I am very bad at keeping up to date with my RateSetter peer to peer lending account. I do try and login every other day to see what is happening and what money I have waiting to be matched. Speaking of which I was shocked to see an interest rate of 3.4% being matched the other day for a 1 month loan. The highest I have got so far is 3.1%. Logging to the site on a regular basis means that you can change your reinvestment settings and take advantage of these high rates whenever they are offered.
Back to my RateSetter monthly summary, where I now have £110 plus interest invested. Of course peer to peer lending sites are not covered by the FSCS so your money is at risk and this is one reason I do not have a few thousand invested. I try to filter money in slowly, this is money I will not miss. Quite often I put in money from a gambling win or money left in my account at the end of a month. I managed to earn 0.14 in interest in May.
Fourteen pence in interest is nothing substantial and obviously not enough for me to live off. It would not even pay for one of my favorite white chocolate moccas but everyone has to start somewhere. The good thing is that I can reinvest my interest even if it is only pence. I am hopeful that I can build my account and earn a few pounds monthly before the end of the year. The higher the interest rate I can get the better.
In summary I have £120.21 on loan and earned 14 pence net in interest during the month of May