P2P Cashback Offers: Get 6% Bonus Returns with No Added Risk

By Iain Niblock | On August 9th, 2017
p2p cashback bonus offers for p2p investors

In a time of historically low interest rates, which has driven the average Cash ISA rate to below 1%, it is understandable to view this article’s title with skepticism. Your immediate reaction might be that gaining an additional 6% return on a peer-to-peer lending (P2P) investment which already generates stable returns in the region of 4-6% is impossible. It is, however, possible to earn in excess of 10% in the first year of investing by taking advantage of a number of P2P platforms’ referral schemes. This can boost average returns from 4-6% to an effective 10-12% in the first year. Take LendingCrowd for example: If you invest a minimum of £2,500 into one of the platform’s accounts, including their Innovative Finance ISA (IFISA), by August 31st you will receive £150 P2P cashback within three months. With a targeted rate of 6% per annum, this added 6% bonus takes your first year returns up to 12%.

And it’s not just LendingCrowd. In a bid to attract more investors, P2P cashback offers are common. Offers range from “refer a friend” style bonuses to John Lewis vouchers, so if you’re new to a specific P2P platform or to P2P as an asset class it’s worth checking for offers before opening an account.

We’ve provided an overview of the P2P cashback offers currently on the market and a means of accessing these offers. As a closing consideration, we’ve also commented on whether an excessive cashback scheme presents an additional risk to investors.

 

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Live P2P Cashback Offers

Flender P2P Cashback

Amount: €100

Type: P2P Cashback

Terms: To claim this P2P offer, you will need to invest €1,000 total into any number of campaigns on Flender during the month of August. You will then have your account credited with €100. The preferred way to do this is by transferring €1,000 to Flender before the platform credits your account by €1,100 right away, giving you time to invest it in the campaigns afterwards.

 

Visit Flender

 

RateSetter Refer a Friend

Amount: £50

Type:   Refer a Friend

Terms: To earn this reward you must be referred to RateSetter by another lender (link below). Once registered, you are required to lend £1,000 in one of the RateSetter products (“Markets”) for a minimum of one year. After the one-year period you will receive a £50 bonus which will be placed into the Rolling Market. You are then free to remove this bonus at any time.

 

Visit RateSetter

 

LendingCrowd

Amount: £150

Type: Lending Crowd P2P Cashback

Terms: Invest a minimum of £2,500 in any one of LendingCrowd’s accounts, including their IFISA, by the 31st of August and receive £150 as a new lender. You will receive this bonus within three months of lending.

 

Visit Lending Crowd

 

Lending Works Cashback 

NO LONGER AVAILABLE

P2P Cashback: £50 -£150

Type: P2P Cashback

Terms: Deposit and lend £5,000 to earn a £50 bonus. Investors can earn additional bonuses by investing in each of the first three weeks of August under the same terms (£5,000 for £50). It’s important to note that you will not be awarded £150 for depositing £15,000 – investment needs to be staggered across the weeks. This offer is running until the 20th of August.

 

Visit Lending Works

 

Landbay John Lewis

NO LONGER AVAILABLE

P2P Cashback: £50- £200 (John Lewis voucher)

Type: John Lewis Voucher

Terms: For every £5,000 invested you will receive a £50 voucher to spend in John Lewis – up to a value of £200. This promotion is valid for new and existing investors and eligible across the Landbay product range including the IFISA. This promotion ends on the 20th August 2017 and investors will be sent a voucher as an eGift email within 30days of deposit.

 

Visit Landbay

 

ArchOver Refer a Friend

P2P Cashback: £75

Type: Refer a Friend

Terms: Again, to access this offer you must be referred by an existing lender (link below). You’ll be credited with a £75 bonus if you lend a minimum of £5,000 for 90 days.

 

Visit ArchOver

 

Funding Circle Refer a Friend

P2P Cashback: £50

Type: Refer a Friend

Terms: To benefit from Funding Circle’s £50 cashback offer you will need to lend £2,000 before the 30th of September. The cashback will be paid into your account within 40 days from September 30th. To access this offer, please contact Iain Niblock of Orca directly who will send you an invite. ([email protected]).

 

Lendy Refer a Friend

P2P Cashback: £50

Type: Refer a Friend

Terms: Invest a minimum of £1,000 and you will gain £50 as a new investor. Your Lendy account will be credited after 90 days.

 

Visit Lendy

 

Do P2P Cashback offers increase investor risk?

Typically, individuals who invest across P2P platforms such as RateSetter or Zopa are investing for the medium term (3-5 years). Platforms have a cost of acquiring new investors and P2P cashback offers will be covered by the marketing budgets of these platforms to gain new investors. The hope is that by acquiring an investor they will remain with the platform for multiple years which will in turn be profitable for the platform. Of course, there is a limit to the amount they can offer before this marketing cost is loss making.

In our opinion, it’s better that investors pocket extra cash than platforms spend heavily on marketing channels such as Google Adwords (online advertising).

With the ability to remove bonus schemes at any point, P2P platforms can control this cost. It therefore might be a good idea to get involved now….

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