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Post by newlender on Jun 29, 2017 6:21:47 GMT
When I move money out of my Investing holding account one option is 'move to ISA holding'. This money seems to go randomly into the ISA holding or straight into my chosen ISA product for new payments (mostly the latter). Has anyone else noticed this? Mostly it goes straight to the ISA but the amounts appear as 'new money'. In fact it suits me fine for the moment but I think there is a tiny bug somewhere and these things tend to cause issues down the line.
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Post by misotu on Jun 29, 2017 10:07:46 GMT
What you describe sounds like it is working correctly, unless I have misunderstood you.
You have reinvesting turned on for your ISA account, so when funds arrive in the ISA holding account they are then transferred automatically into the ISA product you've specied for new funds. Although the funds travel via the ISA holding account, they are usually allocated within seconds from my observation, so it might appear that they have gone directly into the ISA product but this is not the case.
Funds transferred from investing holding to ISA holding are treated as new money, even if they are investment repayments. Doesn't seem to be any way round this as Zopa have decided not to allow automatic reinvestment into an ISA product from an investment product, probably because of the £20,000 personal annual ISA limit. Disappointing, although I'm experiencing very good lending speed in Core at the moment, with new money moving into matching within 24 hours, so really not a big issue.
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marie
Posts: 38 
Likes: 15
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Post by marie on Jun 29, 2017 11:41:46 GMT
What newlender is describing in the same as what's happening to me. The button/message clearly states that the money will be moved to the holding account, but instead its moved directly to a product.
This does not have anything to do with the automatic re-investments, it happens when manually moving money around the site.
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Post by misotu on Jun 29, 2017 12:58:18 GMT
OK, I'm still not getting what the problem is. If I'm understanding what is being described, then it's identical to what happens in my account.
The money *is* being moved into your ISA holding account, but is then being handled in accordance with your investment instructions. You don't want money to sit in your holding account unless you have reinvesting turned off, surely? If you tell Zopa that new money in your ISA holding account should go into ISA lending in Core or Plus, depending on your setting, then that's where it should put it. I wouldn't expect to have to transfer that money manually into my ISA lending queue unless I had reinvestment turned off.
I understand the distinction between payments into your ISA from your bank and moving money from your investment account to your ISA account but I don't understand why you expect those funds to be treated differently once they hit the ISA holding account?
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aju
Member of DD Central
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Likes: 917
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Post by aju on Jun 29, 2017 14:03:08 GMT
I've not used this method but I thought zopa said that relending returns from old zopa to new ISA was not going to be held up as in new lending direct from a bank.
Whats the point if its just as slow as new lending wouldn't it be more useful to lend from a bank and force returns into holding and once what you wanted to lend was lent you could return money in holding to your bank. That would mean money was lent quicker and at nil cost for the returns. This of course assumes there is external funding available and also that you could afford to wait for the returned cycles and that the new money was not earning as good as core or plus.
I'm sure thats not very clear it made sense when I thought of it ;-).
One thing I did like though was that as Mrs aju does not pay tax so it seemed better to take some of my ISA money I was planning to invest and put it in her Classic investment - £5000 went as £50 chunks but if I've got it correct it has the better SG protection against defaults for 5 years or as long as it lasts. Obviously I'll have to be mindful of relend rates post Dec 2017 don't go above my £10 I want to keep to. Also I will have had a few months to understand what the return levels will be.
There may be a little less on offer percent wise in SG product.
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