2016 was Peer –to-peer lending’s (P2P) year. It was on the radar of every investment analysis. What was first touted to be a fad, emerged as one of the best alternative investment vehicles. And in 2016 P2P has given tough competition to main high street banks. In our age of inflation and uncertainty, every money-smart individual is continuously searching for a good investment opportunity that gives a reasonable return combined with the least possible risk.
Many would say that the stock market is a good place to invest. However the stock market is very dynamic and requires a certain finance understanding that not everyone possesses. A stock market is a good option for those who have the necessary knowledge and the time to daily research and actively participate. But for someone who is actively working a 9 to 5 job, it may not be the best possible solution.
High street banks are definitely safe but they are currently giving rates as low as 2%. For example in the U.K, Clydesdale Bank will give you a bare 2% rate and you have to put in a minimum amount of USD 1,321. Also bank accounts also restrict access to your savings. In most cases you cannot draw out your money for a year minimum. If you do then you lose out any interest you are supposed to get.
P2P platforms are many and each have their own products that come with a great deal of flexibility. We will talk about some of the P2P platforms that give returns higher than most banks and even offer early access.
- Rate Setter
In Rate Setter you can pull out your savings in one month. You still get a return of 2.8% per year. Interest is paid out monthly giving you a steady income stream. This is perfect for you if you are saving in college and investing the savings. And if you do not withdraw at the end of the month your funds will automatically be reinvested.
- Assets Capital
Assets Capital just does not get you a return on your investment but also helps the environment with the money they gather. They have a Green Income Energy Income Account. Assets Capital loans out money to British businesses which are investing in renewable energy projects. Investors in turn get a maximum return of 7% per year. There is no penalty for early withdrawal of money. But the way you take out your money is that you sell your investment to some other interested investor. So it might have a slight wait.
Assets Capital also has a Quick Access Account in which you get a return of 3.75% per year and also allows you to withdraw money at a moment’s notice.
Assets Capital also gives seasoned investors the option of choosing loans to invest in. This route can lead to return as high as 18%, though it comes with a considerable increase in risk.