Not since 5 or so years ago have we seen interest rates on savings accounts anything worth talking about. According to Bankrate.com, the average savings interest rate now is .12%, and supposedly we are in a recovery. You are practically better off keeping your money in your mattress at that rate. But, it doesn’t have to be this way. There are other alternatives to park your cash and invest it yielding much better returns.
With Prosper, as a lender, you can scan the list of available funding opportunities, narrow by your risk criteria, and invest as little as $25. The $25 minimum is imposed to provide a broad, diverse array of opportunities to you, while minimizing risk. Prosper is not FDIC insured, so you can lose money. But, with a broad array of risk categories, while funding several loans overtime, you chances of loss are substantially reduced. Alternatively, if you need cash to consolidate debts, such as student loans or credits cards, Prosper is also an excellent means to do so.