An important brand is cracked by one of the largest P2P providers. At the beginning of the new year, Bondora managed to inspire 100,000 investors. The exciting thing about it? In early 2019, 10 years after the company was founded, Bondora managed to inspire 50,000 investors. The number of investors doubled in a single year! And not without reason.
Doubling the number of investors in just one year!
In early 2019, Bondora managed to inspire just over 50,000 investors. It was 10 years of hard work back then. In just one year, Bondora managed to inspire as many investors as it did 10 years earlier! A doubling of investors. Actually, the rapid increase is not surprising. The low interest rate policy makes the search for an alternative to classic overnight money inevitable. In addition, the most popular Bondora product (GO & GROW) is very simple and very similar to classic call money. Simply depositing the money is enough and you don’t have to worry about anything else. The simplicity and flexibility probably means that more and more investors are discovering P2P providers, especially Bondora with GO & GROW. It is therefore not surprising that significantly more than half of all investors on Bondora use the GO & GROW product.
Demand is increasing rapidly for overnight money alternatives
More and more people are recognizing the need for an alternative investment opportunity. For a long time, the daily and fixed deposits were particularly safe and profitable. Europe-wide deposit insurance still applies, but it is questionable how consistent this will be in an economic crisis. In addition, the yield is practically zero. Banks now advertise overnight money with 0.01% interest. A measly small amount compared to the inflation rate – ergo you suffer a loss of purchasing power, or simply put you lose your money. The question of many investors in recent years: What are the alternatives?
An alternative means that the product should be very similar, but in better condition. And this is exactly where the P2P providers come into play. P2P loans offer a passive source of income. But you should pay attention to which provider you choose and the product should be as “simple” as possible.
There are also very interesting new customer offers. For example, our link gives our readers € 5 after registration and another € 5 if more than € 1000 has been invested. However, this should not be the main reason to register with Bondora. The product speaks for itself and after the product you should decide.
Bondora GO & GROW – The solution to all problems?
Bondora seems to have found this solution with its product “GO & GROW”. You don’t have to actively invest in loans yourself. You only deposit money and receive a fixed interest rate of 6.75% interest p.a .. In addition, the interest is credited daily and the money can also be withdrawn daily. So you are completely flexible.
But that’s not safe!?
Well, it is certain that the money in the bank will suffer a loss in value. There is no risk-free interest rate today. If you want to generate an attractive return, you will not be able to avoid taking a risk.
There is also a risk to Bondora. Bondora has been around for over 11 years, with investors having an average return of 10.6% p.a. received (as of 05.02.2020). So far there have been no problems with Bondora. In addition, you transfer your money to a European bank in Estonia and the money there is subject to deposit protection.
Assuming Bondora files for bankruptcy, what then!?
Nothing, just nothing. Your money will not be lost. Because Bondora is only an intermediary for the loans. This means that if Bondora goes bankrupt, your claim for loan repayment and interest will remain. Yes, it is quite possible that collection will be more difficult, but the right to your money remains.
Advantages of Bondora GO & GROW
There are basically two options at Bondora: Simply deposit money into GO & GROW and collect interest (Bondora then takes over the investment in loans etc., so the risk is mostly with Bondora). On the other hand, you can actively invest in loans e.g. via the Portfolio Pro (you choose which countries and at what interest rates to invest in and the Autoinvest does the rest of the work.
By the way, we ourselves invest through GO & GROW as well as through the Portfolio Pro. We see GO & GROW as a “temporary storage”, where you can park your money. If you urgently need money you have it immediately available, and as long as you don’t need it you get 6.75% interest. The whole thing is very relaxed. In Portfolio Pro, we are among the top 100 investors at Bondora because we generate a return of 22-25% (fluctuations due to delays in loan repayments). Bondora’s very efficient collection process and high interest rates have encouraged us to invest more money through Portfolio Pro than through GO & GROW.
People who want to take the first step should go with GO & GROW to get their first investment experience and try Portfolio Pro later if necessary.
Let’s take a look at the concrete advantages:
- 6.75%* p.a. return
- Faster liquidity, meaning you can cash out your investment with minimal effort
- Lower risk than our existing products, achieved via a diversified portfolio of investments backed by advanced and reliable technology
- You only pay taxes when you make a withdrawal over your initial capital investment
- You can transfer your existing Bondora portfolio to Go & Grow
- You can set up an auto-transfer from your existing portfolio to Go & Grow, which is useful if you want to reinvest your cash flow into a place where you have quicker access to your money
- There is a flat withdrawal fee of €1, regardless of the size of the account
- No annual management fees
- Share your account access and invest with people you trust to achieve a common goal
- Ideal for beginners, as no previous investment experience is necessary
- No secondary market transactions required
- Automated features
There are three aspects that deserve special mention. First, the pretty decent return of 6.75%. Second, the quick liquidity, because you can withdraw your money at any time. And thirdly, the tax aspect, because you only pay taxes on the interest income at GO & GROW if you withdraw more than you have paid. You have an annual allowance of € 801 as a single and married € 1602. The so-called capital gains tax (25% + solidarity surcharge +, if applicable, church tax) does not apply to income beyond this.
Before investing, you should weigh the risk for yourself and judge whether this type of investment is suitable for yourself. We only report our experience and opinion here.