Is the QAA account safe to keep money in the short term?

I'm now retired and split my funds into modest capital growth and income supplementation. I have a fairly large chunk in 30DAA and place 25% sellout orders every week for a month ahead, and then cancel if - as is usual - I don't need any extra cash that week. This replaces my previous use of QAA.

I guess that provides a bit of safety in case of looming illiquidity - since there is that 30day delay in actually withdrawals, I'm reasonably likely to get maybe a couple of 25% chunks out.

Not that AC has given me any cause to be overly concerned about their stability.

I'd be very happy if AC introduced a 90 day notice account, with a rate of, say, 5.25% and would run the same strategy - particularly in an ISA..

Unless you keep your cash under the bed,  money in any financial institution is at risk.   Going back hundreds of years banks and building societies backed up by the limited government guarantee have been the safest place for ordinary punters to store their money.   P to P is a new industry so no one is sure how things will pan out in a serious economic downturn.   If you must have access to your savings in a few months time the safest places based on past precedent are the traditional financial institutions.   If you have more flexibility or some risk tolerance then QAA may be right for you.   if you want to hedge your bets money could be split amongst different institutions.   The recent demise of Beaufort securities has high-lighted the worthlessness of so-called ring fencing of nominee accounts which perhaps also should be born in mind should AC for any reason be forced into Administration.

No - look at how AC managed the GEIA and GBBA, do you really trust them not to change their rules and freeze QAA funds when they choose to do so?

Yes, this means that your loans are not tradable. PF will cover the shortfall after recovery process is complete, which can take ages.

AIUI reductions on government FIT payments have made new opportunities hard to come by, resulting in the closure of the GEIA to new investment.  With few loans available diversity was not as good as was hoped for, so matters were not helped when some turbine loans ran into difficulties, leaving investors over-invested in these and unable to extricate their funds.  

The GBBA initially was capped at 7%, but AC struggled to find loans paying enough interest to cover this and provision fund contributions.  So GBBA 1 was closed to new investment, and a new account GBBA2 offered, capped at a slightly lower 6.25% rate.  Both the GBBA 1 and GBBA 2 are still performing reasonably, except that a very large loan #227 is suspended in GBBA1 leaving a lot of investors stuck in GBBA1.  

Both GEIA and GBBA accounts suffered from diversification issues resulting in lenders having too much of individual suspended loans (roughly 20% of a portfolio).  Chris assures us that diversification is improving, and there is a new algorithm which gets you invested fairly promptly, then swaps your holdings with other lenders within a particular account, to hopefully result in even diversity across the board.  As more lenders join and more loans are issued it is hoped that diversity will further improve.  

But that doesn't necessarily help the unhappy lenders who've tried to sell up, and are now stuck with suspended loans, and now face a possibly/probably lengthy recovery process before finally getting paid (by the lender or the provision fund).  

But I still use the GBBA2 and have not had problems since the new algorithm came into effect.