Worthy Investments review
Earn a fixed return on bonds that support American small businesses.
finder.com’s rating: 4.2 / 5.0
ETFs, stocks and other financial markets favor Wall Street and other large corporations. But who looks out for smaller investors? Worthy advocates for a fairer, more human side of finance, using your investment to fund loans for hard-working American small businesses. You’ll earn a fixed return on your investment whether you decide to invest money directly or round up the spare change from your purchases.
|Worthy is free to use.|
|Minimum deposit requirement|
|There’s no minimum deposit to open an account, but you need at least $10 to start investing.|
|Its lineup includes accounts for individuals, businesses and non-profits.|
|Retirement accounts are available, but there’s no tax-loss harvesting.|
|Support can quickly be reached three ways.|
|Little investor feedback is available for this platform.|
|Users complain that the app is just a mobile website.|
|We awarded a bonus star for its roundups feature.|
To learn how our star ratings are calculated, read the methodology at the bottom of the page.
How does Worthy work?
Worthy is an automated investing service that’s a bit different from most other robo-advisors.
- Invest directly or round up your change. Worthy allows you to invest money directly or round up your spare change from purchases to invest.
- Buy bonds. When you purchase $10 bonds directly or reach a $10 threshold, Worthy purchases a bond for your account. Unlike stocks that require diversification to reduce risk, these bonds earn a fixed 5% return each year.
- Support your fellow humans. Coining the term “peer finance,” Worthy puts your investment to work by funding loans to qualified American small businesses.
- Manage your account. Visit Worthy online or through an app to manage your account and track your progress.
- Sit back. While Worthy isn’t insured by the FDIC or SIPC, its loans are backed by assets that reduce your risk of losing money if a borrower defaults. Worthy also keeps a reserve fund, distributing your money across multiple loans to avoid putting all of your eggs in one basket.
- Read up. Brush up on your financial lingo, get helpful tips, read industry news and more in the Worthy blog and learning center.
How much does Worthy cost?
You won’t pay fees to sign up, purchase bonds, make a withdrawal or anything else.
The loans Worthy invests in earn more than the 5% it passes onto its investors.
While it doesn’t disclose how much it earns above the 5% it returns to its bondholders, Worthy says that it uses the difference to fund its operations and stay profitable.
Pros and cons
Worthy’s unconventional approach to robo-investing comes with unique benefits:
- Fixed return. Unlike stocks, ETFs and other financial markets, where returns can vary, Worthy’s bonds pay a fixed 5% return.
- No fees. Sign up, purchase bonds, sell bonds and more — all for free.
- Help others. Your investment helps fund loans for American small businesses, helping others while you save for the future.
- No opening deposit. Your spare change accumulates in your account until you reach a $10 threshold, at which point it’s put toward buying one bond.
- Convenient access. Bond terms are 36 months. But you can withdraw money whenever you’d like without a fee.
- Member perks. Worthy investors can access top refinancing and loan options, along with a suite of learning resources to enhance your financial knowledge.
Just like any other investment, returns cannot be guaranteed and your investment can increase or decrease in value, so you’ll want to consider potential drawbacks:
- Online only. You won’t be able to visit a branch or speak to customer service in person.
- No flexibility or diversification. You aren’t able to customize your investment as you could with stocks or ETFs.
- Limited account options. Unlike with other robo-advisors, you can’t yet automatically open a retirement account, but you can reach out to Worthy to invest through your IRA.
Worthy Bonds reviews and complaints
Worthy Financial is still in the early stages of business and has yet to earn a profit, which in itself may provide room to pause. It earns 3.5 out of 5 stars on Trustpilot as of March 2022 based on a scarce three reviews. While two of those reviews rave about the 5% return and excellent customer service, a third 1-star review is worth noting for warning that you cannot change the bank information you submit when opening an account and a potential delay in withdrawing your funds. The company does not have a page with the Better Business Bureau.
Redditors on personal finance subreddits warn that interest may be taxable and that you’re investing in asset-backed loans — or ABLs — which are relatively risky products, especially for beginners.
Compare with other robo advisors
If you like the hands-off approach of investing with Worthy but aren’t ready to dive in with this new company, look to top competitors.
How do I sign up for Worthy?
Worthy helps you start saving in as little as five minutes with a straightforward online application.
- Visit the Worthy Bonds website and click Get started.
- Enter your email and create a password, then click Sign up.
- Enter your first and last name, address and tax info, then click Continue.
- Enter your phone number and any other requested info, then click Continue.
- Continue through the steps of confirming your identity, entering a verification code texted to your mobile. Then connect your bank account to make your first investment.
To invest with Worthy, you’ll need to meet four eligibility requirements:
- US citizen
- At least 18 years old
- Valid Social Security or tax identification number
- US residential address
Ready your personal and financial details before applying:
- Date of birth
- Email and phone number
- Residential address
- Social Security or tax identification number
- Bank account and routing number for funding account
How to contact Worthy customer service
Get help with questions through digital support:
- Email — firstname.lastname@example.org
- Facebook — WorthyNow
- Instagram — @Worthynow
- Twitter — @Worthynow
I’ve signed up. Now what?
Now that you’re signed up, take advantage of the flexible savings, managing and learning tools.
- Round up your change. You’re asked to link your bank account for an initial bond purchase at signup. Also, link a debit or credit card to round up all future eligible purchases.
- Buy bonds. Worthy allows you to purchase up to 10,000 bonds at a time, helping you to add to your portfolio whenever you see fit.
- Set up recurring deposits. Put away a set amount of money at an interval you choose.
- Manage your account. Log in online or through the app to view your account progress, buy or sell bonds and more.
- Learn more. Brush up on financial lingo, get investment tips and read industry news through a blog and learning center
- Get a loan. Worthy members get access to top-notch loan and refinancing options should you need it.
There is a limit to what you can invest with Worthy. Non-accredited investors can buy bonds worth up to 10% of their net worth or income. Accredited investors can invest up to $50,000.
Accredited investors must meet requirements set by the SEC. They must have annual income exceeding $200,000 (or $300,000 for a couple, or a net worth exceeding $1 million.
Worthy offers a stable way to invest, allowing you to purchase 5% fixed-interest bonds directly or trigger an automatic purchase once you’ve built up enough in spare change. And you won’t put a penny toward fees.
If you’re looking for more flexible automatic investing, compare other robo-advisors to find an option that can better suit your needs.
How we rate trading platforms
★★★★★ 5/5 — Excellent
★★★★★ 4/5 — Good
★★★★★ 3/5 — Average
★★★★★ 2/5 — Subpar
★★★★★ 1/5 — Poor
We analyze top online trading platforms and rate them one to five stars based on factors that are most important to you. These factors include fees, securities available for trade, customer support, customer feedback, platform resources and overall reliability.
For a complete breakdown of how we score each category, read the full methodology of how we rate robo-advisors.