Learn • Cash Flow Bonds
Cash Flow Bonds vs. High-Yield Savings Accounts
Both involve earning interest, but a savings deposit and a company bond offer different protections and access to money.
If you have earned interest in a savings account, the idea of earning interest through a bond may feel familiar. The important difference is what stands behind your money: a high-yield savings account is a bank deposit, while Cash Flow Bonds is a loan to an issuer that may be unable to repay you.
| Product | Interest and payments | Access to money | Minimum and fees | Insurance and principal risk |
|---|---|---|---|---|
| Cash Flow Bonds | PIC Diversification Fund, LLC unsecured notes. 7.0% fixed annual interest, compounded daily. Accrued interest is paid with principal at redemption, not daily to a bank account. Interest stops when the company receives the holder’s redemption notice under the bond documents. | No public trading market. Valid written redemption requests are normally due within 30 days. A first-in, first-out liquidity queue can cause longer delays. Payment is not guaranteed. | $10* minimum plus a 1% processing fee paid in addition to principal. No lockup or redemption penalty. | Not a bank deposit. Not FDIC-insured or government-guaranteed. Some or all principal may be lost. |
| High-yield savings account | Bank deposit with a usually variable APY. Compounding and crediting schedules follow the account agreement. | Withdrawals and transfers follow bank rules, holds and transfer times. Not a bond redemption queue. | Minimums and account or service fees vary by bank. | Eligible deposits at an FDIC-insured bank receive coverage within applicable limits; balances above coverage are exposed. |
Cash Flow Bonds
- Interest and payments
- PIC Diversification Fund, LLC unsecured notes. 7.0% fixed annual interest, compounded daily. Accrued interest is paid with principal at redemption, not daily to a bank account. Interest stops when the company receives the holder’s redemption notice under the bond documents.
- Access to money
- No public trading market. Valid written redemption requests are normally due within 30 days. A first-in, first-out liquidity queue can cause longer delays. Payment is not guaranteed.
- Minimum and fees
- $10* minimum plus a 1% processing fee paid in addition to principal. No lockup or redemption penalty.
- Insurance and principal risk
- Not a bank deposit. Not FDIC-insured or government-guaranteed. Some or all principal may be lost.
High-yield savings account
- Interest and payments
- Bank deposit with a usually variable APY. Compounding and crediting schedules follow the account agreement.
- Access to money
- Withdrawals and transfers follow bank rules, holds and transfer times. Not a bond redemption queue.
- Minimum and fees
- Minimums and account or service fees vary by bank.
- Insurance and principal risk
- Eligible deposits at an FDIC-insured bank receive coverage within applicable limits; balances above coverage are exposed.
Two dated examples
Marcus Online Savings displayed 3.50% APY as of October 23, 2026, without a minimum opening deposit or account fee. That standard variable APY excludes its separate referral promotion.
Ally Savings displayed 3.20% APY as of October 23, 2026. Its page lists no minimum opening deposit or monthly maintenance fee, daily compounding and a limit on certain withdrawals. Ally’s comparison uses California and a $5,000 daily balance; its page states that the same APY is currently available across all balance tiers. Confirm the terms for your account.
These are selected, dated examples, not a ranking or a survey of every available product. Rates and terms can change. Verify the provider’s current terms before making a decision.
Read the rate on the same basis
Bank APY includes compounding; CFB’s 7.0% is an annual interest rate. Daily compounding illustrates about 7.25% growth over 365 days before fees and taxes, assuming payment and retention of interest. It is not a guaranteed return.
The 1% CFB fee is added to principal, so $10* invested requires $10.10 in total and the $0.10 fee earns no interest. A fair dollar comparison must use the same total cash outlay and holding period, including applicable costs.
Protection changes the comparison
FDIC coverage is generally $250,000 per depositor, per insured bank, per ownership category, not per account. CFB notes have no such protection. A larger stated rate cannot compensate for a risk you are unable or unwilling to take.
Start with when you will need the money
CFB should not be treated as an on-demand cash account. Consider whether you can tolerate a delayed redemption and loss of principal, rather than choosing solely by the stated rate. Read the investment risks and the offering circular alongside the other product’s terms.
Sources and further reading
Your next chapter starts small
Make room for what matters.
Open to everyday investors. Start with just $10*.
