts at this time, so you’ll have to have your funds transferred to another account if you wish to withdraw them. Use the savings calculator to find out how much your money will grow if you don’t touch it.

Marcus by Goldman Sachs CD Rates + Account Details

Marcus offers standard CD terms (shown below) with high yields as well as a “No-Penalty CD” that comes with a 7 month term and an APY of 0.55%. We discuss the no penalty CD a little further down.

Marcus CD Rates

CD Term	APY
6 month	0.15%
7 month “No-Penalty CD”	0.45%
9 month	0.25%
12 month	0.55%
18 month	0.55%
2 year	0.55%
3 year	0.55%
4 year	0.55%
5 year	0.60%
6 year	0.60%

To put the offers above in perspective, the current national average for 12 month CDs and 60 months CDs sit at just 0.14% APY and 0.27% APY, according to recent FDIC data.

No- Penalty 7 Month CD

Earn a fantastic rate while still having access to your funds! Note the yield is now 0.45% APY.

The no-penalty CD is much more flexible than your standard certificate. It’s a 7 month term that earns 0.45% APY—an excellent rate of return for such a short time period—and comes with no early withdrawal penalty.

You’ll earn the fixed interest rate for the duration of your CD, but you can withdraw up to 100% of the funds as soon as 7 days after issuance penalty-free. This is the only difference between a high-yield and no-penalty Marcus certificate as far as terms and conditions.

CD Account Details

Interest is compounded daily and credited monthly to your certificate account, or you can withdraw it as you please. You can have all interest automatically reinvested, all interest withdrawn, or some withdrawn and some reinvested—you can make any changes over the course of the term.

A $500 minimum opening deposit and average daily balance is required to earn interest on a certificate account. Marcus CDs are backed by a 10-day Rate Guarantee, which promises the highest published interest rate and APY Marcus has to offer on your term for 10 days after certificate issuance. Essentially, you’ll get the highest rate on your account as possible for a short time—you aren’t locked in to a rate until that 10-day period is up. To ensure that this safety net is enforced, just make sure you have the $500 minimum deposited in the account within this time period.

There is a 10 day grace period within which you should try to make any changes or withdraws after a CD renews. If you don’t and you find yourself needing to withdraw funds from a high-yield CD (not a no-penalty CD!) after this, get ready to pay. For terms of less than 1 year, you’ll be charged 90 days’ simple interest; for terms of 1 – 5 years, you’ll be charged 270 days’ simple interest; and for terms more than five years, you’ll be charged 365 days’ simple interest.

Banking Experience with Marcus by Goldman Sachs

There are no Marcus ATMs or in-person branches, which is typical of online banks but important to know.

There are also no Marcus ATM, debit, or credit cards, but there is the Goldman Sachs card. Goldman Sachs’ only credit card, the Apple card, had a rough start. When it first launched, the card drew heat for alleged gender discrimination in the algorithm used to assess a potential user’s credit and qualifications. With two high-profile corporations like Goldman Sachs and Apple teaming up to launch a card, this error was quickly spotted and users were turned off of the product by such an egregious glitch. But now that the media storm has mostly calmed and the issues have been addressed, the Apple card is considered a decent product for devoted Apple users.

User reviews of Marcus are about average, but the data is somewhat imprecise. This is because many users report about their experiences with the Apple card rather than with Marcus as a bank, so this leads to difficulty in condensing customer experience with the online bank. Nevertheless, the results that are in are as follows: out of 128 reviews on WalletHub, Marcus scored 3 stars out of 5. Out of 165 reviews on DepositAccounts, the bank landed, again, 3 stars. And out of 71 reviews on Trustpilot, Marcus scored about a 3.5.

When you bank 100% digitally, you always run the risk of not being able to have your problems solved in a timely manner and, in some cases, at all. Unfortunately, Marcus is no exception. Some customers have reported not being able to get in contact with customer service representatives when their accounts were temporarily and inexplicably locked and have expressed frustration with slow, unsatisfactory service.

Overall, it seems, customers are either highly satisfied or highly unsatisfied with Marcus, so this might be a case where you’ll want to see for yourself how accessible Marcus customer service is. You might try giving their help line a call before opening an account if you have any questions and see what that experience is like to get an idea of what you can expect, but of course, this isn’t a perfect measure. Customer Service can be contacted Monday through Friday from 8 am – 10 pm and Saturday to Sunday from 9 am – 7 pm ET or you can call (855) 730-7283 to get in touch with someone.

