Compare Peer-To-Peer Deals
Peer To Peer Accounts
Why we like it: TAX-FREE income if held through an Innovative Finance ISA. Minimum investment of £10,000. Interest paid monthly. No fixed term, hold for as long as you wish. Secured by UK property. Maximum 75% loan to value. Buffer of 25% should the value of a property fall. Ask to withdraw at any time. Also accepts ISA transfers from previous year's ISA's. Track your investment with online app. Can also be held outside of an ISA As with all investing your capital is at risk when you lend to businesses. easyMoney reduces this risk by taking security over property. Returns are not guaranteed and your actual returns may vary. Capital is at risk. Must be aged 18 or older. Peer to peer lending is not covered by the FSCS. Tax treatment depends on individual circumstances. Instant access not guaranteed
Disclaimer: When making a peer to peer loan, your capital lent to a borrower is not covered in the event of loss by the FSCS
Why we like it: TAX-FREE income if held through an Innovative Finance ISA. Minimum investment of £20,000. Interest paid monthly. No fixed term, hold for as long as you wish. Secured by UK property. Maximum 75% loan to value. Buffer of 25% should the value of a property fall. Ask to withdraw at any time. Also accepts ISA transfers from previous year's ISA's. Track your investment with online app. Can also be held outside of an ISA As with all investing your capital is at risk when you lend to businesses. easyMoney reduces this risk by taking security over property. Returns are not guaranteed and your actual returns may vary. Capital is at risk. Must be aged 18 or older. Peer to peer lending is not covered by the FSCS. Tax treatment depends on individual circumstances. Instant access not guaranteed
Disclaimer: When making a peer to peer loan, your capital lent to a borrower is not covered in the event of loss by the FSCS
Why we like it: TAX-FREE income if held through an Innovative Finance ISA. Minimum investment of £100,000. Interest paid monthly. No fixed term, hold for as long as you wish. Secured by UK property. Maximum 75% loan to value. Buffer of 25% should the value of a property fall. Ask to withdraw at any time. Also accepts ISA transfers from previous year's ISA's. Track your investment with online app. Can also be held outside of an ISA As with all investing your capital is at risk when you lend to businesses. easyMoney reduces this risk by taking security over property. Returns are not guaranteed and your actual returns may vary. Capital is at risk. Must be aged 18 or older. Peer to peer lending is not covered by the FSCS. Tax treatment depends on individual circumstances. Instant access not guaranteed
Disclaimer: When making a peer to peer loan, your capital lent to a borrower is not covered in the event of loss by the FSCS
Finding The Best Peer-To-Peer Account
What is peer-to-peer?
Peer-to-peer (P2P) matches up savers, who are willing to lend their money, with borrowers typically individuals or small businesses.
Both parties can benefit because rates are often better than those on offer from banks. Savers can get interest on their savings up to 5 times or more what they can get in a traditional savings account, while those looking to borrow can get rates as low as 5% on a 5 year loan.
Can peer to peer offer me the potential for better interest rates than banks?
P2P lender sites can often be in a position to offer better rates than banks to both savers and borrowers alike. But how are they able to do this?
Essentially, P2P lenders can be more efficient than the traditional banks – they have lower overheads, fewer staff and no high street branches to pay for. This means that the savings made can be passed on to the savers lending their money and borrowers.
Key points of peer-to-peer
- You can earn relatively high interest returns on your savings
- Interest can be paid monthly
- Many P2P lenders offer easy access to your money if you need to get hold of it at short notice
- Some peer-to-peer lending companies run their own protection schemes. In the event that a borrower is unable to pay back the loan, it is repaid through a fund that borrowers contribute to (by way of a credit rate fee charged at a small percentage of the total loan)
- You can choose how to lend money based on the length of investment and the level of risk involved
- Most P2P providers have a minimum age policy of 18
- You will need to be UK resident and have a UK current account
- You can invest from as little as £10 with some peer to peer lending sites
- Peer-to-peer saving should only be considered as part of a balanced investment portfolio
- P2P saving is not regulated by The Financial Conduct Authority, and your money will not be covered by the Financial Services Compensation Scheme
- Investing your savings within a peer-to-peer lending scheme can mean interest rates can vary – generally speaking higher risk borrowers will get higher returns, but with higher returns comes higher risk that you may not get some or all of your money back
- If you need to withdraw your funds early, you may incur a fee
- If the person you have lent the money to chooses to repay their loan early, this can affect your rate of return
- The interest you earn is subject to income tax in the same way as normal savings
- Since April 2016 approved peer-to-peer accounts can be included in an ISA, also known as Innovative Finance ISAs or IFISAs , and all returns will be sheltered from tax
Peer-to-peer savings accounts are not the same as normal savings accounts, so you need to consider the features before you commit.
