Monefit SmartSaver Review Summary
Monefit SmartSaver is a newly launched platform that aims to raise additional funds for the troublesome lending group Credistar. Credistar systematically delays repaying investors.
Main Takeaways From Our Monefit Smartsaver Review:
- No transparency
- No performance-oriented data
- Recently launched platform
- Made for "uneducated" investors
Due to Credistar's non-fulfillment of its obligation to investors, we don't suggest using Monefit SmartSaver, as the risk and return ratio isn't correct.
What Is Monefit SmartSaver?
Monefit SmartSaver is an investment product developed by Creditstar and supported by Lendermarket.
This tool promises up to 9.96% interest per year depending on your desired lock-up period.
In this Monefit review, we will dive deeper into the platform so you can decide whether an investment in Monefit is worth it.
Pros
- Easy to use
- Fixed return
- Loans from an audited finance group
- Somewhat higher liquidity
Cons
- No securities
- No transparency
- €50 minimum withdrawal amount
- No performance-oriented data
- "black box" type of investment by an unreliable lender
Monefit Bonus
Monefit offers a 2% bonus for new investors. Due to the extremely poor performance of Credistar's loan book, we don't recommend our readers to participate in any of Monefit's promotional campaigns.
Risk & Return
Depositing money on Monefit is connected to extreme levels of risk. This platform is not a traditional P2P lending platform nor a marketplace.
It's a tool that is supposed to provide additional funding to Creditstar, a lender that is not honoring its obligations towards investors.
Credistar Group may use those funds to fund their loan portfolios in various markets or fund other ventures.
Monefit's website shows that the funds will be used to fund consumer loans issued in Europe. How exactly your deposits will be used is unclear.
Creditstar's Loans
Credistar Group is a well-established and audited lending group in Europe, lending money to European borrowers. The lender is active in Spain, the UK, Sweden, Denmark, Poland, the Czech Republic, Estonia, and Finland.
While Credistar reported a profit in its audited annual report for 2021, the lender's approach to fulfilling its obligation towards investors is more than "flexible."
Credistar is also funding its loans through Mintos and Lendermarket. Investors who used those platforms experienced significant payment delays, where Credistar refused to pay back investors as they lacked the liquidity needed to fund its loans.
Matured investments on Mintos were moved into "pending payments," and investments on Lendermarket were extended.
This increased the risk for investors and significantly impacted their liquidity.
While both P2P lending marketplaces promote Credistar's loans with the highest rates, investors aren't happy with the lender's approach and the nonfulfillment of the buyback guarantee, which the lender promised on Mintos and Lendermarket.
The reason for Creditstar's "liquidity issues" might have been the lender's aggressive lending practices and the unexpected volatility in funding.
Poor liquidity management and aggressive premium pricing for investors are reasons you should avoid investments in Credistar.
To generate more profit, the lender has to issue more loans and get more funding.
This might be why the financial group launched yet another "funding source" - Monefit SmartSaver.
Monefit SmartSaver is a simple product that shall provide additional funding to Credistar. The product promises a 7% APY with a high level of liquidity.
Investors should be informed that there is no transparency about how the deposits will be used, nor are those deposits backed by any buyback or group guarantee.
The goal is to market this product as an alternative to Bondora's Go & Grow account, another "black box" type of investment.
The yield on Monefit SmartSaver
The investment site promotes a 7% interest rate per year. The interest will be added to your account daily. The platform also offers a 2% cashback bonus for newly registered users.
This yield is "fixed" for the time being. It's unclear whether the platform will amend the interest rate in the future.
We believe this will depend on the market conditions and the demand from investors.
Investors should be aware, however, that the 7% APY isn't a guaranteed rate and that the platform is not guaranteeing any specific returns at all, as you can learn in its terms and conditions.
By investing your money in Monefit SmartSaver, you essentially agree to invest in a company that doesn't provide insights into its loan book performance, nor does it honor the obligations towards investors on platforms like Lendermarket or Mintos.
Is Monefit SmartSaver Safe?
Investing money into a black box is never a safe practice. Despite Creditstar being a regulated and audited company, it doesn't mean investments in unsecured loans are safe.
Who leads the team?
Credistar operates the website. According to our knowledge, Kashyap Shah is the Chief Product Officer in charge of the development of Monefit.
Who owns Monefit?
Monefit is owned by the Credistar Group, whose beneficial owner is Aaro Sosaar. Creditstar Group is regulated in local jurisdictions and audited by KPMG.
Are there any suspicious Terms and Conditions?
Before you create an account, we highly encourage you to study the terms of use, so you are fully aware of your rights before depositing money.
7.8 No Specific Return
Monefit SmartSaver is very clear that the website isn't promising or providing a guarantee for a return. When depositing money on Monefit, you waive any claims against Monefit Card, the company operating the website.
