Over half the money matched on RateSetter's innovative website has been lent by people of retirement age.
London, UK (PRWEB UK) 28 June 2011
As P2P finance company RateSetter passes £5m matched loans in nine months, fresh data shows that it is the most experienced generation that is taking advantage of peer to peer lending to achieve far better rates than high street banks are offering.
Investigation of RateSetter’s database shows the average age of its top 150 Savers is 51 years young, many in their 70s and 80s. Over half the money matched on its innovative exchange website has been lent by people of retirement age.
RateSetter’s most mature lender is 89 years old, and is enjoying bumper returns on his savings. Investing in the 3 Year Fixed market on RateSetter merits an average return of 7.9% AER, outstripping the interest rates offered by banks. Those wanting monthly access to their money are enjoying average returns of 4.1%.
Inflation busting returns have made RateSetter a haven for disenchanted Savers – recent research from MoneyFacts.co.uk shows that the average bank savings account shows a paltry 0.77% annual return. RateSetter is now matching over one million pounds each month in loans between individuals.
RateSetter’s Provision Fund makes it unique amongst P2P finance companies as the only company that has returned every penny of interest and capital to its Savers. The Fund offers a shield against bad debt by building a capital pot - paid into by Borrowers - that compensates Lenders in the case of a late payment or default, making RateSetter safer and simpler for Lenders than other Peer to Peer companies. The Provision Fund currently stands in excess of £220,000.
CEO of RateSetter, Rhydian Lewis said “We have always expected that the older generation, which has spent many years saving, would be drawn to RateSetter. We didn’t perhaps expect that some of our earliest adopters would be well into their 80s. The years haven’t blunted their keen eye for a good deal.”
Notes to Editors
RateSetter is a peer to peer finance company, launched in October 2010. It is the brainchild of Rhydian Lewis, formerly a Lazard investment banker.
RateSetter matches creditworthy borrowers looking for a 1-3 year low cost loan, with Savers looking to earn better returns on their savings by lending money out. It is unique in the marketplace as the only peer to peer finance provider to offer a Provision Fund that shields Savers from the risk of bad debt.
RateSetter has matched over £5m in loans since inception, with no defaults as yet.