The Marcus online portal is said to be more user-friendly than most banks, which is important when you’re managing your money digitally. The app gets 4.5 stars on Google Play and 4.9 stars on Apple.

Final Thoughts

The annual percentage yields offered on Marcus’s savings products are top notch. Both their online savings account rate and certificates of deposit rates put the national averages (and a large chunk of their competitors) to shame.

Even though the overall banking experience is mixed, if you’re simply after high yields and no frills, then the savings products offered by Marcus should be on your short list.

Mango Prepaid Mastercard Review

Lauren Graves
June 18, 2021

The Mango Prepaid Mastercard by Mango Money is a straightforward financial product for people of all ages. This debit card, issued by Metropolitan Commercial Bank, launched in 2018. It is ideal for consumers with poor or no credit and has some nice perks on top of being safe, flexible to use, and easy to load.

This prepaid debit card is good for young adults and adults looking for something between cash and a typical debit card. And with the opportunity to earn high interest rates on money saved as well and plenty of ways to load money to your card, it’s a solid choice for people to build good money habits through low risk means. Learn all about the Mango Prepaid Mastercard here.

Who is It For

Average age: Adults aged 18 years old or older.

Good candidate: People who want spending freedom but have little to no experience with money management practices.

The Mango Prepaid Mastercard doesn’t require a credit check when applying, so it doesn’t matter whether you have started building up credit or not. We recommend this product to people who have a poor credit score or no credit history at all, especially those who will take advantage of the high yield savings account.

Parents can apply for this card on behalf of their children, but their children must be at least 18 years old to qualify. This is not a debit product made specifically for kids and teens, so if that’s what you’re looking for, consider other prepaid debit card options such as Greenlight, BusyKid, FamZoo, or Copper.

Features and Benefits

With the Mango Prepaid Mastercard, you can spend your money anywhere Mastercard is accepted, but only up to whatever is loaded on your card. There are a few different opportunities to earn extra cash with Mango and account features built in to help you form good spending and saving habits.

You can add money to your account via direct deposit, ACH bank transfer, PayPal transaction, or cash at a Green Dot or Ingo Money kiosk (cash reloads do not incur fees from Mango but may incur fees from third-party locations). Green Dots can be found at both ATMs and retailers like grocery stores, gas stations, and banks.

💰 Earn: When you successfully refer a friend to Mango using your unique identifier code and they open an account and set up direct deposit of at least $50, you earn $10. There is no limit to how many times you can receive this referral bonus. You can also earn money through the interest-bearing Mango savings account, but we’ll get to that.

💸 Spend: There is nothing extraordinary about the Mango Prepaid Mastercard when you need to spend money. Just load the card with cash or external funds and use it like you would use cash, except that you’ll be asked for your PIN when you swipe. This card can be used at ATMs (fees apply) and with electronic money transfer apps like Venmo and PayPal.

Mango cardholders can also enjoy the benefits of Mastercard membership through Priceless. Priceless is a program for Mastercard users that offers exclusive experiences in categories such as Entertainment, Shopping, Travel, Culinary, and more. Some experiences are discounted. Read more about the Mastercard Priceless program.

It is not possible to overdraft a Mango account, and credit in any form, including loans, is not available at this time.

You can sign up for text alerts to notify you whenever your card has been used. This is a free feature that can help you keep track of your balance and budget your spending. You can always see your transaction history, card balance, and savings from your account. Users can also transfer money to each other through the Mango app cardholder portal.

💰 Save: Users can earn an APY of up to $6 with the Mango Prepaid Debit card. However, there are several stipulations to this offer. First, you have to fund the savings account with at least $25 and maintain this balance in order to qualify. Then, you have to use your Mango card to make at least $1,500 worth of purchases or payments every month.

If you can’t quite afford to spend this much each month, Mango will pay an interest rate of 2% when your total purchases equal between $750 and $1,499.99. You must still have an average daily balance of $25 to qualify for this rate.

