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Peer-to-peer’ lending is the future of banking. It cuts out the middle-man, passing on higher interest rates to you and cheaper loans to borrowers. And it’s all managed online from the comfort of your sofa.
Founded in 2005, Zopa.com is the most established site lending around £1m every day. Right now you can expect to achieve up to 5% fixed return (before tax), depending on how long you choose to lend for.
As with any traditional bank, there is some risk attached with peer-to-peer lending. Zopa have gone a long way to mitigating this with their Safeguard feature, which effectively spreads your money across a wide range of borrowers (who are also credit checked).
