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Post by newlender on Aug 29, 2018 7:11:49 GMT
When I opened my Investment account I was offered the chance (beta trial) to set a limit on reinvestment after which all funds would go to Holding. This effectively meant that I could automatically withdraw my interest and recycle the returned capital. I found out last week that this is not possible with the ISA - why not? Lots of people have an ISA in order to use the interest to boost their monthly income - I know that loans can be sold every month to achieve this but it's a bit hit and miss with Zopa and can take a while.
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Greenwood2
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Post by Greenwood2 on Aug 29, 2018 12:39:28 GMT
Why not let the ISA account roll on (since it's tax free) and increase your withdrawal setting on the ordinary account?
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aju
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Post by aju on Aug 29, 2018 14:21:29 GMT
newlender , I agree with Greenwood2, but if you have to manage this you could actually turn off relend and when you want to send money to your account you could do this monthly as follows * Turn off relend altogether. At beginning of new month you could follow this procedure. 1. Check the ISA statement for last month, it should give the relevant Interest earned, check for defaults and subtract them (Usually the earnings field will detail the real monthly return.) 2. Simply transfer from holding to your bank account the amount in 1. 3. Then apply the holding account to lending as required. I think that is correct although you will have to check the holding controls it may be that you have to work it out yourself and manually relend the relevant amount to the desired products and then withdraw holding amount left.(I don't usually withdraw that much so not sure what process is these days) This should work, you will need to be mindful of the fact that with relend off day 1 could have quite a large amount of money coming in so you may want to check current interest flows too. Also when there is less days in a month most payment runs could slip into next month by a day or two. In my own observations the payment runs are in the evening around 8:00pm but others may be different. This is not ideal but since you will have to probably move holding money to a bank account if the system worked anyway then you will have to do this on a monthly/regular basis. I assume that what the Beta did anyway not having even heard of this feature.
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Post by newlender on Aug 29, 2018 15:14:43 GMT
Thanks for all the helpful replies. My main point is that ISAs are often used for extra income and that some automated mechanism should be available in order to withdraw interest whilst maintaining the capital amount. That is what the beta trial did - I established a total investment of £10000 and anything paid back which increased that sum went into Holding. As the capital sum became depleted by capital repayments, these were fed back into new loans to maintain the £10K invested, leaving just the interest in Holding. (Not the real figures, but you get the idea). I agree that I could do it via the Statements page but that's a bit clunky. Would it really be that hard to direct interest payments into Holding and capital payments into new loans if requested by the investor? The reason I posted this is that I recommended Zopa ISA to a friend, who instantly asked me how he received the interest; he spotted that there was actually no easy way to do that so I rang Zopa, who confirmed that it is possible in Investing but not in the ISA.
(Greenwood2 - I have drawn down most of my Investing side to put into the ISA so only a few hundred in there now)
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aju
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Post by aju on Aug 29, 2018 15:16:00 GMT
I assume the key words here are “beta trial”, i.e. Zopa are testing a feature before rolling it out more widely. But I thought Newlender said they were offered it when they first invested, that's quite a while ago since they did that, perhaps they dropped the idea as unworkable and never updated/corrected/fixed it. They have dropped quite a bit of useful stuff in the last 3 years or so.
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Post by newlender on Aug 29, 2018 15:27:28 GMT
Just found this in the 'Getting Started' section of FAQs (Page 1). As I said, when I rang they told me that this does not apply to the ISA side.
How do I withdraw only the interest?
We are still testing this feature. Your monthly repayments from borrowers contain capital and interest. If you would like to recycle your capital from your repayments each month but withdraw your interest to your bank account, you can do this by contacting our customer services team and asking them to add you to our beta trial where you can set a re-lending limit on your account for the maximum you would like to have lent out. This means you can then withdraw any repayments which come back which are above the limit you set.
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Greenwood2
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Post by Greenwood2 on Aug 29, 2018 19:41:54 GMT
I'm actually a bit surprised that people want to take interest out of ISAs, I would be building up ISAs. But I guess everyone's position is different.
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Post by newlender on Aug 29, 2018 20:56:51 GMT
Exactly. They have been touted for years as a good way to build up a nest egg in order to have an extra pension when the time comes. That's sort of my position, although I can manage OK without needing to draw down just yet I wanted to find out my options. I took out a S&S ISA many years ago and have not touched it, adding funds occasionally. The income (which I plough back each year) is quite impressive when compared to the capital invested. I'll start to withdraw that in future before touching my Zopa ISA.
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benaj
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Post by benaj on Aug 29, 2018 21:05:55 GMT
To be honest, I thought the idea with ISA is growing money without withdrawal. I haven't made any withdrawal in my ISA (self select) yet, but I know I will need the money one day.
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aju
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Post by aju on Aug 29, 2018 23:03:58 GMT
I'm actually a bit surprised that people want to take interest out of ISAs, I would be building up ISAs. But I guess everyone's position is different. I agree, that's what myself and Mrs Aju are doing at the moment, by having relend from Invest move money across to the ISA side. At present Mrs Aju is moving about £1000 a month a month using the relend to ISA function. It's not that easy to find the movements in the statements CSV's but it's definitely in the onscreen statements pages for the month. One is marked as a withdrawal and the other is marked funding. Next month I will be moving Mrs Aju's External ISA in as well. I've had some interesting issues with XIRR() though getting confused sometimes and giving results that don't make sense (I'm still working on that one though) I can certainly see that there could be a need sometime soon in the future when we might want to withdraw some funds but for me its simply a case of turning off Relend and letting it build up in Holding each month and transfer it just like I do in my Bank accounts occasionally.
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Post by newlender on Aug 30, 2018 6:15:24 GMT
I read an article some time ago about ISA millionaires who had started with PEPs and then put the maximum allowed each year into an ISA and reinvested the interest/dividends without ever withdrawing funds. Who will be the first Zopa millionaire, I wonder; aju?  |
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aju
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Post by aju on Aug 30, 2018 8:52:27 GMT
I read an article some time ago about ISA millionaires who had started with PEPs and then put the maximum allowed each year into an ISA and reinvested the interest/dividends without ever withdrawing funds. Who will be the first Zopa millionaire, I wonder; aju? oy newlender , who are you calling a millionaire matey,  I wish, however I think i'll be pushing up the daisies before that happens, guaranteed, nice thought though, one can dream ... I did have a rummage around Zopa to see the FAQ about the beta trial ... The date on this one says it all I feel, Zopa has been (Beta) trialling this for over 2 years now, I 'm guessing this is not top of their agenda. Thing is most people would not know what their monthly returns are its not that hard to find so how one sets this as a limit for relend is not that easy. For me Zopa has the interest levels at their fingertips and the earnings levels - they give it to us monthly in the statements screens. One should be able to set a percentage value rather than a limit. With some of the things going on over the last 3/4 years of excellent loanbook tools, increasingly slow screen loading, Useless dashboard with more adverts and temptations than really helpful info blah blah blah. I can't see this happening anytime soon. Worst of all unhelpful logout screens that don;t logout properly. One has to wonder if Zopa has actually lost its Mojo. I'm still getting good rates, by my standard 4-5%, Mrs Aju has had a bad 3 month spell with defaults coming in wiping out 50% of interest but overall we are still very much up on our investment. As I always say time will tell though!.
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I wish, however I think i'll be pushing up the daisies before that happens, guaranteed, nice thought though, one can dream ...