puddleduck
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Post by puddleduck on Apr 17, 2019 12:57:18 GMT
The upcoming IFISA looks promising - 5.8% fixed for 1 year, with access available after 3 months for a 1% withdrawal fee.
I am likely to transfer in a previous tax years ISA into to this I think.
Anyone have any thoughts on this? It looks like a decent balance between rate Vs. access potential to me.
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IFISAcava
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Post by IFISAcava on Apr 17, 2019 13:02:36 GMT
The upcoming IFISA looks promising - 5.8% fixed for 1 year, with access available after 3 months for a 1% withdrawal fee. I am likely to transfer in a previous tax years ISA into to this I think. Anyone have any thoughts on this? It looks like a decent balance between rate Vs. access potential to me. Yep - good diversification - and the IRR and access terms likely to compare favourably to LW and RS, the obvious direct comparators.
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Post by gravitykillz on Apr 17, 2019 13:14:39 GMT
3 months wait AND a 1% fee for a 0.5 extra ? Lending works 6.5% and 0.65% withdrawal fees sounds better than this.
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puddleduck
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Post by puddleduck on Apr 17, 2019 13:35:59 GMT
3 months wait AND a 1% fee for a 0.5 extra ? Lending works 6.5% and 0.65% withdrawal fees sounds better than this. Thanks, that is an interesting point of view. If I went with LW due to the 3 to 5 year terms I would almost certainly need early access, where's with GS I probably won't. I'll have a think... I prefer GS to LW as a user of both.
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Post by Ace on Apr 17, 2019 15:46:42 GMT
3 months wait AND a 1% fee for a 0.5 extra ? Lending works 6.5% and 0.65% withdrawal fees sounds better than this. Thanks, that is an interesting point of view. If I went with LW due to the 3 to 5 year terms I would almost certainly need early access, where's with GS I probably won't. I'll have a think... I prefer GS to LW as a user of both. It also depends on whether you're likely to need access to your cash as a single lump sum or a regular drip feed. With LW, due to the amortizing nature of their loans, I generally receive repayments of 2.3% of my total pot per month (including interest and capital repayments), plus occasional early repayments. If you turn off relending you can access this penalty free. So, on balance I would prefer LW due to their higher rates, but it's a fairly close thing now. I will certainly be moving some of my GS funds to their new GS IFISA to maintain diversification at a higher rate (and may well be tempted to add a little).
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IFISAcava
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Post by IFISAcava on Apr 17, 2019 16:50:24 GMT
Thanks, that is an interesting point of view. If I went with LW due to the 3 to 5 year terms I would almost certainly need early access, where's with GS I probably won't. I'll have a think... I prefer GS to LW as a user of both. It also depends on whether you're likely to need access to your cash as a single lump sum or a regular drip feed. With LW, due to the amortizing nature of their loans, I generally receive repayments of 2.3% of my total pot per month (including interest and capital repayments), plus occasional early repayments. If you turn off relending you can access this penalty free. So, on balance I would prefer LW due to their higher rates, but it's a fairly close thing now. I will certainly be moving some of my GS funds to their new GS IFISA to maintain diversification at a higher rate (and may well be tempted to add a little). If you factor in initial and relending cash drag, which I think is worse with LW, and add in the regular GS bonuses (if they are on offer) it is probably pretty close in terms of XIRR. GS withdrawal fee seems lower too.
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Post by gravitykillz on Apr 17, 2019 19:10:00 GMT
No deal
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Post by gravitykillz on Apr 17, 2019 20:04:22 GMT
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Post by gravitykillz on Apr 17, 2019 20:04:56 GMT
Its one month notice not 3 months
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Post by Ace on Apr 17, 2019 21:16:55 GMT
It also depends on whether you're likely to need access to your cash as a single lump sum or a regular drip feed. With LW, due to the amortizing nature of their loans, I generally receive repayments of 2.3% of my total pot per month (including interest and capital repayments), plus occasional early repayments. If you turn off relending you can access this penalty free. So, on balance I would prefer LW due to their higher rates, but it's a fairly close thing now. I will certainly be moving some of my GS funds to their new GS IFISA to maintain diversification at a higher rate (and may well be tempted to add a little). If you factor in initial and relending cash drag, which I think is worse with LW, and add in the regular GS bonuses (if they are on offer) it is probably pretty close in terms of XIRR. GS withdrawal fee seems lower too. Yes, the initial cash drag trends to be longer at LW. IIRC it was twenty-odd days for me, but it's reportedly back to under a week now. GS is down to 1 day at the mo. Even though both platforms are down to a day for relending, LW wins here as only a very small amount needs to be relent each month (around 2.3% of the investment), whereas the whole investment currently needs to be relent each month on GS (though perhaps that will change for the new IFISA). Withdraw fees are bigger for GS; 1% as opposed to 0.6% at LW (assuming no rate adjustment). I agree that bonuses have been better for me at GS, but I can't keep on finding new funds to invest, and I'm running out of interested friends. On balance I think the XIRR will be higher at LW, but I'm happy to lend on both platforms for hands-off reasonable rates.
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Post by gravitykillz on Apr 17, 2019 21:52:21 GMT
I totally agree with ace. Lending works in the long term is a superior platform with a stronger provision fund as well as a better rate of interest.
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Post by gravitykillz on Apr 17, 2019 21:55:41 GMT
If growth street are going to charge 1% to release funds as well as having a weaker provision fund i want 7% minimum.
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IFISAcava
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Post by IFISAcava on Apr 18, 2019 7:52:08 GMT
Yes, sorry, you're right about the withdrawal - I paid more than 1% when I did a withdrawal (out of non-ISA) because rates had gone up significantly.
FWIW I have an XIRR on LW of under 5% - money transferred in over a few tranches since their ISA was opened.
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rscal
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Post by rscal on Apr 18, 2019 9:05:20 GMT
According to the email, they are extending the 2% bonus for new funds till 30th April, to include this product. Does that tip any hats in their favour? Sorry 'bout that, please ignore. The term extension does not apply to the currently non-offered ISA product. But had they offered to take a deposit and then have that transferred into the ISA to qualify....? Does anyone know if this is possible via lending new funds @ 5.3% for (say) two months, then moving that into the ISA? (I think that might be effective.)
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IFISAcava
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Post by IFISAcava on Apr 18, 2019 9:18:46 GMT
According to the email, they are extending the 2% bonus for new funds till 30th April, to include this product. Does that tip any hats in their favour? Sorry 'bout that, please ignore. The term extension does not apply to the currently non-offered ISA product. But had they offered to take a deposit and then have that transferred into the ISA to qualify....? Does anyone know if this is possible via lending new funds @ 5.3% for (say) two months, then moving that into the ISA? (I think that might be effective.) First, it doesn't help those of us who were planning on transferring previous years' funds in and not using the new ISA allowance on Growth Street. And second, since I don't want to invest in any non-ISA income generating products at the moment (as my marginal tax rates are punitive), it doesn't help me at all.
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