Auto-Invest: Which Are My Top P2P Sites
Peer to peer lending is a great way to invest money but investing can come at a price. Time. Thankfully auto-invest solves this problem. Here are my top p2p sites that offer auto-investing, so you can spend more time losing balls on the golf course.
While some people love scouring business accounts and or property valuation documents, other people despise this yearning for a more hands-off lending investing experience knowing time is a precious commodity.
If you are looking for a less time intensive way to invest, here are my Top 5 p2p sites that offer virtually hands-off auto-investing. I personally invest in each of these companies.
Auto-investing through the top p2p sites does come with some downsides. First and foremost, most auto-invested accounts pay lower returns than you would be able to achieve manually. For example, Assetz Capital’s auto-invest Great British Business Account (GBBA) pays a target return of 7% p.a. If you manually invested through Assetz, you could achieve a return of somewhere in the 8-9% range. You have to decide how much your time is really worth and invest accordingly. For me since I live, breathe and work peer to peer lending, I invest manually. My mother, on the other hand, can’t be bothered with the manual work so she strictly uses auto-invest accounts.
Before we get to the top p2p sites which offer auto-invest products list, please note that it may change as companies make changes to the way they operate their accounts. Also, no peer to peer company is perfect, each has its pros and cons. Feel free to read my in-depth review of each company listed.
#1 Top P2P Sites Assetz Capital – Low / Medium Risk / No ISA Available – Read The Full Review
Assetz Capital is one of the best places for auto-investing. They offer quality loans that are constantly monitored and stress tested for borrower compliance.
The biggest downside of their auto-invest accounts is the lack of diversification that can occur based on loan supply. For example, if there are only two available loans, all your money could theoretically be invested in those two loans. Not as much of a concern recently, due to an abundant loan supply but a concern never the less.
Assetz Capital offers five auto-invest account options with varying return rates:
Quick Access Account (QAA) – £1 min, target return rate in the 3.75% p.a range
With a target return rate in the 3.75% p.a., the QAA is a great option for those looking for an instant access* account with no exit fees. The QAA is protected by a provision fund which covers payment delays, shortfalls in interest or possible capital default losses. The QAA is made up of secured business loans and offers completely hands-off investing and re-investing.
*Remember that instant access is based upon normal market conditions and is never a guarantee.
30 Day Access Account (30DAA) – £1 min, target annual return rate in the 4.25% range
This account operates exactly the same way as the QAA account but requires a 30-day withdrawal notice. There are no withdrawal fees. Since your money is tied up for 30 days, you will be rewarded with a bump in interest returns versus the QAA. The 30DAA account is also made up of secured business loans and is covered by a provision fund. The ability to exit is based on demand and supply.
The Property Secured Investment Account (PSIA) – £1 min, target annual return rate in the 5.5% range
Assetz Capital’s newest account offers loans to businesses where property is one of the securities. No withdrawal notice is needed if you decide you need your funds**. Exiting your investment is free but based on there being other lenders to purchase your loans. The PSIA is covered by a provision fund.
The Green Energy Income Account (GEIA) – £1 min, target annual return rate in the 7% range
The GEIA comprises of energy loans secured by wind turbines, solar projects and land. No withdrawal notice is needed if you decide you need your funds**. Exit is free and is based on there being other lenders’ to purchase your loans. The GEIA is covered by a provision fund. The GEIA isn’t flush with loans so diversification can be an issue and you could also find your funds sitting in a queue waiting for new loans to be issued.
The Great British Business Account (GBBA) – £1 min, target annual return rate in the 7% range
The GBBA contains British business loans secured by properties. No withdrawal notice is needed if you decide you need your funds**. Exit is free and is based on there being other lenders to purchase your loans. The GBBA is covered by a provision fund.
#2 Top P2P Sites: Lending Works – Low Risk / ISA Available – Read The Full Review
I have been investing in Lending Works for more than two years and it remains one of my favourite set-and-forget peer to peer companies. Lending Works is a lower risk option that offers lending accounts backed by insurance to protect against missed loan repayments due to the borrower’s job loss, accidents, sickness, death, fraud or cyber crime backed investing.
Lending Works has strict lending criteria and only considers the highest quality borrowers.
The biggest downside of investing through Lending Works is that interest return rates fluctuate weekly so you have to keep an eye on them.
Lending Works offers two hands-off account options with an optional ISA. Each account offers auto-reinvest:
Three Year Term: Annual return rates in the 3% to 3.5% range
Five Year Term: Annual return rates in the 4.25% to 5% range
Need your money early? It’s possible to exit loans based on lender demand, but there is an exit fee of 0.6% of your desired amount or £20, whichever is greater.
#3 Top P2P Sites: Landbay – Low Risk / ISA Available – Read The Full Review
I have been investing through Landbay for over two years now. Landbay offers lender loans secured by buy-to-let properties owned by experienced landlords. Property loans have lower loan-to-values (67% average) and the rents cover a minimum of 125% of the loan payment. Landbay claims to not have had a single late payment as of yet, thus I think it is one of the safest peer to peer lending companies.
