Greenwood2
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Post by Greenwood2 on Jul 24, 2020 19:36:46 GMT
I got an invitation to the new fixed rate products, the rates don't seem too bad. Has anyone invested?
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Post by Ton ⓉⓞⓃ on Jul 25, 2020 7:57:28 GMT
I got an invitation to the new fixed rate products, the rates don't seem too bad. Has anyone invested? Here's my copy
I'm half tempted, but a lot of my cash is in ISA's of which I can see no mention so far.
Here's the rates again in a table in case the download gets deleted due to lack of "space".
Terms | Interest Rate AER*
| gross** | 1 year
| 1.10% | 1.09% | 2 years
| 1.40% | 1.39% | 3 years
| 1.50%
| 1.48%
| 4 years
| 1.55%
| 1.53%
| 5years
| 1.60%
| 1.58%
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wapping35
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Post by wapping35 on Jul 25, 2020 8:39:20 GMT
Thanks and good to know the rates. For me given the rates on National Saving Income Bonds with effectively instant access, I don't see these as very attractive. i.e. the one year rate is even lower and the 2-5 year rates are not much of a premium given the tie in period.
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coogaruk
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Post by coogaruk on Jul 25, 2020 12:49:54 GMT
I think these rates look pretty competitive compared to what's currently on offer from other banks but what's 'exclusive' about them? My guess would be 'existing customers only' or something similar for an intro. period, etc!
And as the previous poster said, they pale into insignificance when compared to NS&I. Even their Direct Saver currently pays 1% on a minmium investment of £1 with easy access (although that rate is variable of course)
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aju
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Post by aju on Jul 25, 2020 14:15:06 GMT
I looked at them, bit odd really as I signed up as interested ages ago but have had nothing so far - I guess someone looked at my name and said don't bother him he's only going to find something wrong with it at some point.. That said I agree that the rates don't look that brilliant. Mrs Aju has 1.45% fixed for 12 months with Ford Money and currently running out end of August Marcus 1.2%. We are looking at NS&I Income Bond as the next place to dump funds when Marcus drops off. Thankfully Mrs Aju does not pay tax as yet so ISA's are not really that useful...
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coogaruk
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Post by coogaruk on Jul 25, 2020 14:50:54 GMT
We are looking at NS&I Income Bond as the next place to dump funds when Marcus drops off. Thankfully Mrs Aju does not pay tax as yet so ISA's are not really that useful... I 'discovered' NS&I as a home for a portion of my savings a couple of years or so back, around the time I began my FC wind down.
Since then I have invested in a range of their products including some that are no longer on sale.
As you are considering Income Bonds, it might be worth taking a closer look at how they differ from their Direct Saver account. I won't bore you with the details here unless you'd like me to
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Post by Ton ⓉⓞⓃ on Jul 25, 2020 15:44:30 GMT
From this wording just above the text of my email
I took it to mean that it's limited to a few, which is the best way to start lending at such an inauspicious time. They might have taken into account that I have about £3k sitting in my Z p2p Holding a/c doing nothing. It's likely I'll just deposit that or some of it with them.
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aju
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Post by aju on Jul 25, 2020 15:48:02 GMT
We are looking at NS&I Income Bond as the next place to dump funds when Marcus drops off. Thankfully Mrs Aju does not pay tax as yet so ISA's are not really that useful... I 'discovered' NS&I as a home for a portion of my savings a couple of years or so back, around the time I began my FC wind down.
Since then I have invested in a range of their products including some that are no longer on sale.
As you are considering Income Bonds, it might be worth taking a closer look at how they differ from their Direct Saver account. I won't bore you with the details here unless you'd like me to No probs I think I know already where you are coming from in that they are not compoundable investment. Thx
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coogaruk
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Post by coogaruk on Jul 25, 2020 17:14:10 GMT
No probs I think I know already where you are coming from in that they are not compoundable investment. Thx Yep, that along with the fact IBs have a minimum deposit, top-up, withdrawal and balance to maintain of £500. Might be important to some. Hopefully back on topic with my next post!
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coogaruk
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Post by coogaruk on Jul 25, 2020 17:17:04 GMT
From this wording just above the text of my email I took it to mean that it's limited to a few, which is the best way to start lending at such an inauspicious time.
I don't think these new fixed-term accounts will have anything to do with lending, apart from the fact you will be 'lending' your deposits to Zopa.
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Post by Ton ⓉⓞⓃ on Jul 28, 2020 12:30:06 GMT
Yesterdays email from Zopa,
I'll think about it.
