P2P Savings - anyone still use this asset class right now?

Does anyone still use this type of product to diversify their savings portfolio?

I pulled out of Zopa towards the end of last year, when my annual rate of return was creeping below 5%. Having a look now, they are projecting returns averaging 2-4%, with a minimum £1000 deposit.

The return is much better than the BoE base rate, but once risks are included, I’m not sure I can justify it as a viable investment for diversification right now?

This year will certainly prove a test, but popular p2p sites do not release enough detailed information, such as average inflows/outflows over time, or average timeframe to withdraw money.

Zopa charge a small fee for early redemption, and fair enough there is some work on their part changing over the loan, but in my view this shouldn’t fully go to Zopa, but more of reinstating the safeguard pot.

I took my money out of Funding Circle over a year ago when returns started dropping below 4% and defaults seemed to be rising. I wouldn’t touch P2P with a barge pole at the moment.

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I think there’s a case to be made for P2P round two, but perhaps now is too soon, there needs to be a thorough clean up, and the weak players weeded out, which has only partially been completed. Maybe next year.