stevio
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Post by stevio on Jan 30, 2019 9:10:02 GMT
I am well aware that P2P should not really be used as a bank account due to no guarantee on liquidity and risk of loss
However over a certain amount of cash and:
- you run out of potential bank accounts
- the practicalities of running multiple bank accounts over a certain number is difficult
- the rates become less attractive
Which is probably where most start their journey in P2P. I have tailored back my P2P, but have now started to miss this type of "reserve"which you can dip into by selling or accumulating interest payments
The "Holy Grail" would be
- as close to instant access as possible
- with reduced risk
- highest interest
I have considered
- low LTV but the rates are consequently low and I have seen even low LTV loans easily default
- Ratesetter but rates seem lower than AC
I am looking at a combination of:
- AC QAA - 4.1% with instant access via combination of provision fund/AC retained cash
- Mintos - ~10% with buyback - euros hedge against Brexit - treating as 30d notice account as need to sell, exchange, transfer
I realise this is not a exact system and not without some risk (here particularly platform risk)
I would be interested in what others are using at the moment for a "Reserve" or any other options?
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benaj
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Post by benaj on Jan 30, 2019 9:42:53 GMT
ACQAA is pretty good for quick access IMHO. Depending the size and time of cash withdrawal, for a small amount, money can be returned on the same day evening, but it can take up to 4 working days for money reaching the bank sometimes.
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r00lish67
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Post by r00lish67 on Jan 30, 2019 10:55:33 GMT
Possibly unhelpful hat on: It does still sound a bit like you're leaping through some mental hurdles here to justify investing more in P2P. If your main reason for not saving in cash is a pile-up of bank accounts, then just stick it all in a Marcus account @ 1.5%. You can tie some up for year perhaps at 2.15%. I'm just pointing this out because I keep trying to justify investing more in P2P myself this way, and the logic doesn't hold. A P2P Investment is still a P2P investment whatever you want to call it.
Possibly unhelpful hat off: Yeah, QAA. Or RS rolling. Re: Mintos, a 10% easy access P2P? That sounds a bit too good to be true although 'fess I've never looked into it. If it's all in euros, won't the FX fees back and forth make this less practical for easy access?
Side rant: It's an unfortunate part of the P2P landscape at present that we are implored lukewarmly by the regulator and platforms not to consider P2P as an alternative to a savings account, whilst several P2P platforms are as keen as possible to make their accounts have the look and feel of a savings account.
edit: crossed with @wallstreet
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benaj
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Post by benaj on Jan 30, 2019 10:59:04 GMT
... - Mintos - ~10% with buyback - euros hedge against Brexit - treating as 30d notice account as need to sell, exchange, transfer AC 30DAA 5.1% is another 30d notice Growth Street is another 30d account with provision fund. 5.3%. GS now offer new investor bonus £200. PM for referral.
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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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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 Feb 6, 2019 18:42:48 GMT
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 Just to come back to this. In the intervening period I have taken the time to verify the rather questionable claims made by Octupus with the FSCS. In summary, the situation is as I pointed out to you , and as their terms quite clearly state. Your protection is capped at the FSCS £85k limit and not a penny more. An extract from the email I received, in the FSCS's own words: "Our limit for all deposit accounts is £85,000 per person per firm, it cannot be manipulated as it is the same limit for every firm. The maximum compensation amount is up £85,000 per person per firm. The upper limit would not be altered for deposit protection dependant on the firm. In some circumstances as a direct result of a life event our Temporary High Balance protection of up to £1 million would come in to affect, however this doesn’t appear to be what the firm or your original query is referring to. There is some more information available around Temporary High Balance protection on the deposit section of our website if you require further clarification on this but as stated I don’t think this is what Octopus is referring to."Furthermore, I explicitly also asked FSCS about the "pass-through" which you claim happens (but I'm telling you in practice is not the case). They said no to that as well. As per the FSCS definition "the firm" is the firm with which you, the customer, directly contract (slightly over-simplified summary, I know). Anything that happens higher up the chain on an institutional basis (i.e. what banks Octupus chooses to do business with) is not a matter you are party to and is none of your business. Your contract is with Octupus and that's that. All of this is actually spelt-out by Octupus : " The platform is offered by Octopus Co-Lend Ltd. Octopus Institutional Deposits Ltd acts as Trustee to the Octopus Co-Lend Ltd's Trust in which investors cash deposits are received" Summary ? If it sounds too good to be true, it probably is !! (And if you need 100% guarantee above £85k, the only truly guaranteed option is NS&I as that's backed by the government) Not sure why i am worrying as i am not going to have to care about the limit any time soon and you have obviously looked in to it. But i can only call it as i see it on their site - you keep saying the money is with Octopus (it maybe is as it passes through their bank) but the money is not with Octopus after that,it is then invested direct with the likes of Metro bank or Aldermore etc. You say it does not matter what happens higher up the institutional chain (and you may be right) but if you click the for advisers tab on the home page there is a video that shows how you can invest across partner banks over the £85,000 The example uses 4 banks £85,000 x 3 and £50,000 x 1 so i assume advisers would know if that is correct or not? or hopefully have checked like you with the FSCS
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stevio
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Post by stevio on Feb 6, 2019 19:03:47 GMT
You both have helped, rather than continue an argument on small details about an account which which is a small part of the overall thread, lets play nice and leave it there on further details of this account shall we
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macq
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Post by macq on Feb 6, 2019 20:13:27 GMT
i was not arguing but offering a different point of view  but would not want to go all MSE luvvie.There was a cashback thread on the product some time back so the interpretation could be of interest to some |
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macq
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Post by macq on Feb 7, 2019 8:06:02 GMT
you say i don't "get it" but a quick google search for Octopus Cash brings up articles by the likes of the FT and Savings champion website saying the same thing as me.So i am in good company if wrong maybe they fell for the "marketing" as well
Good luck with the FCA (and i mean that) as if the product is wrong you will be doing people a service so their reply would be of interest as would your question's to them for context
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cwah
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Post by cwah on Feb 10, 2019 19:53:48 GMT
Marcus looks better than octopus you get 1.5% aer and you have instant withdrawal
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sd2
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Post by sd2 on Feb 15, 2019 19:38:39 GMT
Nationwide 5% on £2500 and 5% regular saver account for 1 year. Need to pay in £1000 a month and have 2 direct debits. You can of course take out a £1000 pay it back in again. You don't have to move bank accounts but if you do and use a refer a friend you both get £100. MSE for a link and see how much the "friend" will give you.
TSB 5% on £1500 no end date no need for DD pay in £500 a month. No requirement to move banks.
£3000 Tesco 3% but ends in April so won't bother with that one.
Moving it to M & S in April to get £150 worth of shopping and 5% regular saver
My "real" bank is first direct £125 to join and have a 5% regular saver which I restart every year. A good maximum of £300 a month. They have had this regular saver for at least 6 years.
DID have a regular saver with Yorkshire building society for 15 years. 3.5% bonus if you kept the rules £10 to £500 a month. Maximum in account £20,000 take money no more than once a year. Ba*tards canceled last year.
I actually fed it and first direct 5% regular saver with zero interest credit card money. Although op could use 3 of those bank accounts. I should think the nationwide and definatly the TSB one. Depending obviously on how much he need to have in cash.
I do have the Marcus account. It uses fast pay so money is in your bank account in minutes. Great account and 1.5%
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but would not want to go all MSE luvvie.There was a cashback thread on the product some time back so the interpretation could be of interest to some