A good place to stash some spare cash and beat banks' interest rates. However if you set your funds to accept "market rate" this can drop below high street rates. If you set a "minimum rate" you risk having your cash sitting around earning nothing at all if the market rates drops below this. Withdrawals are not instant unless you pay extra - it takes a couple of days for funds to reach your account. It's a similar story when adding funds to Ratesetter, although the first three (instant) deposits via debit card are free.
I have been investing with Ratesetter for a year now and I have every trust in the process. I have had no need to contact Ratesetter with any sort of query which goes to show how simple and transparent the whole process is. I enjoy seeing loaned money returning back in to my account on a monthly basis which gives me the opportunity to either re-invest or cash-in. The rate of interest beats the bank rate hands down which is good for a private investor like me and good for a borrower. With Ratesetter there is no hidden greed as continually being shown by the big banks. Susan
I felt compelled to write this review as peer-to-peer lending is still new to many. I've been lending for a good few months now and I'm averaging about 4.1% AER through the Monthly Access market. I started with just £100 but since have put in more. I might start putting money into the 1 Year Bond soon as that's paying circa 5.0% AER. RateSetter has a very good customer service team and a clean and user-friendly platform to lend on. I trust these guys as well as they've got a clever mechanism called the Provision Fund that reduces the risk of a borrower defaulting. If you're looking for higher returns on your savings this is definitely worth looking at.