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Post by scepticalinvestor on May 4, 2020 7:53:23 GMT
In light of the reduction in interest rate to 1.5%, what are you doing with your Access investments at RS?
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Post by Deleted on May 4, 2020 8:04:25 GMT
Just to be clear, the change made is to pay people 50% of their interest rate. For those on Going Rate in Access, that will be 1.5%, but for others it may be more (or less) depending on the rate they set and achieved.
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Post by oppsididitagain on May 4, 2020 8:07:28 GMT
If rates Spike to 5-6%. Then I will think about putting some money back in .. This is to keep the platform alive.. they need new funds.
Remember, its 50% for the rest of 2020.. so 1.5% is actually about 2% annualised. (thats as of today )
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Post by shanghaiscouse on May 4, 2020 8:47:59 GMT
In addition, what meaning does the word "access" have when the 5 years are being repaid more quickly? How is it that they actually get away with paying back the 5 years before the access? I have both an access and a 5 year up for RYI, the access is 3,000 but the 5 year 240,000, I bet the 5 year gets repaid first
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Post by turton on May 4, 2020 8:52:56 GMT
Whats the point in investing in ACCESS for 1.5%? You can get more than 1.5% in a fully protected bank account that allows access to your funds. Can you send us a link?
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chris1200
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Post by chris1200 on May 4, 2020 8:54:51 GMT
Whats the point in investing in ACCESS for 1.5%? You can get more than 1.5% in a fully protected bank account that allows access to your funds. Can you send us a link? Yes - there's no such account with instant access, that's for sure.
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chris1200
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Post by chris1200 on May 4, 2020 9:12:24 GMT
Theres certainly no such instant ACCESS account with Ratesetter. Have a look at the Marcus one year account. Instant access subject to 90 days interest penalty. A one-year fixed account at 1.45%. So not quite "more than 1.5% in a fully protected bank account that allows access to your funds". Just important we say things on this forum that are actually true, you see.
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chris1200
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Post by chris1200 on May 4, 2020 9:23:44 GMT
A one-year fixed account at 1.45%. So not quite "more than 1.5% in a fully protected bank account that allows access to your funds". Just important we say things on this forum that are actually true, you see. I won't argue for 0.05% - that was just a quick example. 1 do actually get 1.5% on an instant access account but its not available to new savers. Right, but it's also a one-year fix, so not something we can really call an access account (you might be able to get access for an interest penalty, but that interest penalty obviously makes the claim even less accurate!) And yes, there will obviously be plenty of legacy accounts paying better, but we can't really compare them for obvious reasons - RS also paid better in those times.
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cb25
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Post by cb25 on May 4, 2020 9:26:42 GMT
Habib Bank Zurich ( link) pays 1.55% for 12 months notice |
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chris1200
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Post by chris1200 on May 4, 2020 9:37:08 GMT
Habib Bank Zurich ( link) pays 1.55% for 12 months noticeThe bold being the operative part 
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Post by angel19 on May 4, 2020 9:40:11 GMT
My average rate on Access is 5.3%, so I will now get 2.65%. No way to match that in current savings market so I’ll be sitting tight. I will just continue to withdraw interest.
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cb25
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Post by cb25 on May 4, 2020 9:52:08 GMT
Habib Bank Zurich ( link) pays 1.55% for 12 months noticeThe bold being the operative part Sorry, mistake on my part, got thrown off track from your comment "A one-year fixed account at 1.45%", but still my fault rather than yours.
Regardless, some might think that'll be quicker than RS's 'instant' Access a/c withdrawals.
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chris1200
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Post by chris1200 on May 4, 2020 9:54:08 GMT
The bold being the operative part Sorry, mistake on my part. Some might think that'll be quicker than RS's 'instant' Access a/c withdrawals. Indeed - I don't doubt which one I'd rather put money in right now, only the inaccuracy of the original post 
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Post by shanghaiscouse on May 4, 2020 10:11:19 GMT
Frankly, nobody knows what they will finally get out of RS either. The 1.5% on access assumes that there is enough in the provision fund to cover losses. My experience from other P2Ps is that (i) that fund will be nowhere near enough to cover the losses, and (ii) once the provision fund is gone they will start deducting directly from your capital balance (which they can do according to T&Cs).
Therefore to compare what you would get in a bank covered by the 85k guarantee scheme and what you might finally get out of RS is not an apples to apples comparison. Even this 1.5% should be discounted for the risk that the provision fund is insufficient, that RS itself might implode, that recoveries are terrible, etc.
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