Ratesetter

red_devil

Can someone please tell me how to use it?

I have an account and ten pounds in there.

I want to lend money and get a good monthly return, what would I need to put in? What return could I get?

Have been playing around with it but it seems you have to deposit money first to see what you might get?

Don't really understand it.

AlanP_2

If you don't understand it then don't use it is the best idea I would suggest.

If you still want to try it the have a look here to see what you could earn on your investment depending on term you lend for:

https://www.ratesetter.com/lend


And for How to Use type questions have a look at the FAQs

https://www.ratesetter.com/lend/faq


Sorry, can't give you detailed answer as it not a P2P platform that I use.

Futuristic

Sorry but investing £10 is pointless, you'll earn approx 63p a year for 5 years if you go with their current 5 year live rate.

If you're going to invest more, what term do you want to choose? It might be better to choose your own higher rate and wait then go with the current live rates.

You can do this by clicking on "Are you a RateSetter expert? Set your own rate here" once you've selected the term.

Froggitt

The link above, you can see the rates available for 1m, 1Y 3Y and 5Y. Which do you want to do?
https://members.ratesetter.com/your_lending/lend_money/choose_term.aspx
Click the term you want.
Click Lend Now

Froggitt

Futuristic wrote: »

Sorry but investing £10 is pointless, you'll earn approx 63p a year for 5 years if you go with their current 5 year live rate.

Sure, but he may want to initially see how it all works. Eg Ratesetter you dont see individual loans, but Zopa you do.

Futuristic

Froggitt wrote: »

Sure, but he may want to initially see how it all works. Eg Ratesetter you dont see individual loans, but Zopa you do.

Yup figured after posting, i've added more info to my post.

MarkFromCornwall

When you deposit money with Ratesetter it initially sits in a holding account.
Click on one of the ‘Lend Money’ links on the left to make it available to lend out for the term of your choice.
Look out for the “Are you a RateSetter expert? Set your own rate here.” link on the right of the screen. If you click on this you can set the rate at which you are prepared to lend out your money. Otherwise it will be determined by current market rates which can be quite low. If you are prepared to wait you can get a better rate.

red_devil

what would you need to invest as a minimum to get a return monthly. I realise 10 pounds is not enough.

ChiefGrasscutter

All the info is on the site:
Monthly investment terms are returned at the end of the month both capital and interest.
Yearly investment terms are returned at the end of the year both the capital and interest.

Longer terms so far as I can remember (and I cannot be arrrsed to look for you) works like a mortgage whereby there are monthly payments comprising both interest and part return of the capital so at the end of the x year term both are paid off. note that the interest payment part of the payment will reduce as each month part of the loan is being paid off so the capital amount on loan going forward each month is reducing.

There is no 'minimum' to get a monthly return - it depends where you invest it as I've described above.

As others have suggested you need to read a lot more about P2P and the risks attached given that none are covered by the FSCS.

The return available varies from day to day, even from hour to hour depending on the balance between lenders and borrowers. you can either take the return at the point of investment or as others have said put in your own rate you wish to lend at and see if anyone is interested or whether your money will simply sit waiting if no one is - earning nothing while it does. Its all up to you to make your own decision.

MarkFromCornwall

red_devil wrote: »

what would you need to invest as a minimum to get a return monthly. I realise 10 pounds is not enough.

£10 is the minimum you can lend. You can earn a few pence monthly. Typical rates of return are equivalent to 3 or 4% per year. You can get higher rates by lending for a year or three or five.

agent69

I'm a fan of Ratesetter, but a few words of wisdom for any newbie.

• Don't use the 'lend it now' rate, as this is likely to be about 0.5% below what you can get if you wait a day or 2.
• Ratesetter use the Adam Applegarth business model of some times using short term borrowing to finance long term lending. They get around the problem by stating that if there is a liquidity problem in the short term markets then you won't necessarily get your money back at term. Worst case scenario you lend in the 1 month market at 3.5% and don't get your money back for 5 years ( but during those 5 years you will only be earning the 1 month rate of interest).