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Peer to Peer investments

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Peer to Peer ISAs put your capital at risk, and you may get back less than you originally invested.
Returns are not guaranteed if their borrower defaults.

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  • Compare Peer to Peer Investment Accounts

    Applying for a peer to peer investment account (or P2P investment account) is a good way to start diversifying the way you save, allowing you to earn a better interest rate through lending to individuals or businesses. A provider will allow you to deposit an amount and keep adding to it, which will then be leant out, allowing you to earn a higher interest rate than a standard savings account.

    Whilst you can earn more this way on top of your savings, there is still a small amount of risk compared to a regular savings account. A P2P investment account is a good option for those who would like to access a better interest rate, and grow their investment portfolio at the same time.

    What is a peer to peer investment account?

    A peer to peer investment account (or P2P investment account) allows you to access a better interest rate by lending your money to an individual or business for a set period of time, rather than leaving it in an account. You can start off with a lump sum and keep adding to your investment account on a monthly basis.

    Your provider acts as a middle man to allow you to deposit your money, while lending out to those who would like to borrow money. The result is that whilst you face a small amount of risk, you will earn much more interest than a standard savings account.

    How does a peer to peer investment account work?

    • Deposit a minimum lump sum
    • Leave your savings for a set period to earn interest
    • Keep adding to your account every month to earn more
    • Once your set period has elapsed or you are ready to spend, you can withdraw your funds in full, along with any interest

    A P2P investment account works like any other standard savings account, in that you deposit a lump sum and will earn interest for as long as the amount is resting in the account. Many accounts will ask for a minimum deposit and will indicate how long you should have the account open for. This could be a year or more, so be prepared to leave these untouched for an extended time.

    In the background, your provider will lend your deposits out to an individual or business who would like to borrow money, who will then pay your deposits back, with interest. You will have the option of whether your deposits are leant out as an unsecured loan, secured loan or otherwise. The interest can then be passed onto you once you are happy to withdraw in full.

    How to open a peer to peer investment account

    If you plan on opening a peer to peer investment account, you can do so by applying online and filling out a form provided by your chosen provider. You will often need to give them personal details to confirm your identity and in some circumstances, you may also be credit checked.

    When browsing for P2P investment accounts, look out for the following details:

    • Type of P2P investment account – you can choose whether your deposits are invested in secured loans, unsecured loans or otherwise
    • Interest rate (or actualised return) – this will show you how much you will earn on top of your deposits and is the equivalent of interest but often referred to as your actualised return
    • Minimum deposit amount – this is how much you will need to deposit in order to open the account
    • Bonus scheme – there are often bonuses for opening the account, or for investing a certain amount with a set period

    Once you have a grasp of these key details, you should be able to start searching for the best peer to peer investment accounts for you, using our comparison tables.

    Who we work with

    We work with a number of providers to deliver a wide selection of savings accounts for you to choose from, enabling you to find the best option for you, whether it’s a cash ISA, investment ISA, peer-to-peer savings account or otherwise.

    Each of our providers are screened to make sure they meet our high standards before we agree to work with them. This ensures that you can trust them as much as we do, allowing you to find the best savings product from a reputable source.

    You can find out more about our lenders and providers here

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