P2P investments
The investor finances or acquires a claim linked to a loan. Contract structure, platform role and regulation vary. The main risks are credit, platform, operational and liquidity risk.
P2P Investments vs ETFs and Bank Deposits
P2P investments, exchange-traded funds and bank deposits serve different purposes. A useful comparison considers what the investor owns, how results are generated, when money is accessible and which protections apply.
None is automatically “best”. Suitability depends on the objective, horizon, liquidity needs and capacity for loss.
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What is each instrument?
ETFs
An exchange-traded fund follows a strategy or index. Its holdings may be broad or highly concentrated. Market value fluctuates, while liquidity depends on the fund and trading conditions.
Bank deposits
A contract with a bank to hold money at an agreed rate and term. Eligible deposits may be protected by an applicable deposit-guarantee scheme, while inflation can reduce purchasing power.
P2P, ETFs and deposits using the same criteria
The table compares characteristics, not promised returns. Individual products can differ materially from these general descriptions.
| Criterion | P2P | ETF | Bank deposit |
|---|---|---|---|
| What you acquire | A claim or instrument defined by the contract | Shares in a fund following a strategy | A contractual claim against the bank |
| How results are generated | Interest and repayments minus arrears, losses and costs | Market-price changes, distributions and costs | Agreed interest minus applicable fees |
| Main risk | Default, originator or platform failure, weak liquidity | Market, currency, concentration, liquidity and tracking risk | Bank exposure above protected limits and inflation risk |
| Capital protection | No capital guarantee; buyback is not a state guarantee | No protection against market losses | In the EU, eligible deposits are generally protected up to €100,000 per depositor per bank under the legal conditions; rules elsewhere vary |
| Liquidity | Depends on repayments, secondary-market demand and terms | Trades during market hours; volume and spreads vary | Depends on maturity and early-termination rules |
| Typical horizon | Matched to loan terms and possible delays | Depends on assets and strategy; often multi-year | Until maturity or under on-demand account terms |
| Costs | Fees, FX, sale discounts and credit losses | Ongoing charges, brokerage, spreads and FX | Account fees and early-termination conditions |
| What to check | Licence, contract, originator, arrears and insolvency process | Index, holdings, costs, size, liquidity and currency | Bank, guarantee scheme, rate, term and fees |
When can the comparison mislead?
A high rate is not a net return
P2P arrears and losses, ETF price declines, and deposit fees and inflation can all change the final result.
Liquidity is not equal
A secondary market, exchange trading or early withdrawal does not mean money is always available immediately and without loss.
The label does not define the risk
Two ETFs, P2P offers or deposits can have very different assets, contracts, costs and protections.
Compare your own scenarios
Use the calculators for indicative comparisons of returns, time and allocation. Enter your own assumptions and include a loss or delay scenario.
Open the P2P toolsSources and further checks
Important warning: ETFs and P2P investments can result in partial or total capital loss. Liquidity and returns are not guaranteed. Deposit protection applies only to eligible deposits, under the relevant legal conditions and limits. This information is educational and is not investment, legal or tax advice.