[Closed] P2P lending

I keep looking at this and then hear on the finance podcasts its unregulated...so bin the idea.  I can get 4-5% pa paid monthly via quoted investment trusts.  I think if i could earn 8+ % p2p i may do it, but at that level its super risky.

When I was dabbling with saving options I put a few quid into Funding Circle. Its done OK, about 7% return. If I was sticking with it I'd be happy to put more in with them, but other investments have done better so I'm out as they say. It might give better returns if I was more active but it doesn't interest me that much. I used this as a chuck it in and forget about it option and it probably isn't ideal for that. Basically its been fine but its not for me, doesn't mean it isn't for you. I wouldn't put the lot in, just some as part of a diversified portfolio, though.

I've had stuff with Ratesetter and Zopa for a fair few years now.  Both very easy to deal with.

First obvious thing is that it's not FCA protected like a savings account.

I tend to go for the longer terms as they're not as much of a commitment as they first appear.  If you invest for 5 years, you start getting repayments after 1 month which by default will be invested for a further 5 years, but you can elect to not do this.  So if you wanted to get your money out, you could start getting money back straight away, and you'd have half of it back after 2.5 years.  Also, the fees for selling loans early are pretty reasonable.

Obviously the amount you put in and the length of time you go for will depend on your attitude to risk, and how likely you are to need the money back in a hurry.

I keep looking at this and then hear on the finance podcasts its unregulated…so bin the idea.  I can get 4-5% pa paid monthly via quoted investment trusts.

It's not unregulated, it's just not covered by the FCA savings protection scheme.