Brockton, MA · Member since 2019 · 26 posts · 9 votes
Hello all,
I have been looking at this new CD for a few months now. My research says it’s legitimate, can’t find anything saying otherwise online. Anyone using this? A 1 month CD returning 6% seems too good to be true but I’d love to park some of my savings ($20k ish)in there and collect $100 in interest every month.
Here’s a link
https://myloan.doctor/hcf-high-yield-cd-account/
Would love to hear from anyone who has used or anyone who has thoughts on it.
Investor · Marietta, GA · Member since 2017 · 2 posts · 1 vote
6y
Donald If you're looking for a "safe" place to put some new money you might want to stick with a boring old CD from an FDIC insured institution. I have used Ally Bank for years. Right now they have 1.5 % on a regular old savings account. In times like we are in now the smart play might be return OF your money and not ON your money. Deploying some money in riskier assets now is a great play if you can afford to lose it and/or are able to wait.
Just wanted to keep everyone updated. This us what they replied when I asked them question about safety and closing to new investors. It is good that they communicate pretty fast.
Hi Stan, that is correct, existing investors continue earning interest as before and may deposit additional funds and make withdrawals as usual. We simply are too well capitalized so that if we took on additional investors we would have to drop the rate for existing ones. We therefore decided to prioritize our existing clients. We do expect that inna few months as capital needs increase with higher economic activity, we will likely reopen the program to new clients as well.
And as allways we continue to have full reserves backing each CD and also we plan to publish financials soon as well. Due to our very conservative approach, and not using any leverage we have not been affected by the current economic crisis, and that is something we will actually highlight going forward
Hi Harry. Been invested since February, so far everything is okay. I have 15k in my cd at 6%.I was nervous at first, but feeling better now, can't beat the 6%. Please keep in touch, thanks
Thanks Donald. Let's see how long they can continue the 6% rate. On the positive side, their customer service is pretty responsive and last time I contacted them (few weeks back) they said their business model is not impacted due to the pandemic. Wanted to hear about what others feel.
It's good to see the interest accuring daily. I added some funds to my initial deposit.
In regards to FDIC insurance, all funds when idle are held at FDIC insured banks (Bank of America and Signature Bank). In addition, all of the CDs are backed in full at all times by cash and cash equivalents or liquid collateral to ensure that the principal is indeed guaranteed and not exposed to any fluctuation or losses.
The LLoyd's insurance is no longer necessary because we now only deal with US regulated banks and firms which fully cover and collateralize the funds on deposit.
I didn't ask them about the details of what they meant by "all of the CDs are backed in full at all times by cash and cash equivalents or liquid collateral".
Financial Advisor · Indianapolis, IN · Member since 2018 · 294 posts · 165 votes
6y
There is something inherently wrong in the description of this product. The underlying assets are not what are traditionally underlying CD's, hence the much better yield. A pool of privately sourced loans (even to doctors) simply carries a different risk profile, so its no surprise it pays more.
Call it what you want. We are looking at high yield bond to arguably private credit risk profiles, so you are getting high yield bond returns. Much less impressive in comparison. Labeling something CD does not in fact make it comparable to a CD...
Maybe they have terrific underwriting and are very conservative in their lending practice. I don't have the first hand knowledge to say one way or the other. However, it seems obvious there is a mismatch between the perceived risk / liquidity of a CD and the underlying assets of this product.
If I invested in a pooled structured that was lending to private companies, I would expect a lot more than 6%....
Either way, I hope it works out well for you all and that my fears are overblown.
Guys I'm giving you a heads up that HYCD will be closing temporarily and you can withdraw all money invested, nothing to be afraid off as the company will give all our invested money and interest occurred, I'm a reader and follower on this site but not a fan of posting messages, I get sleepless nights because I invested all my saved money in here, 6 digit figure, in few days they gonna announce it in public, till next time, only HYCD will be closing.
Thanks Jerry. They had stopped accepting new funds but this came as a surprise. I asked them today after I saw the post from Jerry. Yes they are closing the HCF HYCD program but loan doctor's other operations will continue. You can initiate your funds withdrawal otherwise they will send your money by check.
Jerry, yes last couple of months HCF HYCD was a relatively safe option where I put some good amount. I'm wondering what next. would love to hear from you, Donald and other members.
@harry I'm still looking/checking. hard to find one. From the time I make withdrawal to receiving my money it only takes 28 hrs from them, that was pretty fast than I expected. No hidden charges or fees. If ever their HYCD will be back il definitely investing again.
Financial Advisor · Indianapolis, IN · Member since 2018 · 294 posts · 165 votes
6y
I am relieved to hear that this has a happy ending. I was admittedly afraid of loan doctor....Its all a matter of perspective on risk I suppose.
Some online banks are offering 1-2%. Not half bad.
Ultrashort ETFs can boost you up a little bit further past 2, but comes with added volatility.
Bond market is precarious these days with terrible rates outside of the high yield market. Frankly the high yield market is about the only place worth looking, but its certainly not comparable to a savings or CD from a risk perspective.
Structured products are on the rise as they offer equity like returns with downside barriers. Again though, not necessarily the same as a savings account that can be liquid in days.
Yes Daniel I saw your posted message 2 weeks back and given a title on your name make me think twice, good thinks all ends well. I've been spending hours right now thinking where to invest in conservative way with good return.