Ratesetter bonus: A hack to earn 12.7% with a small peer-to-peer investment

Last updated: 1 July 2018

I've just published my “Ultimate Guide” to peer-to-peer lending – a type of investing that I'm a big fan of.

Returns from peer-to-peer start at around 3% and top out at around 10% for the very riskiest stuff, but at the moment there's a nice “hack” to earn a 12.7% return by putting £1,000 into Ratesetter – one of the peer-to-peer platforms that I have money with.

If you sign up for Ratesetter via this link and put in at least £1,000 for at least a year, they'll pay you a £100 bonus at the end of the first year. (You can withdraw your money at any time before that if you change your mind, but you won't qualify for the bonus.)

So if you put in £1,000, the £100 bonus alone is equivalent to a 10% return. The regular “rolling market” is currently paying 2.7%, so that makes for as 12.7% return. Not too shabby!

You can put in more than £1,000 of course, but the bonus stays the same so your effective rate of return will be lower. And – full disclosure – when they pay your bonus they'll also pay me £50 for referring you.

Of course, you need to be aware that this is an investment so your capital is at risk, and be comfortable with Ratesetter as a company – which I am, as I invest with them. £100 probably isn't going to change your life, but it could be a nice way of having your first dabble in peer-to-peer.

Just bear in mind that you must sign up via this link to get the bonus.