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Post by df on Jan 27, 2023 21:42:45 GMT
It's too much work to calculate the exact figure, I'm moving my funds frequently, but at a glance my current position with banks/BSs is somewhere between 3.5% and 4%. I have some funds in Premium, but it soon might get to the point when I'll stop cancelling my scheduled withdrawals. Yep, it's getting close for me too, but I'm lazier than you. It takes a lot of effort to achieve that 3.5 to 4%, compared with almost no effort on Loanpad. Also, don't forget that the Loanpad accounts are up to 4.08% and 5.13% annual equivalents when interest is reinvested. I don't think you are lazier than me, rather opposite  I think the available budget has an impact on the difference of priorities and approaches. In my case, chasing high paying regular savers and others with small limits makes a notable difference to the overall performance of my funds. I hope LP survives in this current environment... Some predict that the race will stop at some point this year, this will play in favour of LP's offer.
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Post by barnsleybiker on Feb 2, 2023 14:24:23 GMT
The Bank of England base rate has changed today, Feb 23, its now 4%. i had to turn the news off, folks getting all hot under the collar, Back in 1989 it reached 15%, put nearly 40 quid on my monthly mortgage for my house here in Barnsley 'tarn! i lived on soup, free coffee at work and beans/fish-finger on toast for six months. (note i said "fishfinger" as in singular! ) i wonder how LP will react? |
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Post by Badly Drawn Stickman on Feb 2, 2023 14:51:41 GMT
The Bank of England base rate has changed today, Feb 23, its now 4%. i had to turn the news off, folks getting all hot under the collar, Back in 1989 it reached 15%, put nearly 40 quid on my monthly mortgage for my house here in Barnsley 'tarn! i lived on soup, free coffee at work and beans/fish-finger on toast for six months. (note i said "fishfinger" as in singular! ) i wonder how LP will react? I suspect with two appropriately positioned fish fingers. Unless funds start to migrate..... It has been very borderline for some time and yet people still consider it a risk worth taking, puzzles me.
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Post by df on Feb 2, 2023 22:41:31 GMT
The Bank of England base rate has changed today, Feb 23, its now 4%. i had to turn the news off, folks getting all hot under the collar, Back in 1989 it reached 15%, put nearly 40 quid on my monthly mortgage for my house here in Barnsley 'tarn! i lived on soup, free coffee at work and beans/fish-finger on toast for six months. (note i said "fishfinger" as in singular! ) i wonder how LP will react? I suspect with two appropriately positioned fish fingers. Unless funds start to migrate..... It has been very borderline for some time and yet people still consider it a risk worth taking, puzzles me. I've cancelled my tomorrow's scheduled withdrawal today. Puzzles me why I did it. Probably because I want to contribute to LP's survival (drop in the ocean, but every little helps)... Otherwise in current climate 5% offer without FSCS protection doesn't make much sense.
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Post by indexfund on Feb 4, 2023 10:33:09 GMT
LP's rates are still competitive... Weighing up their resiliance and structure things still stack up ok imo, and I wouldn't say that about any other P2P platform. Looking elsewhere with FSCS protection, even if you lock your cash away for two years with Close Bros it yields just 4.35%, with top easy access at only 3.05%. So for me personally, I am happy to keep a small but significant investment with LoanPad, amongst a diversified portfolio of course.
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firedog
Member of DD Central
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Post by firedog on Feb 20, 2023 12:54:21 GMT
Decent hike for ISA account holders (though not, as yet, standard accounts):
As of 01 April 2023
ISA Classic Account 4.20%
ISA Premium Account 5.20%
As of 01 May 2023
ISA Classic Account 4.40%
ISA Premium Account 5.40%
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Post by Ace on Feb 20, 2023 13:03:09 GMT
An interesting move. Can't think of another account that has higher interest for an ISA account than a standard one. Obviously an attempt to get people to add or move to their ISA, where they presumably suffer from less churn.
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morris
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Post by morris on Feb 20, 2023 13:20:51 GMT
Pity they have a minimum transfer of £500, otherwise I would be transferring money from running down accounts.
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IFISAcava
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Post by IFISAcava on Feb 20, 2023 14:46:17 GMT
An interesting move. Can't think of another account that has higher interest for an ISA account than a standard one. Obviously an attempt to get people to add or move to their ISA, where they presumably suffer from less churn. Probably trying to get some of the end of tax year ISA rush
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Post by Badly Drawn Stickman on Feb 20, 2023 14:51:12 GMT
An interesting move. Can't think of another account that has higher interest for an ISA account than a standard one. Obviously an attempt to get people to add or move to their ISA, where they presumably suffer from less churn. Probably trying to get some of the end of tax year ISA rush The dates would suggest more looking to get start of next years. I personally would never use an ISA on peer to peer but that's just a personal preference.
