My Monefit review: daily liquidity and 7 per cent interest!

P2P lending, where we can withdraw our capital at any time, is extremely popular. Monefit is using its experience in the area of personal loans to now also offer such a flexible product. I’ve investigated what the catch is with the seven per cent interest offer and whether it’s worth getting started!

In brief:

Monefit is an offer from the Creditstar Group, which has been successfully providing P2P lending for years
You receive a solid interest rate of seven per cent and can withdraw your capital without any deadlines
Competitors sometimes offer double the interest – but also tie up your capital for months
The Monefit offer is currently more attractive than Bondora Go& Grow, as it only offers 4 per cent interest for new customers

Contents Hide

1 What is Monefit SmartSaver – My Monefit review

2 The Monefit platform

3 Collateral and risks

4 My Monefit experience: Clear advantages and disadvantages

5 Conclusion: My Monefit experience has been thoroughly positive

6 FAQ – Frequently asked questions about Monefit SmartSaver

What is Monefit SmartSaver – My Monefit review

The market for P2P lending is large and continues to grow. This is hardly surprising, as personal loans have been generating consistently high returns for a long time and have also coped comparatively well in times of crisis – so growing interest is inevitable! One provider that has been financing successfully for years is the Creditstar Group.

Active investors are probably already familiar with them from platforms such as Mintos or Lendermarket, where you can achieve juicy returns (16 per cent and more!) with the lender’s loans. Investor sentiment was somewhat dampened during the COVID crisis, but the group has since returned to success.

Creditstar Group loans are also available via the P2P marketplace Mintos and are offered with interest rates of up to 16.5 per cent.

Despite having to defer repayments on Mintos for a short time, Creditstar has always been financially profitable – something that cannot be said of many of its competitors. For a successful company that manages a loan portfolio worth millions in eight different countries, expansion is the obvious choice. However, instead of connecting more nations, they decided to put their own experience into financing with Monefit SmartSaver!

Unlike Mintos, Monefit SmartSaver does not attempt to lure customers with ever higher interest rates. Instead, it offers high liquidity and flexibility, positioning itself as an attractive investment. The interest rates of 7-9 per cent are significantly lower than other P2P offers, but still better than most products from the banking sector!

Monefit is thus positioning itself as an alternative to traditional overnight and fixed-term deposit accounts, as they often offer higher interest rates with equally good liquidity. However, due to the fundamental risk involved in P2P lending, you should be careful when choosing this route: your emergency funds for hard times should be completely safe!

How the loans are granted

Monefit has years of experience in granting consumer loans. Private individuals in eight countries – Spain, Sweden, the UK, Denmark, Poland, the Czech Republic, Estonia and Finland – can obtain money for purchases or when their accounts are running low at the end of the month.

Thanks to the ‘Creditline’ concept, the company is able to bind borrowers much more closely to itself and in many cases turn them into regular customers. Creditstar’s success proves it right: despite the incredibly high interest rates of 73 per cent per year (UK example), business is flourishing.

Anyone who borrows money via Creditstar has to pay up to 73 per cent interest per year. Nevertheless, demand is high.

Monefit SmartSaver provides the Creditstar Group with even more capital in order to grant even more loans and expand further. This new approach is very lucrative for the company, as it previously mainly used bonds to finance its growth. These were issued with significantly higher interest rates, meaning that the Group can now access money more cheaply thanks to Monefit – and can therefore operate more efficiently.

If you have no experience with platforms like Monefit SmartSaver, but are familiar with P2P, you may be surprised by the ‘lack’ of lending. There is no view of your loans granted, repayment dates or anything similar. This is because you are not investing in individual loans, but in the Creditstar Group portfolio.

More precisely, you make your money available to the company that uses it for lending. You have no influence on the place, time or for which specific loans your euros are used. In return, however, there is a solid seven per cent interest rate and the promise to get your deposit back at any time. The deal is clear: you forgo some of the high interest rates that are possible with P2P lending and don’t have to worry about anything in return. You can also withdraw your money at any time.

