There is now a way to earn more interest on your bank account. Outlet allows you to plug you money into the world of open finance. Outlet accounts currently have 10% interest.
The industry average interest rate on your bank account is around 0.09%. The current rate on Outlet the DeFi-bank account is currently around 12%. Thats over a 100x increase in interest. DeFi banking is a new phenomenon. Outlet is bringing new technology on Ethereum to main stream users.
Earning 12% on your traditional bank account in the United States is simple using the Outlet mobile app. Earning this high of an interest rate on your savings can seem too good to be true. This article will explain the Outlet Mobile app and how you are able to use your bank account to achieve this high rate of interest.
You can think of Outlet as an extension of your existing bank account. Outlet accounts earn a high rate of interest by backing cryptocurrency loans. These loans are safe due to the overcollaterization of them. The typical loan on cryptocurrency would look something like the following. If you want a $100 loan you would have to put up $200 in assets.
Outlet works like an extension of your bank account. In the background Outlet transfers your fiat dollars into a stable coin called dai. Dai is then loaned to another company called a lending protocol. These protocols are money markets that live on a blockchain.
These money markets are what enable outlets interest rates and make the product work as advertised. Outlet itself does not control the money market. The lending protocol is a seperate entity. Most lending protocols are decentralized and are ran through a smart contract on the Ethereum blockchain.
After you create an account you will be asked to verify your identity. This can be done in many different ways. During this process we are using an API to process your KYC. We do not share or store your information.
Logging into your real bank account is simple and safe using Outlet. We use Plaid in order to safely and securely allow for funds to be transferred over to and from your bank account without Outlet knowing any of your banking information.
Once you have logged into your bank account you are going to need to transfer some of your funds to your Outlet account. You can select however much you would like to transfer. Because you signed up with your actual bank account dont be alarmed when you see your actual bank account balance.
Once you are done transferring over the money you will then start earning a higher interest rate than what your bank is paying you.
The industry average bank account interest rate of 0.09% is very low and will not even beat the rate of inflation. Clever investors always find ways to far outpace the rate of inflation with what they already have. The Outlet savings app is a perfect way for you to beat inflation and obtain a much higher rate of return than what was traditionally thought possible in a bank account. Although the Outlet savings app is not a registered bank we look, act, and feel like one.