easyMoney investors earn more than £30m
easyMoney’s investors have earned more than £30m in interest payments since the platform launched in 2018.
This comes just months after it was revealed that investors in the property-backed peer-to-peer lending platform were earning in excess of £1m per month.
Jason Ferrando, chief executive of easyMoney, says that this figure has grown since the monthly milestone was reached. He believes that compound interest and tax-free earnings are part of the reason for the platform’s growth.
“Our investors can use compound interest to make their money grow faster,” says Ferrando.
“Compounding can create a snowball effect, as the original investments plus the income earned from that investment grow together.
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“Our investors at easyMoney have the option to compound their interest. We keep it simple for our investors, their interest is paid into their easyMoney wallet on the 15th of each month, and they have two options. Reinvest that interest (compound interest) or withdraw at no cost. We do our best for our investors and want to see them maximise their returns, so we don’t take any fees from our investors.”
In simple terms, compound interest is interest that you earn on interest. Over time, this interest can grow exponentially and create a larger capital pool which can benefit from higher interest payments.
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At easyMoney, investors are offered the opportunity to earn monthly interest, and to reinvest it automatically.
“For example, if you were to invest £10,000 at the start of the year with easyMoney at our current premium rate of 5.53 per cent, this would accrue £46.08 in month one,” Ferrando explains.
“By the end of the year, you would have accumulated £567.23 in interest, versus £553 via annual compounding. That’s an additional £11.57 earned in interest and while it may not sound significant, it’s important to remember that on a long-term basis from small acorns mighty oaks grow.
“Of course, the more you initially invest, the more you can make through compound interest. For those investing their full tax-free ISA allowance of £20,000 at our premium plus rate of 6.52 per cent, compounding interest on a monthly basis can see them accrue £1,343.68. This is £39.68 more per year than the £1,304 accumulated via annually accrued interest.”
easyMoney investors can also protect their earnings from taxation by shielding their money within an Innovative Finance ISA (IFISA). Last year, easyMoney was named IFISA Provider of the Year at the Peer2Peer Finance Awards. To date, more than £73m of the £185m funds under management has been invested within the easyMoney IFISA, with zero defaults*.
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By using tools such as compound interest and ISA wrappers, investors can super-charge their earnings over time. And while past performance is no guarantee of future success, easyMoney’s track record shows that it is possible to earn significant amounts of money by simply reinvesting and making smart decision with their P2P investments.
“We are looking forward to welcoming even more easyMoney investors in the new tax year and helping them realise the benefits of compound interest and tax-free investing with their IFISA,” adds Ferrando.
* A default rate of zero means so far easyMoney has never made a loss, but past performance does not guarantee future results.