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Post by mrclondon on Nov 21, 2013 22:11:49 GMT
Agreed, monthly access rates at 1.2% are daft ... when (for example) State Bank of India offers an instant access account with debit card paying 1.5% [or for those that joined earlier in the year 1.75% or 2%]
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Post by westonkevRS on Nov 21, 2013 22:30:50 GMT
Hey Old Grumpy,
In terms of the BIS thing, could too much lending lower rates? Well the BIS is actually quite small relatively, actually I expect more lending cash to come from April 2014 regulations and perhaps subsequent qualification for ISA and SIPPs....
.... But this shouldn't depress rates at RateSetter. Being the market place we are whenever new lending money comes in (e.g. after Martin Lewis's recommendation or some high net worth individual money) this just attracts more borrowers and the 5yr market stabalises between 5% and 6% (as you've seen). And along with other borrower initiatives such as giffgaff we have many places to work lenders money.
I don't know if this is true of other sites that determine the rates by management strategy. They might decide that with all the easy money they can lower rates for lenders or charge more borrower fees. But only time will tell, the next 12mo the is going to be great!
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bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
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Post by bigfoot12 on Nov 22, 2013 7:41:02 GMT
I don’t understand why some investors are almost orgasmic in their praise of Ratesetter when rates for monthly access can only be described as cr*p.
1.2% this evening 21/11/13 is risible, you can get far better instant access rates with several high street banks and building societies whilst 1, 3 and 5 year rates are unattractive IMHO.
I haven't seen any orgasmic praise in this post. I haven't lent in the monthly market for ages. The best fixed rates by an institution that I have heard of on money supermarket at the moment in 3 and 5 year are 2.55% and 3.05%, respectively, Tesco in both cases. So the 5.3% for 5 years which is often achievable looks reasonable. A few weeks ago 5.8% was achievable with bank rates at a similar level to now. Further the Ratestter lending is amortising and so its average life is shorter, it might be fairer to compare ratester 5 year with Tesco 3 year. Against that Ratesetter might repay early, especially when you don't want it to - probably not a problem when rates are low and likely to rise, but worth remembering and no FSCS.
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Post by yorkshireman on Nov 22, 2013 18:06:31 GMT
I don’t understand why some investors are almost orgasmic in their praise of Ratesetter when rates for monthly access can only be described as cr*p.
1.2% this evening 21/11/13 is risible, you can get far better instant access rates with several high street banks and building societies whilst 1, 3 and 5 year rates are unattractive IMHO.
I haven't seen any orgasmic praise in this post. I haven't lent in the monthly market for ages. The best fixed rates by an institution that I have heard of on money supermarket at the moment in 3 and 5 year are 2.55% and 3.05%, respectively, Tesco in both cases. So the 5.3% for 5 years which is often achievable looks reasonable. A few weeks ago 5.8% was achievable with bank rates at a similar level to now. Further the Ratestter lending is amortising and so its average life is shorter, it might be fairer to compare ratester 5 year with Tesco 3 year. Against that Ratesetter might repay early, especially when you don't want it to - probably not a problem when rates are low and likely to rise, but worth remembering and no FSCS. I was not suggesting that anyone was praising Ratesetter in this particular post, it was more of general observation from the old forum and other sites. With regards to 3 and 5 year rates, yes I agree with your comments although as I’m sure you’re aware these can be beaten on Funding Circle albeit with a higher risk. At the end of the day, it’s an individual’s appetite for risk and returns which determines where they invest. One platform that rarely gets a mention and pays 5% for 2 or 3 years with interest paid up front, is Burnley Savings and Loans aka “Bank on Dave” The only possible downside is a £25k maximum investment and new lenders have to join a waiting list, having said, that I have placed a modest amount with BS & L and will continue to support them whilst rates are so abysmal.
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Post by yorkshireman on Nov 22, 2013 18:08:30 GMT
One day I’ll learn how to post a comment using a quote!
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Post by uncletone on Nov 22, 2013 18:20:55 GMT
One day I’ll learn how to post a comment using a quote! Hit the "Quote" button at the top right of the post to which you are responding.
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oldgrumpy
Member of DD Central
Posts: 5,087
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Post by oldgrumpy on Nov 22, 2013 18:31:15 GMT
...... I’ll learn how to post ...... quote! Hit the "Quote" button at the top right of the post to which you are responding. If it's a big quote and you only want a bit of it you can edit from it, as I have with yours just above.
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Post by westonkevRS on Nov 22, 2013 22:14:40 GMT
Oh no, is that UncleTone who put me on the naughty step on the Zopa forum? Am I safe here?
Yorkshireman, did you see the 1-month rates now are 1.6% and 1-year money is 3.6%. It even blipped up earlier for higher rates if you'd been a ratesetter or just quick.... Beats lending to an Indian bank....
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Post by uncletone on Nov 22, 2013 22:42:00 GMT
Oh no, is that UncleTone who put me on the naughty step on the Zopa forum? Am I safe here? Be afraid. Be very afraid...
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bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
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Post by bigfoot12 on Nov 23, 2013 21:42:37 GMT
I don’t understand why some investors are almost orgasmic in their praise of Ratesetter ....
My guess is that those lending 1 year money on Friday night at 99% might be orgasmic...
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Post by yorkshireman on Nov 25, 2013 15:16:05 GMT
Yorkshireman, did you see the 1-month rates now are 1.6% and 1-year money is 3.6%. It even blipped up earlier for higher rates if you'd been a ratesetter or just quick.... Beats lending to an Indian bank.... Sorry, I’m not prepared to support city boys borrowing at 1.6% in the 1 month market in order to buy short and make a profit before the loan is due for repayment when I can get 3% on current accounts with various high street financial institutions.
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Post by yorkshireman on Nov 25, 2013 15:19:58 GMT
Yorkshireman, did you see the 1-month rates now are 1.6% and 1-year money is 3.6%. It even blipped up earlier for higher rates if you'd been a ratesetter or just quick.... Beats lending to an Indian bank.... Sorry, I’m not prepared to support city boys borrowing at 1.6% in the 1 month market in order to buy short and make a profit before the loan is due for repayment when I can get 3% on current accounts with various high street financial institutions. That's 3% with instant access by the way.
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Post by yorkshireman on Nov 25, 2013 15:21:35 GMT
Thanks to Uncle Tone and Old Grumpy for the advice re “quotes”!
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Post by uncletone on Nov 26, 2013 19:16:48 GMT
Afraid not, young Grumps. I'm somebody else. Thanks for the banana!
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