Crowdfunding is doing what banks used to do – care about you. How about a hug?

How would you like to get 6% guaranteed interest without risk for your hard-earned savings?  Certificates of Deposits (CDs) are earning only about 1% at big banks. You could put it in the stock market and risk getting at most 4% to 10%.  But right now the stock market is very volatile with triple digit drops and rises. You could lose all your money.  That would be a -100% interest rate.

A safer arrangement is loaning your money to a crowdfunding company that in turn loans it to small businesses for a slightly higher interest rate.  Each crowdfunding company is the middle man of a perfectly legitimate transaction that big banks used to do.

Big banks are too busy giving 1% or less on savings while charging 26% on credit cards.  You do the math.  Big banks do not care about you at all.

Crowdfunding and crowd sourcing are really taking off as a means to raise money or get loans.  But most companies loan your deposits to small businesses.  Here is one such company.

https://lovefruitful.com/press-releases/financial-startup-waters-fruitful-seeds-for-savers-and-business-borrowers

I am not the only one talking about this.  Here is Clark Howard discussing crowdfunding.

http://www.clarkhoward.com/news/clark-howard/personal-finance-credit/crowdfunding-offers-new-twist-p2p-lending/nCtcp/

Here are two popular peer-to-peer websites that also deals with loans.

https://www.prosper.com/invest/

https://www.lendingclub.com/public/steady-returns.action

With the stock market being very volatile, now is a great time to get 6% guaranteed.