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Investments | Zopa and ISAs

MONEY 007

Zopa

I’ve been with Zopa (Zone Of Possible Agreement) for two years now and have been getting a better interest rate than with any bank. The interest is taxable, but at over 6% is still better than the so called tax free ISA’s offered by banks. I have had late payers, but because I lend only £10 to each of my borrowers the risks are limited and I have had no one default. I mainly lend to people with good credit ratings of A* or A, but get more interest when I lend to the B market. The return is above inflation and so a real return.

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