rscal
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Post by rscal on Apr 4, 2023 17:23:51 GMT
Ooh look, you can now perform a transfer without creating a PDF each time. They seem to have automated everything via an on-platform submission form.
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Post by lotus_eater on Jul 7, 2023 8:08:00 GMT
Only just noticed the ISA rates have gone up, it says a limited offer until 30/5/23 but could close earlier. 6.5% 1 year 7.5% 3 year 8.08% compounded. 8.25% 5 year 9.73% compounded. It's worth thinking about re-terming your existing ISA if you have one to get these new rates. If you're using these rates to compare against rates elsewhere it's important not to be fooled by the higher figures. They are NOT compound rates. The 3 year product is 7.5% compounded for 3 years, and the 5 year product is 8.25% compounded for 5 years. The higher figures quoted are the total interest generated divided by the number of years invested. This is a misleading way of calculating an average rate that no-one else in the industry uses. So don't use these to compare with products elsewhere. Are the rates quoted on the "Select" products subject to this jiggerypokery they are doing the the auto-invest products? They say (compounded monthly) at the bottom of the rate. I'm just trying to figure out if this is not "really" the correct rate as well?
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Post by Ace on Jul 7, 2023 8:28:08 GMT
If you're using these rates to compare against rates elsewhere it's important not to be fooled by the higher figures. They are NOT compound rates. The 3 year product is 7.5% compounded for 3 years, and the 5 year product is 8.25% compounded for 5 years. The higher figures quoted are the total interest generated divided by the number of years invested. This is a misleading way of calculating an average rate that no-one else in the industry uses. So don't use these to compare with products elsewhere. Are the rates quoted on the "Select" products subject to this jiggerypokery they are doing the the auto-invest products? They say (compounded monthly) at the bottom of the rate. I'm just trying to figure out if this is not "really" the correct rate as well? No. The compound rates stated for the Select loans are the true compound annual equivalent rates. So, not subject to the grossly misleading rates stated for the auto-invest products. Personally, I never select the compound option for the Select loans anyway. I prefer to take the monthly interest payments and invest them into new loans for greater diversification. As long as you reinvest the monthly payments on the day they are paid you will earn the same as the compound rates quoted. You're compounding by reinvesting into new loans. This also gives the flexibility to withdraw the interest payments if needed.
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rscal
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Post by rscal on Jul 7, 2023 9:00:56 GMT
Are the rates quoted on the "Select" products subject to this jiggerypokery they are doing the the auto-invest products? They say (compounded monthly) at the bottom of the rate. I'm just trying to figure out if this is not "really" the correct rate as well? No. The compound rates stated for the Select loans are the true compound annual equivalent rates. So, not subject to the grossly misleading rates stated for the auto-invest products. Personally, I never select the compound option for the Select loans anyway. I prefer to take the monthly interest payments and invest them into new loans for greater diversification. As long as you reinvest the monthly payments on the day they are paid you will earn the same as the compound rates quoted. You're compounding by reinvesting into new loans. This also gives the flexibility to withdraw the interest payments if needed. That and it makes income more predictable - if you like to watch those sorts of things. Kuflink benefits customers by paying compound interest in aggregate too (not, itty bitty payments like some I could mention) on the first working day of each month. As I have been advised (but have yet to try) you can use the SM to arrange a timely disposal and receive any accrued then. The one disadvantage with the compound approach I feel is when loans go overtime and you don't receive the expected payout - monthly interest has that covered too.
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scooter
Member of DD Central
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Post by scooter on Jul 7, 2023 10:01:13 GMT
Ooh look, you can now perform a transfer without creating a PDF each time. They seem to have automated everything via an on-platform submission form. Is it free now its automated?
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rscal
Posts: 921
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Post by rscal on Jul 7, 2023 11:12:09 GMT
Ooh look, you can now perform a transfer without creating a PDF each time. They seem to have automated everything via an on-platform submission form. Is it free now its automated? Free (because it is for transfer-in) For transfers out there is still a flat £35 fee.
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jnm21
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Post by jnm21 on Jul 22, 2023 3:02:02 GMT
Withdrew some money from my ISA and it doesn't work , ISA allowance is still showing as 20k. Either the ISA isn't flexible or they haven't implemented correctly. The money came from the ISA-previous wallet not the ISA-current wallet but I don't see what difference that should make.
