Platform Lets Anyone Invest In Developing Communities

Platform Lets Anyone Invest In Developing Communities
Banks, Insurance & Financial Services

CNote wants people to invest their money in reliable businesses to promote the economy in low-income businesses

Zack Palm
  • 19 october 2017

Those who save their money sometimes let it sit idly in their bank accounts, slowly accruing interest in small amounts over time. The money simply sits there and does nothing to benefit others. Cat Berman and Yuliya Tarasava examined their accounts and came to the conclusion that their money should instead go towards helping others. This prompted them to create CNote, an investment website where all of the money a person places into their account goes to low-income communities and businesses. CNote only supports organizations who were labeled by the Treasury Department as Community Development Financial Institutions (CDFI).

When a customer decides they wish to set up an account with CNote, the process quickly displays how much a person could potentially earn based on the amount they plan to transfer over. This amount does vary, but if a person were to invest $1,000 with CNote, they could expect to see a return of $25 to the account compared to only a $1 coming in with their traditional bank. This section also shows how many entrepreneurs get effected by the invested amount.

The big motivation for someone to sign up for CNote, beyond helping low-income communities, centers around the idea of how much they can receive in interest. The national average interest rate for banks sits at around 0.06%, whereas a customer at CNote can expect to have an interest rate of 2.5%. Because CNote partnered with CDFI organizations, they can offer a higher interest rate than a bank could, as banks move accounts’ savings around to pay for mortgages and car loans.

A customer does need to remember CNote works as an investment tool. This means, unlike their savings account through a bank, the interest rate doesn’t come at a guaranteed rate and could fluctuate based on how well the invested businesses do. However, customers should also consider that, since the CDFI program was founded in 1994, no investment dollars have been lost.

Previously, CNote was exclusively operating with a small audience to test out the program. They have recently opened their website to the public. At this point, anyone wanting to invest in CNote can place as little as $20 on the website.

CNote

Those who save their money sometimes let it sit idly in their bank accounts, slowly accruing interest in small amounts over time. The money simply sits there and does nothing to benefit others. Cat Berman and Yuliya Tarasava examined their accounts and came to the conclusion that their money should instead go towards helping others. This prompted them to create CNote, an investment website where all of the money a person places into their account goes to low-income communities and businesses. CNote only supports organizations who were labeled by the Treasury Department as Community Development Financial Institutions (CDFI).

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