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Post by oppsididitagain on May 11, 2020 0:00:26 GMT
I was about to consider dumping some of my selling from Zopa into the 1 Year Fixed Rate Saver @ 1.45% fixed but sadly I was met with this message on their site. Whilst its not as good as rates on RS and Zopa it was at least fscs protected and would have been quite a bit above others in similar markets. I have never understood why would anyone fix an interest rate below inflation - You are locking in a loss for the year . ? There must be plenty of opportunities for you to make more than 2% a year with your money.
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Post by bracknellboy on May 11, 2020 7:11:46 GMT
Some serious concerns regarding Raisin/Zenith have recently been raised on the MSE Savings and Investments board Thanks for highlighting this. I'm not sure though those are serious concerns. Its not like we are talking fraud or anything, or inability to get money out. I have used Raisin, the process has been perfectly smooth/easy, but then I haven't deliberately given them "out of date passport information" which is what I think I read in one of those posts. I have gone through the cycle of having an investment mature (maybe 2 ?), and reinvested part and withdrawn part. It was perfectly smooth. Yes there is a small element of cash drag, but it was low single digits days. I'm not sure they bring much in the way of value add, bar having one place which is in effect making the application on your behalf from details you already have lodged there (so some time saving). At the start, its possible they were bringing some deals to retail which weren't there before. Probably not the case now. I recently plumped to place another application with them, but then decided to go elsewhere (as it happens the same place the poster on that thread mentioned). So the application has gone unfunded. I've had the initial email from Raisin plus one chaser to fund, but that is it. And (I'm pretty sure) I can log in to the account and press the "-" button next to the unfunded application to remove it if I was getting distressed about followup. Anyway, that's my experience.
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littleoldlady
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Post by littleoldlady on May 11, 2020 8:39:41 GMT
I was about to consider dumping some of my selling from Zopa into the 1 Year Fixed Rate Saver @ 1.45% fixed but sadly I was met with this message on their site. Whilst its not as good as rates on RS and Zopa it was at least fscs protected and would have been quite a bit above others in similar markets. I have never understood why would anyone fix an interest rate below inflation - You are locking in a loss for the year . ? There must be plenty of opportunities for you to make more than 2% a year with your money.With zero risk? Do tell.
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Post by Ace on May 11, 2020 9:23:21 GMT
I have never understood why would anyone fix an interest rate below inflation - You are locking in a loss for the year . ? There must be plenty of opportunities for you to make more than 2% a year with your money.With zero risk? Do tell. There's no such thing as zero risk. Even FSCS protection isn't zero risk. Its pretty close, but can never be zero.
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aju
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Post by aju on May 11, 2020 9:32:17 GMT
I have never understood why would anyone fix an interest rate below inflation - You are locking in a loss for the year . ? There must be plenty of opportunities for you to make more than 2% a year with your money.With zero risk? Do tell. Not in shares, well not in my case although to be fair we've made some considerable amount of money on the mostly free shares I got when I was working. The div for the next 2 reporting periods has just been Zeroed and even when it comes back in it will be 50% lower than it was previously. Personally I'd steer clear of a lot of things now as i'll be reaching state pens age in a few months and I am not very confident with the current P2P and covid situation and am actively bailing us out and back into safer places which means lower returns of course. Its a slow process but we have recovered quite a bit so far. We are leaving some feeder money in some 1/5Y accounts in RS in case things pick up and I guess eventually RS will cough out our stuck funds. (We were later to the sellout on RS, Mrs Aju's fault I'm afraid she didn't ask me enough pertinant questions soon enough  . Our Zopa sellout has stalled again after a brief flurry at the end of April and start of May, Plus has mainly finished and core is taking much longer.) Sensibly we each have our personal return/risk levels I guess but it is very much an individual affair.
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macq
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Post by macq on May 11, 2020 10:05:27 GMT
There's no such thing as zero risk. Even FSCS protection isn't zero risk. Its pretty close, but can never be zero. NS&I or assume if the govt wont pay its all gone T*** up
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Post by df on May 11, 2020 10:12:56 GMT
I was about to consider dumping some of my selling from Zopa into the 1 Year Fixed Rate Saver @ 1.45% fixed but sadly I was met with this message on their site. Whilst its not as good as rates on RS and Zopa it was at least fscs protected and would have been quite a bit above others in similar markets. I have never understood why would anyone fix an interest rate below inflation - You are locking in a loss for the year . ? There must be plenty of opportunities for you to make more than 2% a year with your money. I have some FSCS accounts that earn over 2% but they are either to mature soon or not available to new customers. I’m not aware of any 2%+ offers that are currently on the market. There are are a couple of regular savers @2%, but in reality you get less than that from drip feeding accounts.
