Types of investment

RateSetter review

By Michael Trudeau

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RateSetter review

If you're thinking about saving or borrowing through a peer-to-peer lending website, read our in-depth RateSetter review.

RateSetter, like its main competitor Zopa, aims to make peer-to-peer investing as simple as possible.The site automatically allocates your money to borrowers and aims to cover any late repayments automatically and seamlessly. The rates on offer aren't as high as a site such as Funding Circle where you take a more active role in choosing how to lend your money. But if you're looking for an experience that is almost as simple as putting money in a savings account, offering better returns for a little more risk, RateSetter could be for you.

   Ratesetter brand image 

Customer score

1st out of 3 peer-to-peer lending websites


Ratesetter peer-to-peer lending satisfaction
Overall experience 4 stars out of 5  
Savings rates 4 stars out of 5  
Explanation of the risks 4 stars out of 5  
Default rates 5 stars out of 5  
Variety of products available 3 stars out of 5  
Ease of use of the website 4 stars out of 5  
Customer service 4 stars out of 5  
Clarity of information on the website 4 stars out of 5  
Online community N/A  

Table notes:

  • Star ratings out of five show levels of satisfaction for each category.

RateSetter peer-to-peer lender details

Lending terms

  • Minimum lend: £10
  • Lending term: One month, one year, three years or five years
  • Can I withdraw funds early? Yes, but your rate will be reduced to the nearest lending term - eg, funds in a one-year bond taken out after six months would revert to monthly instant access rates
  • Rates of return on offer for lenders: From 2.9% on monthly instant access account to 6.6% on a five-year bond (after fees, but before tax. Rates checked 18 February 2016)

Borrowing terms

  • Minimum amount you can borrow: £1,000
  • Maximum amount you can borrow: £25,000, depending on personal circumstances
  • Borrowing term: Six months to five years, depending on personal circumstances
  • Can loans be paid off early? Yes, and without any penalty fees

What do RateSetter's customers say about them?

We surveyed 5,000 Which? members in May 2015. These were some of the comments from those who'd invested in RateSetter:

'I'm getting good returns on my investments and am able to control the level of return.'

'Good rates, a clear and easy-to-use site, low default rates and a provision fund.'

'Simple to invest. Good returns so far.'

Alternatives to peer-to-peer websites

If you're looking for a loan, it's worth checking out Which? Best Rate personal loans, too.

In almost all cases you'll want to build up cash savings (in Isas or savings accounts) before considering putting your money into a more risky investment such as peer-to-peer lending.

If you're looking for higher returns you might want to consider other investments.

  • Last updated: June 2016
  • Updated by: Michael Trudeau