You're right. I tried to do the same. To cut a long story short that's taken a very long time to get to the bottom of... Kuflink now tell me that their account is not set up for flexible ISAs for previous tax years. I.e. they seem to have implemented a semi-flexible ISA, in that they allow you to flexibly return funds extracted from the current year's ISA allowance, but not for precious year's funds. I'm not sure if this semi implementation is even allowed, as i would have thought that ISA flexibility has a specific meaning within the rules. However, I've lost the will to investigate any further. To me, their half-arsed implementation is just silly, and indicates that they don't really understand the concept. Personally, I'll just treat Kuflink ISAs as being non-flexible. There is a very good guide to all things ISA, including flexibility, on Gov.uk - for instance interest paid outside the ISA counts as a withdrawal, which is eligible for replacement. I have my doubts if this is widely known/implemented. overthehillwww.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#flexible-isas
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rscal
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Post by rscal on Jul 22, 2023 8:36:07 GMT
Is this the relevant remark: which implies it woks for a current ISA provider only but not in the case of a former ISA provider?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 22, 2023 9:14:58 GMT
Is this the relevant remark: which implies it woks for a current ISA provider only but not in the case of a former ISA provider? Not sure what the question is? The bit relevant to OP comment is 'Income paid away outside of a flexible ISA under the terms and conditions of the account, or under the instruction of the account investor, will count as withdrawals which can be replaced without counting towards the subscription limit.' No distinction between previous & current stated. Basically the income is considered as having been paid into the ISA wrapper then withdrawn even if on paper it doesn't show being added in a transaction statement.
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Post by overthehill on Jul 22, 2023 9:25:45 GMT
Is this the relevant remark: which implies it woks for a current ISA provider only but not in the case of a former ISA provider?
If I could muster up some interest in this half-arsed implementation my question would be ignoring transfers completely what is the status of ISA funds deposited in previous tax years i.e. if you withdraw that money in later years does it lose its ISA status ?
Losing ISA status won't stop me withdrawing.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,902
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Post by ilmoro on Jul 22, 2023 9:42:21 GMT
Is this the relevant remark: which implies it woks for a current ISA provider only but not in the case of a former ISA provider?
If I could muster up some interest in this half-arsed implementation my question would be ignoring transfers completely what is the status of ISA funds deposited in previous tax years i.e. if you withdraw that money in later years does it lose its ISA status ?
Losing ISA status won't stop me withdrawing.
The answer must be yes. There is no mention of flexibility in the terms, just that totally random FAQ entry that is only findable via search AFACIS. Its nonsense.
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jnm21
Posts: 441
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Post by jnm21 on Jul 22, 2023 13:12:18 GMT
Is this the relevant remark: which implies it woks for a current ISA provider only but not in the case of a former ISA provider?
If I could muster up some interest in this half-arsed implementation my question would be ignoring transfers completely what is the status of ISA funds deposited in previous tax years i.e. if you withdraw that money in later years does it lose its ISA status ?
Losing ISA status won't stop me withdrawing.
MSE actually have an article recommending using flexibility to remove money from a flexible cash ISA to put it in higher rate savings outside the ISA then return it over TYE then repeat, if you don't need the tax free status now, but might later... www.moneysavingexpert.com/savings/flexible-isas/#trick
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Post by overthehill on Jul 22, 2023 13:35:47 GMT
If I could muster up some interest in this half-arsed implementation my question would be ignoring transfers completely what is the status of ISA funds deposited in previous tax years i.e. if you withdraw that money in later years does it lose its ISA status ?
Losing ISA status won't stop me withdrawing.
MSE actually have an article recommending using flexibility to remove money from a flexible cash ISA to put it in higher rate savings outside the ISA then return it over TYE then repeat, if you don't need the tax free status now, but might later... www.moneysavingexpert.com/savings/flexible-isas/#trick
I don't know what overheads companies face for flexible ISA v non-flexible but I've no time for the latter, it's unsubtle way to discourage investors from removing their money. Better than no ISA at all though.
Elfin market and HNW lending are also non-flexible and I don't have anything invested with them currently !
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Post by Ace on Jul 22, 2023 13:49:30 GMT
MSE actually have an article recommending using flexibility to remove money from a flexible cash ISA to put it in higher rate savings outside the ISA then return it over TYE then repeat, if you don't need the tax free status now, but might later... www.moneysavingexpert.com/savings/flexible-isas/#trick
I don't know what overheads companies face for flexible ISA v non-flexible but I've no time for the latter, it's unsubtle way to discourage investors from removing their money. Better than no ISA at all though.
Elfin market and HNW lending are also non-flexible and I don't have anything invested with them currently !
HNW is definitely flexible. I've replaced flexibly withdrawn funds from their ISA without affecting my allowance. The statement specifically indicates a reinjection of flexibly withdrawn funds.
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Post by overthehill on Jul 22, 2023 14:49:01 GMT
I don't know what overheads companies face for flexible ISA v non-flexible but I've no time for the latter, it's unsubtle way to discourage investors from removing their money. Better than no ISA at all though.
Elfin market and HNW lending are also non-flexible and I don't have anything invested with them currently !
HNW is definitely flexible. I've replaced flexibly withdrawn funds from their ISA without affecting my allowance. The statement specifically indicates a reinjection of flexibly withdrawn funds. My error. I recall missing out on the loan I wanted and withdrawing. Either I thought it was not flexible or I must have had another reason not to put it back.
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