If you’re a saver who’s been waiting for rising interest rates to boost your earnings, well …
You’re going to have to keep waiting.
Yes, the Fed has raised interest rates three times (25 basis points a clip) in the last 16 months. But there’s been little — or no — pickup in the rates of traditional fixed-income vehicles.
Here are the national average rates paid by banks on deposits of less than $100,000:
0.04% for an interest checking account
0.06% for a savings account
0.08% for a money-market account
0.24% for a 12-month CD
And short-dated government, corporate and municipal bond average rates aren’t much better:
1.01% for a one-year U.S. Treasury Bill
1.37% for a two-year A-rated corporate bond
0.75% for a two-year A-rated municipal bond
However, for those of you with an open mind, there’s a new opportunity you might want to consider.
That’s because it trounces the yields of conventional, short-term fixed-income instruments.
This alternative solution is available thanks to new rules set by Title III of the "Jumpstart Our Business Startups Act." (The JOBS Act.)
StreetShares is the only American small-business lender to receive SEC approval for a "Regulation A+" offering under the JOBS Act, which allows any American to invest.
Mark Rockefeller and Mickey Konson started StreetShares in 2013. Their online platform was designed to meet the needs of 21st-century American small businesses.
StreetShares provides financial solutions for America’s heroes and their communities …
The StreetShares community brings together business owners in search of funding and investors looking for both "financial" and "social" returns.
Although they focus on the military and veteran community, StreetShares is open to any American who supports veterans.
Borrowers (small business owners) receive fast, fair and affordable funding solutions. These come in the form of term loans, lines of credit and government-contract financing.
And investors can lend money directly to small businesses at attractive yields while seeing the name of the business … a "pitch" directly from the business owner … detailed financials from the StreetShares’ underwriting team … and links to the business website and social media sites.
This new opportunity is Veteran Business Bonds, or "VetBizBonds."
VetBizBonds offer a fixed interest rate of 5% over a one-year term.
Remember those paltry short-term yields we talked about earlier? Here’s how VetBizBonds stack up vs. the competition …
Any U.S. investor can open an account for free and invest as little as $25 and up to $50,000. Investors can also access their funds at any time before the year is up. (For a 1% early withdrawal fee.)
Money invested in VetBizBonds funds a portfolio of hundreds of veteran-owned and Main Street small-business loans.
When veteran businesses like these get funded, it means more inventory, employees and working capital to keep their businesses running.
Here’s a sample of some veteran-owned businesses spearheading the effort …
|Photo Source: StreetShares|
It’s worth noting that StreetShares is not a bank. Therefore, investments are not eligible for FDIC insurance.
However, StreetShares has seen veteran business owners repay more than 1,000 business loans. That’s a pretty solid track record for its three years (so far) of lending.
VetBizBonds are backed by this diverse portfolio. Additionally, StreetShares pre-funds any expected annual losses with a provisional fund.
As StreetShares’ CEO and Co-Founder Mark Rockefeller told me:
We honor the ‘Greatest Generation’ not just for their service in uniform, but because over their lifetimes 49% of World War II veterans ran their own business.
My generation of veterans, who have served in Iraq and Afghanistan, are primed to step up as the ‘Next Greatest Generation’ — a Syracuse University survey found that 25% of these veterans plan to start their own business in the next decade.
StreetShares is committed to supporting the military and veteran community with financial products to help these veteran leaders start businesses that will create jobs, strengthen communities, and spread economic opportunity.
We welcome all Americans who support the military and veterans to join the 33,000-strong StreetShares community today.
Tired of paltry short-term interest rates?
VetBizBonds offer yields that are 20 to 125 times the yields of typical bank products. And they offer five to seven times the yields of other comparable bond offerings.
With VetBizBonds, you can boost your savings (5% interest, annually) … grow the American economy … and invest in the backbone of the "American Dream" by funding our military heroes’ small businesses.
To learn more about StreetShares and VetBizBonds, click here. You can also contact StreetShares at 800-560-1435.
Editor’s Note: Uncommon Wisdom Daily does not receive any compensation from StreetShares for this investment idea. I’m just happy to offer our readers a new, "feel-good" alternative to the low-rate cash options available today. If you’d like more ideas about "impact investing," I recently wrote about how you can also "Make an Impact by ‘Investing’ in Charities."