Marketplaces with currently the highest interest rates

Some days ago a reader asked me where at the moment he could get the highest interest rates. But with moderate risk, of course. So what is moderate risk? I don’t really know, I guess this is something depending on the indivual assesing risk. If I look at 10 year German Government Bonds, I see a return of minus 0.2% annually. So if you invest 1000 Euro now, you get 980 Euros back in 10 years, nice deal ūüėČ This is the price for absolute security. Well theoretically, even Government can default. But why did I use the 10 year yield to maturity as a gauge? In finance, these returns are used in most financial models and are referred to as the risk free rate.

Ok, that was just introductional, but I think we needed this. If I compare this minus 0.2 percent to the highest yielders of 22 percent, it is no rocket science to see that this is absolute high risk territory. An absurd credit spread of 22.2 percent. If I use this comparison, I would say moderate risk is at the lower band of this bandwith, so around 2 percent or so, but for sure not in the p2p sector. As I said before, moderate risk is different to any investor and derives from two main factors: 1) risk capacity, this is the answer to the question if you get in trouble if your invested money is lost. 2) Risk tolerance is the question after point 1 is ok. In this case you might have the capacity to absorb the loss financially, but psychologically. What is it worth if such investments keeps you awake at night because you fear to lose it? No point in investing, if you cannot handle it. But no, off to the overview.

Crowdestor leads the pack currently

There already were some projects on Crowdestor which yielded 21 percent with a duration of plus minus one year. Currently there is a project, see bottom, in funding and at the time of writing 82 percent filled. I am sure there will come some more projects the next few days. With Crowdestor you better have cash ready at the marketplace to be able to hit the invest button before the projects are already filled.

Example project at Crowdestor

Kuetzal – the youngest

Kuetzal as well has its share of projects yielding 21 percent. These are filled slowly, but it does not matter to investors, as the interest calculation starts immediately after investing. Here you can read up on Kuetzal.

Envestio – the quickest

With Envestio the projects are filled up within minutes or up to 3 hours, if it is a bigger amount funding. Even if Envestio currently pays only around 17 to 18 percent, the projects are funded within no time. Before you invest, you might want to read my older posts (here, here and here). You need to have funds on the marketplace before a new projects turns up, otherwise you will be late.

And there is Bulkestate

At first I did not want to include Bulkestate in this list, but with 17 percent interest rates it somehow matches. Smaller projects are filled within minutes. Bigger projects can take 3 weeks, but will get financed in the end by some big hitters or so. I really like their projects and approach to not add too many projects, but quality. They are building a solid track record currently of repaid projects.

And we are at the end….

I really have no clue why projects at Envestio are filled quickest (is it the cashback?). I doubt it is because of the minimal investment ticket of 1 Euro. Does it really matter if the minimal investment is 1, 10, 50 or 100 Euro? I doubt that. To summarise, the most trustworthy platform of these 4 are Bulkestate and Crowdestor. This does not mean that they are less risky, also they will face delays and defaults, that is sure.

Currently there is no project in delay according to the marketplaces. Or do you have different information?

Spring Time for marketplaces: Bonus, Cashback and information

Currently there are lots of special deals for new investors from various marketplaces. Others have no incentive, but offer lucrative projects to invest in and have announced a full pipeline

Kuetzal offers sign up bonus plus cashback to new investors

Some weeks ago I published my first post about Kuetzal . In the meantime I have received my interest payments on time. Of course it is too early to tell if Kuetzal is worth the risk, but at the moment it seems to be a promising platform. New investors get 10 Euro sign up Bonus plus 0.5% cashback on your invested capital during the first six months. You need to sign up with this link and press register. In the field promo code, enter P2PHERO . After you have invested at least 100 Euro, 15 Euro will be automatically deposited to your account, plus 0.5% on your investment. On top of this promotion there is a special Cashback promotion which started in June. To me the cashback looks like being calculated as per investment, not summed up.

Cashbackmarathon at Kuetzal for a hot Summer

Lenndy offers starting bonus

I really liked Lenndy in the past, but the further development lagged, so I did not spend much time on it. Recently they picked up and got rid of paysera and have their own bank account integrated. For sure a plus is the constant deal flow. Remember: Only loans with the shield icon are buyback protected. If you want to start with Lendy now, you can get 10 Euro as sign up bonus (if you use this link to register). By the way, they offer an autoinvest feature, but the autoinvest only grabs newly published loans after you set it up and activated. It does not invest in loans already available. I will update my review about Lenndy during the next weeks.

