Peer to peer investments can offer some of the highest savings returns on the market, by pooling together borrowers and offering investors returns of up to 8.5%.
Using a peer to peer lender, you will be paired with individuals and businesses who are looking to borrow money. You will be able to choose who you lend to and depending on the criteria and credit rating, the more risk you take on, the higher your return can be. The peer to peer lender simply takes a commission in between for pairing borrowers and investors.
Use the comparison table provided by My Financial Broker to find the best peer to peer investments for you. You will require a minimum contribution, starting from just £10, although you may need to invest closer to £500 or £1,000 to earn the best returns possible.
Your money is locked in for the entire loan duration e.g 1 to 5 years. If you need to withdraw early, you can sell your loan to another investor on the system.