Last month I mentionned Bondora go and grow within my Bondora update, and as it seems I had not explained it as detailed as possible. I draw this conclusion from the numerous questions I received since. This led me to create a walk through which I will share subsequently.
Basic stuff concerning Bondora Go & Grow
The Bondora Go and Grow “account” yields 6.75% annually, you get interest credited daily. The daily credits are a little shy of what 6.75%/365 would result in. The reason is that compounding interest is included in the 6.75 percent. After one year you really have earned 6.75 percent. I contacted the support to verify and they confirmed it. At some point I read that the yield was set up to 6.75 percent, and this would have left room for speculation. So I reconfirmed that as well with the support. They confirmed that this is written because the daily interest payments are little less then 6.75 percent, but annually you get 6.75 percent.
Your money with Go&Grow is liquid and available any time, including interest. You can do a withdrawal request in the morning (and take the daily interest from yesterday with you 😉 ) and should have your funds on your bank account in the afternoon, or the next working day latest. If you funded your account by credit card, you can credit the funds there as well. Bondora says that the interest will only be taxable after you withdrew them from the go and grow facility. I am not sure if this is really the case, and if, it won’t be true for every country.
Registry and settings
If you are new to Bondora sign up through this link and get 5 Euro starting bonus (valid as well for Go and Grow). If you are already a Bondorian (or after registry), click on go and grow in your dashboard to create the account (you can use more then one service simultaneously, will explain later). First you will be asked about the purpose of the account (check image below). You can choose what you like, it does not have any impact. I only could think the info will be analyzed by Bondora.
Afterwards you can create a fictive scenario, with a starting amount, monthly contributions and set the duration. These settings are more or less just for fun and do not impact the fact that you get 6.75 percent annually, on 100 euro or 100k, no difference. Only thing is that if you are behind your goal, you will be notified. But you can always change your settings. Actually in my opinion here is made more then necessary, but hey, it looks good 😉 And you can see what you can achieve.
Deposit and Withdrawal
Your go and grow account is now ready to be topped up. Click on deposit (see screenshot below). Now you have different options for depositing money: Directly from your Bondora account (if you already have one), SEPA, SOFORT, Transferwise and credit card. Depending where you are from the SEPA option is the fastest and cheapest. You need to put the following info in as payment reference that the money direclty appears in go and grow: first name second name, Bondora reference, go and grow reference. In my case this would look something like this: p2p hero 1234567 gg12345. This information you get for example if you click on SEPA method. A withdrawal can be requested by clicking on the wheel on the top right corner, they will charge 1 Euro per withdrawal. If you already are using a Bondora service, than you can sell all your loans direclty to Bondora. You can request the offer where you request the withdrawal. Be cautious, if you accept, there is no going back. Further it is possible to automatically send all your proceeds directly to go and grow (go and grow interest is already added by default on go and grow)
How secure is Go and Grow?
At the end of the day, it all comes down to Bondora. The marketplace is about 10 years old now and went through a recession. It is a maturing startup in my opinion. How much liqudity is available if lots of people request liquidity simultaneously is beyond my knowledge. Bondora is not a Bank and 6.75 percent on call money is about 20 times more then banks like DKB or so pay in EUR. So DKB pays about 0.2 annually, this means Bondora pays more in one month then the bank the whole year. I guess this puts it in the right relation. Therefor go and grow is an addition to park my liquidity, not an alternative. Perhaps the yield gets lower once go and grow is more known. If you are not already an investor, use this link to register and get 5 Euro starting Bonus.
Questions? Just post them 😉