Bulkestate announced lots of new projects

Bulkestate recently announced by email that they will have a lot of investment projects in the coming months. Three of my projects have matured and were paid back on time . There is no cashback currently, but the yields of the projects are great. I am satisfied with the platform, but I really hope the deal flow increases as expected. Follow me to Bulkestate.

Crowdestor lowers minimum ticket

No cashback, but good news. The minimal investment amount has been lowered to 50 Euro per loan. This means you can diversify more with the same amount of money. There are plenty of offers at the moment. Currently a 21 percent project. Crowdestor really kicked it during the last weeks. Better deposit some money on the marketplace, as the great loans fill quickly. Follow me to the marketplace.

Crowdestor Real Estate Project

Start with Neofinance and get 25 Euro

Lithunian marketplace Neofinance, which operates very profesional in my opinion, offers 25 Euro Bonus to new EU investors. Register through this link.

News, Cashback and a fresh marketplace

Reinvest 24 offers Cashback

There was not a lot going on in recent weeks at Reinvest 24. But this week will be big. A new project is going live, secondary market will be introduced and a cashback campaign is running until March 11. Cashback is applicable to existing and new investors. 0.5% Cashback is paid for total investments from Euro 500 and 1 percent for total investments of 1k. You can spread your investment over all available projects for diversification. Only the total invested amount counts . Follow me to Reinvest24.

Swaper announces ambitious goals

During 2018 Swaper originated loans worth 34 millions Euros, according to them. Despite this impressive number, lots of investors had to deal with cash drag. Swaper now announced that they will originate 54 millions of loans in 2019. The increase of loan supply will be seen this week. Fingers crossed ūüėČ

Crowdestor thrives and offers high yields

As announced by Crowdestor some weeks ago, the pipeline of new projects is full. Lots of projects were financed within hours or few days. Mostly the high yielding ones were sold out quickly. On Thursday evening the new project Saapio will go live to get funding for their european expansion.. My gut tells me, that with 18 percent interest rate (which you get from start), this project will be funded within hours. So if you want to participate, send the money early.Follow me to Crowdestor.

Neues Crowdestor Projekt ab Donnerstag Abend 28. Februar 2019

Kuetzal: a new (mostly) high yielding platform

Some weeks ago I discovered this marketplace with this awkward name and I invested for testing purposes. Later this week I will post a review of the platform and let you know why they chose this name. Some facts in advance: Minimal investment 100 Euro, interest accrues from day one. The projects will be financed for sure as the marketplace has credit lines with banks and angel investors. There is a buyback with 10 percent penalty, We know this feature from Envestio for example. Take a look at their projects over here .

This was it for now, stay tuned, more to come this week.

A quick look on 3 new platforms

Today I decided to shortly introduce three new platforms to you. Of course, you should have in mind that one blogpost is way too little to describe all three platforms in a detailed way (particularly because I only registered on two of those three during the last days). This is the reason why you will only get a short introduction. A more detailed report will follow during the next days and weeks. So, let’s start:

Reinvest24 ‚Äď Real Estate among the Baltic States with rental income

I always asked myself why there are no marketplaces in the Baltic States which allow investors to buy real estates and rent them. In Great Britain this kind of model is very common. That is why Reinvest24 is in its basic structures very similar to Property Partner. It is a very young platform and therefore open to investors only for a couple of months. I am already part of a project and received my first rental income previously. Concerning the second project I already placed a bid, but it will take a moment until it is financed completely. I will write a more detailed info blog for this platform during the following days. Before that you should take the chance and look a bit around. Via this link you can directly get to Reinvest24.

