MoneySuperMarket is today launching an exclusive peer-to-peer incentive to new customers investing with an Assetz Capital account.
Those who invest £2,000 or more for a minimum of 12 months into an Assetz Capital investment account will qualify for £150 cashback, as long as they apply exclusively through MoneySuperMarket before 21st July 2016. The exclusive cashback offer is available through a range of Assetz Capital’s investment accounts, with the added benefit for customers of earning up to 7% gross per annum.
Peer-to-peer lending is an alternative way for individuals to boost their returns and is especially attractive to people who may have filled their ISA allowance or become disillusioned with the current low rates on standard retail savings products2. Others brands MoneySuperMarket partners with in this space include Zopa, RateSetter and Wellesley & Co.
The peer-to-peer lending sector is regulated by the Financial Conduct Authority (FCA) but anyone investing cash in platforms such as Assetz Capital will not be covered under the Financial Services Compensation Scheme (FSCS), which protects the first £75,000 of savings (per institution) should a bank or building society go bust. However, some peer-to-peer lending companies run their own schemes that aim to return every penny to investors through a Provision Fund which borrowers contribute to by way of a credit rate fee, charged at between 0.5% and 3% of the loan.
Kevin Mountford, banking expert at MoneySuperMarket said: “With interest rates at an all-time low, investors need all the help they can get and peer-to-peer lending potentially offers the chance to get a better return on your money.
“However, although peer-to-peer products often attract above average returns, they do come with greater risk and consumers should be aware of this. As a general rule, the longer you are prepared to invest your money for, the higher the potential returns will be, but you must be certain you can afford to tie up your cash for that period of time. You can choose your rate of return based on the length of time you want to invest your money for and the level of risk you’re prepared to take.
“The number of peer-to-peer lending schemes available has increased dramatically in recent years, so it’s worthwhile spending time to review what’s on offer, and selecting the product which is best suited to your individual needs.”