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Post by Ace on May 11, 2020 10:13:49 GMT
There's no such thing as zero risk. Even FSCS protection isn't zero risk. Its pretty close, but can never be zero. NS&I or assume if the govt wont pay its all gone T*** up Again, very very close, but not zero. If the level of government distrust displayed on the covid tracking app poll is anything to go by, I'm not even sure that the dissenters would consider NS&I as close to zero risk!
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r00lish67
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Post by r00lish67 on May 11, 2020 10:15:13 GMT
I have never understood why would anyone fix an interest rate below inflation - You are locking in a loss for the year . ? There must be plenty of opportunities for you to make more than 2% a year with your money. I have some FSCS accounts that earn over 2% but they are either to mature soon or not available to new customers. I’m not aware of any 2%+ offers that are currently on the market. There are are a couple of regular savers @2%, but in reality you get less than that from drip feeding accounts. Sorry, bugbear of mine, not true. You get the full 2% on a gradually increasing balance. How can one expect to get a full 2% of the final balance when the only month you had the final balance was the last one?
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Post by Ace on May 11, 2020 10:18:20 GMT
Is anyone considering Crowdstacker's Kepe account as a potential alternative to constantly chasing FSCS protected best rates? They've been promoting it for some time, but I don't think it's up and running yet, and no actual rates that I've seen. The idea seems sound.
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r00lish67
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Post by r00lish67 on May 11, 2020 10:23:24 GMT
Is anyone considering Crowdstacker's Kepe account as a potential alternative to constantly chasing FSCS protected best rates? They've been promoting it for some time, but I don't think it's up and running yet, and no actual rates that I've seen. The idea seems sound. Looks like they will charge a fee (0.1%) for the auto-switching privilege above a token amount. Which makes it like a more expensive version of HL active savings/Raisin. Also, these were the guys who thought it a tops idea to lend £7.5m to Burningnight group..hmm..(admittedly FSCS so little need to worry about that aspect). Still, can't see the value.
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macq
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Post by macq on May 11, 2020 10:47:16 GMT
Is anyone considering Crowdstacker's Kepe account as a potential alternative to constantly chasing FSCS protected best rates? They've been promoting it for some time, but I don't think it's up and running yet, and no actual rates that I've seen. The idea seems sound. And you knocked be back on NS&I on trust  (from memory it read like Octopus Cash or HL Active Savings which have about a year or more up and running already)
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Post by oppsididitagain on May 11, 2020 10:50:46 GMT
I have never understood why would anyone fix an interest rate below inflation - You are locking in a loss for the year . ? There must be plenty of opportunities for you to make more than 2% a year with your money.With zero risk? Do tell. Unless Inflation falls below your Fixed interest rate you are guaranteed to be worse off in 365 days time. Just think about that ! Inflation is about 1.6% at the moment and falling, so fixed at 1.45% You will be about even until it either goes above or below that rate. With Zero risk. I won't give financial advice on a here, Im technically not qualified, so that could open up all sorts of problems not only for me but also for this website. Its a forum to discuss Idea's IMHO You can put money in an access account paying 1% and then when you see an opportunity withdraw it and invest in that opportunity - Then you only need to make up the difference. People for too long have had the mindset of dumping a load of cash into a product and wake up in a few years and see their money grow. Things aren't going in straight lines at the moment. Stock markets are moving 1-5% a week. Up/Down. You don't need to play/watch/invest everyday, as you are only looking to make more that 2%.. this can be achieved in 1 week. What if Bluechips reintroduce their Divi's in 6 months.. You won't have the cash to take on this opportunity. I don't know your age or tax status, but you will make over 20% just by putting money into a SIPP (pensions rules apply for withdrawal) Buy a bulk load of face masks from China and sell them on E bay (A joke, but Im sure someone will do it and make more than 2% profit) Low Inflation, Low interest rates (like now) Premium bonds are better Value. Max 50K. So you need to make £720 a year to be the same as the bond in a year. You might win a million, you might win nothing. PB are tax free returns. IF/WHEN the economy starts moving again, certain things will move upwards quite quickly. Im sure more than 2%. I expect this to happen at some stage in the next 365 days The point I am trying to make is, this fixes your money and the actual reward is ZERO. Yes thats Guaranteed, with almost Zero risk. Inflation may go below 1% it could even go negative (no one knows the future) in which case the fixed bond is a good investment. However - If any opportunity arises in the next 12months, you won't be able to take advantage of that. P.S Marcus Bank is a subsidiary of Goldman Sachs.
