Deferred, a leading nationwide qualified intermediary for 1031 exchanges, now offers investors up to 3.10% annual percentage yield (APY)—the highest published rate in the industry—alongside No Fee forward exchanges.
The 3.10% APY tier applies to the entire exchange balance when exchange proceeds total $25 million or more. Deferred charges no setup, wire or administrative fees for forward exchanges and clients earn interest when exchange proceeds total $1 million or more. Investors can view the complete rate schedule and estimate earnings at deferred.com/pricing.
The new tier expands Deferred’s interest-sharing program, which returns interest earned on exchange funds to clients while they complete their exchange.
Who Keeps the Interest on 1031 Exchange Funds?
When an investor sells an investment property through a 1031 exchange, the proceeds are held by a Qualified Intermediary until they acquire replacement real estate. Those funds can remain in an exchange account for up to 180 days.
During that time, the money can generate substantial interest. Yet many traditional Qualified Intermediaries keep the interest earned on client funds while also charging exchange fees.
Consider an investor completing a $30 million 1031 exchange.
At Deferred’s new 3.10% APY, $30 million held for 180 days could generate approximately $455,000 in interest for the investor at current rates.
With an intermediary that retains all the interest, the investor could receive none of those earnings.
“We’ve built technology that takes much of the manual work out of a 1031 exchange, lowering our operating costs so we can pass more savings and interest back to our clients,” said Judd Schoenholtz, CEO of Deferred. “We believe the real estate wealth our clients work so hard to build should never stop compounding, even during a 1031 exchange.”
More Than a High Interest Rate
While Deferred’s new rate offers a financial advantage for large exchanges, choosing a Qualified Intermediary involves more than just interest.
Deferred protects exchange funds through multiple layers of safeguards. Client funds are deposited only in dedicated, segregated, FDIC-insured accounts at established, publicly traded banking institutions, including JPMorgan Chase and Raymond James, and are never pooled with Deferred’s operating funds or other clients’ funds. Every transfer requires client authorization, independently verified wire instructions and separate employees to initiate and approve it. Transfers over $1 million require additional approval, and Deferred’s software maintains a complete audit trail.
Deferred has completed more than 8,000 exchanges. Its team brings over 200 years of combined 1031 exchange experience.
The company combines its interest-sharing program with services designed for real estate investors, brokers, and advisors, including:
- No Fee forward 1031 exchanges: No minimum balance and no setup, wire or administrative fees for standard forward exchanges.
- Interest sharing: Industry-leading APY tiers based on exchange proceeds, with qualifying rates applying to the entire balance.
- Institutional banking: Segregated, exchange-specific accounts held through established banking partners.
- Enhanced FDIC coverage options: Up to $175 million in FDIC insurance coverage available through participating banks, subject to applicable terms and rates.
- Industry-leading insurance protection: $25 million All-Risks Crime plus Fidelity Bond policy through Lloyd’s of London, providing comprehensive coverage including fraudulent wire transfers, cyber-enabled fraud, and misappropriation of exchange funds, plus $5 million each in Errors & Omissions and Cyber Liability coverage.
- Experienced exchange professionals: A Senior Exchange Officer with 10+ years of experience handles each file from first call through closing, with support seven days a week until midnight ET.
“We’ve built Deferred around a simple idea: investors shouldn’t have to choose between great service, security, and earning a competitive return on their money,” added Schoenholtz. “They should expect all three.”
Explore Deferred’s 1031 Exchange Rates
The 3.10% APY tier is available now.
Investors can explore Deferred’s interest-sharing rates and estimate their potential earnings at www.deferred.com/pricing.
About Deferred
Deferred is a leading national Qualified Intermediary helping real estate investors defer capital gains taxes through 1031 exchanges. With more than 8,000 exchanges completed and a team bringing over 200 years of combined 1031 experience, Deferred offers No Fee forward exchanges, shared interest on qualifying balances, modern technology and support seven days a week until midnight ET.
Deferred facilitates forward, reverse, and improvement exchanges for real estate investors nationwide.
Learn more about Deferred’s team and experience at deferred.com/about.
Interest Rate Disclosure: The 3.10% annual percentage yield (APY) applies to the entire exchange balance when exchange proceeds total $25 million or more. Rates are variable and subject to change. Interest earnings depend on the amount held and the duration of the exchange. Enhanced FDIC coverage options may carry different interest rates or bank charges. The interest example is illustrative and not a guarantee of future earnings. Deferred does not provide legal or tax advice.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261102917601/en/
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