r00lish67
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Post by r00lish67 on May 20, 2019 18:08:07 GMT
I've just had an email to confirm that Growth Street have launched their new ISA product.
Key differences:
- 1 year fix instead of the 30 days access that the non-ISA product has - Pays 5.8% p.a. rather than 5.3% p.a.
My hope is that you would also still be eligible for the investor sign-up/referral bonus scheme currently running (£200 for £2k investment) as nothing in their terms appears to rule it out, but I am seeking clarification on that from them.
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Post by gravitykillz on May 20, 2019 22:48:42 GMT
I like growth street but I don't like their isa. 1% fee for withdrawal after the first 3 months? Subject to their liquidity at that time. So many better options out their. I think I will stick to their standard account.
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Post by gravitykillz on May 20, 2019 22:49:54 GMT
For a 1% fee I would invest at 7% but 5.8% no way.
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zlb
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Post by zlb on May 21, 2019 7:08:18 GMT
If you want the £200 referral bonus, my understanding is that you have to stay in for a year anyway.
Who's the platform rep here? I can't find them to tag after looking at three likely threads.
Question: does the ISA qualify for the referral bonus?
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liso
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Post by liso on May 21, 2019 7:51:39 GMT
If you want the £200 referral bonus, my understanding is that you have to stay in for a year anyway. Who's the platform rep here? I can't find them to tag after looking at three likely threads. Question: does the ISA qualify for the referral bonus? They probably do not have a platform rep - I don't recall ever seeing a post on the forum from GS.
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IFISAcava
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Post by IFISAcava on May 21, 2019 8:18:11 GMT
I think the other key difference is that it is a bond - you are lending to and are secured against the company itself rather than the underlying loans. In other words somewhat less secure if it goes mammaries up. I was going to put some in for platform diversification purposes but now I am not so sure.
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IFISAcava
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Post by IFISAcava on May 21, 2019 8:20:14 GMT
From the T&Cs: "To protect ISA investors against deployment and rate risk, Growth Street has committed to 'top-up' any shortfall in interest payments to the Bond Issuer to the full 5.8%. This means that instead of facing deployment risk and rate risk, when investing through our ISA product, you are exposed to the risk that Growth Street doesn't make the promised top-up payments, which could result in you earning less than the promised 5.8%."
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Post by Ace on May 21, 2019 8:33:06 GMT
I think the other key difference is that it is a bond - you are lending to and are secured against the company itself rather than the underlying loans. In other words somewhat less secure if it goes mammaries up. I was going to put some in for platform diversification purposes but now I am not so sure. I agree with you, but the answer to their faq: " Does the LLP protection apply to ISA accounts?" seems a little misleading. It says " Yes, the Loan Loss Provision Fund protects all of our investors". Surely, if GS went bust, the LLP would not protect ISA investors? Mind you, their faq on do you have an IFISA says "No"!
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IFISAcava
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Post by IFISAcava on May 21, 2019 8:37:41 GMT
Also I can't see anywhere if they will or won't charge a transfer out fee for ISA transfers. That's a key point - many Goji based ISAs (as this one is) charge £35, which reduces the 1 year return (and disproportionately for smaller amounts invested).
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Post by Ace on May 21, 2019 8:40:52 GMT
Also I can't see anywhere if they will or won't charge a transfer out fee for ISA transfers. That's a key point - many Goji based ISAs (as this one is) charge £35, which reduces the 1 year return (and disproportionately for smaller amounts invested). There is a faq for this. It says they don't charge for transfers to another provider.
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IFISAcava
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Post by IFISAcava on May 21, 2019 8:43:58 GMT
Also I can't see anywhere if they will or won't charge a transfer out fee for ISA transfers. That's a key point - many Goji based ISAs (as this one is) charge £35, which reduces the 1 year return (and disproportionately for smaller amounts invested). There is a faq for this. It says they don't charge for transfers to another provider. Silly me for reading the T&Cs rather than the FAQ!
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ilmoro
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Post by ilmoro on May 21, 2019 9:03:48 GMT
If you want the £200 referral bonus, my understanding is that you have to stay in for a year anyway. Who's the platform rep here? I can't find them to tag after looking at three likely threads. Question: does the ISA qualify for the referral bonus? They probably do not have a platform rep - I don't recall ever seeing a post on the forum from GS. When they launched the CEO was posting (jamesgrowthstreet) & one other 'rep' has also posted (earl) but IIRC they said they weren't going to continue posting for regulatory reasons.
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IFISAcava
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Post by IFISAcava on May 21, 2019 9:27:01 GMT
For a 1% fee I would invest at 7% but 5.8% no way. with the 2% bonus it is 7.8%
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Post by Ace on May 21, 2019 9:50:58 GMT
For a 1% fee I would invest at 7% but 5.8% no way. with the 2% bonus it is 7.8% If it qualifies for the referral bonus, which I think it does, it would be 15.8% on £2000. Plus an extra £200 for each relative/friend you can persuade.
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littleoldlady
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Post by littleoldlady on May 21, 2019 11:44:43 GMT
Unfortunately you are unlikely to get the sign up bonus from a transfer in as the funds have to be credited within 14 days of opening. I don't think I have ever had a transfer go that quickly.
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