4 years ago
If you have some money idling around, and you'd li...
If you have some money idling around, and you'd like it to work for you, Bondora is a great way to invest funds and let them grow passively. The site offers two ways of investing.
The first method is based on contributing to small loans, so-called P2P (peer-to-peer) loans, which you can choose from a list according to their country of origin, duration, risk factor and payout. You can set up an automatic investment system, that will, for example (variable values in brackets): put [1 ] into every new loan from [Estonia], with a duration of [6 months or less] and a [low] risk factor. This way you can set up your desired range of loans and specify how much money should be put in, and the system will keep investing for you, netting you about 8-12% interest p.a., depending on the safety/risk equation of the loans. Practically all low to medium risk loans are paid back eventually, even though sometimes it can take a few extra weeks to months. The payout with this model is overall excellent, and will vary from low to high depending on your choice of risk (higher risk = more interest). The liquidity with this mode of investing is very low, because you need to wait for your money to be paid back before you can access it.
The second model is called "Go & Grow", and is based on a very simple principle. You invest money with Bondora, they handle all the loan stuff, give you a flat interest of 6.75% p.a. and keep your money liquid at all times. In case you want to withdraw any funds, you will have to pay a flat sum of 1 per transaction, which, in my opinion, is at the very low end of the spectrum of transaction costs. Seeing that the risk is very low as you don't directly depend on any loans, and your money is perfectly liquid, the payout is quite high in comparison.
To summarize: I have compared quite a few investment options, from crowdfunding to stocks, and Bondora definitely comes out on top, offering two investment models: one with high yield, some risk and low liquidity, one with moderate yield, practically no risk, and high liquidity. Therefore, I am convinced that most investors will find a business model that they like on Bondora, and that will make their money work for them.
One caveat: If you need your funds to be liquid from the get-go, make sure to verify your bank account before making a deposit, because you will need to have a verified account before you can withdraw funds from Bondora.