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Post by newlender on Nov 23, 2018 19:25:15 GMT
I see that the latest email is pushing the 'refer a friend' system with a sweetener if I get someone to 'invest' £2K. Funnily enough I was at a dinner party last week when I mentioned P2P and someone there seemed very interested - just had an inheritance and was looking for somewhere to park a few £K. I said I'd let him have more details, so shall I earn £50 by referring him or is the outlook for P2P such that I should advise him to buy some Premium Bonds? My experience of Zopa (ISA anyway) is quite positive and I'm >£1200 up since inception; but reading these boards it does still seem to depend very much on individual portfolios and the luck of the draw.
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benaj
Member of DD Central
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Post by benaj on Nov 23, 2018 19:39:41 GMT
Well, there are plenty ways to cherish "friendship".
For example, Fineco's friendship is better shared offers £50 for you and your friend for joining and and executing 1 trade.
Barclays pingit earn £5 easily for you and your friend for joining and paying someone £10.
Kuflink cashback offers up to £250 for you and your friend.
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mary
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Post by mary on Nov 23, 2018 20:28:47 GMT
P2P has (mostly) been good to me, but recently has turned very negative with defaults across many platforms.
Therefore I can’t, currently, recommend anyone starting now. Past performance is not a future indicator!
Premium Bonds are a great way to stash some cash, with a 100% government guarantee, and some potential upside completely tax free. If your already fully invested, then max out a cash ISA.
After that, it’s a complete lottery. Bitcoin is down 75%, the stock market is very unstable and Brexit is looking a right mess.
Under the mattress might just be the next best option!
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Post by propman on Nov 27, 2018 10:16:37 GMT
I have had defaults significantly above the average rates quoted on Zopa. before you evaluate your performance you need to have had quite a few months of lending as defaults take a little while to peak. At the least you need to check your loanbook for any loans that are in arrears (not just those formally defaulted or even in arrangement / Collection) as these will give an indication of defaults coming down the line. In addition, I have previously shown that it takes quite a few 100s of loans before you can be reasonably sure that you are getting default rates similar to the market as a whole.
Re premium bonds, great for those looking for a very small chance of a windfall in the long term, but note the quoted return includes quite a proportion going to a few individuals. The median return is significantly lower and the mode is usually 0!
Better rates available out there. For a few £1000's I would recommend current accounts and associated monthly savers but I am no expert!
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aju
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Post by aju on Nov 28, 2018 13:13:50 GMT
I have had defaults significantly above the average rates quoted on Zopa. before you evaluate your performance you need to have had quite a few months of lending as defaults take a little while to peak. At the least you need to check your loanbook for any loans that are in arrears (not just those formally defaulted or even in arrangement / Collection) as these will give an indication of defaults coming down the line. In addition, I have previously shown that it takes quite a few 100s of loans before you can be reasonably sure that you are getting default rates similar to the market as a whole.
Re premium bonds, great for those looking for a very small chance of a windfall in the long term, but note the quoted return includes quite a proportion going to a few individuals. The median return is significantly lower and the mode is usually 0!
Better rates available out there. For a few £1000's I would recommend current accounts and associated monthly savers but I am no expert! I'd concur with this. I have faired reasonably well with Zopa over the last 12 years. I started off very slowly, £10 on day one whilst I got to understand it better then gradually moved up to £100 adding more and more over the next couple of years using spare cash and all that but still very cautiously, it was much more complicated and exciting then as one had to work out ones own acceptable spread levels etc. When Safeguard arrived it was easier to let Zopa take the reigns but anyone who was still noticing the default rates would probably better understand why Zopa wanted to withdraw it. Recently with the banks dropping the interest rates and losing our DD sources suddenly on Current accounts we took the decision to move more funds both invest and ISA into Zopa knowing that the default rates might spook us down the line. What is worrying is watching Zopa on month on month basis - I keep my own stats updated monthly so its hard to not get spooked some months - and although I am a Zopa person through and through I have been annoyed with them keep removing some of the stats I was using to keep closer track of things. A cynic like me might wonder why they did this and I've recently been dabbling myself and Mrs AJU in RS to see what's on offer with PF. Very small to start with whilst I get a grip on it and then in the better rates of the 5 year offer, thankfully we can do this in our case. Ok all that said I would not be advising anyone who has not extensively researched this and then I would be advising them to toe dip rather than large sums at a time. My current experience suggest that defaults mount up and take almost a year to start paying anything back - sadly statements data only starts since 2015 for me to see how this worked on older defaults. Just another slant.
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