According to Monefit, it has a very strict selection process when granting loans: only around 30 per cent of people who apply for a loan are accepted. In this way, the aim is to keep default rates low and the company’s profitability high – which has always worked extremely well in the past.

What’s behind Monefit

The Creditstar Group was founded in Estonia back in 2006. Since then, it has achieved considerable success in eight different countries and with several loan products. One such product was Monefit: experience at the time showed that easily accessible, modern online solutions for P2P lending were the future.

Monefit has already gained more than 1.2 million customers through simple registration and lending and currently manages a loan portfolio of more than 200 million euros. With SmartSaver, a new business segment has been specifically tapped into: Investors who don’t want to tie up their money for the long term, but are still looking for solid interest rates.

Monefit’s company data and experience are impressive.

The Monefit team has a wealth of experience in the financial and P2P market. CPO Kashyap Shah alone has been active in the field of consumer loans for 22 years and has already worked for some of the world’s largest banks. He answered my questions in an extensive interview.

The Creditstar Group can confidently be described as one of the oldest and most important companies of its kind in Europe: it has been active in its home country of Estonia for 17 years and has always been profitable since its launch. This is a special feature of the P2P market, as many competitors are still in the red even after a decade of lending! The group repeatedly issues bonds for financing purposes, which are readily bought up by investors. With Monefit SmartSaver, however, the aim is to establish a more favourable method of raising capital.

The Monefit platform

Based on my personal Monefit experience, I will only analyse the platform very briefly. Because there are no individual lending, setting options, secondary markets or similar with SmartSaver, there is no need for an extensive explanation here! It really is extremely simple to use.

In my experience, Monefit is one of the best-designed websites compared to other providers. Although the design has no influence on security, interest rates or other important values, the attention to detail and the great effort put into graphics and the like is, in my opinion, a sign of the money and energy invested in the project.

Registration

The registration process is extremely simple. Once you have created an account and confirmed your identity, you can deposit money by bank transfer. Once the capital has arrived, no further steps are necessary to generate interest.

Monefit SmartSaver utilises the experience of the P2P platform Lendermarket for its infrastructure. This has a positive impact in various areas. You will also come into contact with Lendermarket when depositing your capital. Only residents of the EU and Switzerland can use Monefit’s services. You must also be at least 18 years old and have your own account.

Utilisation

Monefit makes it difficult for analysts like me, because what can I say about using such a simple platform? You have a sleek and attractive dashboard where you can see how much capital has already been accumulated.

My dashboard: Clearly organised and with just two functions.

The only two functions that are immediately visible: Depositing and withdrawing funds. A minimum of 10 euros is required to top up your account. For withdrawals, on the other hand, a minimum amount of 50 euros is required. But don’t worry: if you have less in your account, you can withdraw the entire amount at once.

Once you have registered via my link and secured the bonus, you also have access to a refer-a-friend programme. It is one of the most attractive on the market: you receive 2% extra interest on your investment in the first 60 days!

Interest rate

You do not have to invest your capital manually after you have transferred it from your account. Your assets are invested immediately and earn interest accordingly. In my experience, Monefit does not have a function for storing capital in your account but not using it – but it wouldn’t make sense!

Monefit pays interest daily. The higher the interest frequency, the better our return. Daily interest is ideal, annual interest is less attractive.

Additional functions

Monefit SmartSaver is extremely easy to use as there are no settings or additional functions. Due to the automatic investments in the Creditstar portfolio, we do not have to manage the loans ourselves. Deposits and withdrawals are the only services offered by the platform. The only extras available are a tax report for the tax office and the Freune advertising programme.

Monefit Vaults

Monefit now has a special new project called Monefit Vaults. You know that you don’t need some of your money for a few months? You can put it to good use!

The Vaults project, which means ‘safe’ in German, has been launched
As the name suggests, it is said to have similarities to a bank, or more precisely, to a fixed-term deposit account

Monefit Vaults offers up to 9.96% with a term of 3, 6, 9 or 12 months and slightly more interest, but the money can no longer be withdrawn daily, but is tied up for a fixed period. Important: If you still want your money before then, there is no interest on it!

