|
|
Post by dombert on Dec 14, 2017 13:53:08 GMT
So RateSetter have announced that they will launch an ISA sometime in February for investments for the 2017/18 tax year.
The focus seems to be for either new funds or reinvestment of rolling funds. Asking RateSetter, if existing investors in 1 or 5 year funds want to take advantage of this ISA before April 5th, either the funds have to become available for reinvestment or the existing investments must be put up for early termination with resulting time and interest penalties.
Either they haven't thought this out, or they want to create a rotation of funds out of and into new long term contracts.
|
|
|
|
Post by skint4achange on Dec 14, 2017 13:59:25 GMT
So RateSetter have announced that they will launch an ISA sometime in February for investments for the 2017/18 tax year. The focus seems to be for either new funds or reinvestment of rolling funds. Asking RateSetter, if existing investors in 1 or 5 year funds want to take advantage of this ISA before April 5th, either the funds have to become available for reinvestment or the existing investments must be put up for early termination with resulting time and interest penalties. Either they haven't thought this out, or they want to create a rotation of funds out of and into new long term contracts. You will find that the rules for IFISA prevent you from putting your own investments into your ISA (I am no expert on IFISA BTW). There is a thread that covers this topic in the GOJI part of this forum. The guy that was part of the thread on the GOJI ISA explains why you cannot do what you want to do (He is an expert on IFISA as he is part of some group of overseers or something).
From what I remember, to put your current investments into your ISA they would have to be placed on the open market and then you have to buy them back within your ISA wrapper. The way RS do their business, that would be impossible to do.
|
|
|
|
Post by dombert on Dec 14, 2017 14:43:35 GMT
That could introduce some interesting volatility into long term rates through March.
|
|
|
|
Post by GSV3MIaC on Dec 14, 2017 16:46:30 GMT
Nothing to stop RateSetter from offering (yet another) fee-free sell out option, this time (only) for people who want to re-invest it straight back into an RS ISA, but there's no way to guarantee that you'd be able to get back in at the same rates of interest you got out at - and probably no way to ensure you put it back in the same product(s) it came out of (1 / 5 / 0 year). For anyone with left over 3 year (are there any?) for sure no way. |
|
|
|
Post by skint4achange on Dec 14, 2017 16:53:12 GMT
Nothing to stop RateSetter from offering (yet another) fee-free sell out option, this time (only) for people who want to re-invest it straight back into an RS ISA, but there's no way to guarantee that you'd be able to get back in at the same rates of interest you got out at - and probably no way to ensure you put it back in the same product(s) it came out of (1 / 5 / 0 year). For anyone with left over 3 year (are there any?) for sure no way. If this ISA is going to go the way I think it is, I don't think it will be a self invest ISA (I am probably wrong). But I think that RS will want to do the investing for you and offer around the 5% mark. That would be quite enticing for the average ISA holder, but probably not for some of the investors on forums like this who know what they could get.
|
|
|
|
Post by newlender on Dec 14, 2017 18:05:33 GMT
Zopa insist that you sell contracts, put the cash into Holding and then transfer this into the IFISA. Its Core product is paying 3.7% so not great. I put the full £20K into the Zopa ISA but I might switch in 2018/19.
|
|
|
|
Post by skint4achange on Dec 14, 2017 18:12:07 GMT
Zopa insist that you sell contracts, put the cash into Holding and then transfer this into the IFISA. Its Core product is paying 3.7% so not great. I put the full £20K into the Zopa ISA but I might switch in 2018/19. The IFISA I have (See above because I don't want to appear to be pushing it as I do not know how it will perform yet) aims for a minimum of 5% (Hopefully higher!) after fees etc. Fully managed and diversified across multiple platforms.
|
|
smezz
Posts: 180 
Likes: 73
|
Post by smezz on Dec 14, 2017 21:54:21 GMT
Nothing to stop RateSetter from offering (yet another) fee-free sell out option, this time (only) for people who want to re-invest it straight back into an RS ISA, but there's no way to guarantee that you'd be able to get back in at the same rates of interest you got out at - and probably no way to ensure you put it back in the same product(s) it came out of (1 / 5 / 0 year). For anyone with left over 3 year (are there any?) for sure no way. If this ISA is going to go the way I think it is, I don't think it will be a self invest ISA (I am probably wrong). But I think that RS will want to do the investing for you and offer around the 5% mark. That would be quite enticing for the average ISA holder, but probably not for some of the investors on forums like this who know what they could get. I suspect you are right about the type of ISA to be offered. I was hoping for it to be as now but tax free. There might be some better rates in Jan as people hold off for the ISA launch followed by a big drop as people rush into ISAs. It may just be a damp squib. I will probably just funnel money through wife's account as she has a big tax free savings allowance.
|
|
|
|
Post by skint4achange on Dec 14, 2017 22:12:59 GMT
I suspect you are right about the type of ISA to be offered. I was hoping for it to be as now but tax free. There might be some better rates in Jan as people hold off for the ISA launch followed by a big drop as people rush into ISAs. It may just be a damp squib. I will probably just funnel money through wife's account as she has a big tax free savings allowance. Indeed. I think that come Feb when RS launch their ISA, they will concentrate more on that and there will be a LARGE amount of money available for them to invest as they see fit and just ignore the manual investor.
