macq
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Post by macq on Feb 5, 2019 13:39:12 GMT
in theory your loans should repay at the end of term fee free but in practice many loans repay early(or part of) also fee free you could set that to repay to your holding account along with the monthly repayments to do with what you want .But any money you reinvest would then start a new term in loans so there is a fee for selling early on that or any other investment on the market(except rolling) Also assume you signed with a bonus after a year so would need to stay over a £1000 for the first year to get that paid
P.s you will not get any repayments in 1 year unless they repay early
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macq
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Post by macq on Feb 4, 2019 22:02:33 GMT
guessing the bean counters at head office know there is more so called dumb money investing then people setting a better rate.The MSE forum most weeks is a good guide to how many new people only invest for the bonus but complain that the rate of 2% is not very good before being told they could do better
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macq
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Post by macq on Feb 1, 2019 17:49:20 GMT
Only six days later your prediction comes true. I tip my avatar hat to you. And this time, I wonder if there'll be a bid limit? Doubling down on a yes
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macq
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Post by macq on Jan 30, 2019 13:20:16 GMT
have someone like Octopus cash who work with a group of banks/bs and offer each up to £85,000 at the best rate with them before investing in the next and so on (but at 1 year) all under One account
I'm sorry to put it in such blunt terms, but please remove rose-tinted spectacles and engage brain.
Your contract is with Octupus, thus you only have ONE £85,000. That is the £85k provided to you (where applicable) as a retail client under FSCS terms.
Octupus's own arrangements are (a) not something you have any significant claim over (and your name most certainly doesn't feature in their dealings with their banking partners), and (b) Octupus's own arrangements are conducted on an 'institutional', not 'retail' basis, and thus FSCS is not applicable to their own arrangements.
I would further suggest this is a good lesson on reading terms and conditions. Because to give Octupus their due, they do spell all this out to you in the terms and conditions:
5.6 We hold your money in the Client Trust Account on trust for your benefit, separate from any account used to hold money belonging to us in our own right. Whilst we take due skill, care and diligence in selecting Approved Banks, we do not accept any liability for any act, omission or default on their part. During this time, only £85,000 of your deposit will be FSCS protected
5.7 If the Approved Bank holding your money becomes insolvent, the nature of any claim that we might have would be an unsecured claim on behalf of all our customers with an interest in the pooled client account. If there is a shortfall, our clients may share that shortfall in proportion to their original share of cash in the pool.
5.8 Your money held in the Client Trust Account may be pooled with money belonging to other clients, which means that you would not have a claim against a specific sum in a specific account. In such circumstances any claim which you might have would be against the client money pool in general.
Thus as I said. The only real answer to the "I've got more than £85k and don't want the hassle of multiple bank accounts" is, and will always be .... NS&I.
No need to worry about being blunt as you put it as you normally tell people they are wrong so a personal insult is quite an honour.So will engage brain and take off the rose tinted spec you mention and i will try to do better this time! But think the terms you have so kindly quoted refer to money with Octopus awaiting investment (which yes should be considered) If you look under the how it works section on their site it says savers can invest up to £340,000 with full FSCS protection which is why they only invest £85,000 with each partner bank or BS from their panel I can not say if the product is any good but that's how i see it from my reading of the terms(yes i did read them) in my humble opinion and its not investment advice as i will leave that to you
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macq
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Post by macq on Jan 30, 2019 12:36:24 GMT
would agree with others about instant access accounts or NS&I etc and there are more then a few fixes paying over 2% But using the original question's point about to many accounts you could look Masthaven who let you pick your own term from 1 - 5 years and then quote you a rate for your pick i.e 13 months or 29 months etc so you could create a bond ladder type effect. Or to cut down the amount of paperwork/accounts you have someone like Octopus cash who work with a group of banks/bs and offer each up to £85,000 at the best rate with them before investing in the next and so on (but at 1 year) all under One account
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macq
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General P2x Discussion
Crowd2Fund
Jan 30, 2019 11:57:44 GMT
Post by macq on Jan 30, 2019 11:57:44 GMT
