Wednesday, April 27, 2011

Lendingclub Milestones

We all learned about compound interest in elementary school, unfortunately they always got those future billions by using very high interest rates.  Today our Chase bank savings account offers 0.01% and our U.S. Bank savings account weighs in at a whopping 0.05%, essentially $.11 a month.  So yea, in this economy, traditional savings is no longer a get rich quick option.

So, I was very thrilled to find out about a new concept made possible by the internet called peer-to-peer lending.  Essentially you can become the bank and fund the loans of various applicants through the website's platform.

You can make as small a contribution as $25 dollars and can choose notes with varying degrees of interest rates based on lender creditworthiness.  Low is 7% high is 22%, either way, its better than savings.  I was thrilled to learn about this new financial option because it allows you to be perfectly diversified and it doesn't cost any per transaction fee like eTrade and the likes do.  It allows you to start small, try your hand at it a little bit, and learn some lessons without having to risk much.  I endorse Lendingclub 100% and encourage you all to sign up for a free account and start lending.

Kortney and I are coming up on our 1 year anniversary with Lendingclub next month.  Lendingclub is taking us out to a really nice restaurant and then we have reservations at this super cute bed and breakfast up in Cache County.  We are excited!!

But this month, We hit some very important lendingclub milestones.  First off, Kortney and I both have accounts because at the time we signed up, they were offering a $60 registration bonus and what can we say, we both wanted 60 free dollars.  So, we have joint accounts and we have funded them gradually, month by month, putting in enough to invest in one new note every month.  Every once in a while when we get a minor windfall, we have put in $100 or so.  It has been very fun to watch our investment grow.

So, this month, we accomplished two very important goals.

1. Both our accounts reach $25 in interest earned.  That's right, that means that one of our notes is pure interest.  Our combined accounts as of today have brought in $58.76 in interest in less than a year with less than $1000 invested.  You've got to admit, that is pretty good.

2. We both reached 15% interest earned.  We both started out very conservatively with 11% notes and the like, but as we studied the success rates of the different notes, and saw our own results as we invested, we got bolder and more aggressive and have been watching our percentage continually rise.  15% is in the top 10% of all lendingclub investors so, Warren Buffet eat your heart out, we are hot on your tail.

If you have been looking for a good way to put your money to work in this lame economy, don't go to a bank, become a bank, with Lendingclub.

Compare Your Investment

Your Investment in Numbers

YouInvestors Like You
InvestmentNet Annualized ReturnNotes Invested InAverage Note Amount
> $1,0007.06%10$21

Your Investor Percentile

Your Net Annualized Rate to date:
Higher than 90% and lower than 10% of all investors.

   You  15.29% 
 Average 9.65%

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