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Post by cassiopeia on Apr 21, 2016 12:22:53 GMT
I've just realised money needs to be placed in each market separately instead of that market accessing any funds when the rate is hit and prompting me to top up until another is hit. This means I need to place four times as much dead money as I need to. Isn't this rather inefficient, and is little help to Ratesetter either? How does everyone else manage, just keep their eye on the market and place an order only when it looks as if it might be filled? Are there any alerts?
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adrianc
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Post by adrianc on Apr 21, 2016 12:49:59 GMT
You could just put a tenner's marker in each market at whatever rate - but that doesn't much help you, because when you see that marker go, any money you then put in after it will be at the back of the queue, so less likely to go.
Just pick a market and stick with it. If it's lagging, and moving the desired rate down a notch won't help, then consider moving to a different market.
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Post by GSV3MIaC on Apr 21, 2016 14:46:18 GMT
It has been requested that one might offer one's cash at 'x% for 5 years, y% for 3 years, or z% rolling, whichever happens first' but this would be a programming challenge for RS**, and a comprehension challenge for the average lender***.
** who haven't even managed to give us back our 'floor rate' facility. *** which ain't us.
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dermot
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Post by dermot on May 11, 2016 15:35:49 GMT
I wonder if RS might offer a system where unused funds are 'swept' into a lower interest rate account, rather like the Assetz QAA account.
Even a couple of % would persuade me to park a bit more cash into RS and wait for the better rates if it was at least earning *something* when there is a bit of a drought of decent rate returns as has happened recently.
Or even, since the rolling account is now free of exit charges, just sweep uninvested funds into whatever the rolling account offers at any particular moment until your selected rate in 1, 3 or 5 year markets comes up.
Though since this would probably depress the rolling rate a bit, such a plan might not be very popular with those who park a lot of cash into the rolling account.
I don't have any use for the current 1 year market at all, but if there was a 1 year *income* market, I'd probably use it a fair bit.
Dermot
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Post by westonkevRS on May 11, 2016 17:59:36 GMT
You've partly answered your own question. You can use the rolling market and then withdraw free of charge (presuming liquidity) and move into a longer term when the rate you want is achievable. But this would require you keeping a close on on things.
Any auto switch, despite being a neat idea, in all truth won't happen. Firstly IT are busy with the FCA authorisation project, ISAs and a whole bunch of other improvements. Secondly the solution will complicate the simple (?) RsteSetter offering. Some lenders already find the markets daunting, really most just choose the market for this risk appetite and timescales and stick there.
So the IT work involved alongside the complication of the platform won't get the idea approved, when the manual solution gives a partial option to do this at least if you put in the effort....
Kevin.
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dermot
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Post by dermot on May 11, 2016 21:07:46 GMT
I kind of thought that might be the case and have been letting some returns roll up in the rolling account - but it does mean keeping a close eye on things when I'd rather be in the pub. Or something. Maybe I'll go back to parking £10 markers - but I've found that emails confirming a match can occasionally be rather tardy, which renders that approach a bit hit and miss. Pulling cash out of rolling for reinvestment should presumably be a little faster than a fresh cash injection for when rates are very volatile. Dermot
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Post by westonkevRS on May 12, 2016 5:40:53 GMT
Pulling cash out of rolling for reinvestment should presumably be a little faster than a fresh cash injection for when rates are very volatile.Dermot Probably not. Personally I make a debit card inbound payments from within the RateSetter members area, and that is always ready to lend instantly. Although only payments £1,000 and above are free of charge. Kevin.
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Post by propman on May 12, 2016 7:52:26 GMT
I wonder if RS might offer a system where unused funds are 'swept' into a lower interest rate account, rather like the Assetz QAA account. Even a couple of % would persuade me to park a bit more cash into RS and wait for the better rates if it was at least earning *something* when there is a bit of a drought of decent rate returns as has happened recently. Or even, since the rolling account is now free of exit charges, just sweep uninvested funds into whatever the rolling account offers at any particular moment until your selected rate in 1, 3 or 5 year markets comes up. Though since this would probably depress the rolling rate a bit, such a plan might not be very popular with those who park a lot of cash into the rolling account. I don't have any use for the current 1 year market at all, but if there was a 1 year *income* market, I'd probably use it a fair bit. Dermot I a sue we would all like interest on uninvested funds, but could only sustainably come from higher fees and ultimately from lower rates or greater risk.
As for the monthly market, as Kev says, individual investors can run this themselves, but explaining to the average investor that they are subject to liquidity risk in a way they would be certain to understand would be difficult. Also, there are currently significant funds uninvested in monthly market (several days of offers). It is not realistic that all funds waiting would be on loan. Even if they were, how would RS provide the liquidity when the other markets recover to replace these funds?
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Post by westonkevRS on May 12, 2016 12:41:00 GMT
Interestingly the last few months there has been record ££££s sitting in the monthly/rolling market. Currently it's not far of £8m. Traditionally this has been £2m maximum, quote often a lot less. These lenders have set their rates relatively high, and only "nibbles" are being taken at 3.5% plus. It doesn't see logical to be waiting for these nibbles with all the dead time and lost interest. Bearing in mind the no cost withdrawel subject to liquidity, what's the point? People seem to be using it as a holding queue. Either for better rates on other markets, or for the ISA. But in the meantime that's a lot of interest foregone. propman and other forumites experts, do you have a view?
