Bondora Go and Grow

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Reza Machdi-Ghazvini,CAIA
Last updated on 03 September 2021

Bondora Go & Grow

We know of no comparable investment product that makes it as easy for investors to invest in P2P loans as Bondora Go & Grow. Investors only need to deposit their investment amount and Go and Grow invests the money for them in thousands of loans. This allows even investors with low investment amounts to diversify (spread) their money to the maximum. Bondora advertises Go and Grow with a return of 6.75% p.a. and daily availability.

In this article, we introduce you to Bondora Go and Grow and show you what you should consider when investing.

Bondora Go and Grow at a glance

Bondora Go and Grow

The Go and Grow investment product was launched by Bondora in April 2018. Since then, Go and Grow has become a success story.

What Bondora Go & Grow offers investors

  • No term to maturity

  • No notice periods or termination

  • Very user-friendly interface

  • Maximum diversification already from a low investment amount

  • Fast availability of the invested money

  • Daily crediting of interest

  • No deposit insurance

Bondora Go & Grow Portfolio

When you invest your money in Go & Grow, your money is invested by Bondora in a loan portfolio that invests in thousands of loans. On a quarterly basis, the platform reports on its blog how the loan portfolio is composed.

Bondora Go and Grow spreads investments across 3 countries and 8 ratings (February 2021).

Bondora Go & Grow as an alternative to overnight money?

Bondora Go & Grow is often compared to overnight funds. We consider Bondora Go & Grow to be an investment product with an attractive return and risk ratio.

However, Bondora & Grow is not a substitute for overnight money. Bondora Go & Grow does not even begin to offer investors the same security as overnight deposits at a bank within the European Union.

Therefore, a further comparison between the individual features of overnight deposits and Bondora Go & Grow does not make sense to us and only creates a false expectation among investors.

However, Bondora Go & Grow can be seen as a useful complement to overnight funds. For example, an investor who currently receives 0% interest on his overnight deposits could at least achieve a return of at least 0.68% p.a. over his total savings if he invested, for example, 10% of his overnight funds in Bondora Go and Grow (10% * 6.75% p.a.).

In no case should conservative investors invest high amounts in Bondora Go & Grow. The asset class P2P lending has several risks that should not be underestimated.

Experiences of investors with Bondora Go and Grow

The investment product Bondora Go & Grow is not yet 3 years old. Thus, it is actually much too early to make any sound statements about what the investment product has done.

Many institutional investors (professional investors), for example, do not even look at investment products if they do not have a track record of 3 years.

However, it makes sense to look at the performance of Bondora Go and Grow. As mentioned at the beginning, Bondora Go and Grow has become a favorite of many P2P investors relatively quickly. Investing is very convenient and easy.

Bondora Go and Grow during the Corona crisis

The first big test came during the Corona crisis, when many investors suddenly wanted to withdraw their capital at the beginning of the crisis. Bondora reacted by limiting the payouts, which immediately led to many complaints from investors. But, in the end, Bondora was able to pay out all investors and the loan portfolio has also proven to be robust. The CEO of the platform reacted in an exemplary manner and commented on the current situation in a youTube video.

Overall, the investment product has proven itself in the Corona crisis, but weaknesses were also clearly shown. Ultimately, the investment product is a credit portfolio and investors must be aware of the credit default and liquidity risk.

Return and compound interest with Bondora Go & Grow

Bondora very openly advertises that investors can achieve a return of 6.75% p.a. with Go & Grow.

However, the special feature of Go & Grow is that the interest is credited daily. Therefore, it is possible to achieve a return that is higher than 6.75% p.a.

Investing in Bondora Go & Grow

If you want to invest in Bondora Go & Grow, you first need to register on Bondora as an investor.

If you have already noted during the registration process that you would like to invest in Bondora Go & Grow, you will then only need to transfer your investment amount to your Bondora Go & Grow account.

Please note that you can currently invest a maximum of €400 per month in Bondora Go & Grow (February 2021).

Bondora Go and Grow: change view

If you specified something else when you signed up and you can't find Go & Grow in the menu, first click on your name in the top-right corner, then click on "Change View" and select Bondora Go & Grow. After that, you can click on "Go & Grow" in the menu on the left.

Bondora Go and Grow Auto Transfer

By default, at least one Go & Grow account should have been created. To make sure that your deposits have been created, click on the menu icon on the right and check if the "Auto Transfer" setting is active.

Bondora Go & Grow: withdraw money

You can easily withdraw money from your Bondora Go & Grow account.

Bondora Go and Grow: withdraw money and transfer to wallet

In the Go & Grow overview, click on the menu icon and then on the "Transfer to wallet" link. After that, you choose how much money you want to transfer to your wallet. The money is not yet on its way to your bank account.

Bondora Go and Grow withdraw money

To transfer the amount to your bank account, click on the "Withdraw money" link in the left menu. Then select the amount you want to withdraw and confirm your entry.

Transferring money from Bondora Go & Grow to Bondora Portfolio Pro

If you want to transfer money from your Bondora Go & Grow account to Bondora Portfolio Pro, you first need to transfer the money from your Go & Grow account to your wallet. After that, you can invest the money through Portfolio Pro.

Bondora Go & Grow taxes

If you want to prepare your tax return, you can easily get the numbers from Bondora Go & Grow.

Bondora Go and Grow tax statement

In the Bondora Go and Grow overview, first click on the left menu on "Statements" and then click on "Statement" of the relevant Go & Grow portfolio.

After that, you define the period for which you need a statement on Bondora. Afterwards, you will find a list of all your Bondora earnings that you have to report to the tax office.