The biggest downside of investing through Landbay is the lower return rates, but if you want lower risk, you have to sacrifice some returns which I think is acceptable. On a positive note, you’ll receive payment even if your money is sat in the queue waiting to be deployed.
Landbay offers two account options, both which can be inside an ISA:
Tracker Rate: Target annual return of 3.35% (3% + LIBOR)
The Tracker Rate pays a return of 3% plus Libor and can fluctuate as LIBOR changes although since rates are so low, I don’t expect this rate to move much. If you need to access your money, you can do so without any exit fees. Anytime I have nee,ded to exit, it has been instantaneous, although exit depends on lender demand or in other words, if there’s a lender to buy your loans, you will be able to exit immediately.
Fixed Rate (5 yr): Target annual return of 3.75%
The Fixed Rate product pays 3.69% per year or 3.75% if you reinvest all of your interest. If you need to exit, there is a 0.2% exit fee plus there may be variable charges if interest rates have risen. This is to prevent lenders selling loans at lower rates and reinvesting at the higher rates. If rates have fallen, the exit fee will be waived.
#4 Top P2P Sites: Unbolted – Higher Risk / No ISA Available – Read The Full Review
UNBOLTED is my higher risk company choice for auto-investing, offering up to 10.5% annual net returns. Unbolted offers loans secured by gold, jewellery, paintings and other collectables. What I like about Unbolted is that they stick to what they know (pawn style loans) and haven’t tried to venture into larger property development loans like many other companies who have launched with pawn style loans. Unbolted has partnerships with auction houses to dispose of defaulted items quickly and for the highest values.
Unbolted has a few negatives. Firstly the company launched in 2015 so it has a shorter trading history. Secondly, auto-invest has put me into a few loans I wouldn’t normally buy such as art and sculptures. Collectables like these are sometimes hard to sell as values can be subjective. Also if you are wanting to invest larger sums of money through Unbolted, it may take a while for your money to be deployed as lender demand seems to be stronger than loan supply, although I have noticed loan supply has increased. Finally, Unbolted doesn’t offer a secondary market to exit loans. This isn’t much of an issue since most loans are only for six months.
Unbolted offers two types of loans to lenders’:
Provision Trust – £1 min, loans pays 0.85% per month
Loans inside the Provision Trust are secured by such items as watches, jewellery, art, sculptures and books. 1% of each loan is placed into a provision fund to cover losses on capital but not interest. This 1% is paid from Unbolted’s fees.
Gold Trust – £1 min, loans pays 0.65% per month
Loans inside the Gold Trust are secured by gold and silver. Unbolted takes derivative contracts out as insurance against a major fall in precious metals prices. Derivatives are hedge bets against future precious metals prices and all fees are paid for by Unbolted. If there is a shortfall of funds in the Trust, Unbolted states they will attempt to cover it, but they make no guarantees.
If you’re looking for a truly hands-off peer to peer lending option that pays higher returns, Unbolted is a good choice.
#5 Top P2P Sites: Growth Street – Low Risk / No ISA Available – Read The Full Review
Growth Street rounds out my top five auto-invest peer to peer companies auto-investing list. Growth Street offers 30-day business loans to rigorously checked borrowers which have resulted in low default rates. Loans are secured by business assets, debentures and personal guarantees. The beauty of Growth Street is under normal market conditions, lenders can access their funds after 30 days. In theory, your Growth Street account could be used as a short term access account even though being able to exit is never a guarantee.
The biggest downside of investing through Growth Street is the time it takes for money to be matched to loans if you use the Market Rate option. Lender demand appears to be increasing meaning it’s possible you will have idle funds sitting in your account waiting to be matched. I recommend using the Priority rate which only pays 0.1% less than the Market Rate.
Growth Street offers two types of loans to lenders:
Market Rate: £10 min, pays 6% per year
Priority Rate: £10 min, pays 5.9% per year
The only difference is that Priority Rate allocations will always be placed in front of Market Rate allocations, so when lender demand is high, I’ve found my Market Rate matching times to be long.
I love Growth Street’s approach to lending and think it’s a great option for auto-investing.
Top P2P Sites Notable Mentions
Mintos – Read the full review. If you fancy a dabble in a higher risk, higher reward European based peer to peer company, Mintos offers auto-investing paying high rates, (I’m currently averaging 12.4% per year), with the convenience of currency exchange.
If you want to learn more about peer to peer lending, click here and receive my complimentary Top 5 Peer to Peer Lending Sites Report.
The information presented on this top p2p sites page is for information purposes only and is not investment advice. Top p2p sites information can change frequently but was deemed correct at the time of writing. Peer to peer lending contains risks, so never invest more than you can afford to lose.