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Post by freefalljunkie on Jun 10, 2020 12:54:29 GMT
What's the reason behind RS not accepting new investments? Seems madness to me doing that. maybe they cant? perhaps the FCA has said no and sort yourself out Seems a slightly academic question at the moment as no one in their right mind is going to invest for 1.5% when there is a risk of capital loss and a wait of many months to get your money back out. I'd like to think the FCA are taking an interest in Ratesetter but I doubt it. Ratesetter may be important to all of us but it is small beer in the grand scheme of the wider financial markets which the FCA oversees.
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coogaruk
Hello everyone! Anyone remember me?
Posts: 706
Likes: 464
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Post by coogaruk on Jun 10, 2020 15:04:56 GMT
Update:
It looks as if I've now probably 'stumbled' into wind-down mode. With no recent activity at my minimum acceptable rates I've decided that my money would be better off (and safer!) in Premium Bonds than in the RS Holding Account, so while the present situation persists I will regularly (not sure at what intervals yet) draw down my balance.
I've never undertaken a RYI and have no intention of doing so yet (I hear there's a long queue) so hopefully my strategy will provide RS with a bit of much-needed cash-flow during the current crisis against those who have decided to just cut and run.
Premium Bonds / National Savings is wise, the direct access pays 0.9% but is 100% secure, and capital security is the name of the game at the moment. Just reading the Martin Lewis email today and he expects hundreds of thousands of redundancies in August when the furlough expires. The economy can still crater further and public finances will be in ruins for a decade to come. 0.9% is the ISA rate of course, you get a whopping 1% with their Direct Saver, though as a non-taxpayer I prefer NS&I Income Bonds which are also easy access and curently pay 1.16% AER. Hard to beat that rate with FSCS protection, in fact it's not too far below the 'stabilised' RS Access rate.
Current rate for Premium Bonds is 1.4% - I know they are a bit of a gamble but at least your investment is 100% safe and the prizes are tax-free!
Like Martin Lewis, I am not very confident about the economy once the Government's interventions have ended.
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coogaruk
Hello everyone! Anyone remember me?
Posts: 706
Likes: 464
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Post by coogaruk on Jun 10, 2020 15:07:27 GMT
I've unwound my position to roughly 60/40 invested/holding and am now withdrawing some of the holding account funds to seek FSCS protection. Hopefully temporarily. Of the remaining invested money, about 1/3 is access and 2/3 one year. I'm comfortable enough not to RYI, but will probably withdraw to FSCS as the one year investments return, which the vast majority are scheduled to do by the end of 2020. I plan to leave some money fishing for higher rates in one year, but on a much smaller scale than before. Very similar to my own position, apart from the invested/holding ratio.
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spiral
Member of DD Central
Posts: 967 
Likes: 486
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Post by spiral on Jun 10, 2020 17:02:13 GMT
I prefer NS&I Income Bonds which are also easy access and curently pay 1.16% AER. Hard to beat that rate with FSCS protection,
In fact it's better than FSCS protection as you aren't restricted by the 85K limit.
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coogaruk
Hello everyone! Anyone remember me?
Posts: 706
Likes: 464
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Post by coogaruk on Jun 16, 2020 11:09:56 GMT
Another sizeable chunk withdrawn over the weekend. That's 16.8% of my total capital investment now liberated. (12.7% of portfolio value at time I entered draw-down)
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Post by saintpeter on Jun 18, 2020 15:58:01 GMT
I've managed to get 36% out of access since April. I check every day and if a large amount comes in I withdraw straight away. Don't feel confident keeping money in holding for too long. I doubt any loans will pick up at 8% but it's not a risk I want to take.
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Post by saintpeter on Jun 18, 2020 22:06:57 GMT
I've managed to get 36% out of access since April. I check every day and if a large amount comes in I withdraw straight away. Don't feel confident keeping money in holding for too long. I doubt any loans will pick up at 8% but it's not a risk I want to take. Using the same method I have only achieved 17.5& since 20th March. I think I have just been lucky. I had a very large loan for £2k+ pay out and then some smaller interest only loans for several hundred pay out. I don't expect I'll get another big payout for months though unless a loan gets repaid early or defaults. I do check every day though and move money out quickly. Don't trust RS not to change the rules regarding reinvestment or how much can be withdrawn.