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Learn • Cash Flow Bonds
Cash Flow Bonds vs. High-Yield Savings Accounts
Both involve earning interest, but a savings deposit and a company bond offer different protections and access to money.
If you have earned interest in a savings account, the idea of earning interest through a bond may feel familiar. The important difference is what stands behind your money: a high-yield savings account is a bank deposit, while Cash Flow Bonds is a loan to an issuer that may be unable to repay you.
| Product | Interest and payments | Access to money | Minimum and fees | Insurance and principal risk |
|---|---|---|---|---|
| Cash Flow Bonds | PIC Diversification Fund, LLC unsecured notes. 7.0% fixed annual interest, compounded daily. Accrued interest is paid with principal at redemption, not daily to a bank account. Interest stops when the company receives the holder’s redemption notice under the bond documents. | No public trading market. Valid written redemption requests are normally due within 30 days. A first-in, first-out liquidity queue can cause longer delays. Payment is not guaranteed. | $10* minimum plus a 1% processing fee paid in addition to principal. No lockup or redemption penalty. | Not a bank deposit. Not FDIC-insured or government-guaranteed. Some or all principal may be lost. |
| High-yield savings account | Bank deposit with a usually variable APY. Compounding and crediting schedules follow the account agreement. | Withdrawals and transfers follow bank rules, holds and transfer times. Not a bond redemption queue. | Minimums and account or service fees vary by bank. | Eligible deposits at an FDIC-insured bank receive coverage within applicable limits; balances above coverage are exposed. |
Cash Flow Bonds
- Interest and payments
- PIC Diversification Fund, LLC unsecured notes. 7.0% fixed annual interest, compounded daily. Accrued interest is paid with principal at redemption, not daily to a bank account. Interest stops when the company receives the holder’s redemption notice under the bond documents.
- Access to money
- No public trading market. Valid written redemption requests are normally due within 30 days. A first-in, first-out liquidity queue can cause longer delays. Payment is not guaranteed.
- Minimum and fees
- $10* minimum plus a 1% processing fee paid in addition to principal. No lockup or redemption penalty.
- Insurance and principal risk
- Not a bank deposit. Not FDIC-insured or government-guaranteed. Some or all principal may be lost.
High-yield savings account
- Interest and payments
- Bank deposit with a usually variable APY. Compounding and crediting schedules follow the account agreement.
- Access to money
- Withdrawals and transfers follow bank rules, holds and transfer times. Not a bond redemption queue.
- Minimum and fees
- Minimums and account or service fees vary by bank.
- Insurance and principal risk
- Eligible deposits at an FDIC-insured bank receive coverage within applicable limits; balances above coverage are exposed.
Two dated examples
Marcus Online Savings displayed 3.50% APY as of October 23, 2026, without a minimum opening deposit or account fee. That standard variable APY excludes its separate referral promotion.
Ally Savings displayed 3.20% APY as of October 23, 2026. Its page lists no minimum opening deposit or monthly maintenance fee, daily compounding and a limit on certain withdrawals. Ally’s comparison uses California and a $5,000 daily balance; its page states that the same APY is currently available across all balance tiers. Confirm the terms for your account.
These are selected, dated examples, not a ranking or a survey of every available product. Rates and terms can change. Verify the provider’s current terms before making a decision.
Read the rate on the same basis
Bank APY includes compounding; CFB’s 7.0% is an annual interest rate. Daily compounding illustrates about 7.25% growth over 365 days before fees and taxes, assuming payment and retention of interest. It is not a guaranteed return.
The 1% CFB fee is added to principal, so $10* invested requires $10.10 in total and the $0.10 fee earns no interest. A fair dollar comparison must use the same total cash outlay and holding period, including applicable costs.
Protection changes the comparison
FDIC coverage is generally $250,000 per depositor, per insured bank, per ownership category, not per account. CFB notes have no such protection. A larger stated rate cannot compensate for a risk you are unable or unwilling to take.
Start with when you will need the money
CFB should not be treated as an on-demand cash account. Consider whether you can tolerate a delayed redemption and loss of principal, rather than choosing solely by the stated rate. Read the investment risks and the offering circular alongside the other product’s terms.
Sources and further reading
Your next chapter starts small
Make room for what matters.
Open to everyday investors. Start with just $10*.
I like looking beyond the balance. Your investment helps fund real estate and small businesses in our communities.