Updated September 29, 2020 by Jonathan Crookham
Worthy Bonds overview - the easiest 5% you'll ever make
Worthy offers bonds that generate 5% interest by providing loans to small businesses with funds raised through bonds. You can purchase the bonds in $10 intervals or withdraw at any time, though the bond term is technically 3 years.
Are Worthy Bonds for you? We think it’s best for:
Anybody looking to keep their cash fairly accessible, while generating a constant inflation-beating return
4.1/5 OVERALL
Pros
+ 5% compounding annual return not tied to the market
+ Invested funds remain easily accessible
Cons
– Lackluster user interface
Pursuit of Passive is not a financial advisor. These are the reviewer’s honest unsponsored opinions about products they actually use, not professional financial advice. While we’re not sponsored or affiliated with the reviewed service in any way, we may receive referral bonuses when you sign up using links in our pages.
- Worthy bonds are an investment and are not FDIC insured. This should be treated as an investment, not a savings account. That being said, loans funded by worthy bonds are backed by the recipients assets which must have a liquidation value greater than the loan value. This means that if the business to which the loan is provided fails, the business would have to repay the loan by liquidating their assets, limiting the risk of the loan from Worthy’s perspective. This in turn, limits the risk of owning Worthy’s.
signup bonus
1 Free Bond Sign-up Bonus worth $10
What are worthy bonds?
At 20 times the US Treasury 5 year bond rate and over 60 times the average savings account, taking advantage of Worthy’s 5% yield 3 year bonds is a no brainer.
ease of entry - investing in worthy bonds
It took a mere 10 minutes to set up an account with Worthy Bonds. It takes around 3 days for a bond purchase to land in your account after you make a purchase from a connected bank account and you can start with as little as $10 (the cost of a single Worthy bond).
Income potential - how much can you earn with Worthy bonds?
Worthy charges no fees to bond-holders. Worthy bonds generate 5% compounding interest yearly. You can follow this link for a calculator to see how much interest you can earn over time with various investment amounts.
features - what does worthy have to offer?
5% Annual Interest
- The most obvious feature is 5% yearly interest which is not dependent on the stock market. These bonds are a great way to diversify your portfolio without having to settle for pitiful returns currently typical with bonds and savings accounts. At 20 times the US Treasury 5 year bond rate and over 60 times the average savings account, taking advantage of Worthy’s 5% yield 3 year bonds is a no brainer.
Accessible Funds
- Even though Worthy bonds have a 3 year term length, you can purchase or sell bonds at any time, giving you a great degree of flexibility and liquidity with invested funds. In my experience, it takes about 3 days for funds to travel in and out of your Worthy bonds account.
Compounding
- Interest earned on Worthy bonds compounds automatically.
Automation
- You can set up recurring bond purchases on a weekly or monthly basis
Sign-up bonus
user interface - investing with the worthy app
As of writing, Worthy’s app is the only drawback of Worthy Bonds’ offering. The mobile app is merely a replication of the Worthy website, which you have to sign into every time you open and does not recognize biometrics. It is still functional, just a bit of a disappointment in the increasingly app-reliant fintech climate in which Worthy exists. While it’s nothing flashy, the interface includes a lot of useful information, including details regarding your daily interest earned and options to set up recurring bond purchases.
risk profile - is worthy legit?
Worthy bonds are an investment and are not FDIC insured. Consequently, this should be treated as an investment, not a savings account. That being said, loans funded by worthy bonds are backed by the recipients assets which must have a liquidation value greater than the loan value. This means that if the business to which the loan is provided fails, the business would have to repay the loan by liquidating their assets, limiting the risk of the loan from Worthy’s perspective. This in turn, limits the risk of owning Worthy’s
pursuit of passive's recommendation
Stash invest is excellent for a clean, simple user experience that let’s you set a portfolio in motion and sit back and watch. However, as we’ve reviewed, there are similar apps out there that offer comparable services at no charge. If the app UI is your number one criteria and you want to feel like part of an investing community, though, Stash may be worth the 12 bucks per year.
