adrianc
Member of DD Central
Posts: 8,957
Likes: 4,794
|
Post by adrianc on Jul 8, 2015 14:56:30 GMT
I've just had an email warning me about the fact there's only seven more days to take advantage.
TFFT.
|
|
|
Post by yorkman on Jul 8, 2015 17:41:41 GMT
I see that as at 8 July RS has over £5.5m sitting unmatched. Presumably they have this earning interest for themselves somewhere? Not a bad call for RS then.
|
|
teddy
Posts: 214
Likes: 90
|
Post by teddy on Jul 8, 2015 19:59:47 GMT
I see that as at 8 July RS has over £5.5m sitting unmatched. Presumably they have this earning interest for themselves somewhere? Not a bad call for RS then. Nice work if you can get it.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Jul 8, 2015 20:18:36 GMT
Being a creature of very little brain, I cannot fathom out why anyone who has read the thread comments following the previous RS cashback promotion has invested anything at all during this period. Presumably, therefore, all the money which has flowed in has been from investors who (a) don't read this forum and/or (b) didn't experience the slump in lending rates last time. Why does Ratesetter promote it as being good for lenders, Kevin?
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Jul 8, 2015 20:43:27 GMT
I invested in this cash back. To be more precise I transferred money in, I was a bit slow so nothing lent out so far. The money was earning 0.75%. If I transfer it back after the offer is over it will have cost me 0.03%, or 72p on £2,500 (less after tax).
|
|
arbster
Member of DD Central
Posts: 810
Likes: 426
|
Post by arbster on Jul 9, 2015 7:17:22 GMT
I must admit also to have invested during this cashback, as the effective 4.5% I can get on £2,500 for 1 year beats the other options available to me that I consider to be of equivalent risk to RateSetter. I still have cash in hand waiting for investment opportunities with MT, SS and ABL.
|
|
adrianc
Member of DD Central
Posts: 8,957
Likes: 4,794
|
Post by adrianc on Jul 9, 2015 7:47:23 GMT
I must admit also to have invested during this cashback, as the effective 4.5% I can get on £2,500 for 1 year beats the other options available to me that I consider to be of equivalent risk to RateSetter. I did last time, but not (yet?) this time - 3.4% on one year, plus the 1% splashback. I was lucky, too, in that the contract started at the end of Jan was paid back in early May, and the money went onto the five year at 6.5%+. Looking at the 1yr today, some people might well get 3.7% matched - although there's no way it's going to reach the back of the 3.7% queue. The 5yr is bad enough (5.5% atm), but the 3yr (3.8%!) is laughable...
|
|
|
Post by Deleted on Jul 9, 2015 8:27:29 GMT
I've been off line for 2 weeks (note the tan) and came back today to check up on "what's-up" and amazed to see RS 5Yr down from 6.9% to 5.7%, "how come?", I thought and then I saw this post. Thanks guys, all makes sense. So now all I have to do is wait out the time limit of this offer, wait a couple of weeks and the interest rates will be back at 6.9%. I struggle to see why RS does this, it is a bit like they have a marketing department so they have to use it. Still lots of other loans out there.
|
|
bugs4me
Member of DD Central
Posts: 1,841
Likes: 1,466
|
Post by bugs4me on Jul 9, 2015 13:18:56 GMT
Being a creature of very little brain, I cannot fathom out why anyone who has read the thread comments following the previous RS cashback promotion has invested anything at all during this period. Presumably, therefore, all the money which has flowed in has been from investors who (a) don't read this forum and/or (b) didn't experience the slump in lending rates last time. Why does Ratesetter promote it as being good for lenders, Kevin? I'm currently in the 'no lend' camp ATM even though there was an 'advisory' e-mail from RS letting me know I had funds earning zilch. At the rates on offer then those funds can stay there on holiday until things improve. If they don't then I'll move them elsewhere but feel more comfortable about that route then simply loaning at rates I'll probably regret doing later - irrespective as to what happens.
|
|
|
Post by Deleted on Jul 9, 2015 14:10:02 GMT
I've been reading for a month or so and investing in P2P for a year, so decided to join the forum. I put £10k in my RS account and got 6.1% at the beginning of the month, on the 5yr. I have always reinvested back in the 5yr and I had a £5k early repayment a few days later (surprise surprise) . I have now decided enough is enough with them and I am pulling my £5k out and reducing my quite substantial (for me) investment with them. I did like the idea of just sitting back and having everything renew at the 6-6.5% mark as I can focus on other things, but when I now have to watch the rates like a hawk and keep an eye out for these stupid cash back details screwing the market, it is becoming more trouble than it's worth.
