Twino vs. Mintos
Twino has been serving me well over the past 1½ years. I have been able to get a 13.58% Return (XIRR) since I started. About 6 months ago the interest rates started dropping from 13-14% to 12% and now 10-11%. On top of that, the 11% loan availability has been relatively low. If you only use the Auto-Invest setting, often the funds will not be reinvested for several days. I have not been overly happy with that, given the large amount invested.
I’m moving my funds to Mintos because they offer higher loan volumes and higher interest rates. 14% interest rate with buyback guarantee is not uncommon at all. Additionally they’re offering up to 5% cash back on all long-term investments made in December. Click here to read the official blog post. Investing 10.000€ will give me an extra 500€ right off the bat. Not bad!
If you use my referral link, you will get an additional 1% on all investments made in the first 90 days. If you have not yet invested in Mintos, this is a very good opportunity to get started.
But what about my children’s savings account?
I used Mintos as my children’s savings account. I like to have their funds in a separate account so things doesn’t get mixed up. Now that I’m moving to Mintos , I will use Twino for my children’s savings.
To compensate for the lower interest rates, I decided to leave 1.600€ on Twino to them. They had just below 1.200€ on Mintos so the extra 400€ is a nice little addition to their long-term investment. The Twino portfolio now consists of 1.100€ defaulted PG loans, 300€ loans with buyback guarantee and 200€ good performing loans without buyback guarantee.
The law of polarity
One of universal laws is the law of polarity, or law of opposites as some likes to call it. There’s always two sides of the same coin. When something is bad, by law, something must be equally good.
The good thing about low loan volume on Twino is the high liquidity on the secondary market. I was able to liquidate me and my sisters accounts, close to 17.000€ in loans combined, in a couple of hours. There is no fees for selling on the secondary market. Those things combined made the partial exit from Twino a very smooth experience.