Bondora Update and Go & Grow as call money? 5 Euro start bonus

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.

Bondora yield
My Bondora yield after one year, balanced profile
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:

Portfolio Manager
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.

daily bondora interest, call money account
My Go and Grow after one day

Final remarks

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.

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 πŸ˜‰ 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.

Bondora is not the right place to start with p2p

My relationship with Bondora is rather ambivalent (I exited a while ago but reregistered now just out of fun). On one hand Bondora is one of the oldest platforms in Europe and offers a variety of statistical data, which nearly no other platform can provide. On the other hand Bondora is an uncomparable marketing machine and connotes to all interested (and non interested) people that high yields can easily be achieved without problems…. everything is just so easy. It is true that even Investors who start today can reach positiv yields, but in my opinion only experienced ones in the p2p sector. Further one would need to be able to work with statistical data and program an API. I guess this is to complex for an average investor and p2p newbie.

What upsets me with Bondora

Firstly, Bondora is a marketing monster, which includes their sales staff. I do not know any other platform which acts so obtrusive towards their investors. Even at registering you are prompted to make your deposit instantly. The next day you get some emails telling you that you did not already deposit. This will be repeated daily and after some days you get called.

Yield distribution acc. Bondora
and are asked if there are any questions. In my opinion this is just an opener by which they try to get your funds. Secondly, they suggest that everything is going really smoothly, just turn on the Portfolio Manager and everything is good. Oh, the PM is activated by default, so if you make your deposit, your funds will be allocated in no time. At least I would like to have the final say when I start and not get a suprise. Thirdly, they present themselves in a far to good manner, at least in my opinion. If you check out the image of the yield distribution it gets clear very quickly, that there are lots of investors with negative yields or very low positive yields.

After some months have passed you get confronted with defaults and late payers. Then you will check out the secondary market at the latest, which is when you realise it is not that easy… You get access to a lot of data and you can analyse them and use your results to improve your investment strategy. This requires a deep understanding of the data and you will need to invest a lot of time. If you are able to do that, then Bondora might be good for you, but for beginners at least it is not. Further you should have some codeing skills to create investments through API. If you still want to give Bondora a try, use this link and get EUR 5 free deposited on your account.

Ok, then which is the right platform to start investing in p2p?

There is not “the only” platform to start with p2p, but you have to start somewhere πŸ˜‰ I would recommend to start with Mintos to get a feeling for the p2p market. You can invest there with buyback (as Eurocent shows us this is not without risks) and implement some autoinvests. After some time you will see some delays, early paybacks and buybacks. Therefor in my opinion Mintos is one of the best platforms to begin with. Further new investors get (but only if you use this link to register) 1 percent cashback on your investments from the first 3 months. If you invest 1000 Euro, you get 10 Euro on top as a thank you. Mintos offers a variety of loans, from payday loans, car loans, real estate loans, invoice financeing, business loans and so on.

Possible in my opinion could be as well robocash and swaper for starters, but there you don’t have the variety of loan originators and loan types.