Guaranteed 5% P2P lending?

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  • Avatar eardoctor 
    Status: Resident
    Posts: 17
    Joined: 05/22/2019

    I saw an ad today for Constant P2P lending ( They said they guarantee a 5% APY and would give a $1000 for free trial (interest would be mine to keep at the end). What is more interesting was that they said money can be withdrawn anytime with no minimum balance. Interest would also accrue daily. Am I missing something or is this a better deal than high interest online saving accounts for emergency funds or maybe some extra cash? I am curious to hear your thoughts.

    #245186 Reply
    CordMcNally CordMcNally 
    Status: Physician
    Posts: 2805
    Joined: 01/03/2017

    There are always multiple catches with these. In short, if it appears to be too good to be true…

    Also, random internet ads don’t quite make my top 50 list of places to find investment resources/tips.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #245188 Reply
    Avatar HikingDO 
    Status: Physician
    Posts: 341
    Joined: 03/09/2017

    Sounds pretty ponzi schemish to me.

    #245190 Reply
    Avatar Tim 
    Status: Accountant
    Posts: 3030
    Joined: 09/18/2018

    Hmmm. Maybe they guarantee the rate?
    Then you might have to cover the principal.
    That’s how it usually works. The borrower makes one payment and everything is fine. Even if you get a judgement, collecting is really expensive. Your got the guaranteed rate. It’s right the in the contract. Not one mention about payment.

    #245203 Reply

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