Everyone wants to make money while they sleep. Yet, with most banks paying under 2% interest, where should you put your money to work hard for you?! A bank paying only 2% interest means a passive income of £20 from £1,000 saved. That won’t add-up to wealth (or shoes. or handbags, or a life on the beach quickly). So, just where should you put your money with a high return passive investment that pays more than banks?

After all, the financial market may seem tricky as hell if you don’t know where to look.

We’ll help you to figure out how to earn some extra cash without any sweat! Investing in a high return passive investment is a powerful way to do that. You don’t have to be an expert; you just need to know the basics!

There are many ways to invest. Lending money to banks and financial institutions is the most common path people go, but when you do that, you’re lending money for them to lend it to other people.

To put in short words: your money is worthless when you lend it to banks because banks take part of your profit!

When it comes to passive investments, there are more creative and profitable ways to invest. You might think some high return passive investments aren’t your profile, but they’re achievable and we’ll help you with that.

Many of the examples given are of crowdfunding investments.

These types of investments in sharing economy are made towards people who don’t have the minimum amount of money to lend.

These people get together and lend the money collectively. The profits are then divided between them, according to the percentage of the initial investment.

If you want to keep your money away from the banks tiny return and on high-return passive investments, we’ll help you find out the best way by showing 5 high-interest passive investments:


  1. High Return P2P lending

Peer-to-peer lending – or P2P – is a well-known type of crowdfunding investment.

P2P, as the name suggests, enables people to invest directly to other people and/or companies. When I say directly, I mean that you don’t need the intermediation of the bank!

Remember when I told you that the bank takes part of your profit when you lend the money to it? Well, it doesn’t happen in P2P lending!

When a person is starting a business, planning a wedding or a vacation, she might need to borrow the money.

These people will borrow the money directly from you and other people’s hands.

As you won’t need to lend it to a bank first, the interests of your share will be fully yours. As the people who need to borrow the money don’t have to pay for the high interests at a bank, they’ll prefer to borrow it from you!


  • Less bureaucracy;
  • A more profitable investment;
  • Fast;
  • Convenient;
  • Lower interests when borrowing.


  • You have to be at least 18 years old;
  • You need a valid social security number;
  • People can refuse to pay you back, but they suffer from some consequences, as their credit score lowers so much they won’t get any more loans.

How can I invest?

In the U.K., there is Zopa, Ratesetter, Funding Circle, among other websites.

These sites are made to connect the lender (you) to the borrower (your client).

There are some websites that offer investments in the U.S. as well, like Lending Club, and Prosper.

All of them are self-explanatory, you just have to create your account and prepare the cash. Usually, the minimum amount of trading in P2P is only $10!


  1. Passive Income with eToro Copycat Trading

I’m a huge fan of eToro, they’re really innovating in a stale financial sector. One of teh best features of eToro is copycat trading where you automatically mirror a professional trader’s activity. Some traders have returns of 10% – 25% annually, which for you means high return passive income!

Their CopyTrader™ technology enables clients to replicate another trader’s portfolio and trading activity automatically.

In this case, you can make some researches on a well-experienced trader and inspire yourself by copying her or his investments. eToro is like Facebook: you will see where and how other people invest and you can learn from it and copy their investments too!

To invest in eToro’s, website, you have to create an account. The minimum amount to invest is $50. Their system is simple: if you want to copy, you’ll feel like choosing a cute summer dress from your wardrobe! Just select the trader you like (like looking at a Facebook profile or dating site), including their past trade history and off you go!

They also have a Copy Portfolio feature, which does the same but for longer term investment portfolios.


  • Diversity – whenever you invest, you’ll need diversity. You can’t put all the eggs in the same basket: if it falls, every egg will break! With eToro social trading, you can copy many different traders, and they usually invest in many different things so you can be really diverse.
  • You can be an amateur – if you understand the basics of how eToro’s website works, you can easily copy a successful trader, and you won’t need to worry about losing a lot of money.
  • There is a training mode! – eToro’s platform offers a fictional amount of money for you to play! So, before depositing any money, you’ll have the opportunity to see if it will work for you.


