Worthy Bonds Review – Moving Interest on Your Savings into High Gear

Banks love to advertise and promote their “high-yield savings and money market accounts”. The scary part is that the average yield on savings accounts nationwide is a paltry 0.06%, and money markets average just 0.09%. The best of the lot may offer something like 0.50%.

If you’re not happy with that arrangement, a company called Worthy Bonds gives you an opportunity to earn much higher returns on at least part of your savings.

Interested? You should be, because this is a real opportunity to get a serious return on your savings.

Table of Contents
  1. What is Worthy Bonds?
  2. How Does Worthy Bonds Work?
  3. Worthy Bonds Round-ups
  4. Worthy Bonds Referral Program
  5. Worthy Bonds Features
  6. How to Sign Up with Worthy Bonds
  7. Who Should – And Shouldn’t – Invest with Worthy Bonds
  8. Worthy Bonds Pros & Cons
    1. Pros:
    2. Cons:
  9. FAQs
    1. Are Worthy Bonds legit?
    2. What is the Risk with Worthy Bonds?
    3. How Does Worthy Bonds Make Money?
  10. Bottom Line

What is Worthy Bonds?

Worthy Bonds is a service that provides loans to US-based businesses by selling bonds to investors that pay an incredible 5%. Based in Boca Raton, Florida, the company has already sold more than $150 million in bonds to over 100,000 investors. 

Not only will you be earning a high rate of return on your investment, but you can know that you’re doing your part to help small businesses grow.

The bonds you’ll invest in will have a term of 36 months, and are issued by Worthy Bonds.

You can also be secure in the knowledge that Worthy Bonds is registered with the Securities and Exchange Commission (SEC), and that the bonds issued are SEC-qualified bonds. That means they’re privately issued corporate bonds that don’t trade on public exchanges. 

You can think of Worthy Bonds as a peer-to-peer lender, connecting investors searching for higher yields, with local entrepreneurs looking to grow their businesses.

How Does Worthy Bonds Work?

Worthy Bonds are private bonds issued in 36-month terms with a return of 5%. That’s well above the 3.16% average return on US corporate bonds, or the 1.49% being paid on ten-year U.S. Treasury notes.

Interest is compounded annually and credited to your account once accrued interest reaches at least $0.01. 

While most of the proceeds of the bonds are invested in asset-backed loans to small businesses, up to 40% are invested in a mix of real estate, U.S. Treasury securities, and certificates of deposit. The purpose of the additional asset investments is to provide a higher degree of diversification for your bonds.

Interest rates are fixed since your money is invested in private bonds. Rates will not go down because of policy changes by the Federal Reserve.

Given that the loans are made to small businesses, there is always the risk of loss. However, Worthy Bonds states that they have never missed a principal or interest payment up to this time.

Worthy Bonds accommodates both accredited investors and nonaccredited investors. The main difference is accredited investors are eligible to invest a larger amount of money in the bonds. An accredited investor can invest up to $50,000 in Worthy Bonds, while a nonaccredited investor is limited to no more than 10% of their annual income. If that income is $50,000, the most you can invest is $5,000.

You can withdraw principal or interest earned on the bonds from your account at any time. But there is a restriction that you can only withdraw interest amounts of less than $10 twice in any 30-day period.

Learn more about Worthy Bonds

Worthy Bonds Round-ups

While you can fund your account with transfers from a connected bank account (and even automatic purchases), Worthy Bonds also offers their round-up feature to help you build your account passively.

You’ll choose a spending account to connect to your Worthy Bonds account, which can be a checking account or credit card. Worthy Bonds will monitor that account the track spare change from ordinary purchases. That change will be moved into your Worthy Bonds account when the total reaches the $10 bonds purchase requirement.

For example, if you make a purchase for $5.25, Worthy Bonds will allocate an additional $.75 of the purchase for bond investing. If you make 50 purchases per month through the credit card or checking account you’ve connected, that may result in something like $25 per month going into your Worthy Bonds account. 