Bondster ‚Äď P2P from Czech Republic with Buyback and Cashback

Like I mentioned before: this is a platform from the Czech Republic where you can invest Czech Crowns and Euros (here is a report concerning the development of both currencies). There are different kinds of loans you can find. The platform provides buyback in an exclusive category, as well. Self-explanatory, the buyback grasps after 60 days. But there is also an option to get out of the loan (like Envestio). Of course, you will have to pay a fee in this case. I am not sure yet who is the owner of this platform, but I saw that there is one partner of it which has a famous branding Name: ACEMA! This is a loan originator which already financed loans via Mintos. As well, this platform is under supervision by the Czech National Bank. The interest rates are with 10 per cent moderate (edit: they just added 12% loans). After three months new investors must pay an annual extra fee of 1 per cent which will be directly deducted from the interests. Like mentioned, in the first three months this extra fee will not be charged. Also, you will receive a 1% Cashback on your average investment during the first three months which you will be paid monthly ‚Äď if you use for your registration the promo code 4985! This code you have to place in the field ‚Äúreferral code‚ÄĚ on the bottom of the registration form. Furthermore, there is no retention. Here you can reach the platform of Bondster.

Debitum Network ‚Äď P2P and Crypto made in Lithuania

This is the third platform I for today ‚Äď even though I still do not have the complete view how it works. You can pay in Euros and Pounds but also crypto currencies. The crypto part will only be available after an identity proof. But you can also work in a normal way with Euro or Pound. Right now, I only see loans from Debifo (also this one we know from Mintos,
Invoice Financeing). Like mentioned, I do not have the clue yet concerning this platform, but I try to work with it by investing a small amount. Via this link you can directly get to the Debitum Network.

This is it for today! Like always please write me if you have any questions. Like mentioned, as well, there will be more detailed experience reports in the following days and weeks.

News from p2p land

Lendix is now called “october”

On October 31st Lendix announced that they now are calling themselves october. First I thought it was a joke, but it is real ;). Their CEO explained the reasons in an email shortly after the announcement. In France legislation that allowed p2p was set up in October 2014. Lendix was founded in October. They want to differentiate themselves from their peers) and wanted to open their name and not limit it to “LEND”ix. Last but not least the CEO said that the name does not need to have a connection with the business and gave Apple as an example. Oh and October is understandable in many European languages. Actually I liked the name Lendix, but hey, I lend my money now on october.

Peerberry does no longer belong to Aventus Group

Maybe an older story but I wanted to mention it. Ausra, CEO of Peerberry, confirmed that the platform was sold to two European citiens. You can see it inthis video (at about 3m15s). This move is a little weird at first, but it does not mean to be negative at all. I really would like to know why this happened and what the reasons are. Maybe I will find out. At the moment my funds stay where they are.

Estateguru changed its appearence

Estateguru made themselves a fifth Birthday present and has now a new web and brand appearence. The new page is not free of errors and I am not easy navigating through it at the moment. I really hope this will be improved in the coming days. Nice is the new overview of the loans and more information is visualized. This does not change the fact that some loans are overdue or under administration. But this is just natural. If there is a problem with real estate loans, it takes time to solve.

Grupeer announces new loans for November

Grupeer is a victim of their own success. Really good growth numbers in volume and investors led to a situation where lots of loans where sold out. Good for the platform, not so good for us investors. The marketplace announced that they are working on new deals and we should see lots of them in November. Hopefully they come quick…

Do we have the (p2p) risks under control?

Do we have the p2p or crowdlending risks under control? This question keeps me busy from time to time. These high yields, buyback guarantees, the super easy autoinvests and all the fintech blah blah get me into maybe false security. Because of that I have compiled some problematic cases from the past months. I do not want to take the fun out of p2p, but we should consider not only the return part but the risk part as well. I just want to see this post as a reminder, that there is no free lunch, and double digit yields do not come without risks. The next default of a loan originator or a market place will happen. Maybe not tomorrow, but in the future.

Collateral – an ugly case

Let’s begin where p2p in Europe started, the United Kingdom. Zopa as the first platform in Europe has been operational since 2005, so for more then 13 years now. I figure that after all these years the p2p market has already matured a bit, furthermore as the FCA seemed be willing to help with regulation, rather then ban the whole thing. And exactly there it happens, Collateral defaults and the FCA does not look that good in handling this case. Here you can find a lot of discussions about this case.

More cases…

Comunitae, a spanish market place stops its operation due to insider fraud . Swiss p2p/Fintech has to deal with a massive fraud (sorry, only available in German) . And China with its shadow financial system hashas to deal with a gigantic fraud scheme. Let us add the default of Eurocent with Mintos, and it becomes clear, that high risks are involved within p2p and crowdfunding.