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IFISAcava
Member of DD Central
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Post by IFISAcava on Feb 20, 2023 15:18:15 GMT
Probably trying to get some of the end of tax year ISA rush The dates would suggest more looking to get start of next years. I personally would never use an ISA on peer to peer but that's just a personal preference. Can't remember the figures, but a large percentage of ISAs are funded at end of tax year. I tend to get mine all in at the beginning of the tax year to maximise the duration of the tax advantages. I can see an argument that if you are going to use P2P and are a higher rate tax payer, P2P (and other fixed income investments) is better off in your tax shelters - otherwise you lose nearly half the investment return. However, the reduction in CGT allowance is making that argument much less relevant (although the fact that CGT rates are a lot lower than income tax rates does still hold weight).
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Post by df on Feb 22, 2023 21:39:04 GMT
An interesting move. Can't think of another account that has higher interest for an ISA account than a standard one. Obviously an attempt to get people to add or move to their ISA, where they presumably suffer from less churn. Can't help not to compare. Virgin ISA. 4.25% available today. Loanpad ISA 4.20% available from 1st April and 4.40% from 1st May. Both unlimited IA. Virgin's downside is that you'll be charged 60 days' interest on the amount taken out before 31 Jan 2024. Loanpad's downside is that it has no FSCS protection. One of the advantages of Virgin's offer is that the rate is fixed until 31st Jan, I think 4.25% is very likely to stand as a very competitive rate for the next 11 months. LP's is variable, so in the event of reduction from FSCS providers (many predict that BoE's increases will come to an end soon) LP will reduce too. Premium 5.40% is a better deal, but not competitive enough considering generic p2p risks.
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Post by Ace on Feb 22, 2023 22:17:17 GMT
An interesting move. Can't think of another account that has higher interest for an ISA account than a standard one. Obviously an attempt to get people to add or move to their ISA, where they presumably suffer from less churn. Can't help not to compare. Virgin ISA. 4.25% available today. Loanpad ISA 4.20% available from 1st April and 4.40% from 1st May. Both unlimited IA. Virgin's downside is that you'll be charged 60 days' interest on the amount taken out before 31 Jan 2024. Loanpad's downside is that it has no FSCS protection. One of the advantages of Virgin's offer is that the rate is fixed until 31st Jan, I think 4.25% is very likely to stand as a very competitive rate for the next 11 months. LP's is variable, so in the event of reduction from FSCS providers (many predict that BoE's increases will come to an end soon) LP will reduce too. Premium 5.40% is a better deal, but not competitive enough considering generic p2p risks. Nothing wrong with comparing, it's necessary. I'd say that Virgin's 60 day penalty account v Loanpad's 60 day notice was a fairer comparison. Personally, I won't be using either account for my valuable ISA allowance. I'd much rather protect higher returns from the tax man, dispite the extra risk. There's no single right or wrong here. All options are right for someone. Depends on personal attitude and circumstances. It's good that we have so much choice.
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firedog
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Post by firedog on Feb 23, 2023 10:08:02 GMT
Personally, I won't be using either account for my valuable ISA allowance. I'd much rather protect higher returns from the tax man, dispite the extra risk. Last year I put ISA money into CP and Kuflink rather than Loanpad for that very reason. Kind of regretting it now as I realise that if it comes to shifting ISA money out of CP and K it will be much more arduous process than it would be with Loanpad – and the difference between returns has shrunk a bit too. Loanpad also has the advantage that fully diversified funds can be put to work from day one. How long would it take, eg with a high-risk-high-return option like Qardus? But as you say, there's no single right or wrong.
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Post by Ace on Feb 23, 2023 10:32:15 GMT
Personally, I won't be using either account for my valuable ISA allowance. I'd much rather protect higher returns from the tax man, dispite the extra risk. Last year I put ISA money into CP and Kuflink rather than Loanpad for that very reason. Kind of regretting it now as I realise that if it comes to shifting ISA money out of CP and K it will be much more arduous process than it would be with Loanpad – and the difference between returns has shrunk a bit too. Loanpad also has the advantage that fully diversified funds can be put to work from day one. How long would it take, eg with a high-risk-high-return option like Qardus? But as you say, there's no single right or wrong. I agree that transferring ISA money from CP would be a pain, as you'd have to wait for natural repayments. You could use the ISA flexibility to make use of repaid funds elsewhere until sufficient repayments had been received to make an ISA transfer. The SM on Kuflink could ease your exit there. I intend my CP and K ISA investments to be for the long term, so I'm not bothered by the possibilities of a slow exit. If and when I need the funds I'd be happy with monthly drawdowns. I don't think the differential between CP and Loanpad is much different to what it was a year ago. They've both had rate increases. Possibly Kuflink has too, but a bit more difficult to measure in their self-select. Qardus doesn't have an ISA. I will probably choose CapitalStackers for next year's ISA. It won't suit many due to their £2.5k minimum, but I'm comfortable with that in the context of my overall P2P portfolio. Your point about the time taken to get funds deployed is valid, as their new loan rate is around one a month. This could be supplemented by the SM. I've been buying loans there in my standard account, which I will transfer to the ISA on April 6th via the SM. I managed to successfully do that with this year's allowance.
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I think the available budget has an impact on the difference of priorities and approaches. In my case, chasing high paying regular savers and others with small limits makes a notable difference to the overall performance of my funds. 