The final catch is that the maximum balance for this high rate is capped at $2,500. When your balance exceeds this, your money earns just 0.10%. These rates are subject to change at any time.

There is a monthly limit of six transactions for the savings account, the number established by the federal government in Regulation D that a lot of banks still follow even though this rule was suspended in mid-2020.

You can sign up for Mango Savings as soon as you’ve opened your account and put money on your card for no extra fee. There is a limit of one savings account per Mango checking account. People with a steady income who can link their direct deposit with Mango stand to earn the most money from this account.

You may choose to add one authorized user to your account at no charge.

How Much Does the Mango Prepaid Mastercard Cost

💲 Fees: No activation fee, $5 monthly account fee, $3 per domestic ATM withdrawal, $4.95 + 3% per international ATM withdrawal, $1 for declined ATM withdrawals, $1 for balance inquiries at ATMs, $8 monthly account inactivity fee, no cash reload fee.

There is no charge for opening an account. The $5 monthly fee is waived when direct deposits total or exceed $800 per month. The inactivity fee is assessed after 90 days of inactivity, meaning no money has gone in or out of your account during that time.

There is also a $2.50 fee for every bank teller withdrawal you make at a participating bank and a $10 fee for closing your card, which can be done online or through the app. There are no additional hidden fees.

Benefits of Mango Over Competitors

One of the most attractive things about Mango is that it allows customers to earn interest on their savings, and the APY isn’t shabby. You have to be earning money and spending it regularly to qualify, but you won’t find a rate like this offered by many other savings accounts.

Another nice thing about Mango is that it’s easy to fund your account because there are a lot of funding options. You can load by bank transfer, PayPal, direct deposit, or cash. There are no fees for any of these transfers. Cash reloads, especially free ones, are somewhat unique in this arena.

And of course, Mango has advantages over bank-issued debit cards and credit cards, including that accounts can be managed 100% digitally. You won’t have to deal with brick-and-mortar banks to address questions and concerns, and you won’t be able to accrue debt or spend more money than you have. Prepaid cards are, in general, a responsible choice for cash access.

Potential Drawbacks

There are a lot of fees associated with this product compared to competitor products. Although it is possible to waive the monthly fee, there are plenty of good prepaid debit cards out there that don’t charge a fee at all and have fewer account management fees. Incurring fees for using an ATM of any kind is especially frustrating.

Another thing you might not like about Mango are the account limits, which are somewhat restrictive. For example, there is a daily total withdrawal fee of $500, a daily cash deposit limit of $950, and a daily purchase limit of $2,500. Mango also caps accounts at $10,000, so there’s only so much you can spend and save. If you’re going to use this card to move large sums of money, you’re going to run into problems.

If you’re planning to get this card for your child, the main obvious drawback is that the minimum age is 18. And if you do want to get this prepaid debit card for your college-aged kid, you won’t be able to set spending limits, get activity notifications, or otherwise control or monitor their account to help them form smart habits.

Finally, there is no app for the Mango prepaid debit card, only a mobile-enabled cardholder portal. This could easily prove inconvenient.

Custoumer Sentiment

Mango Money users would generally recommend this card to others. It’s easy to use and decently flexible in terms of how you can load it, where you can spend it, etc. However, a couple of users have had money disappear from their accounts without explanation. There are not a ton of reviews out there from real customers on the product itself.

There is no dedicated Mango Money app at this time. Users will have to use the Mango online portal to access their account, which can be done from a computer or mobile device. Mango claims that their web portal is “optimized for mobile,” but it is not clear whether Android and Apple users can expect similar experiences.

To contact customer service, call 855-687-2036 or 877-896-2646. Alternatively, you can send an email. Support responds to these emails 24/7 with the exception of major holidays.

Is It Safe

All Mango Money checking accounts are insured by the FDIC up the federally allowed limit of $250,000. Mango also provides fraud monitoring services free to all users and card replacements in the event of loss or theft.

The Mango prepaid debit card is safer than a credit card because it doesn’t allow you to incur debt by borrowing money and it is safer than a typical debit card because you can only spend what is on your card, whereas most debit cards allow and charge fees for overdrafting.

Of course, a prepaid debit card won’t help you build or repair your credit, but it’s a good all-around option for people who have a less than perfect history with money. Whether you have debt or you just have trouble sticking to a budget, a prepaid debit card can help you get back on track while still giving you the convenient spending options of a card.

