Zopa or Ratesetter?

bigfreddiel

Now interest rates are so low, I'm thinking of moving some cash into peer-to-peer lending, Zopa, Ratesetter or another, what's been your experience and returns? Cheers fj

Startup1985

I have 1k in ratesetter just so I can get the £100 bonus I got mine locked into a 5 year at 6.4%.

I personally would not put any more in that the minimum to receive the bonus though. There is far better out there and I would not even consider zopa. Have a look at saving stream, ablrate and money thing for closer to 12% and I'm my opinion better protection

Seeing 1% per month hit your account is quite addictive lol !

Dan83

6.4% pa or 6.4% at the end?

I might take a look at that.

bigadaj

Startup1985 wrote: »

I have 1k in ratesetter just so I can get the £100 bonus I got mine locked into a 5 year at 6.4%.

I personally would not put any more in that the minimum to receive the bonus though. There is far better out there and I would not even consider zopa. Have a look at saving stream, ablrate and money thing for closer to 12% and I'm my opinion better protection

Seeing 1% per month hit your account is quite addictive lol !

Just wondered why you have gone for the 5 year market.

Like you I just put a grand in, but it only needs to be in there for a year, so given that we are mainly there for the one off 10% bonus aren't you just diluting your return?

Startup1985

Dan83 wrote: »

6.4% pa or 6.4% at the end?

I might take a look at that.

Yes 6.4 pa but obviously you have to keep reinvesting to get that rate.

Startup1985

bigadaj wrote: »

Just wondered why you have gone for the 5 year market.

Like you I just put a grand in, but it only needs to be in there for a year, so given that we are mainly there for the one off 10% bonus aren't you just diluting your return?

The reason for this was nooby error. I was new to p2p and had done next to no research and could not believe they were offering 6.4%, I decided that I was going to keep plough in any spare cash I had in there as a future investment. It wasn't till later when I started to really get interested in p2p that I realised there are a lot better offerings out there and diversified my investments mainly towards the asset backed higher paying platforms

bigadaj

Startup1985 wrote: »

The reason for this was nooby error. I was new to p2p and had done next to no research and could not believe they were offering 6.4%, I decided that I was going to keep plough in any spare cash I had in there as a future investment. It wasn't till later when I started to really get interested in p2p that I realised there are a lot better offerings out there and diversified my investments mainly towards the asset backed higher paying platforms

Fair enough, I actually was somewhat naive and have mine in at 3.5% for a year, before I realised I could have held out for an extra 0.5-1%, though the 10% bonus makes the actual return a little irrelevant.