Great Liquidity Investment Strategy
A Profitable Alternative to your Low-Interest Bank Account
If, like most people, you feel safer when you have a liquidity reserve in your bank account to cover unforeseen expenses, this will likely interest you.
Following this investment guide, you can preserve almost the same liquidity as in your bank account. Additionally, you can earn a good passive income. For every €10,000 you invest instead of leaving your funds in the bank, you can earn approximately €1,000 per year (provided that your invested interest rate is 10% higher than in your bank).
If EUR is not your local currency, I recommend using Revolut Bank for zero-fee exchange.
Please note:
- All the auto-invest settings below are configured in the desktop versions, not in the app.
- The suggested investment amount is based on every €10,000 totally invested.
Table of contents
The investment platforms
Swaper
Swaper provides short-term consumer loans with a one-month term, offering excellent liquidity. With an interest rate of Approximately 13% – 14%, it presents a profitable alternative to a savings account in a bank.
Automation
- Suggested investment: €2.000
- Autoinvest setings:.
- Choose the preset: Start easy investing
- Loan term: 1 month
+ General information –
- Security level: Average
- Diversity: Limited
- Loan types: Personal loans
- Term: 1 month
- Average interest rate: Approximately 13% – 14%
+ Withdrawal –
- Stop your autoinvest portfolio:
- Increase your available balance in these ways:
- Wait up to one month for your loans to be paid back
- Sell some of your loans back to Swaper
- Increase your available balance in these ways:
- Then, withdraw the desired amount from your available balance:
- Click on your available balance at the top right of the page
- Choose Withdrawal at the top
- Restart your autoinvest
Bonus offered by Swaper
- We both get a 2% bonus when you invest €500 or more within 30 days
- Get your bonus here
Hive5
Founded in 2022, Hive5 is a relatively new crowdlending marketplace. I have been investing since April 2023, and thus far, everything has been running smoothly with no overdue loans. On average, I have earned more than 13%.
- Suggested investment: €2.000
- Autoinvest setings: See recommended settings here
- Loan term: 14-31 days
+ General information –
- Security level: Average
- Diversity: Limited: only 3 loan originators
- Loan types: Personal and business
- Average interest rate: Approximately 13%
- Loan Term: 14-31 days.
+ Withdrawal –
- Stop your autoinvest portfolio:
- Wait until some of your loans has been paid back
- Choose Withdrawal in the top menu
- Restart your autoinvest
Visit Hive5 (affiliate link)
Bondster
Bondster offers a wide range of loan types, providing high diversity. Although there are some late loans, the buyback guarantee operates reliably. Late loans incur a penalty fee, which boosts the interest rate close to 18%.
- Suggested investment: €2.000
- Autoinvest setings: See recommended settings here
- Loan term: 0-2 months
+ General information –
- Security level: Below average
- Diversity: High
- Loan types: Personal, business, leasing, cars
- Average interest rate: Approximately 14% – 15%
- Loan term: 0 – 2 months.
+ Withdrawal –
- Stop your autoinvest portfolio:
- Increase your available balance in these ways:
- Wait until some of your loans have been paid back.
- Sell some of your loans on the Secondary Market with a small discount.
- Increase your available balance in these ways:
- Then, withdraw the desired amount from your available balance:
- Click on your available balance at the top right of the page.
- Choose Withdraw Funds
- Restart your autoinvest.
Bonus offered by Bondster
- Both you and I receive 1% of the amount you invest during the first 3 months
- Get your bonus.
- Or use this referral code: 1000016310
Bondora
Founded in 2008, Bondora was one of the earliest crowdlending platforms. Since 2023, they have focused solely on their high-yield savings account.
- Suggested investment: €2.000
- Loan term: Instant withdrawal
Add funds
- When logged in: choose Go & Grow in the left menu
- You now see your savings account with the name you entered in the top
- To the left side of your account name, click on the 3 vertical lines
- Choose Auto-transfer in the bottom of the menu
Now, your bank transfer will automatically be added to your savings account.
+ General information –
- Security level: Above average
- Loan types: High-yield savings account
- Interest rate: 6.75%
+ Withdrawal –
- You can withdraw at any time.
- Each withdrawal incurs a €1 fee.
- Select Withdraw from the left menu.