This definitely sounds like an attractive option, but you should also be aware that, unlike a bank, there is no deposit protection. This makes the investment significantly riskier than with a bank or broker.

Fixed-term deposits are usually used to invest money that investors do not currently need, such as financial reserves. Due to the higher risk, you should not invest your security component in this way. Instead, you can invest a portion in Monefit Vaults, which is reserved for P2P lending, i.e. your return component.

I find the project exciting because interest rates on the largest platform for P2P lending in Europe, Mintos, are currently falling for many lenders. Another reason in favour of Monefit Vaults is that investors can secure the high interest rates over longer periods of time.

Collateral and risks

A P2P investment is only as good as its security – the highest interest rates are useless if you never get paid! The Creditstar Group has a long track record of providing investors with a sense of security, but what about Monefit?

Regulations

In terms of regulation, the picture is mixed: Monefit itself is not monitored or regulated by any financial authority. This is not ideal, but by no means a cause for concern! As the parent company, the Creditstar Group is subject to financial supervision in all countries in which it lends.

The Creditstar Group is regulated in all eight countries, but Monefit itself is not.

This at least gives us as investors the certainty that the parent company is acting according to the rules. As we are investing in the Group’s experience and success via Monefit SmartSaver, this is probably the most important aspect. Nevertheless, regulation of the platform itself would be desirable in the future.

Reports and annual financial statements

The Creditstar Group informs investors extensively about current business figures and developments. However, it does not do this purely out of kindness, but is obliged to do so: As the company issues bonds, it has to fulfil high requirements in terms of transparency and communication.

This is ideal for us as investors, as we can take a look at the independently audited annual reports or interim reports at any time. As with all P2P providers that only invest in the products of a single loan originator, the condition of the parent company is crucial! There is currently no cause for concern here, as the business model is proving to be very resilient with a profit of more than 5 million euros in the COVID year 2021.

Repayment problems and debts

The Russian attack on Ukraine shook the financial markets. The number of new investors declined and the Creditstar Group decided to take a cautious course: it could have repaid the liabilities to the investors who had invested via the P2P platform Mintos, but this would have jeopardised its own future. Together with Mintos, they therefore decided to suspend their obligations and developed a repayment plan.

The more than 8 million euros that Creditstar still has to repay will now be reimbursed bit by bit. The company is currently transferring at least 300,000 euros every fortnight. The suspended lending is also subject to a hefty 18 per cent interest rate, which should sweeten the wait for investors.

Although it is still too early to make a reliable prediction, it looks as if Creditstar has overcome the crisis. The prospect of a full repayment for investors seems quite good at the moment. Nevertheless, the company’s reputation has taken a hit: some investors are angry because of the longer waiting period and are not being reassured by the higher interest rates.

How does the situation affect Monefit? In my experience, the state of the parent company is much more important for the platform than opinions and events on other platforms. After all, investors in Monefit SmartSaver are investing directly in the Creditstar Group. An investment is therefore only recommended for people who believe in the positive development of the company. I am one of those people, because the repayment strategy and the Group’s growth trajectory look very positive to me!

Guarantees

The terms of use of Monefit SmartSaver explicitly exclude financial claims against the company. This means that there is no guarantee that the promised interest will actually be paid out or that it will be available at the desired time.

The terms of use contain the suspicious point 7.8, which states that the promised return is not guaranteed.

Is this a standard Monefit security clause? In my experience, such exclusions are quite common; the wording chosen and the answer given by CPO Kashyap Shah in the interview did not give me the impression that the company wants to keep a back door open here. Competitors also have such or similar clauses in their general terms and conditions.

My Monefit experience: Clear advantages and disadvantages

While my experience with Monefit SmartSaver has been positive so far, some minor issues remain. The following advantages and disadvantages stand out particularly clearly:

Advantages

With Monefit SmartSaver, you are investing in a group with extensive experience and sustained success. Even in the crisis year 2020, the group achieved a return on equity of 18 per cent and now manages a portfolio of over 200 million euros!

