Go & Grow - Bondora's most popular and trusted service!
Go & Grow is Bondora’s most simple, efficient, and trusted investment service. Whether you’re a retiree living in the Estonian countryside or an 18-year-old student in Berlin who’s new to the world of investing, Go & Grow will help you to achieve your goals.
Herein lies a step by step explanation as to the setup and use of Go & Grow. We’ll also show you how it differs from our other products. Take your time and read each of the following points carefully, as you’ll find plenty of new and useful information.
What is Go & Grow?
Go & Grow works as easily as (if not easier than) traditional investment methods whilst giving you an impressive return of 6.75%* p. a. You simply add money to the account, then you can view and track your return on a daily basis. What’s more, there is no minimum term to hold your investment— meaning you can liquidate your account with ease. Sounds like your cup of tea? There’s more.
For years, there has been a huge investor demand for a product that is simple, has a reliable net return, and is offered by a trusted platform. Go & Grow opens up peer-to-peer (P2P) investments to the world. It offers key benefits that our existing products (Portfolio Manager and Portfolio Pro) do not offer. More specifically, it appeals to those who want “no-hassle” investing with low risk, faster liquidity, and automated features.
Go and Grow is for the dreamers. When you create a new Go & Grow account, you have to set a goal and a purpose. The purpose of your investment may be a large purchase such as a wedding or a new car (lucky you!), a trip around the world, early retirement, or something completely unique. Our goal-setting feature is there to help you determine how much money you want to accumulate and by what date. Go & Grow will keep you updated as to whether you are on track to achieve your goal or if you have fallen behind.
Reasons to use Go & Grow
The P2P industry has gained enormous popularity over the past few years. However, some investors have felt excluded from the incredible opportunity due to thinking they lack enough experience. No matter your experience level, Go & Grow offers market-leading benefits for all:
- 6.75%* p.a. return
- Faster liquidity, meaning you can cash out your investment with minimal effort
- Lower risk than our existing products, achieved via a diversified portfolio of investments backed by advanced and reliable technology
- You only pay taxes when you make a withdrawal over your initial capital investment
- You can transfer your existing Bondora portfolio to Go & Grow
- You can set up an auto-transfer from your existing portfolio to Go & Grow, which is useful if you want to reinvest your cash flow into a place where you have quicker access to your money
- There is a flat withdrawal fee of €1, regardless of the size of the account
- No annual management fees
- Share your account access and invest with people you trust to achieve a common goal
- Ideal for beginners, as no previous investment experience is necessary
- No secondary market transactions required
- Automated features
What is the difference between Go & Grow and our existing services?
A fundamental difference between Go & Grow and Portfolio Manager or Portfolio Pro is the liquidity. If you’re looking for a short-term product in which you can liquidate your investment quickly, this is difficult to do with our existing products. First, you must list your loan portfolio for sale on the Secondary Market for other investors to purchase. They then will take over your loan at the price you set for the remaining loan duration and you receive the sale price to your Bondora account. The speed of this sale depends completely on investor demand.
When you use Go & Grow, you do not invest directly in specific loans—instead, you invest only via Bondora and we take care of the heavy lifting. If you already have investments with Bondora, you have the option to sell this portfolio to your Go & Grow account (this is discussed in more detail below). A downside to using Go & Grow compared to our existing products is that it’s likely you will achieve a lower net return (6.75%* p.a.), dependent on the strategy and filters selected in Portfolio Manager and Portfolio Pro.
More about the net return of 6.75%* p.a.
Bondora’s business continues to be in personal loans—however, with Go & Grow, we are simplifying the whole process so you don’t have to worry about the duration of loans. Because this also lowers your risk and because the average net return on Bondora consistently has been over 9% p.a., we offer our Go & Grow investors a competitive rate of 6.75%* p.a.
The net return is up to 6.75%* p.a. and Bondora has no claim on any returns generated above the rate of 6.75%* p.a.—instead, this will be reinvested and added to reserves in order to ensure the continuous net return of 6.75%* p.a. and to support faster liquidity for investors. That being said, the net return of 6.75%* p.a. is not guaranteed.
Settings and functions of Go & Grow
Now that you know Go & Grow is —for the majority—quite hands-off, you may be wondering if there’s anything you can do yourself on the account. So let’s talk about some of the interesting features you have access to within your Go & Grow account.
We want you to enjoy investing, which is more likely to happen if you know what you regularly spend your hard-earned money on. To make sure you don’t lose sight of the reason for your investment, you have to set a purpose for each Go & Grow account you create (you can create multiple accounts for different purposes). You can choose from some of the most common reasons for investing; retirement, a large purchase, extra income, your children’s future, a rainy day, and travel.
