We already reported in September 2021 that you don’t have to rely exclusively on the overnight and fixed-term deposits offered by your bank for the short-term investment of your liquid cash reserves, but can also include P2P loans. This kind of diversification allows you to increase your average returns slightly without losing flexibility or significantly increasing the risk. So far, we have relied exclusively on Bondora Go & Grow* for this purpose.
Monefit Smart Saver*, a product that promises an uncomplicated investment at attractive interest rates, has been popping up in the P2P community for some time now. But what is behind this offer? TradingForFuture.com introduces the platform.
Simple handling, at least 7.5 % p.a.
Monefit is initially no stranger: The Creditstar Group from Estonia has been an active player in the European consumer credit business for many years and is also a well-known loan originator on various P2P marketplaces. With Monefit Smart Saver*, the group has launched its own investment product. Similar to Bondora Go & Grow*, you can invest in a broad portfolio of consumer loans with just a few clicks – but with better interest rates and some interesting extras, such as flexible fixed-term deposit options (vaults).
After the uncomplicated registration process, you can start with small amounts from as little as 10 euros. Deposits can be made either by traditional bank transfer or conveniently by credit card. In both cases, there are no fees. As soon as the amount arrives, it is automatically invested in a broadly diversified loan portfolio in the background and remains available on a daily basis without the need for a vault. There is no need to select loans or manage repurchases and bad loans – everything runs automatically in the background. This is a big plus for beginners in particular, as it avoids many typical beginner’s mistakes in the P2P sector.
The Creditstar Group relies on a mixed calculation and does not invest all of the investors’ deposits, but retains a certain cash reserve. While the deposits are invested in high-interest loans of more than 10%, the provider returns a smaller portion of the yield to its investors. The current interest rate is 7.5% p.a., which is even higher than that of Bondora Go & Grow*. The platform retains the difference between the loan and Smart Saver interest rate as a margin for itself.
Interest is credited daily and the automatic reinvestment makes the most of the compound interest effect. If you still need your capital flexibly, you can order a payout – according to the platform, this takes a maximum of ten working days. Alternatively, those who want to tie up their money for longer can take out so-called “vaults”. Here you tie up your money for six to 24 months and receive up to 10.5% interest p.a. in return. Depending on the vault, this interest is then paid out monthly or at the end of the term – unlike the overnight money equivalent.
No substitute for a bank account
However, the P2P sector should never be a substitute for a classically secured bank account. There is no state deposit protection. The risk is borne by the investor, albeit spread over thousands of individual loans. The loans are granted by the Creditstar Group itself, so the company bears the credit risk on its own balance sheet. If Creditstar defaults as a company, there is a risk of total loss. A typical “black box” system: investors have no insight into individual loans or their credit ratings. Those who consciously diversify can benefit from the attractive interest rate with a calculable risk.
The bonus campaigns for new customers are also exciting: Anyone who registers via our referral link* will receive a bonus interest rate of +0.5% on a deposit of up to €2,500 in the first 90 days – currently an added value that established providers such as Bondora do not (or no longer) offer.
Who Monefit is a good offer for
Monefit is suitable for all those who
- want to benefit quickly and easily from attractive, passive returns,
- have no time for credit research and default statistics,
- already have share portfolios or ETF savings plans as a basic investment and want to add a high-yield niche.
Monefit is less suitable for all those
- for whom absolute transparency about each individual loan is important,
- who want zero risk (the classic savings account is still the safe choice),
- or who are bothered by the relative lack of transparency of the “black box” model.
Conclusion: After a few months of testing, we were particularly impressed by the very user-friendly operation and the immediate crediting of interest. The offer seems reputable, the company is experienced and the conditions currently beat most call money and fixed-term deposit offers by far. In the end, as always in the P2P sector, trust is good, diversification is better.
Anyone who registers via our referral link* or with the code “6dqz93nx” will receive a bonus interest rate of +0.5% on a deposit of up to EUR 2,500 in the first 90 days!
