What is a Bond?
Simply put, a bond is a loan.
Bonds allow investors to lend their money to governments or private firms in exchange for interest. They offer several benefits relative to other investments:
- Provide stable, predictable returns
- Lower risk than stocks
- Bonds provide fixed interest payments as a source of income
- Don’t necessarily require a broker or dealer
How are Worthy Bonds Different?
Worthy uses bond funds to lend money to individual and corporate developers of local real estate projects (including affordable housing). Worthy then pays interest on the bonds with the interest from the loans. The chart below shows why bonds are a great investment option for most investors.
|Provide stable, predictable returns
|A higher yield (_xx% APY1) than Treasury bonds and backed by residential real estate
|Lower risk than stocks
Bonds secured by residential real estate and not affected by Wall Street volatility
|Bonds provide fixed interest payments as a source of income
|Worthy bonds’ interest is compounded daily
|Usually require a broker or dealer
|Available online or in the app in denominations of only $10
|NO Fees. NO Penalties. Withdraw funds anytime through the app/site.
1 _xx% APY Rate valid until _expdate