The idea is to bypass banks and match investors with their ideal borrower. Rates are great, but it can be risky. Now George Osborne has provided a safety net Some savers, disillusioned with low rates, will be thinking about giving peer-to-peer lending a go after the chancellor announced tax changes which could boost the returns. It is more risky than putting your cash into a traditional savings account because peer-to-peer isn’t covered by the official Financial Services Compensation Scheme, though most of the websites have alternative safeguards. But many people have been prepared to live with that because of the higher returns – up to 15%.

http://www.theguardian.com/money/2014/dec/06/savers-peer-to-peer-lending-bad-debt-relief-risks