New Start Opinions

I wouldn't start putting money in RS now. Because of my RS 6.2% average interest rate, I've pretty much decided against using the fee free withdrawal since the change in the PF terms, but will continue winding down my RS exposure as I've been doing for the last 6 months, and sticking the money across Assetz Capital's two 7% accounts.

3.5% isn't much of a return. What kind of return are you looking for? What's your attitude to risk?

Assetz Capital 30 day notice account is at least 4.25%, while its GBBA pays 7%. While I realise that £15K isn't, in the grand scheme of things, a huge amount of money, I might suggest you'd be better off not using RS.

You say you've had £15K sitting in a non interest bearing account. If you're only looking for 3.5%, you'll soon find inflation fast eating away at your capital. Low risk 7% is easily achievable with little effort. If you have a higher risk appetite, there are plenty of 12%+ P2P sites. Not my cuppa, but that's just me. Nothing wrong with some of those site as long as you have good diversification.

My view is that ideally you need some diversification across platforms. However, I would argue that both RateSetter and Zopa+ could be considered core safe holdings. Although a little dull for some of the more adventurous lender types on this platform.

A new lender would then diversity outwards to the likes of Lending Works, Assetz, BondMason, Abundance and Funding Circle before venturing smaller holdings to the higher risk platforms (typically identified by the returns...).

I wouldn't lend on any if the European platforms, nor on the real estate platforms where the security is considered more important than the integrity of the individuals borrowing. But that's my opinion. 

Kevin.

I also share the view that it is worth considering Ratesetter.

They are not perfect and there are some things I wish they would do but that is the same for all platforms, particularly as they scale up their lending volumes.

I know past performance shouldn't be the only metric. They have served me well since I first signed up with them in 2010 and they have a large proportion of my p2p investment.

As a Newbie looking at Rolling I would just caution (and it is all on the RS website) that Rolling is investing in (quote):

"Loan terms: Your money will be invested in loan terms between 6 months and 5 years"

"Access: You can access your money freely as long as there are funds in the market to replace the amount being withdrawn......  If replacement funds aren’t available, your money will be returned as the borrower(s) repays over their loan term. To date no customer has ever had to wait for their money although it's not a guarantee. RateSetter is an investment not a deposit account."

======
In summary Rolling relies on liquidity from other lenders. There is a risk that that 3.5% you get could be tied in for 6mths - 5 years, albeit as RS mention to date no liquidity delay in accessing funds has been experienced.

I think if you invest acknowledging the above, it is fine as an investment.



 

Would we be right to assume from that you're already making full use of the various high-interest current accounts in many cases still paying 3-5%.  They all have quite low balance limits but still easy enough to get several times your £15k tucked away with full FSCS protection before considering any p2p investments at just 3-4%.

You could start by opening 2 Tesco current accounts and one or two Tesco Internet Savers for generating direct debits.  The current accounts have no DD or minimum pay-in requirement and you can hold £3000 in each at 3%.  The Internet Savers (or the Tesco Instant Access Savings accounts) will let you set up as many DDs to them as you require from any of your new current accounts.  You could just DD current account monthly interest split between two DDs for example.

Then you can look at Bank of Scotland allowing £5000 per account at 3%, and TSB also paying 3% but only on £1500 per account now. Nationwide FlexDirect pays 5% on £2500, for first 12 months but can be 'renewed'.  Nationwide also pay a £200 "refer a friend" bonus if you transfer your account to them (half each to referee and referrer though most people would be happy to split it 75/25 I'd expect).

Santander allows £20k per account but recently dropped their rate to 1.5% and has an account fee (though does pay up to 3% cashback on some DDs).  Lloyds has dropped its rate to 2% on £5000 so goes to the end of list unless you want one of its various small perks (such as 6 Vue cinema tickets per account holder per year etc.).

Most of the current accounts require a minimum monthly pay-in but not Tesco.  If required, just set up a daisy-chain of standing orders all for the same day - say £1000 from A to B to C to D... and back to A.  Sounds complicated but if it takes you more than 20 minutes you aren't trying.  Once set up you'll only notice from your statements.

Then there are the regular savers if you want them.  Lots of them and also paying 2-5%.

I use both the assetz capital and ratesetter  instant accounts to spread the risk. Others have commented that this is worth you thinking about as well.

If it is long term savings as you say you could consider either the 30 day account or the GBBA or Green account on assetz capital if you like the look of them as a company and want some backup albeit not guaranteed from a provision fund.