#FLODown: Octopus Choice

What is the deal? 

The Octopus Choice by Octopus Investments is a branch of the Octopus Group Company, which operates in energy, venture capital, property lending, health care, tech development and financial investments.

 Octopus Choice is peer-to-peer lending; your money is lent to different borrows, and these loans are backed against property. All loans are secured against property from the octopus property branch of the business; this means if a borrower defaults on their loan the property can be sold in an attempt to recover capital and interest. Octopus Choice has one auto investment product, thus your money is spread across multiple loans. You can track the progress of your money on the Octopus Choice App.

The Benefits

 Octopus Choice offer variable interest of 4% annually. This Interest is paid into your account monthly.

Payments and withdraws

 You can start saving from as little as £10 a month. Withdrawals can be made however you may not have access to all your funds. Money invested through Octopus Choice is concentrated in property, therefore, the availability of your funds at any given time can be affected by market conditions.

What is the Risk?

Octopus Choice is a capital at risk investment; therefore the value of your investment can fall or rise depending on the market. All of Octopus loans are in the UK property market and Octopus invest 5% of its own money into each loan which means if there is a loss on a loan Octopus will absorb a 5% loss first.  

Peer to Peer lending is not protected by the Financial Services Compensation Scheme (FSCS), thus Octopus Choice is not protected. However, Octopus Co-Lend Ltd is authorised and regulated by the Financial Conduct Authority (FCA).   

How do I sign up? 

To sign up you must be years or older, have a UK bank account and pass their verification checks.

 #FLODown:  Great for small to medium level investment, the only slight annoyance may be a certain percentage of your savings may not be available to you at a time you may want to withdraw it, for example you may be able to withdraw all but 5% of your funds because the other 5% is being invested at the time.

Octopus Choice is a capital at risk investment, there is always the possibility you may not get back the full amount you invest. Ensure that you are fully aware and on board with the risk before investing.