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Post by Ace on May 11, 2020 11:05:13 GMT
Is anyone considering Crowdstacker's Kepe account as a potential alternative to constantly chasing FSCS protected best rates? They've been promoting it for some time, but I don't think it's up and running yet, and no actual rates that I've seen. The idea seems sound. And you knocked be back on NS&I on trust (from memory it read like Octopus Cash or HL Active Savings which have about a year or more up and running already) Sorry if it read like a knock back. That wasn't my intention. I have full confidence in NS&I. It's where I keep my ultimate safety/emergency funds. I was just pointing out that nothing is 100% safe. My comment on trust stemmed from being disappointed at how many would refuse to use the new tracking app. Made me wish I'd invested in tin foil and milliner shares again.
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aju
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Post by aju on May 11, 2020 11:55:55 GMT
Unless Inflation falls below your Fixed interest rate you are guaranteed to be worse off in 365 days time. Just think about that !
Inflation is about 1.6% at the moment and falling, so fixed at 1.45% You will be about even until it either goes above or below that rate. With Zero risk.I won't give financial advice on a here, Im technically not qualified, so that could open up all sorts of problems not only for me but also for this website. Its a forum to discuss Idea's IMHO You can put money in an access account paying 1% and then when you see an opportunity withdraw it and invest in that opportunity - Then you only need to make up the difference. People for too long have had the mindset of dumping a load of cash into a product and wake up in a few years and see their money grow. Things aren't going in straight lines at the moment. Stock markets are moving 1-5% a week. Up/Down. You don't need to play/watch/invest everyday, as you are only looking to make more that 2%.. this can be achieved in 1 week. What if Bluechips reintroduce their Divi's in 6 months.. You won't have the cash to take on this opportunity. I don't know your age or tax status, but you will make over 20% just by putting money into a SIPP (pensions rules apply for withdrawal) Buy a bulk load of face masks from China and sell them on E bay (A joke, but Im sure someone will do it and make more than 2% profit) Low Inflation, Low interest rates (like now) Premium bonds are better Value. Max 50K. So you need to make £720 a year to be the same as the bond in a year. You might win a million, you might win nothing. PB are tax free returns. IF/WHEN the economy starts moving again, certain things will move upwards quite quickly. Im sure more than 2%. I expect this to happen at some stage in the next 365 days The point I am trying to make is, this fixes your money and the actual reward is ZERO. Yes thats Guaranteed, with almost Zero risk. Inflation may go below 1% it could even go negative (no one knows the future) in which case the fixed bond is a good investment. However - If any opportunity arises in the next 12months, you won't be able to take advantage of that. P.S Marcus Bank is a subsidiary of Goldman Sachs. Thanks I had forgotten that point but as you say CPI is falling, I just checked it dropped from 1.7 to 1.5 last month. Whilst I agree with you on most of what you are saying and in fact I will probably still be poking some funds into one of these 1.45% or thereabouts if it hasn't been dropped as yet. I know its less than inflation so effectively a negative but we are stuggling to even make non ISA interest hit £1000 and in reality i'll poke it into Mrs Aju anyway. We did have a good money spinner in the shares divis till last thursday, the profit on that one was a great money spinner whilst it was there and it will be again I'm sure but not in the next 2 years. Sadly whilst the shares cost relatively little and the bulk were free at the time they were awarded to me they are still not worth cashing in when we are not in need of the funds and they are below what we notionally paid for them(they had a value even though they were free through the mid 90's and early 2000's). I guess its degrees of value 1.45% if we can still get it will be a good year long rideout for us. We had a good run with all the current accounts over the last 8 years or so so we can afford to hunker down for a while. Many can't afford to do this and we try to mitigate our fortune/luck etc with %age charity donations over the year from our returns, I haven't been to the city (london) for quite a while but always made sure I had a spare fiver or a tenner and donated to some poor down and out on the street each day. (My daughter who lives and works in the smoke always berates me but I do it for peace of mind and remembering some of the harder times when we were younger - being on strike with no pay for 3 and half weeks is not an easy thing to remember back in the late 80's)
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. Our Zopa sellout has stalled again after a brief flurry at the end of April and start of May, Plus has mainly finished and core is taking much longer.)
(from memory it read like Octopus Cash or HL Active Savings which have about a year or more up and running already)