Yeah, macq I don't understand the lack of general coverage for them either. Maybe they have special silencing dust. However, is anyone happy to help me with my understanding of things? I can't tell whether I have become more suspicious, or their loans really have become so. If a business has two loans, e.g. a bank loan but presume also c2f because they needed more money; or uses invoice discounting as well as a c2f raise, isn't that an issue? Think with C2F you need to look with a wary eye - While they do not seem to have had that many defaults especially the early Ones (and do try to sort them) many of the business are not making great profits so maybe a loan with a PG is the only route for them
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macq
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Post by macq on Jan 29, 2019 15:07:37 GMT
thanks macq . So in general, when people say the rate is too low - they mean they just want more money? I'm looking for safer diversification. Or do people mean the rate is too low for the risk taken by lending? would think in general when most people say the rate is low that yes they want more money and then some would argue risk/reward as well (but i always think that's a personal call and not a blanket statement as some say but others may disagree) Also rates whee higher at the start and when fixed loans finish there fixed term which i believe my wife's have been 3 to 5 years (but shes not here to check)they revert to flexible rate for the rest of there term plus 0.5% which helps Would not like to say LB are safer but i guess there business model has been easy to use,cashback on queued money with slow growth as a business(think there now in profit?)and while the rates are low that may work to the benefit of the borrower,the point i made about them trying to keep the rates about the same in regards late or defaults but who knows
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macq
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Post by macq on Jan 29, 2019 14:29:59 GMT
can't wait to see there faces when everybody turns up to play a chukka - free Pimm's all round
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macq
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Post by macq on Jan 29, 2019 14:26:10 GMT
Only look every now and again as the wife put some money in a few years back and then just left - but you would think lending to mainly professional landlords and with a tendency to aim the rate at the borrower(they tend to tweak the flex rate when required) and also a PF that there are probably more risky sites for property do you mean they have a PF? can't find on their website. Do you mean that they would attract better borrowers if they offer loans at lower interest rates? Under the how it works section is a sub section called minimising risk where the PF is mentioned among other things (called a reserve fund) Or search reserve fund in FAQ The bit i meant about rates is they tend to keep the flexible rate about the same for new loans so if the LIBOR rate goes up they tend to cut their underlying rate so it keeps the rate the same and attractive to the borrower and the lender does not always get the benefit of the rate rise (but the rate will go up for lenders on the older flexi loans)
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macq
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Post by macq on Jan 29, 2019 13:46:28 GMT
and by looking at page 8 of the borrowing proposal they will be back for a bit more soon on another refinance deal
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macq
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General P2x Discussion
So Long P2P
Jan 28, 2019 21:59:27 GMT
Post by macq on Jan 28, 2019 21:59:27 GMT
I would be weary of applying bond theory to P2P. That’s a shame, I was rather hoping for an XIRR of 007%. is that to the Q ratio?
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macq
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Post by macq on Jan 28, 2019 21:11:38 GMT
Probably right about being wary - yet here we are all giving our views and reading a forum anyway
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macq
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Post by macq on Jan 28, 2019 17:37:19 GMT
Echoing what some others have already said, don't invest anything meaningful into things you don't understand. Read Tim Hale's Smarter Investing and understand index funds. Invest via Vanguard or other low cost trackers of your choosing. Not sure how highly you rate the book? - but if looking at passive investing maybe you could save the £20 for your first investment payment and read the Monevator blog(and maybe callaborative fund blog from the states) and the MSE,Lemon Fool and bogleheads forums
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macq
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General P2x Discussion
So Long P2P
Jan 28, 2019 13:20:43 GMT
Post by macq on Jan 28, 2019 13:20:43 GMT
I don't believe day trading is that hard as i have seen that new ITV money programme called Cleaning Up and the lady on there makes it look very easy (in fact it was so easy i could stop watching after 20 mins)
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macq
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Octopus Choice (OC)
Cash Drag
Jan 27, 2019 8:53:32 GMT
Post by macq on Jan 27, 2019 8:53:32 GMT
Cash drag is increasing on this site at present. My oldest pending investment is now 9 days old. I wonder if investors are migrating from other sites that are considered higher risk/higher maintenance. would agree some of my repayments which are normally same or next day are taking much longer - it may also be due to lack of loans which may happen at the moment and could effect more then just OC in the next few months
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