Greenwood2
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Post by Greenwood2 on Mar 26, 2019 14:26:56 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. You should get about half your capital back in about half the loan duration (amortising loans), plus early repayments. And interest earned can be withdrawn. But yes you are in until the last loan makes the final payment and then depending how long you have to wait for recoveries.
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zlb
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Post by zlb on Mar 27, 2019 11:25:18 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! ... 4.5%... They sent out a survey recently asking whether people would recommend them. I was fairly clear, in a factual way, as to why I would not. Perhaps their longish run of temptation bonuses is because early adopters are falling away....? Optimistically, if they are being entirely honest (they should be) then perhaps they could offer 4.5% because that is somehow the average. I suppose you may be right because they would have to offer something better than a bank fixed rate...
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zlb
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Post by zlb on Apr 2, 2019 15:06:19 GMT
If annualised, my return for March, equates to 0.2%
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trium
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Post by trium on Apr 3, 2019 20:12:14 GMT
If annualised, my return for March, equates to 0.2% You're doing well. My March return is negative with defaults at 109% of interest earned making it my ALL TIME WORST MONTH EVER. Given a now very long run of rubbish months (Sept 17 to date bar Dec 18) this was not a record I expected to be breaking. I have switched off relending while I ponder my next move. PS - I reported elsewhere that my 52-week rolling XIRR fell as low as 2.5% before being boosted by the November debt sale and a decent December, which pushed it up to 3.5%. However, it has resumed its weekly downward trend and now stands at 3%. And still they send me updates telling me they're expecting 5%+ returns!
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