  • Like any other investment, you can lose money! You may be copying an experienced trader, but she or he can fail too. So, it’s important for you to check the trader’s history.
  1. Passive Investment Funds

Do you know what Investment funds are? No?

Then I’ll tell you.

Imagine a pool. No, not a pool by which you and your girlfriends are taking a sunbath. It’s a pool of money.

Different people can throw money at this pool and a company manages the process, counts the money and lends it to other companies. This is an investment fund.

The investment funds are regulated by the government. The management companies lend the sum of money of all the investors, receive the assets, cash their share (after all, they are providing you a service) and then divide the remaining assets between the original investors.

That’s how you profit!

Before investing in an Investment Fund, you should read its prospect carefully. A prospect is a document the funds must have to explain to the investors what will be made of their money.

There are different types of Investment Funds: the management companies have profiles that choose if the investments will be made actively or passively.

Don’t freak out, it is a lot of information, but once you know it, you’ll be rich, baby!

Active x Passive Funds

In actively managed funds, there is a singular manager for each fund, which makes it more personalized. The manager of the fund will forecast and research about the funds. The price of the services of the manager, though, is passed on to the shareholders – which means you.

In passively managed funds, there is no need of analysts and researchers, as these funds copy the market index (we’ll talk about it later). They are less expensive, safer and simpler to deal with.


What do you imagine an investor to be like? We think they are always in front of a computer with this screen turned on:

These are the indexes/trackers. Indexes are a way investors and analysts measure how the market is behaving. With the variations of the indexes or trackers, they can use a benchmark to evaluate their own portfolios.

There are already pre-made benchmarks. The S&P 500 is a widely used benchmark that evaluates individual portfolios (and you can use it to evaluate your own!).

Related Articles:

  1. High Return Property Pooling

Property Pooling is another type of crowdfunding investment. In the U.K., this investment can be made through websites such as The House Crowd. They have passive returns far higher than banks ranging between 5% (peer-to-peer funding) and 10% (development finance) depending on the type of investment. Plus, they also have an ISA option.

You can earn x5 more than having savings and investments earning interest from the bank.

When you invest in Property Pooling, you are lending the money to a company to build and sell properties.

There are two types of Property Pooling:

  1. You can receive the money completely by the end of the construction and selling of the property.
  2. You may choose to be a shareholder that receives the dividends, which depend on the rental income In this case, you receive money quarterly, and, if the property is sold, you’ll receive your share in the selling.

This is a nice source of income, but remember that you are susceptible to the fluctuations of the market.

For example, in the first case, you might not be able to sell the properties for the forecast prices.

In the second case, the annual share depends on the rental income, so it may vary.

  1. Passive Income from Crypto Mining

Have you heard of bitcoin? Probably yes. Usually, they are represented like this:

Bitcoins, however, are not the only coins in Crypto Mining (a modern way to “mine”). You can find in the market cryptocurrencies like Litecoins, Dogecoins, and Feathercoins. Differently from Bitcoins, they have better for beginners in the field (which means you and me).

Cryptocurrencies are, in other words, digital coins that use cryptography. These “coins” are registered at virtual addresses called wallets. They can be transacted from wallet to wallet by their owners.

Related Reading: Best Platforms to Buy, Sell and Trade Crypto Online

These transactions are registered in a structure called block. These blocks are connected one to the other, forming a blockchain.

Whenever a cryptocurrency transaction is made, the miner is responsible for the information.

When you mine, you are competing with other miners to solve difficult mathematical problems.

Crypto mining can be complicated, but your money will reach another level if you want to buy coins that were already mined!

You can find the leading crypto platforms here.

What high return passive investment feels right for you?

Any of these investments are better than leaving your money in the bank. This was a quick overview, so if you are still afraid of any of these investments, research a bit more about them and see if there is one you identify the most!

Start investing the money you won’t miss. No more working for money, start making money work for you!

What do you think of these 5 ideas of high-interest investments? Comment and share it with your friends!


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