It comes a litte surprisingly that until now no Baltic market place has defaulted. Firstly, this because there are lots of young platforms and secondly, they operate in a not quite regulated environment. I can envision that the money laundering scandal of Danske Bank in Estonia could lead to a crack down of p2p lending, or at least will be observed. I am sure that the Baltics will be closely monitored by the EU now. Although this Dankse case is not related to p2p, it will have an impact on regulation.

Closing remarks

As I said earlier, it is not my intention to present p2p in a bad light, but for me these cases clearly show that there are not to underestimating risks. I have no problem, ok I can deal better with, when a loan originator defaults because they were bad in business. This happens, it sucks, but it is something we have to deal with while investing. So the golden rule for investing is: never invest anything, which you cannot afford to lose. With fraud cases I have my problems, there was a crime commited and in most cases there where too few controls, if any. I am still a believer in the p2p story, but we have to be cautious as lenders.

Interest rates at Mintos have fallen, what should we do?

This was a question a reader sent me and I will try to answer this here, as the rate decline at Mintos affects lots of us (including me who has some cash sitting on the account). So, firstly keep calm and breathe, second analyze the situation. Payday and car loans yield now about 10 to 11 percent as it seems. At least this is what I saw during the last days. Some weeks ago the rates were lower. I see two possibilities: Either one arranges himself with the current state and is okay with lower returns (10% is still good), as you are still with an established p2p marketplace, which is profitable. Or you are searching for alternative investment opportunities. I will show some alternatives below (needless to say, there are more).

Peerberry is only a partial solution at the moment

Lots of investors seem to have moved their funds to Peerberry. My cash flows are now reinvested with a lag of one to two days. Alternatively the marketplace offers a real estate project, which yields 11%. I am expecting a further shortening of loans, but at the moments the situation is not that bad.Follow me to Peerberry and me to an older post about Peerberry.

Grupeer to the rescue?

With Grupeer you get your funds reinvested at 14 to 15 percent with a duration of some months to a year, of course including monthly interest payments and buyback. The marketplace countered the higher demand from investors with more loans. Here you can read some stuff about Grupper and with this link you get to the platform.

Iuvo works smoothly

Iuvo offers attractive interest rates, but the buyback covers only the principal, not the accrued interest. Sounds a bit uninteresting, but must not be like that. I checked the effect of that and came to a not so bad result. Further Iuvo offers a 90 Euro cashback, if you invest at least 2.5k Euro investiert (from 1k you get 30 Euro), this would cover for a lot of lost interest in the first year ;). You’ll find the cashback details in the posted link. Autoinvest works like a charm by the way.

Crowdestor just launched a new project…

… which pays 13 percent interest on a monthly basis. Interest accrues from the moment you make your bid, so it does not matter if there is an extended funding period. All projects are current or already paid back. At the beginning I was a bit skeptical about this marketplace, but I have to admit it developped quite good. You get a lot of details and descriptions for each project, I think it is worth checking out.Follow me to Crowdestor.

Bulkestate to offer 17 percent loan, with 3 months duration

Bulkestate will launch a 800k Euro 3 month loan on Tuesday, 28th August. This is a bridge finance of a mortgage und secured by property. If you are a big hitter you can get +1% with a bid of 10k or more, or 2% more with 25k, that makes 19% total. You can already check out the project on Bulkestate (click this link to get there).

Brickowner to offer 39% for two years

Just today Brickowner has launched a new development projects which is expected to yield 39 percent over 2 years. Please note, this is not a loan, but an equity project. Furthermore Brickowner offers 50 GBP cashback to new investors if you use this link to register and invest at least 1k GBP. You can spread that 1k on different projects, you just get paid the bonus only after reaching the threshold. To be transparent: I am a Brickowner (marginal) Equity holder, I bought shares in the company through seedrs last year.

