Compound Banc Promises 7.00% APY

Interest rates have been rising for a while now. You can earn as much as 4.53% APY with savings accounts for example. Capital One has a 5.00% APY for a 11-month CD, and CIT Bank has a 13-Month CD that offers 4.65%. Treasury bills also have great rates which are higher than most savings accounts.

But what if you could earn a guaranteed 7% return? That’s exactly what Compound Banc is promising. For as little as $10, customers can buy Compound Banc’s real estate bond and receive a fixed 7.00% annual compound return on their investments. Customers can withdraw their money at any time without any early-withdrawal fees or penalties.

But the problem is that Compound Banc is a financial technology company and not a traditional bank, despite the deceiving name. The company also notes that it is not an investment adviser and is not registered, licensed or supervised as such with the SEC or FINRA. So the deposits, which are technically risky bonds, are not insured by the FDIC or anybody else. This is stated in the fine print on the homepage, even though there’s a comparison higher up to the FDIC National Average.

The company states in its SEC filings that “investing in our securities involves a high degree of risk, including the risk that you could lose all of your investment.”