Peer to Peer Savings Accounts

Compare Peer to Peer Saving Options

With the top paying savings accounts and cash ISAs struggling to beat inflation, peer-to-peer lending/savings accounts are becoming increasingly popular with savers fed up with low interest rates. See below for a selection of latest peer to peer saving deals:

Alternative Saving Ideas - Earn high interest on your savings
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Peer to Peer Lending is not covered by the FSCS
P2P Savings Ideas - Earn high interest on your savings
ProviderAccountTarget ReturnTermMore Info

up to 8.70%

per annum

1 to 5 YearsMore Info >
8.00%
average return
No Fixed TermMore Info >
7.00%
per annum
3 years (flexible)More Info >
The Green Energy Income Account (GEIA) allows investors to automatically invest in business loans to renewable-energy projects that benefit from government subsidies, such as Feed-in Tariffs. These projects include wind, solar and wave energy-conversion, but exclude fossil fuels and nuclear power.
7.00%
per annum
Up to 5 YearsMore Info >
The Great British Business Account (GBBA) allows investors to automatically invest in business loans to small- and medium-sized enterprises (SMEs). All loans are secured against property and have passed Assetz Capital's strict credit checks.

6.00%

target rate p.a.

No Fixed TermMore Info >
6.00%
target rate per annum
No Fixed TermMore Info >
4.25%
per annum
30 Day NoticeMore Info >
The 30-Day Access Account (30DAA) allows investors to automatically invest in secured business loans that have passed Assetz Capital's strict credit checks.
4.1%
annualised rate
1 year Peer to PeerMore Info >
1 Year Peer to Peer investment. Money invested in loan terms of up to 1 year. Capital and interest repaid at end of loan term. Access your money early if funds available in market to replace withdrawal. Provision fund provides buffer against credit losses (not a guaranteed). Peer to peer lending is not covered by the FSCS

3.75%

annualised p.a.

Up to 5 YearsMore Info >
3.75%
per annum
Instant AccessMore Info >
The Quick Access Account (QAA) allows investors to automatically invest in secured business loans that have passed Assetz Capital's strict credit checks.

up to 3.54%

per annum

 More Info >
Earn up to 3.54% fixed - 3 year fixed term - Your money is asset backed on British property - no investment or withdrawal fees - Manage your account online

up to 3.03%

per annum (tracks Libor +3.00%)

 More Info >
Earn up to 3.03% - 3 year tracker (tracks LIBOR +3.00%) - Your money is asset backed on British property - no investment or withdrawal fees - Manage your account online

Peer-to-peer lending can offer potentially attractive returns. There is a risk you may lose some or all of your initial investment as it is not protected by the Financial Services Compensation Scheme, although many lenders offer their own compensation schemes.

*Returns may be higher or lower

What is peer to peer lending?

Peer-to-peer lending sites match up savers who are willing to lend their money with borrowers typically individuals or small businesses. Both parties can benefit because rates are often better than those on offer from banks. Savers can get interest on their savings up to 5 times or more what they can get in a traditional savings account while those looking to borrow can borrow at rates as low as 5% on a 5 year loan.

 

How can peer to peer savings offer me the potential for better rates than banks?

Peer-to-peer lender sites can often be in a position to offer better rates than banks to both savers and borrowers alike. But how are they able to do this? Essentially, peer-to-peer lenders can be more efficient than the traditional banks – they have lower overheads, fewer staff and no high street branches to pay for. This means that the savings made can be passed on to savers lending their money and borrowers.

 

What are the advantages of peer-to-peer lending?

  • You can earn relatively high interest returns on your savings
  • Interest can be paid monthly
  • Many peer to peer lenders offer easy access to your money if you need to get hold of it at short notice.
  • Some peer-to-peer lending companies run their own protection schemes in the event that a borrower is unable to pay back the loan through a fund borrowers contribute to by way of a credit rate fee charged at a small percentage of the total loan.
  • You can choose how to lend money based on the length of investment and the level of risk involved.

 

To lend you will usually need to be:

  • Aged 18 or over
  • A UK resident
  • Have a UK current account
  • You can invest from as little as £10 with some peer to peer lending sites.

 

What are the disadvantages of peer to peer saving?

  • Peer to peer saving should only be considered as part of a balanced investment portfolio.
  • Peer to peer saving is not regulated by The Financial Conduct Authority and your money will not be covered by the Financial Services Compensation Scheme.
  • Investing your savings within a peer to peer lending scheme can mean interest rates vary significantly – generally speaking higher risk borrowers will get higher returns. But this raises the risk that you may not get some or all of your money back.
  • If you need to withdraw your funds early, you may incur a fee.
  • If the person you have lent the money to chooses to repay their loan early, this can affect your rate of return.
  • The interest you earn is subject to income tax in the same way as normal savings


Peer to peer savings accounts are not the same as normal savings accounts so you need to consider the features before you invest.