Bonus offered by Bondora
Sign up here and get €5 instant bonus
Read more about the high-yield savings account at Bondora
Mintos
Mintos is the largest crowdlending marketplace, featuring a vast number of loan originators, countries, and loan types, providing the very best diversity in this strategy.
- Suggested investment: €2.000
- Recommended: Choose Invest: Core Loans
(preset autoinvest, the best interest rates and instant withdrawal)
Read more - Alternatively Autoinvest settings in ordinary loans: See recommended settings here
+ General information –
- Security level: High compared to average crowdlending platforms
- Diversity: The very best
- Loan types: Business, Personal, car rental and loans,
- Average interest rate: Approximately 13%-14%
- Loan term: 0 – 2 months.
+ Withdrawal –
- Stop your autoinvest portfolio:
- Choose Loans in the top menu
- Scroll down to your portfolio
- Click on the 3 dots to the right and choose Stop Investing
- Increase your available balance in these ways:
- Wait for loans to be paid back
- Sell some of your loans on the Secondary Market with a slight discount.
- Then, withdraw the desired amount from your available balance:
- Click on your available balance at the top right of the page.
- Choose Withdraw Money
- Restart your autoinvest
Bonus offered by Mintos
- We both get €50 instant bonus when you invest €1 000 or more (before 31/03/2024)
- Additionally you get 1% of the average investment in the first 90 days
- Get your bonus here
- Or use this referral code: 7PHKN8
Or Visit Mintos here (affiliate link)
Summery: Diversity and Safety
In this investment strategy, you benefit from broad diversity, which significantly enhances the overall safety of your total investment.
Investment types (assets)
Different assets may perform differently under various circumstances. A mix of assets decreases your risk and increases your overall profit:
- Personal consumer loans
- Car and leasing loans
- Business loans
- High-yield savings account
Number of investments
- Crowdlending: You invest in different loans every month, which spreads your risk across a large number of small loans ranging from €10 to €20 each.
Investment platforms and countries
- Investing in several different platforms spreads your risk in case one of the platforms underperforms.
- Investing in many different countries reduces the risk in case some countries encounter economic problems.
Security in this strategy
This investment strategy presents a profitable alternative to traditional bank accounts. However, it is advisable to allocate it as a minor part of your total investment portfolio. Further diversification will enhance the safety of your entire investment portfolio.
To enhance diversification and consequently bolster safety, you should also consider investing in shares, bonds, real estate and potentially sustainable assets.
Read about The Best safe investment strategy
FAQ
What is liquidity
Liquidity is money you can access with a short notice. Typically funds in a bank account to a low interest rate. However, it is also possible to invest in short-term loans in a crowdlending platform and get a high interest.
What is crowdlending?
Crowdlending presents an opportunity for private individuals to invest in smaller portions of loans provided by lending companies. In crowdlending, you can invest as little as €10 in various types of loans. The significant diversification offered, along with interest rates ranging from 10% to 14%, helps offset the risk of defaults.
What is a diversified investment?
A diversified investment involves spreading your investment across different assets, multiple countries, and various platforms. Under different circumstances, different assets, countries, and platforms may perform differently. When you diversify your investment, you mitigate the risk of poor performance and optimize your chances for a good profit.
What are assets?
Assets are various categories in which individuals can invest their money. These categories include a wide range of financial instruments and opportunities, each with its own characteristics, risks, and potential returns. Some common investment types/assets include:
– Stocks (Equities): Ownership shares in publicly traded companies, representing a proportional stake in the company’s assets and earnings.
– Exchange-Traded Funds (ETFs): Investment funds traded on stock exchanges, representing a diversified portfolio of assets such as stocks, bonds, commodities, or real estate.
– Bonds: Debt securities issued by governments, municipalities, or corporations, typically offering fixed interest payments over a specified period, with the principal repaid at maturity.
– Real Estate: Physical properties such as residential, commercial, or industrial real estate, which can generate rental income and appreciate in value over time.
– Alternative Investments: Non-traditional assets such as crowdlending, offering unique risk-return profiles and investment opportunities.
– Retirement Accounts: Tax-advantaged investment accounts such as 401(k), IRA (Individual Retirement Account), or pension plans, designed to save for retirement by investing in various asset classes.