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Make The Most of Your Savings With Crowd Investment – Zopa

Make The Most of Your Savings With Crowd Investment – Zopa

In the current economic climate, many people are trying to find ways to make more of their savings. Unfortunately, this is not as easy to do as it might have been in the past. Banks are no longer offering high interest rates, and even rates on ISAs have got down to the point where you’d be lucky to find one that was at 2% for an instant access account. For this reason,people have started thinking outside of the box.



One way to make your money go a little further is by signing up to a peer-to-peer lending scheme. An example of this is Zopa, which can be found by clicking HERE. To put it simply, using these schemes will cut out the middle man; the bank. Instead, individuals who want to invest their money can lend it straight to those who are looking to borrow money, and this means that they can gain a much higher rate of interest in the long term. Taking Zopa as an example, it has been found that savers can earn up to 8% interest, which is far, far better than anything that the banks have to offer. There are some fees to be paid, however even with those taken into account you will be making a tidy profit.


It is worth remembering, though, that this isn’t an instant access scheme as such. Although you can cash in your savings at any time, you may find that there is a small charge for doing so. However, you should still be making more money than with the banks, even with such charges being taken into account. This means that it is something that you should probably consider for your own savings.


If you are worried about borrowers defaulting on their debt, then there is little need to. Instead of lending money to one borrower, Zopa will split your investment into £10 segments, and will split it across many different individuals. This means that even if worst comes to worst, the most that you could lose would be £10. Although there is a small expected default, this usually occurs after the borrower has paid some of the debt back, meaning that it will not even be as much as the £10 that you lent to them. They will also most likely have already paid some interest, and this means that you will hardly lose anything. This should be more than made up for in the money that is returned to you by your other borrowers.


In addition to this, you may find that Zopa is a lifeline to you if you wish to borrow money at any time. Not only are you able to get much more reasonable rates than you would have done with a bank, but there are also no early repayment charges, or late repayment fees, meaning that you have even more security with this loan than you would have had with any other.


Ultimately, Zopa is great for those who have a little bit of extra cash that they’re not making any money from in the banks. It is worth doing your research, as there are a number of peer to peer lenders available, however Zopa is one of the ones that has had the most positive press in recent years. This means that you can be sure to get the best value and truly invest into your own future.


Visit Zopa here


Written by Gemma

Gemma is a 22 year old graduate in Psychology and freelance writer who has been writing online since she was 16.