Worthy Bonds Referral Program

If you refer someone to Worthy Bonds, and that person opens an account using your personal referral invitation link, both you and your referral will earn $10 in bonds. You can earn up to $500 per year through the referral program.

Worthy Bonds Features

Minimum investment required: $10

Accredited investor requirement: Worthy Bonds accepts both accredited and nonaccredited investors. Accredited investors can invest up to $50,000, while nonaccredited investors are limited to not more than 10% of their annual income.

Available account types: Individual taxable accounts, IRAs, trust funds, business accounts, and nonprofit accounts.

Investments offered: Private bonds invested in loans made to small US-based businesses.

Worthy Bonds fees: None.

Customer service:  Phone, live chat, and email. 

Mobile App: Available on Google Play for Android devices, 7.0 and up, and on The App Store for iOS devices, 10.0 and later. Mac devices require macOS 11.0 or later, and a Mac with Apple M1 chip.

Liquidity: Worthy Bonds can be liquidated at any time, including accrued interest. There are no early withdrawal penalties either. You can withdraw funds just by clicking on the “Withdrawal” button.

Account security: Accounts are not protected by either FDIC or SIPC. But bonds are secured by borrowers’ assets, and a portion of each bond is invested in other asset classes, including certificates of deposit, U.S. Treasury securities, and real estate.

How to Sign Up with Worthy Bonds

To be eligible to open an account with Worthy Bonds, you must be at least 18 years old, have a Social Security number, a US bank account, and a US address.

You can sign up with Worthy Bonds on the website. You’ll start by entering your email address and creating a unique password.

Next, you’ll select an account type. You’ll be given five options: 

Once you’ve chosen the account type you want to open, the next input screen will ask for general information. That will include your name, address, phone number, Social Security number, and date of birth.

At the very bottom of the screen, you’ll need to check the box acknowledging agreement with the terms of service and privacy policy (of Worthy Bonds banking partner, Dwolla). Equally important, you’ll need to indicate if you are an accredited investor.

The next step will be to add a funding source, typically a bank account. You can enter a checking or savings account, which will include your account number and your bank routing number.

Like most financial platforms, Worthy Bonds will verify your funding source with micro-deposits. Two very small (less than $1) deposits will be transferred to your bank account, after which you will confirm receipt.

But Worthy Bonds also offers their Instant Verification service. If your bank is a supported institution, your account can be instantly verified. The service can accommodate more than 2,800 US-based institutions. You can check to see if yours is one before going the micro deposit route.

Once your bank account is connected to your Worthy Bonds account, you can transfer funds and begin investing in bonds.

Learn more about Worthy Bonds

Who Should – And Shouldn’t – Invest with Worthy Bonds

Worthy Bonds is a good choice for anyone who is looking for a stable source of high interest on their savings.

While Worthy Bonds is an excellent way to increase the overall rate of return on your savings, they shouldn’t be used to completely replace other savings vehicles. After all, there is some risk involved with these bonds, and no FDIC insurance to cover you should the worst happen.

But by allocating a small percentage of your savings to Worthy Bonds, you can achieve a serious increase in your overall return.

For example, let’s say you have $10,000 in savings, currently earning 0.50%, or $50 per year.

By allocating $2,000 of your savings to Worthy Bonds, paying 5% – or $100 per year – you’ll increase the overall interest on your savings to $140 per year. ($100 from the 5% you’ll earn on your $2,000 Worthy Bonds investment, and $40 from the 0.50% you’ll earn on the remaining $8,000 held with your bank.)

That will give you an effective annual rate of return of 1.4%, which is nearly three times what you’re currently earning on your “high-yield savings account”.

Worthy Bonds is not recommended as an investment for 100% of your savings.

