The blogger Pete at Bible Money Matters has a good review
of his investment returns and his investment strategy at Lending Club. Like Prosper, Lending Club is a person-to-person lending service that removes the bank from the process. Accounts are NOT FDIC insured. Here's an interesting excerpt from a review of his returns:
I'm still diversified by investing across a large number of loans: I’ve got over 100, with no more than $25 in each loan. That way if I do have defaults, while my return may go down, my risk will be minimized. Lending Club noted earlier this month, that 100% of their investors who have invested 800 notes or more had positive returns.
I've reviewed a few other blogger's investment returns from Lending Club
. Jonathan at MyMoneyBlog who has been tracking his returns at Lending Club
since 2007 has data showing that returns keep dropping for loans going from 1.5 to 3 years old.