Tellus

Tellus is a financial technology app that offers high-yield cash accounts backed by residential real estate loans. Unlike a traditional savings account, Tellus uses customer deposits to fund single-family home loans (mortgages and rehab loans), generating interest that is passed back to the user.

The platform offers APYs significantly higher than average banks (often 5.00% to 6.00%+). Tellus emphasizes that funds are not FDIC insured, but are secured by 130% real estate collateral. It is a legitimate fintech platform for savers willing to take slightly more risk for much higher yields.

Frequently Asked Questions

1. Is Tellus FDIC insured?

No, Tellus is not a bank and your deposits are not FDIC insured. Instead, your money is backed by real estate collateral (mortgages) with a typical loan-to-value ratio of 65-80%, providing asset-based security.

2. How do they pay such high rates?

Tellus lends money to real estate borrowers at higher interest rates (e.g., 9-10%) and passes a portion of that interest (e.g., 5-6%) back to you. By cutting out the banking middleman, they can offer superior returns.

3. specific minimum deposit?

The minimum opening deposit is $125. After that, you can deposit any amount. There are no monthly fees for the standard account tiers.

4. Can I withdraw anytime?

Yes, Tellus offers daily liquidity. You can request a withdrawal to your bank account at any time, and it typically processes within 1 to 3 business days. There are no lock-up periods for the base account.

5. Is it safe?

While there is risk involved since it lacks FDIC insurance, Tellus claims to have never lost a cent of customer principal. They use strict underwriting standards and hold first-lien positions on the collateral properties.