ceejay
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Post by ceejay on Jul 25, 2017 7:48:41 GMT
Hello
I'm looking for a possible new platform for a home for my 17-18 ISA later this year, and chat elsewhere on the board has led me here. I note that OC's ISA is shown as "soon" - but let's assume for a moment that it arrives in time for this tax year.
What does the collective intellectual might of this board think about this platform?
FYI I currently have funds in RS, FC and AC; also empty accounts with ZP and MT. I'd be looking for somewhere relatively hands-off for this chunk of money.
A quick look at the OC offering seems ok, but I do wonder about whether the rate of 4.1% (today) is fair, especially given their stated borrower rates which seem mostly to be about double that (yes, of course I understand there has to be a margin but still...). Is some of that margin earmarked for advisers, to whom they aim to be friendly?
Why would you invest in this platform rather than, say, AC's property account at 5.5%?
Opinions genuinely sought.
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pom
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Post by pom on Jul 25, 2017 9:11:03 GMT
Personally I use Octopus for low effort diversity, and figure the fact they're part of a well established name is hopefully a good thing. As for whether the rates are "fair" well they are in it to make money, so only you can decide if you're happy with what they're offering. I don't think it's ever easy to really compare rates across platforms though - very difficult to compare risk profiles, not all the platforms fees are immediately obvious etc.
I do think that you can only really form a view on a platform when you've tried it tho, so if a platform looks potentially good the only answer is to try it and see how it really works and then decide whether to increase or withdraw. Preferably with non-ISA money first (assuming you have some spare) as I'm not entirely sure taking the plunge straight into an IFISA account on a new platform is necessarily a good idea, as may not be so easy to get out again...I already have a few misgivings about one of the ISA transfers I made to a new one (so far Octopus has had very good liquidity however).
For a no-effort ISA my favourite is currently Lending Works - 4-5% currently for 3-5yrs. Whilst I'm not sure how quickly I could actually get my money back if I needed to, I've been happily using them for over 2yrs, it's only a small chunk of my old ISA cash anyway and a negligible amount overall so it's far less of a concern.
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liso
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Post by liso on Jul 25, 2017 9:15:56 GMT
Why would you invest in this platform rather than, say, AC's property account at 5.5%? For diversification, I invest in both. I'm near to my platform limit with AC - I also invest in their MLIA - and OC offers a reasonable hands-off alternative.
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macq
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Post by macq on Jul 25, 2017 9:37:27 GMT
So far i have had no problems with OC.As an invest & forget its worked well they show a target rate of 4.1% but according to my account page i have been around 4.2 - 4.25% for 6 months which compares better then say LB.They are part of a bigger company who have been around a while also running investment funds which while may not make it a safer platform it feels like it should be.Have found my payments going in quick but would advise dripping in over time to get a spread if thats what you want.Also they have said the ISA will be for current customers first so you would need an account first.
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greatmarko
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Post by greatmarko on Jul 25, 2017 10:47:23 GMT
It's perhaps also worth noting that when OC launched last year, their rates were targeting a 5% return. However, fairly soon after launch that target rate quickly dropped by around 1% to where it is now. So whilst the target rate currently hovers around the 4.0-4.2% mark, on the plus side, this rate does now seem to be fairly stable (unlike, for example, Growth Street, where rates are currently dropping by 0.1% every month). AC's rates seem the most "stable" though.
It is a shame that OC can't raise their target rate a little to at least match, for example, AC's 30DAA rate (4.25%).
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ceejay
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Post by ceejay on Jul 25, 2017 12:35:28 GMT
Thanks for the responses, everyone, very helpful.
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macq
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Post by macq on Jul 25, 2017 13:05:06 GMT
It's perhaps also worth noting that when OC launched last year, their rates were targeting a 5% return. However, fairly soon after launch that target rate quickly dropped by around 1% to where it is now. So whilst the target rate currently hovers around the 4.0-4.2% mark, on the plus side, this rate does now seem to be fairly stable (unlike, for example, Growth Street, where rates are currently dropping by 0.1% every month). AC's rates seem the most "stable" though. It is a shame that OC can't raise their target rate a little to at least match, for example, AC's 30DAA rate (4.25%). Would think from a marketing point of view 4.25% looks better as well  (just thinking of you OC) They have mentioned before about maybe adding to the product range but not sure if that's still the plan.
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littonowl
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Post by littonowl on Jul 25, 2017 13:09:01 GMT
As others have said, they are part of a much wider and established investment bank, who also have skin in the game, investing 5% in every loan they offer. Interests are aligned therefore and LTV is reasonably low as an additional level of security.
From a personal perspective, I like the ease of investment, the fact that you can choose to re-invest interest or have it paid into your bank account each month, and the communication from the company reps on here in the past has always been pretty good too.
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macq
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Post by macq on Jul 25, 2017 13:22:31 GMT
Also like the fact that when loans have repaid at the end of the week or my direct debit has fallen on a weekend my money so far has been invested over the weekend which is good but may depend on the loan book to happen every time.
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Post by gravitykillz on Jan 19, 2019 18:19:11 GMT
Welendus
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littonowl
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Post by littonowl on Feb 12, 2019 10:41:45 GMT
As others have said, they are part of a much wider and established investment bank, who also have skin in the game, investing 5% in every loan they offer. Interests are aligned therefore and LTV is reasonably low as an additional level of security. From a personal perspective, I like the ease of investment, the fact that you can choose to re-invest interest or have it paid into your bank account each month, and the communication from the company reps on here in the past has always been pretty good too. Well I am not happy with my investment in OC, the level of diversification has been an ongoing issue that has been raised with OC multiple times, yet despite the promises of 60 loans to invest in, they appear to be investing funds into the same existing loans already held. Bit of an old quote there, keystone ! :-) In fact my opinion is much closer to yours nowadays, as I've alluded to on another octopus thread...In fact, so much so, that I recently sold out (well, sold out of all the funds I was able to anyway!). Ironically, my two biggest allocated properties, are both part of the dozen or so that are currently in default/overdue etc., so I get totally where you're coming from, re: diversification too.
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ilmoro
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'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 Feb 25, 2019 18:27:44 GMT
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mjc
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Post by mjc on Feb 26, 2019 0:20:01 GMT
octopuschoice.com/isa/transferSeems to infer you CAN transfer an existing ISA. Can I transfer my current ISA investments into the Octopus Choice ISA? Yes, you can transfer existing ISAs into an Octopus Choice ISA. You'll first need to create an ISA account that you can transfer across to, but this should only take a few minutes (and you don't even need to put any money in it, if you'd rather fund it with an existing ISA or ISAs). BUT (on 26/2/2019) octopuschoice.com/termsT&Cs:- “ The Octopus Choice ISA is not a "flexible ISA" as defined in the ISA Regulations. This means that any money you withdraw from the ISA will still count towards your annual subscription limit.
Transfers In to the Octopus Choice ISA
We do not currently accept the transfer of any cash or investments held in an ISA with another ISA manager.“
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(just thinking of you OC) They have mentioned before about maybe adding to the product range but not sure if that's still the plan.
