|
Post by Financial Thing on Nov 4, 2015 15:26:14 GMT
With interest rates all over the place on RS, what's your strategy with regards to RS investing and re-investing? Do you watch the rates often or simply set an interest rates and hope it gets filled? If so what are your target % rates for 3 & 5 year? I used to set at 5.8% for 3 year and 6.6% for 5 year but am noticing some dead time on unmatched money. As a side note westonkevRS why isn't an email notification sent to lenders when payments are made into their account?
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Nov 4, 2015 15:37:33 GMT
I've always used "Your Rate" with its "stranding danger " possibilities and that means my account needs monitoring daily. That is not too inconvenient, as the computer is usually on for other reasons and I'm taking a look at various sites at frequent intervals. I feel that I often add up to 0.5% to Market Rate and a lot more than that to "Lend right now" which is a disaster, people who use it probably don't know. RS is my main P2P for "safer" investment.
I'm not overgreedy - I think, despite various outbursts of delirious enthusiasm when 5yr RS approaches 7% or 3 yr approaches 6%! Currently I do look at RS 5yr 6.4%+ 3yr 5.6%+, and if rates are on a lower level, I do find it easy to place money for a month at 3.5%+
I see no need to aim lower, but anyone looking for Deposit and Forget will have to aim lower.
|
|
|
Post by Financial Thing on Nov 4, 2015 15:45:52 GMT
I've always used "Your Rate" with its "stranding danger " possibilities and that means my account needs monitoring daily. That is not too inconvenient, as the computer is usually on for other reasons and I'm taking a look at various sites at frequent intervals. I feel that I usually add 0.%% to Market Rate and a lot more than that to "Lend right now" which is a disaster, people who use it probably don't know. RS is my main P2P for "safer" investment. I'm not overgreedy - I think, despite various outbursts of delirious enthusiasm when 5yr RS approaches 7% or 3 yr approaches 6%! Currently I do look at RS 5yr 6.4%+ 3yr 5.6%+, and if rates are on a lower level, I do find it easy to place money for a month at 3.5%+ I see no need to aim lower, but anyone looking for Deposit and Forget will have to aim lower. Good strategy, should keep you in bananas until Xmas
|
|
jonbvn
Member of DD Central
Posts: 326
Likes: 95
|
Post by jonbvn on Nov 4, 2015 18:01:11 GMT
When bidding my approach is as follows:
1. Aim for 5-year market - this is a long term investment for me. 2. If 5-yr market is consistently lower than my current average lending rate (like now), lend on 1 month market and hope it improves - rate there not very important... 3. Assuming I can meet or exceed my current average 5-yr lending rate, select a suitable rate above market rate. Sorry no science here, just gut feeling and experience gained over the last year or so. 4. Place 20 or 25% of my funds at my selected rate. 5. Place another 20 or 25% of funds 0.1% above rate selected in step 4. 6. Repeat step 5 for remainder of funds. 7. Monitor market to see where your funds sit in the queue and if necessary adjust rates to suit. I usually managed to do this say twice a day. 8. Be patient! You do not have to lend out everything in a day.
|
|
|
Post by brokenbiscuits on Nov 4, 2015 20:26:34 GMT
1. Spread £500 a month investments over whatever seems relevant. Will go as low as 6.3% when times are desperate. prefer 6.5% and above. This is my average rate of return.
Your rate only. Never matched.
2. Repayments are set to 6.5% currently.
If ratesetter stop faffing around with rates, happy to invest over the next 10 - 15 years. Maybe more.
This has worked perfectly for 9 months.
New strategy is likely to be that I invest nothing extra per month but consider repayments at a slightly lower rate if things continue.
I like ratesetter its the platform I have most invested in. I don't like it enough to take under 6%.
|
|
|
Post by westonkevRS on Nov 5, 2015 6:42:48 GMT
Always 5-years, as I'm long-term (I'm 45 and have no short term need for money).
Wait for day 21, or a Thursday/Friday around that time. Weekends can be good. Never lend on a Monday or on days 3-8 of the month.
Place my funds around £100k to £200k above the minimum placed. It usually gets lent within 24hrs, but if not it gets to day 26 I panic and take what I can....
Kevin.
|
|
|
Post by closetotheedge on Nov 5, 2015 7:07:17 GMT
Much the same from me. I am old enough not to need money short term and am saving for retirement so only look at the 5 year. Watch the rates each day and try to achieve as high as possible without leaving money unlent for more than 10 days. If rates drop below 6.3 I stash repayments in the monthly and wait. Currently have an average of 6.2 as I have been here for about 3 years and rates used to be lower. Try to keep mine queued within about £600k of the front of the queue. Patience seems to reward with lending and the tip about the third week of each month seems to hold true.
