Is Outlet Finance Savings Account Legit? Yes, But It Is Gone. 🙁

First, I’ve covered my Outlet Finance Savings Account in the past( What Is Yield Farming In Cryptocurrency? ), and it was a crucial part growing passive income generators through high yield investments.

I earned high yields on my money deposited with Outlet Fiance. It remained in cash, like a regular savings account. It yielded more than a standard savings account at the time and didn’t hold the government insurance traditional bank savings accounts were required to have.

So, let’s address some questions I got from friends and family, who stood on the sideline while I was making 9% on my money when regular bank savings accounts were paying almost nothing.

Is Outlet Finance Savings Account Legit Or Not?

For me, yes.

Now there were some risks associated with Outlet Finance; it wasn’t a regular bank savings account, so it didn’t offer some of the government-backed safeguards like FDIC or SPIC Insurances.

But, unlike a regular bank savings account, I usually made 9% of my money. I recall which was killing it compared to the 0.1% rates on high minimum balance savings accounts.

Was My Outlet Savings Account Safe?

I now have the benefit of hindsight, but when weighing whether I should deposit money into Outlet Fiance, I took the time to read its literature.

Now Outlet Finance didn’t have the typical FDIC or SPIC insurance associated with regular banking and investing services. Still, it had third-party insurance policies to protect it and depositors from fraud or hacking. FAQ: Is Outlet Finance FDIC insured?

If Outlet Finance was a victim of theft, there was a policy to help depositors like me from suffering the losses.

Now, how much does that cover, dollar for dollar? I need to remember if I ever found that info.

For FDIC and SPIC insurance, there is an ‘up to amount’ per deposit spelled out in many bank advertisements. I often see a blurb on a sticker on my bank’s front door.

However, Outlet Finance makes it more challenging to find this information. But again, I’m not an investment professional, so that I could have missed it, and you should never take investment advice from me.

I am just sharing what I did, experienced, and learned.

Counting the money I was making with my Outlet Savings Account.

Is Outlet Finance Real?

It’s funny how people usually ask questions about my investing process, find out I was making up to 9% on deposited money, and just come out with the, Is Outlet Finance Real?

Usually, I get this at the end of explaining what I was doing and have learned. I was describing Big Foot or the Lockness Monster.

Yes, Outlet Finance is ‘real.’ A real business that offered higher returns on deposited money than any bank at the time. There was some risk associated with Outlet Finance, but it was minimal(in my opinion).

The returns outweigh the risk, so I deposited a substantial amount into Outlet Finance from my viewpoint.

What Were The Outlet Finance Rates?

Initially, I got up to 9% return with monthly compounding, which was nice.

Later, with some crypto controversy, the rate was reduced to 6%( Outlet Savings Account, One Of My Alternative Investments Is Sad. ), but still above all the standard bank rates I was offered in my regular savings accounts.

How Did Outlet Finance Offer Such High Rates?

Outlet Finance is a blockchain lending service. Due to risks associated with cryptocurrency, money was lent at a higher than bank loan rates, and a portion of the higher rates were shared with the depositors.

How Is Their High Interest Rates Possible?

Purely based on my understanding, let me share how I envisioned this.

A traditional bank, with government-insured backing, is working hand in hand with the government—almost the same entity in how our nation’s finances are viewed.

When you go into a bank, you ask for a loan; you need collateral to show, even if it’s just your good name.

Once a loan is approved, the bank gives you the money, but due to fractional reserves, 10% comes from deposits, and the rest is magically made.

Puff. Money is born.

Printing press. — Face it, all US Dollars are ‘just’ printed. Right?

With crypto, privacy and anonymity are essential, so there are no ties to the government. US Dollars can’t be magically created with a loan; there has to be crypto to loan.

You can’t magically create gold to loan out, like “real money” (gold, silver, platinum, etc.).

Due to risks associated with loaning crypto, anonymity, and privacy issues, the internet travels through country borders like they don’t exist.

Outlet Finance would loan crypto at higher rates than regular bank loans.

Also, since crypto is usually short-term, the higher annual rates were almost inevitable when borrowing very short-term, like overnight.

So, borrowers were okay with paying higher rates since the amount was almost negligible for a short duration.

Any Other Reasons Why Rates Were So High?

For depositors, Outlet Finance kept their operating expenses low and helped them return more money to their depositors.

I couldn’t find any “brick and mortar” branch of Outlet Finance.

Even the website, Outlet.Finance directed you to use their Outlet Finance Mobile App.

Was The Outlet Finance Mobile App Enough?

Yes. Well, for my purposes, which were the purposes of most depositors.

You could move money in and out of your Outlet Finance account. You could view the transaction history, including comparing interest deposits.

You could generate a statement form as well.

It worked.

Why Am I Again Talking About Outlet Finance If So Simple?

Well, all good things come to an end.

I got emails stating Outlet.Finance is wrapping up business. I will go into greater detail later, but I am reminiscing about how easy Outlet is.Finance was helping me to save money and hold a portion of my 3-6 Month Emergency Fund without it being eroded by inflation.

Your Outlet.Finance Experiences.

Outlet.Finance Screen shot. — An old screen shot, but look at that rate in 2021!

If you used Outlet.Finance’s services, what did you think?

With Outlet.Finance closing, what are you doing with your money? FYI, might have found a replacement for this high yield income source: Are Worthy Bonds A Good Investment Alternative To Outlet Finance?

Thank you,

Tom, Growing His Passive Income Generators.

Is Outlet Finance Savings Account Legit? Yes, But It Is Gone. :(