Alternative to CDs - Prosper
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An Alternative to CDs


CDs, or 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 support your community at the same time.

Where high yield CDs fall short

For simplicity's sake, let's take a well-known banking company like ING DIRECT or Emigrant Direct as an example. Each offers FDIC insured accounts and guarantees growth over a set period of time. You could compare a 3-year CD with one of Prosper’s direct peer-to-peer loans (since we offer loans that amortize over 1, 3, or 5 years).

Here's how your Prosper investment differs:

When 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 versus return rate, and then invest 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 CDs, and aren't guaranteed or FDIC insured, so may lose value. But by harboring some risk, with smart investing you could 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 borrower loan listings. You can search by keyword, Prosper Rating, and more.

A loan listing might catch your eye because it carries a good Prosper Rating or you like the description of the loan's intended use. You can pick and choose your investments based on your own values. You'll soon see that our peer-to-peer community marketplace offers more than just investing money: it's fun!

For those of you who prefer a simplified approach to investing, we also offer Quick Invest, which allows you to save time and diversify your risk. At Prosper, you’re in the driver’s seat.

How Does Prosper Work?

Investors create an account, set their parameters, and purchase Prosper Notes. Each Prosper Note corresponds to a listing which sets forth the relevant details about the loan, including loan amount, Note rate, yield percentage, and borrower information. Any payment from a Prosper Note is dependent on the payments Prosper receives on the corresponding loan.

The Notes that correspond to specific borrower listings are offered by 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 the Prosper model 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 investing through Prosper. Not FDIC-insured. Notes may lose value. No Prosper or bank guarantee.