Note that there are no merchant category restrictions for this card, as you often see with products made specifically for young users.

How to Sign Up

To sign up for a Mango account, you or your child has to be at least 18 years old. The application will have you select one of four card designs when you start signing up

If you’re signing up for an account for your teen, they will become the account holder. You will need to contact Mango directly if you have questions about how this works, as this information is not readily available.

Funding an account is simple and there are four ways to do it: direct deposit, bank transfer, PayPal, or cash. There is no activation fee for signing up or minimum opening deposit requirement. However, remember that the monthly fee of $5 will be charged if you don’t link direct deposits of at least $800 within a month.

Final Thoughts

This is a decent prepaid debit card overall, especially for that high yield savings account. And although the 6% APY for the savings may be difficult for some people to qualify for, this is definitely not a rate you see coming from a lot of competitor cards and gives Mango an edge.

The main drawbacks to be aware of are the fact that Mango doesn’t have a mobile app and that there are a lot of fees. This wouldn’t be a great first card for kids as it doesn’t provide parental control options, but it might work well for people that want to teach themselves to spend and save more responsibly.

Affirm Savings Review – Still 0.65% APY!

editorial staff
June 17, 2021

A word from founder Max Levchin (former PayPal founder).

Update June 2021: Affirm’s high yield savings account remains at 0.65% APY and has not encountered a rate drop yet in 2021. To put this yield in perspective, recent FDIC data shows the following national averages on various types of variable-rate savings accounts:

Average yield on a money market account: 0.10% APY
Average yield on a savings account account: 0.06% APY
Average yield on an interest checking account: 0.03% APY

Affirm is another San Francisco-based, financial technology company that recently launched a high yield savings account in June of this year.

The company was founded by former PayPal founder Max Levchin and the savings account features one of the best APYs (annual percentage yields) on the market.

As Max states, “We’re here to improve lives. If that means more work for us, or that we make less money, we will always take the more difficult path in favor of treating people better.”

This sentiment shows in their high yield savings account. We’ll review this product, its interest rate, features and potential drawbacks below.

Affirm Savings Rate + Account Details

As mentioned, Affirm itself is a financial technology company. They have partnered with Cross River Bank to offer their high yield savings account; leveraging Cross River Bank’s FDIC insurance. All Affirm savings account deposits are federally insured by the FDIC up to $250,000 per depositor (joint accounts are not available at this time).

Affirm Savings Rate

Minimum Balance	APY
$0	0.65%

To give the yield above some context, the national average for a savings account currently sits at just 0.07% APY. The top online savings account and money market account rates from FDIC-insured banks are ranging from 0.50% – 0.60% APY, currently.

Interest is compounded daily on all balances above $0.01.

The account is limited to six ACH transfers per month per Federal Regulation D.

Unfortunately there is no debit card at this time. The only way you can access your money is through bank transfers.

How to Open and Fund the Account

To get started, navigate to the high yield savings offer page on the Affirm website (located here). From this page you can either enter in your email, which will Affirm will then confirm and send you a link to download their app OR you can download the app directly from this page. You can find their Android app and IOS app at their respective stores or use our links.

Once you’ve downloaded the app on your phone or tablet, you may begin the process of opening and funding the account.

Information you’ll need to open the account:

full name (driver’s license)
current address
phone number
email
social security number or valid Tax ID

To fund your savings account or add more money, do the following:

Open the Affirm app.
Under Savings on the Manage tab, tap “See account.”
Tap “Add money.”
Enter the amount you want to add.
Under From, tap the bank account you want to transfer money from.
- No linked accounts? Tap From, then tap New bank account and link a new bank account.
- Only one linked account? From will be auto-filled with your linked bank account. To switch to a new bank account, tap From, then link a new bank account.
- Multiple linked accounts? Tap From, then tap a linked bank or link a new bank account.
Under Frequency, choose how often you want to add money.
- To add money once, keep Frequency auto-filled with Once. Your transfer will start no later than the next business day.
- To add money every week, tap Weekly, then choose the day. Depending on the day you pick, your transfer may start next week.
- To add money every month, tap Monthly, then choose the date. Depending on the date you pick, your transfer may start next month.
Review your transfer details and tap Confirm.

