Compound Bonds Review: What To Know Before Investing In Real Estate Bonds
Written by
Dawn Allcot
Edited by
Susan Kim
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GOBankingRates Score
Compound Bonds
-
APY
5.0
-
Benefits
5.0
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Fees
5.0
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Customer Service
4.9
Pros
- High yield of 8.50%
- No fees
- Easy-to-use app
- Minimum investment of $10
- Withdraw funds at any time
Cons
- Limited product offerings
- Investing in real estate bonds carries risks
Compound Bonds Overview
Compound Bonds, or Compound Real Estate Bonds as the investment arm of the company is called, delivers an annual percentage yield that’s higher than most of the best high-yield savings accounts or CDs today. It delivers such high returns by investing in a variety of high-value real estate assets, with a mix of commercial, residential and industrial projects, as well as mortgages.
Key Features
Here are some features to consider to help you decide whether Compound Bonds is right for you.
APY
Compound Bonds currently advertises an APY of for its real estate bond investments. This is higher than rates offered by most of today’s best banks. Best of all, this APY is not diminished by any maintenance fees, start-up fees, advisory fees or withdrawal penalties.
Benefits
Compound Real Estate Bonds have no maturity date, so you don’t have to worry about seeing your funds locked in for a specific time period. You can cash out anytime.
You can also choose to automate your investing by choosing the “Auto Pilot Investing” option. Choose an amount of either $10, $50, $100 or $250 to be withdrawn from your linked bank account weekly, biweekly or monthly and invested in Compound Real Estate Bonds automatically, making investing easy.
You can also use Round-Ups to round up purchases from a linked debit card and have the spare change deposited automatically into your Compound Bonds account. When the balance reaches $10, Compound Bonds automatically invests the funds into a high-yield real estate bond.
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Fees
Compound Bonds is fee-free, whether you choose automated investing or deposit funds when you have money available. There are no early withdrawal fees, as you can cash out your investments at any time.
Note that there is no checking account or cash management account tied to the app, which makes Compound Bonds somewhat limited in the services it offers.
Customer Service
The Compound Bonds app earned 4.1 stars in the App Store and a 3.3 rating in the Google Play store. You can find many positive Compound Bonds reviews on both platforms.
If you have a problem, Compound provides multiple ways to reach its customer support team. The virtual assistant provides 24/7 chat support. If you want to speak to a real person via chat, you can reach out Monday through Friday between 8 a.m. and 9 p.m. Eastern time or on Saturdays from 9 a.m. to 8 p.m. Eastern time. You can reach the team by phone at 800-560-5215 during the same hours.
You can also email customer support through the website’s “Contact Us” page.
If you have investment-related questions, you can book a call with the investor relations team online.
How Compound Bonds Stands Out
While many stock investing apps and cash management accounts exist, there aren’t as many ways to easily invest in real estate bonds — especially if you are looking to build a diversified, value-based portfolio and don’t know a lot about various real estate asset classes.
Compound Bonds stands out for its high APY, lack of fees, easy-to-use interface and low barrier to entry, with investments starting at just $10.
Comparable Investment Options
There aren’t many popular finance apps that allow you to invest exclusively in real estate bonds. Check out these Compound Bonds alternatives to earn high yields on your investments.
Yieldstreet
Yieldstreet is an easy-to-use investment platform with offerings that target returns of 3% to 10% over three months to four years or more. You can roll investments into new opportunities as they mature. Returns are held in an FDIC-insured Yieldstreet Wallet.
Unlike Compound Bonds, where the service chooses your investments, you can choose from a variety of investments in various asset classes, including real estate. Select investments based on dividend income, growth for yields at maturity, or a blend of both.
One major downside to Yieldstreet: You need a minimum investment of $10,000 to get started.
Worthy
Worthy allows bond investors to get started with as little as $10, with no start-up or maintenance fees, similar to Compound Bonds. However, the bonds deliver a 7.00% APY, fixed through Jan. 1, 2026. This is 1.5% lower than Compound Real Estate Bond returns right now. Like Compound, you can withdraw funds at any time. Worthy also provides auto-invest and round-up options to grow your investment faster.
While Compound bonds fund investments across real estate asset classes, Worthy bonds support residential real estate projects, including infrastructure for home developers.
How To Apply
To get started investing with Compound Bonds, click the white “Get started” button in the top right corner of the home screen. You’ll start by providing your email address. You’ll also need to provide other information, including your Social Security or tax ID number, home address and full name. You’ll need a bank account that you can link to fund your Compound account.
Who Compound Bonds is Best For
Compound Bonds is best for those interested in investing without a lot of money to get started. If you’re looking for a high-yield account and don’t want to have to choose stocks or funds, Compound Bonds may deliver what you want.
Final Take
It’s hard to argue with Compound Bonds’ ease of use, auto investing options and the APY it offers. It’s important to remember investing in real estate bonds carries the same risk as stocks and other investments; interest rates could rise or fall based on the real estate market. However, Compound Real Estate Bonds could be a healthy part of a diversified portfolio, combining high-yield investments with quick and easy access to your money.
FAQ
- Is Compound Bonds legitimate?
- Compound Bonds is a legitimate investment platform. It is not an FDIC-insured bank.
- How does Compound Bonds work?
- Compound Bonds allows retail investors to purchase real estate bonds with a starting investment as low as $10. Compound uses the funds to support real estate projects. Borrowers repay the loans with interest, and Compound Bonds pays bondholders the principal investment plus as much as 8.50% interest.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of May 21, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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