By Michael Trudeau
Article 2 of 5
RateSetter reviewIf you're thinking about saving or borrowing through a peer-to-peer lending website, read our in-depth RateSetter review.
Ratesetter peer-to-peer lender details
- Minimum lend: £10
- Lending term: Rolling, one year, 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 the rate you'd have earned if you'd used the rolling market rate.
- Rates of return on offer for lenders: Since launch, average rates have been 3.1% for the rolling market, 3.7% for one year and 6.0% for five years (after fees, but before tax. Rates checked 17 February 2017).
- Minimum amount you can borrow: £500
- Maximum amount you can borrow: £35,000, 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
|Ratesetter peer-to-peer lending satisfaction|
|Explanation of the risks|
|Variety of products available|
|Ease of use of the website|
|Clarity of information on the website|
Star ratings out of five show levels of satisfaction for each category.
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 with 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: March 2017
- Updated by: Michael Trudeau