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Greenwood2
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Post by Greenwood2 on Jul 28, 2020 12:45:23 GMT
From this wording just above the text of my email I took it to mean that it's limited to a few, which is the best way to start lending at such an inauspicious time.
I don't think these new fixed-term accounts will have anything to do with lending, apart from the fact you will be 'lending' your deposits to Zopa. Zopa Bank does seem to be intending to lend on the P2P platform, from a recent email: 'Are loans that Zopa Bank holds the same as those I get as a P2P investor? They are indeed. New loans you invest in will start off being funded by Zopa Bank before our system randomly allocates them between retail investors like yourself and Zopa Bank. Once loans are allocated to you as a retail investor, all rights to repayments are also transferred over, and from that point on everything works in the same way as before. This process ensures that the loans you invest in are the same as loans that Zopa Bank holds. In the same spirit, if we were to deem a borrower too risky for a loan held by the bank, they would also be too risky for our P2P investors.' I assume that means deposits into the fixed term accounts may end up being lent by Zopa bank on the P2P platform.
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aju
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Post by aju on Jul 28, 2020 16:00:07 GMT
I don't think these new fixed-term accounts will have anything to do with lending, apart from the fact you will be 'lending' your deposits to Zopa. Zopa Bank does seem to be intending to lend on the P2P platform, from a recent email: 'Are loans that Zopa Bank holds the same as those I get as a P2P investor? They are indeed. New loans you invest in will start off being funded by Zopa Bank before our system randomly allocates them between retail investors like yourself and Zopa Bank. Once loans are allocated to you as a retail investor, all rights to repayments are also transferred over, and from that point on everything works in the same way as before. This process ensures that the loans you invest in are the same as loans that Zopa Bank holds. In the same spirit, if we were to deem a borrower too risky for a loan held by the bank, they would also be too risky for our P2P investors.' I assume that means deposits into the fixed term accounts may end up being lent by Zopa bank on the P2P platform. I hope they get better borrowers than I have had over the last 1 year or so, defaults are piling on still. Lets hope they don't rely on the SG covered loans I seem to pickup still!.
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coogaruk
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Post by coogaruk on Jul 28, 2020 17:21:59 GMT
I don't think these new fixed-term accounts will have anything to do with lending, apart from the fact you will be 'lending' your deposits to Zopa. Zopa Bank does seem to be intending to lend on the P2P platform, from a recent email: 'Are loans that Zopa Bank holds the same as those I get as a P2P investor? They are indeed. New loans you invest in will start off being funded by Zopa Bank before our system randomly allocates them between retail investors like yourself and Zopa Bank. Once loans are allocated to you as a retail investor, all rights to repayments are also transferred over, and from that point on everything works in the same way as before. This process ensures that the loans you invest in are the same as loans that Zopa Bank holds. In the same spirit, if we were to deem a borrower too risky for a loan held by the bank, they would also be too risky for our P2P investors.' I assume that means deposits into the fixed term accounts may end up being lent by Zopa bank on the P2P platform. I assume differently: Zopa Bank may well lend your deposits (just like any other bank) but not on the P2P platform would be my view. I don't see how that would work as the fixed-term accounts will be fully FSCS protected whereas P2P loans are not.
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Greenwood2
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Post by Greenwood2 on Jul 28, 2020 19:58:54 GMT
Zopa Bank does seem to be intending to lend on the P2P platform, from a recent email: 'Are loans that Zopa Bank holds the same as those I get as a P2P investor? They are indeed. New loans you invest in will start off being funded by Zopa Bank before our system randomly allocates them between retail investors like yourself and Zopa Bank. Once loans are allocated to you as a retail investor, all rights to repayments are also transferred over, and from that point on everything works in the same way as before. This process ensures that the loans you invest in are the same as loans that Zopa Bank holds. In the same spirit, if we were to deem a borrower too risky for a loan held by the bank, they would also be too risky for our P2P investors.' I assume that means deposits into the fixed term accounts may end up being lent by Zopa bank on the P2P platform. I assume differently: Zopa Bank may well lend your deposits (just like any other bank) but not on the P2P platform would be my view. I don't see how that would work as the fixed-term accounts will be fully FSCS protected whereas P2P loans are not. Zopa bank P2P loans are not FSCS protected. But the fixed term savings accounts are FSCS protected, the buffer is Zopa Bank, just like any other bank whatever they do with your money they have to have sufficient reserve funds to guarantee giving it back (unless they go bankrupt in which case FSCS step in). For all I know other banks may also be investing in P2P loans. I assume Zopa bank think there will be a sufficient margin on their P2P loans to make a profit anyway.
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