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Thoughts on Constant High Yield Savings

Posted: Sat Sep 28, 2019 1:35 pm
by wyoming82240
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

Re: Thoughts on Constant High Yield Savings

Posted: Sat Sep 28, 2019 1:39 pm
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.

Re: Thoughts on Constant High Yield Savings

Posted: Sat Sep 28, 2019 1:46 pm
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.

Re: Thoughts on Constant High Yield Savings

Posted: Sat Sep 28, 2019 10:21 pm
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.

Re: Thoughts on Constant High Yield Savings

Posted: Sat Sep 28, 2019 10:27 pm
by willthrill81
It sounds like StreetShares would be a better vehicle (they also offer 5%), but I wouldn't touch either of them.

Re: Thoughts on Constant High Yield Savings

Posted: Sun Sep 29, 2019 12:04 am
by AerialWombat
I do high-risk Groundfloor loans, but also would not touch Constant with any length of pole.

Re: Thoughts on Constant High Yield Savings

Posted: Sun Sep 29, 2019 12:11 pm
by mjb
Why would you invest in this when an arguably less risky municipal cef yields 4 to 5%?