What made you consider investing via a peer-to-peer platform?
I became disillusioned by the poor rates that banks were offering – only 0.5% in cash accounts. My first peer-to-peer investment was with RateSetter in 2012; I put a small amount in the Everyday Account. Now I have a fifth of my investment pot in peer-to-peer platforms, spread across a portfolio. Since then, I’ve had returns of 6% and no losses. There are risks, yes, but the rest of my investments and savings are low risk.
What are you investing for?
Not sure - maybe a rainy day or retirement. I’d like to think that pension plans are reliable, but their rules seem so lacking in predictability or transparency, and so easily changed, that I don’t trust them. RateSetter has risks, sure, but they’re well spelled out. I sing the praises of peer-to-peer lending to people all the time, but I’d also caution people never to put all their eggs in one basket.
What has been your experience of investing with RateSetter to date?
Very good. RateSetter’s website information is excellent and I’ve had no problems – it does what it says on the tin, with clarity.
How did you learn about how to invest?
I do my own research on interest rates and risks. I grew up in the Scottish Highlands at a time when there was a relatively recent history of austerity – it was ingrained in me that you should be fearful about not having any money. Maxing out a credit card on a new kitchen is really not my thing.
Anything you’d like to add?
Almost everyone has a time in their life when they need to borrow money, and they should be able to do that at a decent rate from a trustworthy source. Likewise, investors need a decent rate too. Peer-to-peer lending reintroduces the model of fair community-friendly lending in an efficient, online way. I’m delighted that the Government plans to encourage it by including it under the ISA umbrella.