Of course there is more

Envestio is a relatively new marketplace (and pays 0.5% cashback for 9 months, if this link is used to register) which I already know for some months, but was not convinced enough to try it out until some weeks ago. I will post a separate article about envestion in the next weeks (teaser: there are high yields, but high risks also). Then there is this platform which I recommend only to advanced investors, it is called Bondora ūüėČ Of course it is a well known platform, the oldest of continental Europe. You can invest manually, through autoinvest or api. Please keep in mind that the shown yield at the beginning looks fantastic, but will decrease over time, as there will be defaults, and these need time to recover. If you sell your good loans then as well as the bad ones this will probably result in a loss for you as you sell the good ones too cheap and they cannot create interest for you anymore. Better strategy is to let it roll and let the marketplace do its job. If you go manually, stick to Estonians and not only the high yielders… For the lazy guys there is this new product called gow and grow. I am still not a big fan of Bondora, but maybe it is something for you guys. In any case, you can get 5 Euro starting Bonus with this link.

and finally…

I hope I was able to show you some alternatives which is no call to actually invest there. I am not a big fan of moving funds around every weeks, but sometimes I have to do it. And still I find Mintos a very good platform, especially for new investors. Of course there is more, I guess you will find something on this blog.

Update to risks with foreign currencies

As I told you in January, I just have updated my update to the foreign currency development against the Euro. The Euro gained traction against most other currencies during the first quarter of 2018. There might be many reasons for that, I just want to point out three of them. 1) Economy looks good in the Eurozone (mostly all over) 2) There is a sense of politial stability in Europe at the moment and last but not least 3) The guy in the USA is always good for spreading some uncertainty (which drives Investors out of the USD into different valuta).

Again I had a look on a 10 year period, I just rolled one quarter further. This means we are looking not at the period from March 31st 2008 to March 30th 2018 (March 31st 2018 was a Saturday, so the period closes on Friday 30th). There were some changes which you can clearly spot in below illustration. Please note that the comparison is beetween 10 year periods, this means we are comparing December 31st 2007 to December 30th 2017 with March 31st 2008 to March 30th 2018.

Source: Bloomberg / own calculations

As you can see the Euro gained strength againgst Swiss Francs, British Pound, Georgian Lari and the Australian Dollar. It lost a little bit against the Polish Zloty and the Czech Krona during the period. As the Danish Krona is pegged to the Euro, there was no change. Graphically it looks like this:

Source: Bloomberg/own calculations (31.03.2008 – 30.03.2018)

Most impressive are the Euro movements against the Swiss Franc and British Pound. As the Franc lost, the pound gained (so now may be the time to go into the Euro, if you are a GBP Investor ;)). GBP Investments gained nearly 8 percent in the last three months against the Euro. This shows really nice, that currencies can easely fluctuate in double digits in several weeks. During crisis the fluctuations normally are bigger (look at the annual tables below). It is not bad to think twice before going into a foreign currency. It might pay off, or not, but you need some mental strenght at some point to hold through ;). If you decide to buy some foreign currency, you should look for low change fees (low spreads). Most of the time your bank will charge you more then some specialised companies would. Check out Transferwise, Currencyfair (40 Euro Bonus) or Revolut.

Source: Bloomberg/own calculations; annual returns

here the othere currencies in tabular form:

Source: Bloomberg/own calculations; annual returns


This was it with the pdate to the currencies. If you want to have added more currencies to the overview, drop me a line. I will gladly take them into consideration. The next update will follow in July. Last but not least, appologies for the silence during the past weeks… I had some technical difficulties.

Insolvency of an UK platform, news and cashbacks

Today there is no new platform in focus, only some news and hints at cashback schemes.

Collateral in administration

This week it happened, Collateral was unreachable. The marketplace seems to be insolvent (?) and is put under administration. It seems like the FCA declined to give a definitve licence for operations to Collateral after the temporary licence expired (and they still operated for one month without licence afterwards)…. Anyhow, I will take a deep look at this case and roll it up. At the moment there is not much to do but wait as an administrator is put in charge. I too have some money there. If the current loans are serviced by the borrowers, there is a chance that investors don’t lose any money at all. But for now we have to be patient as the funds are locked in for an extended period. It comes to me as surprise that this happened in the European’s most established p2p market Great Britain. This case shows that diversification is crucial and that no money should be lent that is needed short-term.

Viventor offers 10 Euro Cashback

From now Viventor offers 10 Euro Cashback to new investors, if you invest at least 500 Euro for at least 30 days. If you went to Viventor through this blog, you will get the same offer after your 30 days are over. New investors can register here.

