The Case for Real Estate Lending Over Bank CDs and Savings Accounts

What Most People Choose—and Why It May Not Be Enough

Many people keep their savings in traditional bank accounts or certificates of deposit (CDs). These options feel safe, and they are easy to understand. However, they also offer very limited growth. As of July 2025, the national average interest rate on regular savings accounts is around 0.6% per year. Even the best high-yield savings accounts offer about 4.4% annual percentage yield (APY), and top CDs with terms of six to twelve months are paying between 4.4% and 4.6% APY. That means $100,000 sitting in a savings account or CD may earn just $600 to $4,600 in a year.

While these options are useful for emergency funds or short-term storage of cash, they are not ideal for building long-term income or growing wealth. Real estate lending offers a powerful alternative—especially when done through a carefully managed fund like the Blue Vikings Income Fund.

What Is Real Estate Lending?

Real estate lending means providing loans to real estate investors, usually for short-term projects like fixing and flipping houses. At Blue Vikings Capital, our fund collects money from accredited investors, then uses that pool of capital to fund these loans. Borrowers use the loans to buy and renovate homes, which they sell for profit.

Every loan is backed by the property itself. If the borrower fails to repay, the fund holds a first-position lien and can take control of the asset. This gives the investor added protection—your money is not just sent out without security. The borrower also pays interest every month, and that income is passed back to you, the investor.

Why Choose Lending Over CDs or Savings Accounts?

The most obvious reason is return. While bank CDs and savings accounts typically offer between 0.6% and 4.6% APY, the Blue Vikings Income Fund offers 7% to 10% preferred annual returns, depending on the investment amount. That’s significantly more than most traditional options.

Another benefit is consistency. Investors in our fund receive monthly interest payments. Unlike a CD, where you wait for the term to end before you see your interest, you begin receiving income every month right away. This makes real estate lending ideal for anyone seeking regular cash flow.

Liquidity is also important. While a CD locks up your money for a set period and penalizes you if you withdraw early, our fund offers full liquidity after the first six months. You can request to withdraw any portion of your investment, and your funds will be returned within 90 days—without fees or penalties.

Finally, there’s the added benefit of security. All loans made through our fund are backed by real property and are capped at 70% of the after-repair value (ARV). That means the borrower must have equity in the deal, which lowers the risk to the fund. In the rare event of default, the fund can foreclose and recover the capital.

Up-to-Date Market Comparison

As of mid-2025, here are the facts. High-yield savings accounts are averaging around 4.4% APY. CDs, depending on the bank and the term, range from 4.4% to 4.6% APY. These rates are based on top online banks and are considered some of the best currently available. Meanwhile, the Blue Vikings Income Fund continues to deliver 7% to 10% preferred annual returns, distributed monthly. This income is not only higher but more consistent, and with less volatility than the stock market.

Who Is This Right For?

Real estate lending is well-suited for people who want their money to work harder while staying protected. It is ideal for busy professionals who want passive income without the headaches of owning property. It is also a good fit for retirees who want to receive reliable monthly income. And it’s an excellent choice for high-net-worth individuals looking to diversify outside the stock market or inflation-prone savings accounts.

Final Thoughts

The case for choosing real estate lending over traditional bank products is strong. It offers higher returns, dependable monthly income, collateral-backed security, and more flexibility than most people realize. You’re not just earning more—you’re doing it with a well-structured strategy that prioritizes your access to funds and reduces risk.

If you're looking for an investment that offers the stability of a CD with the growth potential of real estate, the Blue Vikings Income Fund may be exactly what your financial plan needs.

To learn more or to see if this strategy is a fit for your goals, visit BlueVikingsCapital.com or contact our team to start a conversation.