Prosper: An Alternative to CDs
Certificates of deposit can be a great way to conservatively grow your money over time. Prosper can offer you an alternative way to grow your money—and have some fun at the same time.
Here's how your financial strength may grow faster with us.
Where high yield CDs fall short
For simplicity's sake, let's take a well-known company like ING DIRECT or Emigrant Direct as an example. Each offers FDIC insured accounts and guarantees growth over a set period of time. Compare 3 year CDs with our Direct P2P borrowers' loans, as these loans amortize over 3 years. But here's where Prosper investing differs.
As the Fed reduces interest rates, the high yield CD rates usually follow closely. This ties the renewable rate to movements by the Federal Reserve and its reaction to the current U.S. economy. As it slows, so does your financial growth through certificates of deposit—even those with the best CD rates.
Prosper helps put you in control
At Prosper, your rate isn't bound to the Fed's whims. Here, you're in control. You decide your own financial comfort level vs. a higher return rate and then bid accordingly. In fact, historical lender data proves that even some of our lowest lender returns have offered twice the rate you might receive from a CD. Keep in mind that potential returns on Prosper may be higher because our loans are more risky than CD's, and aren't guaranteed or FDIC insured, so may lose value. But by harboring some risk, with smart investing you may grow your money faster than with a CD.
Join us and start growing your money today
To start, sign up and scan through some of our borrowers' listings. You can search by keyword, Prosper Rating and more.
Start bidding after you find a listing that calls out to you. This can be a high credit score or the description of the loan's intended use. You'll soon see that our peer-to-peer community offers more than just investing money: it's fun!
For those of you who prefer not to take such a "hands-on" approach, we also offer portfolio plans, which allow you to save time and diversify your risk. You can even customize your own plan. At Prosper, you're in the driver's seat.
How Does Prosper Work?
Prosper lenders bid on listings and purchase Prosper Notes. Each Prosper Note corresponds to a listing which sets forth the relevant details about the loan, including loan amount, price, yield percentage, and borrower information. Any payment from a Prosper Note is dependent on payments Prosper receives on the corresponding loan.
The Notes that correspond to specific borrower listings are offered pursuant to the prospectus. Investors should read the complete description of the Notes and risks associated with making an investment in the Notes as well as other information about us and our platform in the prospectus.
Prosper Notes are risk bearing and speculative investments for suitable investors only. If a borrower fails to make payments on the corresponding borrower loan related to your Prosper Note, you will not receive payments on your Note. There is the potential that you will not receive any payments on a Prosper Note. You should review the Prospectus before bidding on loans. Not FDIC-insured. Notes may lose value. No Prosper or bank guarantee.
