Frequent readers of this blog might know that Bondora and I not were friends, we still aren’t but the relationship got better. One year ago I advised newcomers not to join Bondora, but started my second try back then.
In September I launched a portfolio manager (autoinvest) with a balanced approach. Sporadically I checked out what was going on, but never intervened (no deposits or withdrawals as well). After one year (blue bar) my yield is above the expected yield still, but decreased over time drastically. This was and still is one main critisism from my side. At the beginning everything looked fantastic with the high yields, which relatived over time. Still, I am positively surprised by them (although my calculated xirr is lower). I hope that my actual yield will stay in the expected bandwith for the coming years. Bondora is no marketplace for short term investments, until now. With the recent Go & Grow addition they filled this gap. More about that at a later stage in this post.
Short overview of Bondora’s multiple services
Before I get into details about Go & Grow, I’d like to give an overview of all available services:
The portfolio manager is just a simple autoinvest feature with very limited input factors. Nice for investors who do not wish to deal too much with the marketplace, and think the expected returns are reliable.
Portfolio Manager pro…
… is actually an enhanced version of the portfolio manager with some more features to control. You can exclude specific countries and ratings and set the investment duration and the size invested in each loan.
API is the programmable interface with which you can set your individual settings for loans. You need some coding experience for that or for example use a firefox plugin. You need to deal with the loanbook first and identify your settings from there.
And now the famous Go and Grow (replacement for call money?) with 6.75 yield p.a
By introducing Go & Grow Bondora now offers a short term lending service which resembles a call money account.Go and Grow pays 6.75% annual interest on a daily basis. You can withdraw the money when you need it, but keep in mind the withdrawal is charged with 1 Euro. If you invest 1k for example, after 6 days you already earned the fee plus some cents more. I park some of my liquidity with Go and Grow. I see this service not as alternative to an overnight account, but as a supplement.
Bondora pushes Go and Grow at the moment (by using this linke for registration you get 5 Euro free as a bonus on your account), as this is a cheap and easy funding source for them. On the left side of your dashboard you ses Go & Grow and this is where you can create the Go and Grow account. You can use more then one service simoultanously. In my case the portfolio manager is running, which I have to pause if I want to add funds from my account to go and grow. Or you can directly deposit into your go and grow account, by referincing your wire transfer correctly. This looks like this: first name last name 123456 (like your normal deposit) & add your GG reference for example GG12345. But this is shown in the go and grow section. There is the possiblility to set that all your future cash flows move directly in to go and grow, plus Bondora buys your entire portfolio, if you already have one. If you chose to do this, please be reminded that this is irreverible.
I am still of the opinion that Bondora with all their possibilities and data, needs serious time to get handled. Go and Grow is an exception to that of course. My experience from the past year eased my anger about Bondora, but I still suggest for new investors to start elsewhere. Of course Go and Grow is an exception to that, if you only use that. In my opinion it is not a good idea if you decide now to put all your liquidity on that account. For diversification and risk management purposes it is better to spread the funds on different accounts, even if they yield lower or 0 in extreme cases. As previously stated, new inverstors get 5 Euro by registering through this link.