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Post by westonkevRS on May 13, 2016 20:10:59 GMT
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.... The " our" is the issue. I believe it's the classic prisoners dilemma. Do you make the first move to get a quick return thus lowering everyone's returns, or hope everyone sticks and lends at higher rates together! Luckily there isn't an independent forum where you can all agree on rates.....
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jonah
Member of DD Central
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Post by jonah on May 13, 2016 21:03:22 GMT
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.... The " our" is the issue. I believe it's the classic prisoners dilemma. Do you make the first move to get a quick return thus lowering everyone's returns, or hope everyone sticks and lends at higher rates together! Luckily there isn't an independent forum where you can all agree on rates..... Semi serious question.... If sufficient people managed to do that would that be an illegal cartel? Obviously highly unlikely in the real world.
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Post by failedtheturingtest on May 14, 2016 8:17:45 GMT
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. I've been running down my holdings in the 5-year market and using the rolling market as a holding queue while waiting for the ISA to get approved. I receive enough interest income to fill my tax-free interest allowance, so I'm gambling that it will turn out to be worth losing a few months of lower interest in the rolling market in exchange for having more money that I can quickly deposit into ISA-wrapped markets when they become available.
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dermot
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Post by dermot on May 15, 2016 15:03:22 GMT
I'm just leaving an ISAs worth of cash in a Santander 123 account at a protected 3% until the RS ISA launches.
After that, I may draw down a little bit of cash from the standard markets to have a punt on some of the higher rate - but unprotected by a provision fund - other vehicles.
Would be nice to have an idea when the ISA is likely to become available .... not heard anything back after I indicated an interest.
DD
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