After you have funded your account you will begin earning the advertised rate on all balances above $0.01.

Reviews and Customer Sentiment

Manage your savings and watch your balance grow with Affirm’s highly rated mobile apps.

Given the fact that the Affirm savings account has only been on the market for a short period of time, there isn’t too much coverage on the product.

That said, their mobile app ranks quite high for both Apple and IOS, scoring 4.6 and 4.9 stars out of 5 on the Google Play store and Apple store, respectively.

Final Thoughts

If you’re looking for a no-hassle, digital way to save your cash then you’ll likely want to consider this saving account by Affirm.

It comes with zero fees of any kind and an annual percentage yield that beats the current national average by almost 12x.

Just be sure you won’t need any checking account features such as a debit card, checks or easy access to cash as this account won’t be able to provide you with those.

Motley Fool Review: Should you pay for the premium service

Rachel Morey
June 14, 2021

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.

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.

Today: Motley Fool is offering 50% off its market-tripling stock-picking service for new members

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.

Invest Better: Sign up for Stock Advisor for just $99/year!

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

New to Investing? 50% Discount for New Members at The Motley Fool

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.

New members join Rule Breakers for just $99 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.

Motley Fool Stock Advisor: Join for just $99 a 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

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.

Start Cutting Your Own Income Checks Today

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.

Today: Motley Fool is offering 50% off its market-tripling stock-picking service for new members

What is CrowdStreet and Who is Behind It

Features and Benefits

Average Return to Investors

Potential Drawbacks

Costs

How are CrowdStreet’s Investments Sourced

Who is CrowdStreet For

Is CrowdStreet Safe

How CrowdStreet Differs from the Competition

Final Thoughts

BlockFi – Best Overall

Coinbase – Best for Newbies Holding USD Coins

Celsius Network – Best for High Yield + Sign Up Bonuses

Linus – Best for Liquidity

Crypto.com – Best for Cryptocurrency Diversity

Nexo – Best for Rapid Payments

Outlet Finance – Best for Dealing in US Dollars

YouHodler – Jack of All Trades

Gemini – Best for Security

CoinLoan – Security and Safety Runner-Up

Hodlnaut – Runner-up for Liquidity

What are Crypto-Based Savings Accounts

How Much Can You Earn with Crypto-Based Savings Accounts

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

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

Risks Associated with Crypto Savings Accounts

Exchange Rate Risk

Risk of the Stablecoin Peg Breaking

Lock Up Risk

Pledge Risk

Loan Default Risk

Risk of Custodian Hack

Smart Contract Risk

Crypto Savings VS Traditional Savings

FDIC Insurance

Withdraw Limits

Interest Calculations and Interest Deposits

Final Thoughts

Marcus by Goldman Sachs Online Savings Account Rate + Details

Marcus by Goldman Sachs CD Rates + Account Details

Banking Experience with Marcus by Goldman Sachs

Final Thoughts

Who is It For

Features and Benefits

How Much Does the Mango Prepaid Mastercard Cost

Benefits of Mango Over Competitors

Potential Drawbacks

Custoumer Sentiment

Is It Safe

How to Sign Up

Final Thoughts

Affirm Savings Rate + Account Details

How to Open and Fund the Account

Reviews and Customer Sentiment

Final Thoughts

What is The Motley Fool?

What Information Can I Find on the Motley Fool Website?

Are Motley Fool Stock Picks Any Good?

Motley Fool Review: A Warning About Stock Advice Subscriptions

Details About Motley Fool’s Premium Subscription Services

Rule Breakers: High Growth Stock Recommendations and Research

Stock Advisor

Supernova

Discovery: Everlasting Portfolio

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

Options: Trades designed to generate income

Which Motley Fool Premium Subscription Offers the Best Value?

Stock Advisor’s Stock Picks

Stock Advisor Research

Stock Advisor Education

Stock Advisor Community Forum

Is Motley Fool Worth it For New Investors?

Motley Fool Customer Reviews

The Motley Fool Suffers on Trustpilot

Motley Fool Stock Advisor Customers Sound Off on Reddit

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

Is Motley Fool Worth it?

Footer

Disclaimer

Categories