With the rising cost of living in the UK, finding ways to generate extra monthly income is becoming increasingly important for many people. Passive income streams that provide regular payouts without requiring extensive active effort can serve as useful supplements. This article explores some of the best options for UK investors to get monthly passive income for free, with a focus on easy-to-use platforms and accessible investment choices.
Use P2P lending platforms like Zopa for fixed monthly returns
Peer-to-peer (P2P) lending platforms like Zopa allow investors to fund personal loans and receive monthly interest payments in return. Zopa offers investors target net returns of 3-5%. You can open a Zopa account online in minutes and begin investing in fractions of loans from £10. The platform handles all collections and management, paying out returns monthly. For hands-off passive income generation with predictable returns, P2P lending is a solid choice.
Invest in REITs through platforms like Fundrise for growing dividends
Real estate investment trusts (REITs) own and operate income-generating properties and pay out most earnings as shareholder dividends. Investing small amounts each month in REITs can steadily build an income stream. Fundrise offers direct access to private market REITs with dividends paid monthly. Historical returns have exceeded 10% on average. With Fundrise there are no platform fees, low investment minimums ($10), and good diversification.
Use savings platform Chip for automated periodic payouts
Chip is an easy-to-use fintech app that helps you automatically save small amounts which then get paid back to you on a schedule. Simply connect your bank account and choose a frequency – weekly, monthly, etc. Chip monitors your balance, calculates what you can afford to save, and transfers those savings into investment accounts. The money grows and is then periodically returned. For hands-off monthly income from your existing funds, Chip offers a creative solution.
From P2P lending to REITs to automated savings platforms, there are accessible options for UK investors to generate monthly passive income without fees or upfront costs. Taking advantage of these set-and-forget solutions can provide useful income streams amidst economic uncertainty.