On another note today I am being prompted to lend another £200 and get a £20 bonus on every screen I look at. As an old old customer I do not qualify so why constantly slap my face with it. These companies never seem to offer much thanks to established customers. I have left Wellesley since they never gave me a £750 cashback when I invested the day before their promo started. With a chunky amount in Ratesetter it would be nice to feel valued.
|
|
|
Post by westonkevRS on Nov 5, 2015 7:47:31 GMT
On another note today I am being prompted to lend another £200 and get a £20 bonus on every screen I look at. As an old old customer I do not qualify so why constantly slap my face with it. These companies never seem to offer much thanks to established customers. I have left Wellesley since they never gave me a £750 cashback when I invested the day before their promo started. With a chunky amount in Ratesetter it would be nice to feel valued.
Hi closetotheedge , I've fed your message back to Marketing. No promises, we'll see....
|
|
arbster
Member of DD Central
Posts: 810
Likes: 426
|
Post by arbster on Nov 5, 2015 8:27:02 GMT
Hi closetotheedge , I've fed your message back to Marketing. No promises, we'll see.... I'm sure they'll do the right thing... ... and remove the message from the site for existing members
|
|
|
Post by Deleted on Nov 5, 2015 8:39:13 GMT
6.5% for 5 year, whenever I build up £100 not invested I remove it to another portal. Like Kevin I never do this over the weekend as rates do rise. Capital has stayed at my target for over a year now, so the strategy is working. RS provides a good base load of P2P income and the fact it operates in the long tail is relaxing, when interest rates finally rise I'll probably move the cash into PIBs. Others have become concerned by lack of opportunites across the market following the new deals from FC, this is proving a problem here too, but I'm finding the combo of SS, FS, MT and even AC (though none of their various bundle-accounts seem attractive) are at least offering ways of keeping capital invested, the various shrapnalators are key to this strategy however I may be pushed into TC yet. If I was starting again from a zero baseline I might lower my expectations of interest rate (I expect 10% after defaults and charges from a mixed portfolio), if I was starting again I might set a target nearer 8% at which point I could probably get that from a financial advisor (after his charges) so the premium of self management goes away, I'm afraid the power of the institutions is upon us.
|
|
|
Post by closetotheedge on Nov 5, 2015 8:40:48 GMT
An idea I like is an annual bonus for maintaining say £75k+, £100k+, £250k+, etc.
It may reduce investors tendency to wander away.
|
|
|
Post by chris1881 on Nov 5, 2015 10:12:18 GMT
A loyalty bonus is an excellent idea. As other p2p platforms gain more of a track record & RS grows a reputation for safe & solid rather than market leading lender rates, it is logical for RS long term lenders to diversify elsewhere. As ever, much more costly for RS to recruit new lenders to replace them.
This assumes RS continues to focus its model on retail lenders.
|
|
registerme
Member of DD Central
Posts: 6,233
Likes: 6,038
|
Post by registerme on Nov 5, 2015 10:18:38 GMT
Agreed re the loyalty bonus, I've previously recommended it as an idea to other platforms looking for more "sticky capital" without going down the equity route. As it is RS fulfils three functions in my P2P portfolio:-
1. Asset class - consumer lending (I also have funds with Zopa, I may consolidate in the direction of one platform) 2. Platform diversification. 3. As a short / medium term holding facility for funds until they get redeployed (and sometimes transfer to / from a "virtual" P2P account I hold in a spreadsheet at which point I lend / repay to my regular bank account(s) depending on my appetite for P2P offerings at that moment in time).
I'm pretty opportunistic when it comes to rates - happy to leave some funds there not earning interest for a while because a) they're normally fairly small (interest and capital repayments from one platform being redeployed to another) and b) because the alternative is 0% with a regular current account.
|
|
arbster
Member of DD Central
Posts: 810
Likes: 426
|
Post by arbster on Nov 5, 2015 12:33:58 GMT
... the alternative is 0% with a regular current account. Get a new current account. I have £59,000 of interest-paying current accounts all at 3%+, and I suspect you're less risk-averse than me, so wouldn't choose to keep that much cash lying around.
|
|
registerme
Member of DD Central
Posts: 6,233
Likes: 6,038
|
Post by registerme on Nov 5, 2015 12:46:43 GMT
Yeah, I've thought about it, but how easy is it to open a new current account with no regular employment income and no real expectation of funds in / out on a monthly basis?
|
|