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Post by tinkertailor25 on Aug 6, 2016 20:53:54 GMT
Sorry if these are daft questions, I'm very new to P2P. I joined Ratesetter in June and put in £1000 in the 1 year market, to qualify for the bonus £100 offer. Since then my account is still showing a balance of £1000 on loan with no repayments or reinvestments. Does the interest only show up in my account once the 1 year is up? Or should I have received a monthly repayment by now?
I have also set the repayments to be reinvested back onto the 1 year market, but see that you can set your own preferred interest rate. I have read that a lot of people set a rate a little higher than the market rate when they start a loan but what about reinvesting the money, given that we don't know what the daily rate will be at the time of repayment? Do most people just stick with the set daily rate? If not, what interest rate do you choose and why?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 6, 2016 21:12:54 GMT
Sorry if these are daft questions, I'm very new to P2P. I joined Ratesetter in June and put in £1000 in the 1 year market, to qualify for the bonus £100 offer. Since then my account is still showing a balance of £1000 on loan with no repayments or reinvestments. Does the interest only show up in my account once the 1 year is up? Or should I have received a monthly repayment by now? I have also set the repayments to be reinvested back onto the 1 year market, but see that you can set your own preferred interest rate. I have read that a lot of people set a rate a little higher than the market rate when they start a loan but what about reinvesting the money, given that we don't know what the daily rate will be at the time of repayment? Do most people just stick with the set daily rate? If not, what interest rate do you choose and why? The one year market invests in a one year bond with interest at term so you wont get any repayment until the year is up. The other markets pay interest & capital back monthly, self evidently for the rolling, in the case of the 3 or 5 year market on an amortising schedule. There are several threads on the subject of the whether you should reinvest at the market rate 35 pages here General consensus is to avoid it as you will be vunerable to market fluctuations. Others can probably advise you better on that one as I am no longer an active RS investor oldgrumpy one for you
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Post by moneymagnet on Aug 6, 2016 21:24:14 GMT
I joined RateSetter a few months ago and am counting down the days until I get my bonus!
I usually choose an interest rate a few tenths of a percent higher than the going rate. The interest rate on all the markets seem to bounce around and I usually get a match within a week.
I usually check the markets every couple days and adjust accordingly.
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Post by propman on Aug 8, 2016 12:03:09 GMT
If you want to "set and forget", I agree that you cannot hope to set a future rate now for a year's time. generally MR can be beaten, but there is no option to reinvest at MR + 0.2%. Repayments often cluster and so anyone who wishes to remain invested has to accept a lower rate. Often rates 0.5 - 1% higher than MR are available within a week, with rates later generally a little higher than earlier in the week. But getting them means risking leaving the money unproductive while rates drop.
If you want better rates, I would suggest setting repayment to "holding account", setting e-mail notifications (the loans may repay early) and diarising when the loan is due to repay (see listing under "1 year under "your portfolio heading down left, then "On loan" and "Your money on loan"). Then when repaid, have a look at the money on the market (click on "last matched rate in 1 year market, then "full market listing"), pick a rate some 200-300k up the offers and see how it matches. If you don't get a notification of a match in a couple of days, look how the market has moved and reevaluate if necessary (ie you are no closer to the top).
Best of luck
- PM
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