Thoughts on Constant High Yield Savings

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
civility
Posts: 94
Joined: Mon Jun 17, 2019 9:35 pm

Thoughts on Constant High Yield Savings

Post by civility »

Hello,

Recently I stumbled upon this High Yield Savings from Constant through Facebook ad. Anyone in this forum have used the so called "High Yield Savings" from Constant? Love to hear your thoughts/experience about it.
https://www.myconstant.com/flex
aristotelian
Posts: 7973
Joined: Wed Jan 11, 2017 8:05 pm

Re: Thoughts on Constant High Yield Savings

Post by aristotelian »

I clicked on it. I would want to know more about the "compound finance" loans they are making. You know what they say about thing that seem too good to be true.
User avatar
Stinky
Posts: 5328
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Thoughts on Constant High Yield Savings

Post by Stinky »

I clicked through too. Your funds are invested in a “lending pool”, or something like that - not in bank.

5% is a high return. High returns often mean high risk.....

I wouldn’t touch it with a 10 foot pole.
It's a GREAT day to be alive - Travis Tritt
User avatar
Hodor
Posts: 236
Joined: Wed Jun 24, 2015 8:27 pm

Re: Thoughts on Constant High Yield Savings

Post by Hodor »

This is not FDIC insured. It’s not a savings account, it’s P2P lending with better liquidity than some other options. It may or may not be a good investment for what it is, but it is not in Any way a savings account. From their website:
Are my deposits insured?
Not always, no. While held with our trust partner, Prime Trust, your deposits are covered by a $130,000,000 insurance policy. However, we expect deposits will spend most of their time earning interest through Compound Finance, so will instead be protected by collateral put up by Compound's users.
User avatar
willthrill81
Posts: 20450
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Thoughts on Constant High Yield Savings

Post by willthrill81 »

It sounds like StreetShares would be a better vehicle (they also offer 5%), but I wouldn't touch either of them.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
User avatar
AerialWombat
Posts: 1710
Joined: Tue May 29, 2018 1:07 pm
Location: Cash Canyon / Cashville

Re: Thoughts on Constant High Yield Savings

Post by AerialWombat »

I do high-risk Groundfloor loans, but also would not touch Constant with any length of pole.
mjb
Posts: 177
Joined: Sat Nov 30, 2013 11:43 am

Re: Thoughts on Constant High Yield Savings

Post by mjb »

Why would you invest in this when an arguably less risky municipal cef yields 4 to 5%?
Post Reply