Worthy Bonds Pros & Cons


  • Earn 5% on your Worthy Bonds investments. That’s 10 times the return, you can earn on the highest paying bank savings and money market accounts.
  • Interest rates won’t be affected by changes in policy by the Federal Reserve or by shifts in the financial markets.
  • You’ll be investing in small businesses, helping them to grow, provide jobs, and strengthen the economy.
  • Invest with as little as $10.
  • There are no fees of any kind when you invest with Worthy Bonds.
  • Worthy Bonds are completely liquid, and you can withdraw funds at any time, including interest, without paying a prepayment penalty.
  • You can use the Worthy Bonds roundups feature to accumulate funds for bond investing, in addition to making direct transfers from your bank account.
  • Bonds are largely secured by business assets, with up to 40% invested in real estate, certificates of deposit, and U.S. Treasury securities.


  • Worthy Bonds can be defaulted on, causing you to lose some or all your investment.
  • No FDIC or SIPC insurance is offered with the bonds.
  • Maximum investment is limited to $50,000 for accredited investors, and no more than 10% of the annual income of nonaccredited investors.
  • Worthy Bonds are not available to non-US residents.

Learn more about Worthy Bonds


Are Worthy Bonds legit?

Worthy Bonds is a Securities and Exchange Commission registered company, which means it’s a legitimate company as far as the US government is concerned.

What is the Risk with Worthy Bonds?

There’s always the possibility the bonds you invest in will be defaulted on. If that happens, Worthy Bonds doesn’t have FDIC insurance to protect the value of your investment. It’s possible to lose part or even all of your investment.

That said, part of your investment in Worthy Bonds is held in other asset classes, beyond loans to borrowers. Those asset classes include certificates of deposit, U.S. Treasury securities, and real estate. Depending on the percentage of your investments held in these assets, it’s unlikely you’ll lose 100% of your investment.

How Does Worthy Bonds Make Money?

Worthy Bonds makes money on the “spread” between the interest they charge the borrower and the 5% return they provide to their investors. For example, if the borrower pays 7.5% on the bonds, and Worthy Bonds investors are paid 5%, Worthy Bonds earns a 2.5% return on the bonds.

Bottom Line

Worthy Bonds offers a unique combination of high interest, no fees, and complete liquidity that’s nearly impossible to find in any other type of investment in the current low-interest environment we’re in.

Though it’s not suitable to hold all your savings, you can significantly increase your overall interest rate return by holding just a small portion of your savings in Worthy Bonds.

If that’s a strategy you believe will work well for you, it’s time to check out Worthy Bonds. You can begin funding your account with as little as $10, then build it with a combination of automatic or occasional bank transfers, or even through their round-up program.

And if you think Worthy Bonds is a good investment, you can earn even more money – up to $500 – by taking advantage of their referral program.



Product Rating



  • Earn 5% on your Worthy Bonds investments
  • Invest with as little as $10.
  • There are no fees of any kind
  • Worthy Bonds are completely liquid, and you can withdraw funds at any time


  • Worthy Bonds can be defaulted on, causing you to lose some or all your investment.
  • No FDIC or SIPC insurance is offered with the bonds.
  • Maximum investment is limited to $50,000 for accredited investors, and no more than 10% of the annual income of nonaccredited investors.

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About Kevin Mercadante

Since 2009, Kevin Mercadante has been sharing his journey from a washed-up mortgage loan officer emerging from the Financial Meltdown as a contract/self-employed "slash worker" – accountant/blogger/freelance blog writer – on OutofYourRut.com. He offers career strategies, from dealing with under-employment to transitioning into self-employment, and provides "Alt-retirement strategies" for the vast majority who won’t retire to the beach as millionaires.

He also frequently discusses the big-picture trends that are putting the squeeze on the bottom 90%, offering workarounds and expense cutting tips to help readers carve out more money to save in their budgets – a.k.a., breaking the "savings barrier" and transitioning from debtor to saver.

Kevin has a B.S. in Accounting and Finance from Montclair State University.

Opinions expressed here are the author's alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.

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