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Post by jackpease on May 12, 2016 14:14:45 GMT
These lenders have set their rates relatively high, and only "nibbles" are being taken at 3.5% plus. It doesn't see logical to be waiting for these nibbles with all the dead time and lost interest. Bearing in mind the no cost withdrawel subject to liquidity, what's the point? People seem to be using it as a holding queue. Either for better rates on other markets, or for the ISA. But in the meantime that's a lot of interest foregone. propman and other forumites experts, do you have a view? I'm one of those - I've been used to being able to get 3.6% or more and in the last few months i've struggled with that - i try to keep a bit parked at 3.6% and then get stubborn/lazy/dumb and just leave it there in illogical hope. Jack P
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Post by brianac on May 12, 2016 17:32:24 GMT
Interestingly the last few months there has been record ££££s sitting in the monthly/rolling market. Currently it's not far of £8m. Traditionally this has been £2m maximum, quote often a lot less. These lenders have set their rates relatively high, and only "nibbles" are being taken at 3.5% plus. It doesn't see logical to be waiting for these nibbles with all the dead time and lost interest. Bearing in mind the no cost withdrawel subject to liquidity, what's the point? People seem to be using it as a holding queue. Either for better rates on other markets, or for the ISA. But in the meantime that's a lot of interest foregone. propman and other forumites experts, do you have a view? Why would you accept less than 3.75%,? to er... pluck a random number out of thin air. Seriously 3.75% easily available elsewhere, or 4.25% with a months notice, why would you settle for less? come to that, 3% plus available (with restrictions admittedly) available with full FCA protection in the retail market. Brian
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Post by westonkevRS on May 12, 2016 21:13:57 GMT
brianac , I agree that with a bit of effort you could earn a better rate elsewhere, and protected by FSCS. I don't want to debate that possibility. But why then leave it on the RateSetter rolling market earning nowt when you could lent it earning something, or take the money elsewhere. Lend it must to earn something, even if you have to sell out. Just leaving it for 2+ months seems crazy/lazy/sub-optimal... Kevin.
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pikestaff
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Post by pikestaff on May 13, 2016 7:05:10 GMT
Why would you accept less than 3.75%,? to er... pluck a random number out of thin air. Seriously 3.75% easily available elsewhere, or 4.25% with a months notice, why would you settle for less? come to that, 3% plus available (with restrictions admittedly) available with full FCA protection in the retail market. Brian Apart from the obvious point made by westonkevRS: 1. "Elsewhere" presumably means AC. Their provision fund is less transparent than RS's, and I am not sure that it is as robust. I think the higher rate at AC comes with slightly more risk. 2. Those retail accounts are not available for everybody. You have to be a person (not a trust or a company) and you have to be accepted by the banks for an account. The latter is probably not an issue for most forumites but I know a couple of people who have been turned down.
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jlend
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Post by jlend on May 13, 2016 7:10:57 GMT
These lenders have set their rates relatively high, and only "nibbles" are being taken at 3.5% plus. It doesn't see logical to be waiting for these nibbles with all the dead time and lost interest. Bearing in mind the no cost withdrawel subject to liquidity, what's the point? People seem to be using it as a holding queue. Either for better rates on other markets, or for the ISA. But in the meantime that's a lot of interest foregone. propman and other forumites experts, do you have a view? I'm one of those - I've been used to being able to get 3.6% or more and in the last few months i've struggled with that - i try to keep a bit parked at 3.6% and then get stubborn/lazy/dumb and just leave it there in illogical hope. Jack P I am also one of those and live in hope that rates will creep up again if enough lenders hold their nerve for longer term gains. A bit stubborn and dumb by the look of things... Flipping the question. Why are lenders accepting lower rates when we have seen we can get higher rates quite easily if we hold our nerve.... that is the nature of a market with a diverse customer base :-)
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Post by propman on May 13, 2016 7:24:27 GMT
Interestingly the last few months there has been record ££££s sitting in the monthly/rolling market. Currently it's not far of £8m. Traditionally this has been £2m maximum, quote often a lot less. These lenders have set their rates relatively high, and only "nibbles" are being taken at 3.5% plus. It doesn't see logical to be waiting for these nibbles with all the dead time and lost interest. Bearing in mind the no cost withdrawel subject to liquidity, what's the point? People seem to be using it as a holding queue. Either for better rates on other markets, or for the ISA. But in the meantime that's a lot of interest foregone. propman and other forumites experts, do you have a view? I agree that it is not optimum for return. That said, I for one don't usually fund £1,000 at a time and so find it useful to have money available in RS to take advantage of any increases in rates. As the monthly market has fluctuated significantly, it may be that people judge that this is the most likely to get a match at their acceptable rates and so park the money there in the expectation that the offer can be withdrawn to release funds if they find another market looks a better bet.
Of course it is also the case that people have become irrationally attached to offers. While 0.1% in monthly is tiny, I have found myself reluctant to withdraw an offer that is well up the queue at a given rate. The "logic" is that there is no point moving it as no achievable rates are attainable at present (assuming their minimum is above likely movements in the markets short term). However if the markets pick up, this is often seen across multiple markets and it may be that they believe that just when there is a better alternative, the queue position becomes valuable. As a result they never move it.
- PM
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