Incidentally I did kick off last time with them about their first cash back offer, as I had invested £30k 2 days before they announced it. I told them that they should give more notice as I would have delayed and now I don't trust them, I asked for the bonus and after much back and forth between the person I was talking with and "senior management" they said they couldn't do it as it sets a precedent (made sense but why not ask). These offers are blatantly idiotic to me and will discourage people investing regularly when they have cash, it is screwing over the faithful client. They listened to some of my "advice", but I feel taken for granted. Time to go elsewhere.
|
|
|
Post by Deleted on Jul 9, 2015 15:08:42 GMT
Looks nasty, and I'd be frustrated in your shoes. Not sure if you want advice, but just for fun here is mine. One of the tough things to do with a new investment idea is to find a way to slow down the decision making and just watch. Every one of the P2P portals I invest in has its quirks or very irritating issues. You only discover these issues over time and so I'd recommend loads of reading here and then make small investments until you think you understand how it all works. Only then make bigger investments and even then you'll get s@@@wed over at some point. For instance one other portal never knows when the money is going to become lent and their software changes without explanation. If this sort of incompetence annoys you then they are not for you. RS has this irritating CB problem, either set you loan rate high and take you eyes off the ball or spend hours worrying about every element of the deal. For me the result of this behavior is I limit my investment in RS to <10% of my P2P investment and just set the 5 year rate at 6.8% and do nothing else. When returns are not being re-invested I take them as income and so my 10% figure falls. Everytime RS sends me a "not being invested here email" I look to wash out the cash and re-invest where I can get the rates I want. For RS this is "good marketing". Somewhere, out the back, I have a MBA certificate and my view is the guys running the business are not the brightest cutlery in the drawer and are losing touch with their customers. Luckily, it isn't my problem. For RS it offers them the chance to sell their loans to the un-informed and slowly the correct connection between "risk and rate" will be lost. Now, maybe I'm stupid, but isn't that what caused all that sub-prime stuff that entertained us from 2007 to 2014?
|
|
|
Post by Deleted on Jul 9, 2015 15:20:29 GMT
Thanks Bobo, yes patience isn't one of my virtues I'm afraid. I hate seeing money build up and not making me anything, I appreciate that my "weakness" isn't ideal for some of these P2P sites, (I put my first bit with Zopa and never returned as it took forever for the money to go out).
I'm learning a lot from these forums and appreciate the members input. Thanks guys.
|
|
bugs4me
Member of DD Central
Posts: 1,841
Likes: 1,466
|
Post by bugs4me on Jul 9, 2015 15:23:04 GMT
<snip> They listened to some of my "advice", but I feel taken for granted. Time to go elsewhere. I've long given up thinking there was any 'loyalty' from the platforms to their lenders. The pattern seems to follow the same path - when they're new you're promised the earth, moon, stars, etc but as they grow and especially if an institution gets involved then.... - everyone knows the rest and irrespective that the platform tries to assure all existing lenders how important they are funnily enough it rarely seems that way in reality. On the other hand, if I was investing goodness know how much then I'd no doubt demand preferential treatment. The problem IMO is that many platforms fail to realise that institutions can move their funds at a whim. Enough to my ramblings, I just move my hard earned cash to whatever platform is going to be the most beneficial to me.
|
|
|
Post by Deleted on Jul 9, 2015 15:48:28 GMT
In my experience there are two tough things in a growing business
1) Too many great looking opportunities making it hard to chose what to do 2) The way that bureaucracy grows like a fungus into the company to divert the business from what it wants to do
so you have to be highly selective on what you are going to do and vicious in cutting back bureaucracy as it appears. (I see the BBC at a mere 16k people needed 11 levels of management to run it, say no more, I've worked with 33k and 5 levels).
You can see this happening in one portal very openly (mainly dues to their great transparency) and RS is getting confused about their corporate direction with this CB stuff. I very much doubt their ethos is "confuse the h@@l out of our lenders and give them and our borrowers fluctuating interest rates". I suspect it is more about "let our lenders and borrowers meet and exchange loans while paying us for the pleasure".
We may be irritated by the rate changes but think how the guys borrowing the money feel "yesterday I had to pay 9% but today I could have paid 7% why?"
Daft.
|
|
|
Post by davee39 on Jul 9, 2015 16:49:57 GMT
A few weeks ago Halifax were offering loans at 7.9% APR, today they are 3.9%.
RS are lending into a tough market, the cashback induced lower rates helps them regain sales.
Having started investing at 5.1% in the 5 year I have viewed the rates >6% as exceptional. With Zopa at 5% for 5 years, and a higher fee, a rate of 5.5% at RS is comparable, and I still have a large chunk with Zopa.
The savers who are investing are not the market exploiters who post here, they are the Bank refugees escaping from 0.05% (As offered by the Yorkshire Bank).
It is nonsensical to claim the risk/reward breaks down below 6%, it is a market failure that the rate on 5 year ever got to 7%.
|
|