Currencyfair offers 40 Euro Cashback until April 1st

If you need to exchange some foreign currencies, now Currencyfair offers 40 Euro Cashback, if you exchange at least the equivalent of 2k Euro in any supported currency. This can happen with one ore more transactions, the only condition is that you use this link for registration. You can read here how Currencyfair works.

Estateguru now offers Spanish loans

Last week the first Spanish loan was funded on Estateguru. The property is located in Spain, but belongs to an Estonian Company. Therefor I don‚Äôt think we will see many Spanish loans in the near future. I stay in the Baltics with my investments, maybe I make an exeception if a ‚Äúnice‚ÄĚ Finnish loan turns up. At the moment new investors get 1% Cashback on their first three months investments. This will revert back to 0.5% as soon as there are 11‚Äô000 investors on the marketplace which should be the case in two to three weeks. Join here.

What can you expect from this blog in the near future?

I will make summaries of new marketplaces where I invested for a year or more (like Robocash for example). Plus there will be reviews of new marketplaces and an in depth look at Collateral. If you would like to have other topics covered, let me know.

Impact of foreign currency investments on returns (view from an EUR Investor)

This post is not about a specific marketplace, but the impact which investing in foreign currencies can have on our yield. Especially Mintos offers a lot of currencies to their investors to invest in. I have checked the development of some foreign currencies against the Euro during the past 10 years. It is a view of an Euro investor who invested in different currencies.

Why investing in foreign currencies?

There are lots of reasons, but I guess the main goal is to get access to higher yieldings. Higher coupons look more attractive then lowers. Who does not want to invest in 5 percent bonds, if you get only one percent in your home currency (to make it easier, I set coupon = yield to maturity, which is only true, if the bond price is at 100%)? It is not that simple though. The difference of 4% (5 – 1%) is without risk, exchange rate risk, which you onboard. It can be very quick and your 4 percent yield advantage ends up in smoke (usually higher yielding currencies weaken because of higher inflation expectations etc), or you are lucky and your chosen currency increases in value. No one knows beforehand! Further you need to understand that every currency exchange comes at a cost which reduce your return. So you should check the offered exchange rates closely. Mostly the offers from transferwise, currencyfair or revolut are very good and you save a lot of money by using them.

What happened during the last 10 years?

Source Bloomberg / own depiction, monthly data (31.12.07 bis 29.12.17), indexed

Throughout the last 10 years we saw many crisis (financial crisis, euro debt crisis etc). So there was a lot of movement between currencies. Ultimatively I am surprised how many more or less stable currency pair there were, even there were outliers. Above you see an illustration with the performances of seven currencies against the Euro over a timespan of 10 years (31.12.2007 bis 29.12.2017). Below if have added a table with the yearly returns.

You see for example if somebody had changed EUR to Swiss franc, he would have made more then 40 percent. Ok this example is extreme. Against the safe heaven CHF, most currencies had not the slightest chance. The illustrations though shows that there were extreme movements, but over the years it relativise most of the times..

A closer look

Source Bloomberg / own calculations, yearly returns

I start with the table above. An Euro investor would have made profit from investments in CHF, but lost money with GBP and Polnish Zloty investments. This means conversely that GBP Investors made money by investing in Euro, same is true for PLN investors. This statement is only true in this 10 year context, just to be clear. What is really important is that in my calculations I have not included any yields, only price changes. This means that if you had invested in p2p or elsewhere which returned some percent annualy, there would not be a loss in any currency. If we take a holding period of 10 years plus reinvestments (compound interest) into the calculation, the outcome would be even better. You see, there are only 2 outlier years which have a massive impact on the total return.

From the following four currencies only the investment in Georgian Lari returned negative. A special case demonstrates the Danish Krona as the Danish National Bank pegs the DKK to the EUR. There are only minimal yearly deviations.

Source Bloomberg / own calculations, yearly returns


Investments in foreign currencies can be beneficial, but are risky. If you cannot swallow fluctuations should stay in his base currency, there are engough investment possibilities. I will update the performances of the currencies quarterly. If you want me to add further currencies, let me know. Again: I have not included any yield figures in my calculations. This means, if one had invested for 10 years with a yearly return of 2.5 percent only, there would be profit in any currency pair. This is not investment advice, but only as basis for your decisions.