Perhaps you have several reasons and purposes for investing in mind. No problem—just create multiple accounts within Go & Grow (or “sub-accounts”) which will be independent of one another. You may also have a goal that you wish to pursue on your own and one that you wish to pursue with your friends or family members (which we’ll talk about in more detail later). For example, you may want to invest for the purpose of your child’s future university costs with a family member (or birthday gifts made easy) and invest independently for a large upcoming purchase you are planning. All of this can be achieved—and achieved easily—with Go & Grow.
If you are a runner and decide to participate in a race, you will have a clear goal in mind—the distance you need to run and the way you’ll get there. Otherwise, it proves difficult to pace yourself and implement a plan to achieve this goal. You cannot sprint the distance of a marathon and the same goes for investing—creating a strategy and sticking to it is crucial to achieving your goals.
To put this into Go & Grow perspective: you enter your starting capital amount, the amount you plan to invest monthly, and the duration of time for which you plan to invest. We then combine this with our offered return rate to give you the “potential gain” figure.
If you’re unsure of the amount you can start with or how much you can afford to invest each month, you’re not alone. To get started, try and visualize the moment you achieve your goal and then start working backward from there. Try to think of a realistic amount you can afford to start with and invest each month, whilst keeping on top of your bills and enjoying yourself along the way.
How do you add your existing investments?
If you’re already a Bondora investor, you can transfer your existing investments to your new Go & Grow account. It’s important to remember that it’s likely you will achieve a lower net return using Go & Grow. However, there are plenty of other benefits (as discussed above) you will have access to, such as cashing in your investment at short notice.
To transfer your existing investments, click on the settings wheel visible on your Go & Grow account and then select “Add existing investments.” Next, you will receive an offer from Bondora to liquidate your existing portfolio based on the current portfolio value. It is possible that you will be offered a lower amount due to—for example—defaulted loans in your portfolio. If you accept the offer, Bondora will transfer your portfolio to your Go & Grow account and you can start earning right away.
Before proceeding, think carefully if this is the right decision for you as the decision cannot be reversed once you accept the offer.
If you’ve already sold more than 25% of your existing investments on the Secondary Market yourself, Go & Grow cannot take over your whole portfolio (including defaulted and overdue loans). However, you will still receive an offer which you can review before choosing to proceed.
Making a withdrawal
With Go & Grow, there is no need for you to manage any individual loans. This means you do not have to sell your loans or wait until the end of the loan durations to cash out your investment. You can request to liquidate your investment at any time simply by clicking on “Withdraw.”
Regardless of your portfolio size, we charge a flat €1 fee each time you withdraw money from Go & Grow to your main Bondora account.
After that, the money will be visible on your Bondora dashboard in the “Available funds” section, ready for you to withdraw to your bank account or invest via our other services. At this point, you should pause your Portfolio Manager or Portfolio Pro to ensure your funds are not invested. Alternatively, you can change your “spare cash balance” to the amount you plan to withdraw if you do not want to pause Portfolio Manager or Portfolio Pro.
Adding money to your account
There are several ways you can add money to your Go & Grow account:
- The blue “Add Money” button below the account allows you to transfer a specified amount from your main Bondora account to Go & Grow. You can also choose another method such as SEPA, Transferwise, and more to add money to your Go & Grow account.
- The green “Add Money” button in the main menu list allows you to add money to your main Bondora account (and not specifically Go & Grow).
- The auto-transfer option, if enabled, will automatically transfer all available money in your main Bondora account as well as any future cash flow to your selected Go & Grow account. Keep in mind that when you select this option, the money will no longer be available for Portfolio Manager and Portfolio Pro to invest. However, if your plan is to only use Go & Grow, then this is a fantastic feature.
Invite the people you trust
Go & Grow is unique to our other services, as you now can invest in cooperation with your friends and family members. Together, you can invest for that holiday to Fiji you have been dreaming about, for your children’s future university fees, or toward a new home.
To add authorized users to your Go & Grow account, click on the blue arrow in the upper right-hand corner of your account next to the settings wheel. You will then see the option “Invite to Go & Grow” appear. Once you click on this, enter the name and e-mail address of the person with whom you want to start investing. You can also select whether you want to grant this person the authority to withdraw from the account. You should only enable this feature for the people you trust.
The tax treatment is different for Go & Grow compared to our other products, which is why you can download a separate tax report specifically for Go & Grow. To get started, click on the “Go & Grow tax report” below your account on the Go & Grow page, specify the period, and select whether you want to include accounts with other authorized users in your report. Then click on “Create report.” After that, you can immediately download your report as a PDF.
Do you have any questions?
We hope you’ve found this guide useful. Now you should feel confident enough to put your plans into action and start investing in Go & Grow today.
If you have any questions, reach out to our Investor Relations team who provide first-class support in English, German, Estonian, and Russian. Send them an email at [email protected] or give them a call on +44 1568 630006.
*As with any investment, your capital is at risk and the investments are not guaranteed. The yield is up to 6.75% p.a. Before deciding to invest, please review our risk statement or consult with a financial advisor if necessary.