Exclusive: iPad mini 2 and up to 6.32% pa with Wellesley & Co

 Wellesley & Co has teamed up with MoneySuperMarket to offer new customers an iPad mini 2.

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Lend £3,000 or more for at least three years in the next few weeks with peer-to-peer lender, Wellesley & Co - exclusively through MoneySuperMarket – and you’ll receive an iPad mini 2*.

This is on top of earning a cracking interest rate.

Be aware this product is not the same as a savings account, so there is a risk you may lose some or all of your initial investment.

The basics

New customers who commit £3,000 or more to one of Wellesley & Co’s fixed rate term accounts via MoneySuperMarket by 5pm on December 11 will receive a brand new iPad mini 2*, worth £219.

To take advantage of this exclusive deal, you’ll need to commit your funds for either three years or five years, and in return you’ll receive an interest rate of up to 6.32% per annum (pa).

You can choose whether to have your interest paid monthly or on maturity, as highlighted below:

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Once you have committed your funds, your iPad mini 2 will be delivered to you within 21 working days. T&Cs apply.

Is this for you?

Wellesley & Co is a peer-to-peer lending platform which means it takes money from savers and lends it directly to borrowers, cutting out the need for banks or building societies. It specialises in asset-backed lending to small businesses and individuals, so the funds you pay to Wellesley may, for example, be loaned to investors in residential property.

Therefore, if you’re looking for a new way to earn a better return on your savings and are willing to try something outside the realms of traditional ISAs and savings accounts, this offer from Wellesley & Co could be worth considering.

Just ensure you are aware of – and are happy with – the potential risks of investing your money this way.

You’ll also need to be prepared to tie up your cash for three years or more and have at least £3,000 to invest.

What makes it special?

There are two things that make this offer special.

Firstly, savers have the opportunity to earn a much higher rate of interest on their cash than they would do with a traditional savings account.

For example, one of the highest paying fixed rate bonds is the Secure Trust 5 Year Bond which only pays 3.11% AER fixed until September 30, 2020. You’ll need at least £1,000 to invest.

Secondly, providing you commit your funds before December 11, you’ll receive an iPad mini 2. Just remember your iPad mini 2 will be delivered within 21 working days of committing your funds, so if you’re thinking of giving it to someone for Christmas, you’ll need to plan ahead.

Watch out for

As mentioned, to qualify for the iPad mini 2 offer, you must be a new Wellesley & Co customer and have transferred £3,000 or more in to one of Wellesley & Co’s fixed rate term accounts by 5pm on December 11 – this must be done via MoneySuperMarket.

The peer-to-peer lending sector has been regulated by the Financial Conduct Authority (FCA) since April 2014, which means all firms must operate under certain rules. However, your cash will NOT be covered under the Financial Services Compensation Scheme (FSCS) which protects the first £85,000 per institution (£75,000 from January) should a bank or building society go bust.

That said, Wellesley & Co has measures in place to help reduce the risk to your funds, including spreading your investment across every loan it makes. And, because all loans are secured against assets (such as residential property), if a borrower does not repay the loan, the property could be sold to recover any losses.

Wellesley & Co also offers its own ‘Provision Fund’ to recover any further losses.

Remember too that you’ll need to commit to locking up your funds for at least three years - although if you do need access to your money early, you may be able to do so through Wellesley’s Early Access Facility.

However, this will depend on whether another lender is prepared to take your place at the same rate and term, or whether Wellesley & Co has sufficient funds to buy back the loans that your money is matched to.

It’ll also mean losing out on some interest and, if you’ve taken advantage of the iPad offer, Wellesley & Co reserves the right to deduct £219 from your balance.
Finally, be aware that unlike standard savings accounts that pay interest after tax, peer-to-peer lenders (including Wellesley) pay returns BEFORE tax. This means you must declare the interest you earn in a self-assessment tax return.

What else is worth a look?

If you’re not entirely sure peer-to-peer lending is for you, you have a smaller sum to invest, or you’d prefer to be able to access your funds, another way to squeeze more out of your cash is to put some of your savings in a current account.

Many current accounts now pay higher rates of interest than the top savings accounts, and a number come with great cash incentives for switching.

For example, if you switch to TSB’s Classic Plus current account, you’ll earn 5.00% AER (variable) on balances up to £2,000, plus 5% cashback on your first £100 of contactless payments each month until the end of 2016.

You must pay in £500 or more each month and register for internet banking, paperless statements and paperless correspondence.

What’s more, if you switch to the TSB account exclusively through MoneySuperMarket, you’ll receive £125 cashback. To qualify, you must open your account by November 2 and have completed the switch by November 23. You must also pay in £500 or more within 28 days of switching and have at least two direct debits on the account.

You’ll also have access to TSB’s monthly saver account which pays 5.00% AER fixed for 12 months (after this, it converts to an Easy Saver account paying 0.75% AER (variable), including a fixed bonus of 0.55% AER for 12 months).

You can compare a range of current accounts right here.

*iPad mini 2 16GB Wi-Fi £219 RRP

Apple is not a participant in or sponsor of this promotion

Peer-to-peer lending is regulated by the Financial Conduct Authority, but your money is NOT protected by the Financial Services Compensation Scheme. There is a risk you may lose some or all of your initial investment.

Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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