Lending Club is a peer to peer lending site, which offers savers a higher return on their cash, much better than anything you could find in Certificates of Deposit. The company has a $25 bonus available to new clients.
I’m currently earning a 9.31% Net Annualized Return as a Lending Club investor. I think this is a service you should check out. It’s easy and free to join. In order to receive a $25 bonus, you need to make an initial investment of $25 or more. In addition to that you have to send me an e-mail in order for me to give you a referal. E-mail me at: onlinedividends at gmail dot com.
I have used Lending Club to invest in high grade high interest notes from borrowers with solid reputation, who were turned down by banks during the financial crisis. The notes that I typically invest in have the following characteristics:
1) The credit score is at least 714 +
2) There have not been any delinquencies ever
3) The borrower has been at their current job for at least an year. The job looks safe to me ( this is more judgment based, I know)
4) The borrower can afford to pay the loan. That’s why I always ask for their monthly income and expenses.
5) I also try to read the description and the size of the loan request in order to determine what the intent for the loan is. This helps me determine whether I will be paid off or not.
This being said, there is a risk with loans on Lending Club, particularly since your money is not FDIC insured. As a result you could theoretically lose the whole amount of your investment, if you invest in the riskiest borrowers. Thus do not overcommit to Lending Club.