Auxmoney: Investing money - is it safe? What you have to consider

At Auxmoney, loans are made by individuals rather than banks. In this practical tip, we will tell you whether you should really invest your money with Auxmoney.

Investing money with Auxmoney: how safe is that?

• With Auxmoney, almost anyone with an acceptable Schufa score can apply for a loan. A project will be created for this, which will then go online on the Auxmoney website.
• Interested investors can have a look at the project and thus know who and for what purpose their own money ends up. If enough investors have been reached to invest so that the amount of the desired loan is reached, the loan is granted.
• The risk of a loan is always calculated by Auxmoney and displayed in different risk classes. Auxmoney will automatically request the repayments and transfer them to you. You must subsequently tax the return yourself.
• The term of the loans is 12 to 60 months. So you won't find the quick money here. The full-time granting of loans at Auxmoney is also not possible. From a certain point, lending becomes commercial, but only banks are allowed to do so.

Auxmoney: Is it worth investing?

• Auxmoney promises an average return of 5 percent. However, you should only invest money that you could hurt to lose. In the worst case, even loans with a low default risk can disappear in nothing.
• As simple as it looks, you should be able to estimate the risk and return. Under no circumstances should you trust Auxmoney's statements blindly.
• Don't indiscriminately support every attractive looking project. To be able to assess the risks and opportunities, you should initially observe for several projects for several weeks. It can also be worthwhile to invest the money in several projects instead of just one project.

In the next practical tip, we will show you the 5 best alternatives to Auxmoney.