This means that insolvency – the greatest threat to our investment – is extremely unlikely in the near future. However, if the worst were to happen, there would be so much capital ‘up for grabs’ due to the huge volume that investors could hope for a repayment or two.

Monefit offers you a solid interest rate of currently 7-9 per cent. Although this is rather low in the P2P sector, it is still significantly more than you would receive with fixed-interest products. The stock market can also outperform this figure, but it also requires significantly more time and attention from you!
Liquidity is very good at Monefit: you can withdraw your capital at any time and then, according to the company, you have to wait around 10 days for the money to arrive in your account. I myself have not yet had any experience with the payout from Monefit, as I would like to continue saving here and increase my investment.
The platform is super easy to use. It is clearly laid out and is limited to the two main functions: Depositing and withdrawing money. A tax report can also be created at the click of a mouse. The website is also available in a German version.
Creditstar offers comprehensive transparency in the form of audited annual reports and other key figures.
In my experience, Monefit SmartSaver currently has the best referral programme: you and the person you refer can earn up to €1,000 each!

Disadvantages

The parent company Creditstar has decided to temporarily suspend repayments via Mintos for safety reasons during the COVID crisis. These loans are now being repaid bit by bit. Although investors are receiving excellent interest rates throughout this period, many investors are annoyed.
The Monefit platform is not regulated or monitored by financial authorities, whereas the loan originator Credistahr is
There is no security or control for investors. Invested capital is made available to the parent company and can be utilised by it as it sees fit. As an investor, we cannot choose which regions, type of lending, etc. we want to use. The return is also dependent on the success of the Creditstar Group. This makes it very easy to use, but can also have a restrictive effect.

Conclusion: My Monefit experience has been thoroughly positive

Monefit SmartSaver creates a very attractive niche for itself with its seven per cent interest rate and high liquidity thanks to daily availability. Simple operation and very low effort – no need to select any lending or make any settings – make the offer even more attractive.

At Monefit, we rely on the experience of our parent company Creditstar, as our capital is invested here without us being able to influence it. What is initially unusual for many ‘old hands’ in the lending business ensures very simple operation and a high degree of flexibility.

The company itself is very successful and manages a huge portfolio of more than 200 million euros. However, loan repayments on Mintos were temporarily suspended during the COVID crisis. This understandable step, which in retrospect proved to be the right one, angered many investors.

However, the company is settling its debts as planned and paying investors extremely good interest for the waiting period. The Creditstar Group was very successful even during the crisis and is recording steady profits. However, there is always a certain residual risk with P2P lending.

Based on my previous Monefit experience, I think the SmartSaver is an exciting offer. The interest alone is not the most important selling point, as other platforms offer significantly more. However, together with the high liquidity, this creates an extremely exciting offer that should find many supporters.

FAQ – Frequently asked questions about Monefit SmartSaver

1. Is Monefit SmartSaver reputable?

Monefit is part of the Creditstar Group, which operates in eight countries and is regulated in each. The platform itself is not monitored, but appears to be reputable. Loopholes in the terms and conditions are a cause for concern.

2. Is Monefit SmartSaver legal?

Investing in P2P lending such as Monefit SmartSaver is generally legal. However, profits must be taxed correctly (usually withholding tax + solidarity surcharge)

3. How high is the risk with Monefit?

Monefit is part of the Creditstar Group, which is still carrying huge debts on other platforms. This creates an additional risk for investors. Overall, however, the signs are pointing to an improvement and the group remains lucrative.

4 Who is behind Monefit SmartSaver?

Monefit is a company of the Creditstar Group. It has been successfully active in the P2P sector since 2006. It records high profits and manages a large portfolio of more than 200 million euros!

About our author

Aleks Bleck is the face of Northern Finance and was already a shareholder, lender and ETF investor at the age of 18. His focus is on P2P loans and passive ETFs. Aleks founded Northern Finance in 2017 while studying business administration in Lu00fcneburg.

He built up the YouTube channel alongside his main job in investment and corporate banking before finally focusing full-time on Northern Finance.

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