aju
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Post by aju on Mar 15, 2019 17:47:31 GMT
Just got this weeks email and it seems zopa rates on plus are not much better than on core.
These are not just relevant to me as Mrs Aju's were identical.
It may have something to do with our plus being 20% of other rates and we do have relend off on both our Invest accounts and I'm guessing the plus rate is the expected rather than the projected rates.
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Post by Ace on Mar 15, 2019 17:52:27 GMT
Just got this weeks email and it seems zopa rates on plus are not much better than on core. These are not just relevant to me as Mrs Aju's were identical. It may have something to do with our plus being 20% of other rates and we do have relend off on both our Invest accounts and I'm guessing the plus rate is the expected rather than the projected rates. , the quoted rates are for everyone combined. They are not personalised. So, everyone gets the same email.
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benaj
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Post by benaj on Mar 15, 2019 17:57:13 GMT
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aju
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Post by aju on Mar 15, 2019 18:36:11 GMT
Just got this weeks email and it seems zopa rates on plus are not much better than on core. These are not just relevant to me as Mrs Aju's were identical. It may have something to do with our plus being 20% of other rates and we do have relend off on both our Invest accounts and I'm guessing the plus rate is the expected rather than the projected rates. , the quoted rates are for everyone combined. They are not personalised. So, everyone gets the same email. yeah I wondered if that might be the case, it's a shame that the old weekly stats we used to get are not supplied to us anymore, they used make the changes more obvious on a personal basis feel. They stopped them back in Sep I think but I'm guessing they were one more drag on the rapidly slowing routines that zopa has to do daily and weekly.
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aju
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Post by aju on Mar 15, 2019 18:46:29 GMT
I never bother with projected returns usually, I take snapshots of my summary screens every month, as I said above it was easier when Zopa provided the data, but just looking at my ISA side (we are not relending in Invest since christmas. so my data suggests a steady decline in my projected lend rates since June 2017.
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borofan
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Post by borofan on Mar 20, 2019 13:02:10 GMT
I still get Zopa's early adopters bonus. Is that just ungoing or have Zopa said it will come to an end at some point?
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aju
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Post by aju on Mar 20, 2019 20:42:42 GMT
I still get Zopa's early adopters bonus. Is that just ungoing or have Zopa said it will come to an end at some point? I've not seen anywhere they have said it will be pulled, I get it on both the invest and the ISA side too.
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zlb
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Post by zlb on Mar 21, 2019 22:02:58 GMT
Others have pointed out, on other threads, it seems, it's not so much returns, as what happens when one tries to withdraw capital, to find that much of it can't be 'sold' because it's actually debt.
I like to think that it can't be true that Z would allow this level of poor outcome for lenders, but if other posters are to be believed, then trying to sell loans... It appears that Z should be reporting a different average, one which reports the average earnings after average defaults are subtracted... ?
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gg
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Post by gg on Mar 23, 2019 9:02:02 GMT
One of the problems with Zopa is that early adopters get such a generous discount. With no plans to remove this disadvantage, new lenders either have to compete with the early adopters’ lower rates or go elsewhere. I chose to go elsewhere.
The discount isn’t limited to a set level of lending therefore an early adopter can lend on behalf of family members - adding to the disadvantage that new lenders suffer.
gg
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aju
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Post by aju on Mar 23, 2019 9:25:53 GMT
One of the problems with Zopa is that early adopters get such a generous discount. With no plans to remove this disadvantage, new lenders either have to compete with the early adopters’ lower rates or go elsewhere. I chose to go elsewhere. The discount isn’t limited to a set level of lending therefore an early adopter can lend on behalf of family members - adding to the disadvantage that new lenders suffer.gg I'm sure you are right but how can you do this, I myself have 0.5% but Mrs Aju does not have I missed a trick here bearing in mind that Mrs Aju does not pay tax and I do - we both have ISA as well as the invest side. I'm intrigued how you divi this up so we both benefit.
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Post by wangja on Mar 24, 2019 23:11:41 GMT
One of the problems with Zopa is that early adopters get such a generous discount. With no plans to remove this disadvantage, new lenders either have to compete with the early adopters’ lower rates or go elsewhere. I chose to go elsewhere. The discount isn’t limited to a set level of lending therefore an early adopter can lend on behalf of family members - adding to the disadvantage that new lenders suffer. gg Yep, I too am an early investor, but I reckon that by now - 10 years on? - we are a very small band of the total.
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gg
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Post by gg on Mar 25, 2019 0:29:04 GMT
Back in 2005 a 1% advantage over later investors was nice but not a game-changer. With ever lower rates it has become a huge advantage.
Take 2 family members lending at 4%. If one is an early adopter earning 4% and the other a later joiner earning 3% (after fees) it would make sense to lend in the early adaptors’ account.
I think they have enjoyed the fee-free bonus long enough. Zopa should shift their fees to the borrower thereby negating the effect of their generous offer.
But it’s nothing to do with me as I vacated Zopa some years ago.
gg
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Greenwood2
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Post by Greenwood2 on Mar 25, 2019 6:21:18 GMT
Back in 2005 a 1% advantage over later investors was nice but not a game-changer. With ever lower rates it has become a huge advantage. Take 2 family members lending at 4%. If one is an early adopter earning 4% and the other a later joiner earning 3% (after fees) it would make sense to lend in the early adaptors’ account. I think they have enjoyed the fee-free bonus long enough. Zopa should shift their fees to the borrower thereby negating the effect of their generous offer. But it’s nothing to do with me as I vacated Zopa some years ago. gg They did shift their fees to the borrower years ago.
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r00lish67
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Post by r00lish67 on Mar 25, 2019 7:53:45 GMT
I really struggle with the case for investing with Z. The tie-in period is effectively 5 years (without taking a hit, anyway) and arguably even longer as you have to wait for all recoveries to come in to hit your projected returns.
For this, they hope to get you 4.5% in their non-FSCS protected investment product which has historically underperformed (on Z+ anyway). I think I'd rather go with a 2.75% FSCS guaranteed 5yr Fix cash savings account forced between the two.
I think at these rates, the 4.5% needs to be a bare minimum promise. The early adopter bonus does now stand out as a bit of an anomaly against this backdrop, but fair play to those who have it and i hope it lasts forever for them!
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benaj
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Post by benaj on Mar 26, 2019 13:22:42 GMT
I really struggle with the case for investing with Z. The tie-in period is effectively 5 years (without taking a hit, anyway) and arguably even longer as you have to wait for all recoveries to come in to hit your projected returns. For this, they hope to get you 4.5% in their non-FSCS protected investment product which has historically underperformed (on Z+ anyway). I think I'd rather go with a 2.75% FSCS guaranteed 5yr Fix cash savings account forced between the two. I think at these rates, the 4.5% needs to be a bare minimum promise. The early adopter bonus does now stand out as a bit of an anomaly against this backdrop, but fair play to those who have it and i hope it lasts forever for them! Judging loan book data from 2014, average loan term is 42 months for all loans, so it will take at least 4 years to see most of the capital back by running down the investment.
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