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Outlet is a financial tech brand that uses blockchain lending services so that its customers can get high-interest rates. Patrick Manfra founded the company in 2019. This Outlet Finance review gets into everything you need to know about the brand.
It claims that to date, its investors have not lost any money. Currently, the company boasts a holding of over $700 million.
Outlet is a brand that labels itself as an alternative to a savings account and is more of a crypto lending medium than a conventional saving method. Outlet could earn great earnings in comparison to a traditional savings account.
However, Outlet does not allow access to the FDIC insurance. This article is an Outlet Finance review.
- 1 What does Outlet Finance offer?
- 2 The Outlet Finance Review – What do we like?
- 3 Pros of Outlet Finance
- 4 Cons of Outlet Finance
- 5 Frequently Asked Questions (FAQs)
- 6 Conclusion
What does Outlet Finance offer?
Outlet Finance calls its product a ‘saving account.’ But, it is very far from a savings account. Saving accounts are FDIC-insured and are deposit accounts either held at a bank or via a fintech in affiliation with a bank.
However, Outlet finance is different and can be considered a high-risk investment account.
The Outlet Finance Review – What do we like?
The best way to describe Outlet is to call it a model to which you give your money, and the company provides it to third-party lenders, which leads to you getting some interest.
Anything more than five percent is an excellent return if it’s reliable. But there is an ample amount of risk involved with Outlet since it does not offer FDIC insurance.
Pros of Outlet Finance
There are several pros to Outlet Finance.
The most obvious one is the high rate of interest. Outlet Finance offers more than nine percent APY on all its balances, which is more than a hundred times the national average. But the company does say to expect only a six percent APY.
Another great thing about Outlet Finance is that it does ask for fees on withdrawals or deposits.
Furthermore, it does not have any limits or penalties for the fine. However, you can only withdraw freshly deposited funds after five business days.
See Also: How to Save Money
No staking requirements
Unlike other crypto-saving sites, Outlet Finance does not require you to lock away assets for a fixed amount of time to earn the highest APY.
Outlet Finance is one of the few crypto-saving accounts supporting wire transfers, and it also does not charge a fee for incoming and outgoing transfers.
Cons of Outlet Finance
The following are the cons to Outlet Finance.
Outlet Finance has no web interface; you can only see your account via an app on your smartphone.
Supports only selected banks.
Outlet Finance does not support all banks, and it can only work if your bank works with the payment processor Plaid. An alternative would be depositing your funds through a wire transfer.
But, in doing so, your bank may charge you transfer fees. But, for transfers of more than $10,000, Outlet Finance covers the incoming and outgoing costs.
No FDIC Insurance
As mentioned, there is a considerable difference between the product Outlet Finance offers and a traditional savings account. Saving accounts are FDIC-insured and are deposit accounts either held at a bank or via a fintech in affiliation with a bank.
This is not the case with Outlet Finance.
See Also: 7 Things to Consider When Buying Life Insurance
Use of Blockchain technology
Since blockchain technology is relatively new, there is always a chance of risk when it comes to it. Moreover, Outlet Finance is a new company, and very little is known about it.
See also: How does Snap Finance Work?
Frequently Asked Questions (FAQs)
How to apply for Outlet Finance?
You can apply for an account on Outlet Finance's website. It requires personal details like your full name, email address, phone number, social security number, and two government-issued photos. After that, you can open your account. People living in the states of Connecticut, Hawaii, Kentucky, New Hampshire, New York, Texas, Vermont, or Virginia cannot open an account on Outlet Finance. Otherwise, you need to be 18 years of age and own a smartphone.
Is Outlet Finance safe?
Outlet Finance is not FDIC insured, and hence there is always an element of risk when it comes to it.
How does Outlet Finance make money?
According to Outlet Finance, it does not directly charge fees. However, we can assume that they earn money on the 'spread' between what is sent to borrowers and what is paid to investors.
How much return can you make with Outlet Finance?
Outlet Finance offers an APY of nine percent on all its accounts. However, they do mention not to expect more than six percent.
Is Outlet Finance available in Texas?
Outlet Finance is available in all American states except Connecticut, Hawaii, Kentucky, New Hampshire, New York, Texas, Vermont, and Virginia.
How long has Outlet Finance been around?
Outlet Finance was launched in 2019. Patrick Manfra founded the company.
Here we conclude our Outlet Finance review. Outlet Finance is an app that provides excellent returns on its deposits and advertises itself as a company with no intermediary.
It is easy to use, and almost everyone above the age of 18 owning a smartphone can apply for an account.
However, there are some drawbacks to Outlet Finance. FDIC insurance is not there, and it is only available in the app form. Since Outlet finance is a relatively new company and uses blockchain technology (about which very little is known), there is always a financial risk.
This Outlet Finance review lets you make much more informed decisions when dealing with the app.