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PennyWorks is now accepting accredited businesses and individuals.
Generally, you are an accredited investor if one or more of the following applies to you:
• Annual income greater than $200k (for the last 2 years)
• Joint household income greater than $300k (for the last 2 years)
• Net worth greater than $1M (individual or joint household, excluding your primary residence)
For more information, see the full SEC definition here.
We quote APYs instead of rates because APYs take into account the effects of compounding. Your invested funds compound daily. For example, $100 invested for 1 year at an APY of 5% earns $5 of interest. Our APY rates are variable based on how much you fund your account and how long between redemptions.
To view a full APY breakdown please see our Rates.
PennyWorks is different from a traditional investment account in that it leverages blockchain to offer you high yields while keeping your money secure with no lock up periods. We're also different from the wide field of new DeFi providers in that we are a U.S. company, meaning that we are held accountable to U.S. regulations, and follow strict risk management protocols.
Your money is put to work in lending funds in which borrowers are required to put up assets that are worth more than the currency they borrow. This collateralization creates more stable conditions for the lender.
Ultimately, FDIC (Federal Deposit Insurance Corporation) insurance is a function of a traditional banking system that borrows and then loans out its customers' money on mismatched time horizons. Banks make money by using the funds in customer deposit accounts to make long term mortgage loans and charging interest on it. But... What if all that money is tied up in 30-year loans and everyone wants to withdraw it today? That's called a bank run and that's the problem FDIC insurance was created to solve.
If, like PennyWorks, you don't have that problem in the first place, then FDIC insurance isn't really a thing. We don't engage in mortgage loans, which are a big driver of that timing mismatch.