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CNote 2.5% return?

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rated:
I was checking this company out that invests in CDFI's, looks like the return is not guaranteed. Anyone got experience here?

2.5% is a good return, whats the catch here?

https://www.mycnote.com/

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rated:
Not a bank, not FDIC insured. Probably not super-risky but if the economy goes south or mycnote goes bankrupt, you will lose your money. Frankly, for that level of risk, the return isn't high enough.

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What's the liquidity like? Withdraw any time? FAQs don't cover that.

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why not do lendingclub instead?

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This is also not presently eligible to everyone.

CNote is currently only permitted to move money for accredited investors. Our mission in designing this product was to ensure all savers could earn more and contribute to social impact. To do this, our offering to non-accredited investors requires advance qualification by the SEC. We will keep you informed of any new developments as we continue to design a world where everyone can invest with their values.

You are classified as an accredited investor if you meet certain criteria such as having a net worth of at least $1 million, excluding the value of your primary residence, or having income at least $200,000 each year for the last two years (or $300,000 joint income if married) with the expectation to make the same amount this year.

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I am not an accredited investor and was able to sign up. They sent a message about not moving my money yet (something about the SEC) but Iím in there now. Cool social mission (FU Wells).

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wp746911 said:   Not a bank, not FDIC insured. Probably not super-risky but if the economy goes south or mycnote goes bankrupt, you will lose your money. Frankly, for that level of risk, the return isn't high enough.

I wonder about if they're legally able to accept deposits this way? Not a bank, non-registered securities, not an investment company, etc., for such a puny return. Not worth my attention.

rated:
I work in economic development and know the kind of stuff CFDI's lend to. They do good work but you are seriously going to lose a lot of money in any recession. For only a 2.5% return, it certainly isn't worth the risk. The types of businesses they lend to have massive default rates when the economy isn't expanding. There is a reason why these types of businesses can't get loans through traditional banks.

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That their website compares this to a savings account is bordering on fraud.

In terms of liquidity, they say the following: "CNote offers quarterly liquidity with a 30-day notice. This means that the average CNote saver can access their entire balance each quarter. For larger balances, CNote works with savers on a case by case basis and always provides a 10% no-question withdrawal threshold."

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