8.3 Restricting access to your account
It's important to highlight that Monefit can restrict access to your account at its discretion.
16.3 Liability waiver
If you decide to deposit your money through Monefit Smartsaver, based on the promoted terms and conditions, you should know that Monefit Smartsaver isn't liable for any damage or losses.
12.5.3 Distribution of information about SmartSaver is forbidden
Suppose you share any information about Monefit SmartSaver you gathered on their website. In that case, you can't do so without written consent from Monefit Card (the legal entity behind Monefit SmartSaver).
Amendments
The platform may change its terms and conditions by notifying you four weeks in advance.
You can review the full document here.
POTENTIAL RED FLAGS
- The lending group isn't honoring the repayment terms nor the buyback obligation on other P2P lending marketplaces.
- There is no proper underlying structure behind Monefit's operation
- Terms can be amended at any time to protect Credistar's interest
What's Our Opinion Of Monefit?
The terms and conditions of the platform don't give investors any rights.
Some clauses are absurd (compared to some T&Cs by other platforms), which also used to be the case with Lendermarket's T&Cs when the platform launched in 2019.
The product itself could be interesting if the platform would give insights into the allocation of funds or at least provide some guarantees. Investors don't get either.
A 7% interest rate for investments in unsecured consumer and short-term loans with advertised high liquidity might not be the best risk and return ratio.
The liquidity aspect and simplicity are the two main value propositions that may convince some investors to join Monefit and earn the advertised yield, which is not guaranteed.
The platform promotes a withdrawal time of up to ten days.
Bondora's Go & Grow account processes withdrawals within seconds (for smaller amounts).
Even P2P lending platforms such as Esketit and Robocash will likely allow you to withdraw a significant portion of your portfolio within five days, should you choose to use the secondary market.
Only time will tell whether the promised return and liquidity will sufficiently acquire investors.
However, we would not be surprised if Monefit SmartSaver somehow decides to block users' funds, as is the case on Mintos or Lendermarket (through loan extensions).
We believe Monefit was launched to attract "dumb money" from uneducated and naive investors, so we don't recommend this platform to our readers.
Usability
Monefit SmartSaver is extremely easy to use. After you have created your account and verified your identity, you can deposit funds to the platform.
There is no further action required from your end. The website offers a basic dashboard for a quick overview of the deposited amount and the interest rate.
You can also access account statements, an excellent tool for insights into your interest payments.
The platform doesn't withhold any taxes from you. You have to report your earnings to your local tax authority.
Liquidity
Monefit promises to process withdrawals within ten days. This may or may not be honored.
Additionally, payments can be delayed by one to three business days, depending on the time of your withdrawal request, bank holidays, and the bank receiving the funds.
However, we have not tested this feature as the risk and return ratio on Monefit is incorrect.
Support
As Lendermarket supports this platform, you can expect the same quality of answers.
The platform offers a basic FAQ page to learn more about the service.
Additionally, you can use Live Char or their email to reach out with concrete questions.
Monefit SmartSaver Alternatives
Monefit SmartSaver is a simple investment product for uneducated investors. Unfortunately, there is not much information about how your funds are used.
If transparency is an essential criterion for you, you should consider some alternatives instead.
Esketit
Esketit is one of the most reliable P2P lending platforms in 2024, offering up to 12% annual interest. If you want to invest on a transparent and legitimate platform that offers investments in loans from audited lenders, Esketit is a good fit for you.
The platform pays out interest every month, and with Esketit's investment strategies, you can withdraw your money within just a few hours during normal market conditions. Esketit offers, on average, 5% interest more on your money.
Use our compound interest calculator to determine how much you will make with Esketit. To learn more about this platform, read our Esketit review.
Fintown
One of the most interesting features of Monefit SmartSaver is the compounding interest, which is added to your account daily. Fintown also adds a compounding interest to your account, but you can access it only at the end of the month.
The Czech-based platform offers between 10% and 12% interest on your investments that are being used to fund rental units in the city center of Prague. As an investor, you know exactly how your funds are being used.
Additionally, you can generate 3% to 5% more interest on Fintown than with Monefit SmartSaver. Learn more about this unique platform in our Fintown review.
Income Marketplace
If liquidity isn't your most important criterion, Income Marketplace could be an excellent alternative to consider.
The Estonian-based platform offers up to 15% interest for investments in loans in Asia or America. Investing in Income Marketplace requires you to commit your funds for at least one month as no secondary market is available.
Income Marketplace pays up to double the interest rates compared to Monefit. Your funds are backed by a buyback guarantee which isn't the case with Monefit SmartSaver, which does not offer any securities. Learn more about Income in our Income Marketplace review.