That is part of the reason why I chose to go with who I have my IFISA with. The way I see it is if they are administering the ISA funds for major players, why would I want to pay 2 lots of fees for the same ISA??
If the RS ISA is a self administering ISA I may use some of next years ISA allowance to diversify a bit. But in all honesty, with people mentioning that when you get a good rate the loan repays after a few payments I may just stay with the provider I have or transfer in the RS ISA after a short time if it proves to be the same problem. I.e. The loan repaying after a couple of months when you get a good rate
|
|
|
|
Post by sayyestocress on Dec 15, 2017 10:26:16 GMT
Nothing to stop RateSetter from offering (yet another) fee-free sell out option, this time (only) for people who want to re-invest it straight back into an RS ISA, but there's no way to guarantee that you'd be able to get back in at the same rates of interest you got out at - and probably no way to ensure you put it back in the same product(s) it came out of (1 / 5 / 0 year). For anyone with left over 3 year (are there any?) for sure no way. If this ISA is going to go the way I think it is, I don't think it will be a self invest ISA (I am probably wrong). But I think that RS will want to do the investing for you and offer around the 5% mark. That would be quite enticing for the average ISA holder, but probably not for some of the investors on forums like this who know what they could get. Have any noises akin to this come from RS? I can see the logic for it but it would be at odds with the very name of the company and the 'marketplace' dictated by the lenders that RS like to portray themselves as.
|
|
|
|
Post by skint4achange on Dec 15, 2017 10:35:04 GMT
If this ISA is going to go the way I think it is, I don't think it will be a self invest ISA (I am probably wrong). But I think that RS will want to do the investing for you and offer around the 5% mark. That would be quite enticing for the average ISA holder, but probably not for some of the investors on forums like this who know what they could get. Have any noises akin to this come from RS? I can see the logic for it but it would be at odds with the very name of the company and the 'marketplace' dictated by the lenders that RS like to portray themselves as. No, this is all hearsay and speculation. Which is what we do best on here!! 
|
|
|
|
Post by stevepn on Dec 23, 2017 10:23:42 GMT
With all the early repayments on Ratesetter lately I doubt the overall rate will be up to much if I got an ISA. If a lot of money of money came in the rates would plummet.
|
|
|
|
Post by fiatlender on Dec 23, 2017 11:23:48 GMT
Interested to know if everyone has received the latest RS email titled "Thank you", with the offer for loyal investors to open the ISA before the general public?
"Dear xxxx,
You’ve been a RateSetter investor since xx March 2011. Over that time, you’ve earned over £xxxx in interest and helped people, business and property developers realise their goals by lending them money.
We’re writing to thank you for investing with us and give you some of the highlights of what has happened in 2017 and a glimpse into next year when we will launch the RateSetter Innovative Finance ISA. The RateSetter ISA will allow you to earn interest tax-free, further increasing your returns. The ISA is one of the UK’s most popular investment vehicles, and we are expecting very high demand.
We recognise that our investors are key to RateSetter’s success, and we are particularly grateful to those, like you, who have supported us in the past. We intend to offer you and other loyal investors a window in which only existing RateSetter investors can open an ISA, before we make it available to the general public."
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,214
Likes: 11,405
|
Post by ilmoro on Dec 23, 2017 11:34:12 GMT
Interested to know if everyone has received the latest RS email titled "Thank you", with the offer for loyal investors to open the ISA before the general public? "Dear xxxx, You’ve been a RateSetter investor since xx March 2011. Over that time, you’ve earned over £xxxx in interest and helped people, business and property developers realise their goals by lending them money. We’re writing to thank you for investing with us and give you some of the highlights of what has happened in 2017 and a glimpse into next year when we will launch the RateSetter Innovative Finance ISA. The RateSetter ISA will allow you to earn interest tax-free, further increasing your returns. The ISA is one of the UK’s most popular investment vehicles, and we are expecting very high demand. We recognise that our investors are key to RateSetter’s success, and we are particularly grateful to those, like you, who have supported us in the past. We intend to offer you and other loyal investors a window in which only existing RateSetter investors can open an ISA, before we make it available to the general public." Yes, Ive had it (loyal since 2010 despite not actually having any money on the platform currently) No transfers until next financial year so I wonder if it will go public much before then to allow the loyalists the chance to move cash before gen pop get to play
|
|
