pikestaff
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Post by pikestaff on Jan 3, 2017 8:11:56 GMT
2.01% for 5 years does not look such a bargain even with FSCS protection. I think the 3.5% on RS is pretty comparable TBH. Not that I'm going for that. My rate is set at 5.0%, which I think is realistic and should be gettable when things settle down in the new year. Until then I will be taking warn 's advice and sticking the cash in the rolling account.
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kaya
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Post by kaya on Jan 3, 2017 9:50:16 GMT
I would agree that 2% on a 5 year tie-in is not attractive. It is possible that Growth street may emerge as a main player in the one month rolling market, especially if they introduce a more flexible marketplace. It is however a rather different type of product.
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alender
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Post by alender on Jan 3, 2017 11:42:35 GMT
You can still get 3%+ on a number of current accounts though each one has a limit (and most need Direct Debits) they add up to a decent amount. For one person I can find accounts to invest £26,000 at 3%+, add on a second person + joint accounts and you can get a lot more. All with FSCS protection and instant access so no days wait and a day loss of interest to get you funds and no having to constantly reinvest either.
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elsee
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Retired:D
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Post by elsee on Jan 3, 2017 12:10:25 GMT
kaya I'm moving my RS money into Assetz Capital QAA @ 3.75% until things improve
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DeafEater
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Post by DeafEater on Jan 4, 2017 12:47:54 GMT
Not that proof is needed that we live in an insane world but...
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Post by ruralres66 on Jan 4, 2017 13:16:43 GMT
Further compounded by RS announcement and advert attacting"new money" - earn £100 if you invest £1000 in rolling market.......
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ashtondav
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Post by ashtondav on Jan 4, 2017 15:01:45 GMT
The dumb money just got dumber. But remember the dumb money runs fastest when the music changes.
Will the last sane rat deserting this sinking ship please turn out the lights...
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Post by sayyestocress on Jan 4, 2017 16:38:21 GMT
At least their sellout fees will be low (in theory) if they decide to leave...
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Post by Deleted on Jan 4, 2017 17:09:08 GMT
At least their sellout fees will be low (in theory) if they decide to leave... Not if rates go up. Have a look at how the 'assignment fee' portion of sellout works Heads they win, tails you lose...
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Post by sayyestocress on Jan 5, 2017 8:38:41 GMT
At least their sellout fees will be low (in theory) if they decide to leave... Not if rates go up. Have a look at how the 'assignment fee' portion of sellout works Heads they win, tails you lose... True, though I had assumed the monthly rolling or 1 year rates wouldn't be going upwards significantly anytime soon that the elusive sellout fee formula would be using for the rate you should have got lending in the 5 year market for monthly/1 year duration.
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09dolphin
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Post by 09dolphin on Jan 7, 2017 3:59:56 GMT
I honestly can't understand anyone investing in 5 year loans at the present rate. Can anyone see BoE interest rates remaining at the present rates in 4 years time, or even being reduced when inflation is expected to significantly raise by a point or two due to the value of the pound being reduced. Yes I know that the money market is awash with money but doesn't this remind you of before the last crash and the consequences.
As others have said you can have money in protected bank accounts (albeit with a few DDs) at 3% so why risk money at less than 3% in RS where the protection is so much poorer? I really don't understand
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Post by newlender on Jan 7, 2017 4:38:41 GMT
I'm doing my weekly Saturday morning review of my portfolio and have noticed that my last investment into the 5 year market was at the end of June, when I got 5.9%. I have been putting money into Zopa Plus instead, where rates are much better but there's no provision for defaults. As I've said before, RS needs to bite the bullet and offer a product without protection but with higher rates. Then we could decide if we wanted to take the risk in exchange for proper returns. RS is, in my opinion, far too attached to the 'nobody has ever lost a penny' mantra. Well, I've lost £60 so far on a 4 figure sum in Z+ with an average return of over 8%. I know that there will be more defaults but at least most of my cash is earning a decent rate. 5% or more for 5 year is when I'll dip back into RS and even then it won't be much. I have all my returned money in Rolling at the moment.
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Post by stevepn on Jan 7, 2017 18:39:18 GMT
I'm doing my weekly Saturday morning review of my portfolio and have noticed that my last investment into the 5 year market was at the end of June, when I got 5.9%. I have been putting money into Zopa Plus instead, where rates are much better but there's no provision for defaults. As I've said before, RS needs to bite the bullet and offer a product without protection but with higher rates. Then we could decide if we wanted to take the risk in exchange for proper returns. RS is, in my opinion, far too attached to the 'nobody has ever lost a penny' mantra. Well, I've lost £60 so far on a 4 figure sum in Z+ with an average return of over 8%. I know that there will be more defaults but at least most of my cash is earning a decent rate. 5% or more for 5 year is when I'll dip back into RS and even then it won't be much. I have all my returned money in Rolling at the moment. To lose £60 on a four figure sum doesn't sound good to me, that is 6% at £1,000 or 0.6% at £9,999 and more defaults to come. Zopa Classic rates are similar to Ratesetter Rolling. Personally between the two I would stick with RS.
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adrianc
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Post by adrianc on Jan 7, 2017 18:57:04 GMT
As I've said before, RS needs to bite the bullet and offer a product without protection but with higher rates. Then we could decide if we wanted to take the risk in exchange for proper returns. There'd be far more needed than just removing the PF in return for a % or two more. They'd need to allow you to pick your borrowers, with DD available. And that's never going to happen.
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mark123
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Post by mark123 on Jan 8, 2017 8:50:36 GMT
I'm doing my weekly Saturday morning review of my portfolio and have noticed that my last investment into the 5 year market was at the end of June, when I got 5.9%. I have been putting money into Zopa Plus instead, where rates are much better but there's no provision for defaults. As I've said before, RS needs to bite the bullet and offer a product without protection but with higher rates. Then we could decide if we wanted to take the risk in exchange for proper returns. RS is, in my opinion, far too attached to the 'nobody has ever lost a penny' mantra. Well, I've lost £60 so far on a 4 figure sum in Z+ with an average return of over 8%. I know that there will be more defaults but at least most of my cash is earning a decent rate. 5% or more for 5 year is when I'll dip back into RS and even then it won't be much. I have all my returned money in Rolling at the moment. I also stopped investing in RS last summer at 5.9%. But I'm not impressed by Zopa rates. Or Zopa Plus when you account for likely defaults. So I'm slowly drawing down both into cash and getting no interest (above inflation). P2P was great for a few years, giving us above-market returns, but now that the market has discovered P2P, the returns have dropped to the norm for other investments (after deducting a moderate percentage for risk). So waiting for the next new opportunity. Regards, Mark
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