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Post by khampson on May 26, 2016 19:53:13 GMT
Over the last couple of months the rate for the rolling market seems to be a lot lower than at start of the year, earlier in the year the rate seemed to be 3% to 4% but now the rate seem to be between 2.4% and 3%.
Can anyone explain this? Is it because there are more lenders than borrowers, I have also noticed that the rate seems to be at its lowest on weekends . I have no explanation for this so what are your thoughts.
Thanks
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Post by GSV3MIaC on May 26, 2016 20:15:57 GMT
You might want to specify whether you are asking about the 'market rate' (auto reinvestment rate), the 'lend it now' rate, or the 'what can you actually get most days if you tough it out manually' rate .. they can be (often are) quite a bit different.
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Post by khampson on May 26, 2016 20:18:38 GMT
I am talking about the current market rate, I often sign in to check the current rate, I log in randomly several times a day, just noticed over the last few months the average has dropped.
Keith
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Post by GSV3MIaC on May 26, 2016 20:27:49 GMT
You can actually look at a graph at members.ratesetter.com/ratesetter_info/rate_trends.aspx (you need to login), and yes the MR is down half a point or so since April, which IIRC is about when they removed the 'sell out' fee, and made it a more attractive place to park funds waiting on IFISA, or new car purchase, or whatever else you might be saving for. As the numbers further down the page show, the long term average is not that different from where we are today. You are still in gravy compared to the end of 2013, IIRC (you can rescale the graph to your heart's content). |
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jonah
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Post by jonah on May 27, 2016 4:36:54 GMT
You can actually look at a graph at members.ratesetter.com/ratesetter_info/rate_trends.aspx (you need to login), and yes the MR is down half a point or so since April, which IIRC is about when they removed the 'sell out' fee, and made it a more attractive place to park funds waiting on IFISA, or new car purchase, or whatever else you might be saving for. As the numbers further down the page show, the long term average is not that different from where we are today. You are still in gravy compared to the end of 2013, IIRC (you can rescale the graph to your heart's content). actually www.ratesetter.com/aboutus/statistics works without being signed in.... I agree with the rest though!
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Post by westonkevRS on May 27, 2016 5:52:14 GMT
There is a lot more money on the rolling market as well, for the last few months it's been £7m plus, when historically it's been sub £2m. Most of this money is sitting from 3.5% plus, so lenders that do want to lend have had to take lower rates. As to why the £7m is sitting there, many people are either waiting for ISAs or just using it as a holding pen before choosing which market to lend in....
Kevin.
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Post by GSV3MIaC on May 27, 2016 10:35:55 GMT
just using it as a holding pen before choosing which market to lend in.... I resemble that remark. 8>.
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Post by westonkevRS on Jun 4, 2016 7:20:09 GMT
A new record of £9.1m sitting in the RateSetter rolling market (ignoring the morning numbers when the system is matching the reinvestments).....  What are you all waiting for? Kevin. |
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jonah
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Post by jonah on Jun 4, 2016 7:52:25 GMT
Personally I'm waiting for godot.
Slightly more seriously, I don't know, I've been withdrawing about 1/3 of my returning cash from RS to put elsewhere but getting the other 2/3 reinvested within a couple of days. Zero 'on market' currently for me.
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Post by closetotheedge on Jun 4, 2016 8:39:29 GMT
Myself I am waiting until 12:00 when the wine can be reasonably opened.
Regarding the rolling market the amount of money far above the level where it will be matched I find puzzling. As the market offers instant access, which I have used and works perfectly, then why do these individuals not want to actually get any interest. It is not like the 5 year market where it can be worth hanging around for the right rate, with the monthly term it is better to take what is on offer. Like many others I am accumulating some in the rolling market to hopefully take advantage of the ISA wrapper when it comes on stream. However, in the meantime I would rather take the 3.3% than nothing.
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Post by yorkman on Jun 4, 2016 16:22:55 GMT
But would you still be happy with the 2% currently on offer?
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Post by closetotheedge on Jun 4, 2016 16:33:23 GMT
2% rather than zero, yes I would take that. However, I have put money into the rolling market every weekday since the beginning of March and 3.2 is the lowest I have had to take and the average is 3.4. I could have held out for a higher rate and got nothing but instead I have enough interest for a decent holiday this summer, what is not to like?
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Investboy
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Post by Investboy on Jun 6, 2016 15:42:00 GMT
For Ltd company anything above 1% which I can achieve in corporate saving account in Aldermore is win for me. I'd not put anything for personal savings as I can get 4% in Lloyds Club.
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ashtondav
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Post by ashtondav on Jun 6, 2016 17:05:48 GMT
Lloyds is only good for a few grand. Once you've maxed santander, lloyds Nationwide etc 2% is a good result
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alender
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Post by alender on Jun 6, 2016 17:07:10 GMT
I have two limited companies and when rates got too low passed management over to an investment company which has invested in trusts worldwide. The results for over 3 years are returns over 5% per annum (including fees), roughly half is from capital gains which is subject to corporation tax, a small amount in interest and the rest in dividends which is not subject to corporation gains tax so the equivalent of over 7% per annum if gained in interest. Was more like 9% a little while ago but reduced due to the recent decline in stock markets. The capital gains for companies are still index linked giving a little extra return.
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