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Post by federix on Jun 19, 2020 7:43:36 GMT
I get the feeling that some of you are managing to get money out of RS by setting the reinvestment interest rate to 8% on the Access market. Now, I have done the same, but the money keeps on being reinvested constantly pretty much immediately at the going rate. Am I doing something wrong?
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Post by p2plender on Jun 19, 2020 7:51:41 GMT
sorry in advance,
yawn.........................................................................................
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Post by Badly Drawn Stickman on Jun 19, 2020 8:02:41 GMT
sorry in advance, yawn......................................................................................... Option B would have been to help. federix Click here
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ashtondav
Member of DD Central
Posts: 1,814
Likes: 1,092
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Post by ashtondav on Jun 19, 2020 8:05:46 GMT
sorry in advance, yawn......................................................................................... Yes, the constant bleating does grate..."............. zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
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Post by saintpeter on Jun 19, 2020 8:09:30 GMT
I get the feeling that some of you are managing to get money out of RS by setting the reinvestment interest rate to 8% on the Access market. Now, I have done the same, but the money keeps on being reinvested constantly pretty much immediately at the going rate. Am I doing something wrong? You can only set repaid capital and repaid interest to reinvest at 8% (access) or your chosen rate. Everything else is locked in and you cannot take it out and it gets automatically reinvested, ironically with a name like Ratesetter, you would think you would have more choice, but no. So if there is an amortising loan that is say, £120 over 40 months, you would get approximately £3 of capital paid back monthly which goes into your holding account and can be removed but will be reinvested if you haven't set your reinvestment rate high enough. Sometimes loans are repaid early by the borrower in which case you get the full amount into your holding account and you can withdraw to your bank account. Be aware that RS automatically puts money back onto the market so you need to manually cancel it as it will get picked up if you haven't changed your reinvestment settings.
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johnt
Investing in Ratesetter, Zopa and Assetz Capital since 2013
Posts: 127
Likes: 71
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Post by johnt on Jun 19, 2020 8:20:34 GMT
I've managed to get 36% out of access since April. I check every day and if a large amount comes in I withdraw straight away. Don't feel confident keeping money in holding for too long. I doubt any loans will pick up at 8% but it's not a risk I want to take. Using the same method I have only achieved 17.5& since 20th March. I've been doing the same and have been able to withdraw just 13% (£14K) of my portfolio since the start of March.
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Post by federix on Jun 19, 2020 8:35:48 GMT
sorry in advance, yawn......................................................................................... Option B would have been to help. federix Click hereThanks!
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Post by federix on Jun 19, 2020 8:43:31 GMT
I get the feeling that some of you are managing to get money out of RS by setting the reinvestment interest rate to 8% on the Access market. Now, I have done the same, but the money keeps on being reinvested constantly pretty much immediately at the going rate. Am I doing something wrong? You can only set repaid capital and repaid interest to reinvest at 8% (access) or your chosen rate. Everything else is locked in and you cannot take it out and it gets automatically reinvested, ironically with a name like Ratesetter, you would think you would have more choice, but no. So if there is an amortising loan that is say, £120 over 40 months, you would get approximately £3 of capital paid back monthly which goes into your holding account and can be removed but will be reinvested if you haven't set your reinvestment rate high enough. Sometimes loans are repaid early by the borrower in which case you get the full amount into your holding account and you can withdraw to your bank account. Be aware that RS automatically puts money back onto the market so you need to manually cancel it as it will get picked up if you haven't changed your reinvestment settings. Thanks! That was indeed my understanding, but it sounded like people were suggesting otherwise on here... I am often able to get money out even before contracts are repaid (as per Money On Loan section), so there is probably a lag within which money can be withdrawn before it is reinvested, by canceling pending orders.
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