Zopa - yes or no

[Oldandslow]

I've a bit of spare cash and was looking to put it in a scheme of some sort. Zopa seems a good return for middling investors. Better than ISA's and such at the moment.

Is it a good thing or all smoke and mirrors?

[ReallyReallyGood]

Had small amount in there for the last 12 months, been good so far.
With their new safeguarding offers, the risk is as low as it's ever been.

Though, until it's covered under the ISA rules, since it's payed without tax deducted it has to be declared, which is something to bare in mind. But even after tax, with the current Zopa long term rate at 5%, that's still 4% savings rate if you're a 20% tax payer, or 3% if you're a 40% tax payer, infinitely better than what bank savings accounts are offering.

Edited by ReallyReallyGood on Friday 21st March 15:38

[RizzoTheRat]

There's a couple of threads in the Finance section on different P-P lending schemes, the general gist seemed to be that some offer better returns than others, but that after tax the returns aren't great.

[MajorProblem]

If your mrs or mum doesn't work put the money in their name to save tax.

Zopa has gone a but crap now with fixed rates, have a look at funding circle or if you have bigger balls look at rebuilding society.