I've long been a fan of microfinance or microlending where a small loan can make a big difference. To date, I've made several small investments via both Microplace.com and Kiva.org. And, in addition to doing good, I'm doing well. Kiva doesn't pay interest but it does make it easy to give gift certificates. Microplace, in the past, paid up to 3 percent interest, but Tuesday it announced a fund that's paying 5 percent.
Have you checked bank and CD rates lately? Five percent is great compared to the rates paid by most banks and money market funds.
The money is loaned to poor people--mostly women--in various parts of the world. The portfolio that now pays 5 percent goes through an organization called Micro Credit Enterprises, which makes loans to the working poor in Armenia, Azerbaijan, Bolivia, Cambodia, Ecuador, Honduras, Indonesia, Mozambique, and other countries. And a little bit of money can go a long way. Nelida Espinoza Flores, a 38-year-old Peruvian, for example, borrowed $115, to buy Jell-O and other snacks. According to Microplace, she spends about $5 a day on supplies, which results in between $10 and $13 in sales...
CNet: Microlending site now pays 5 percent