69m
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Post by 69m on May 18, 2024 14:48:35 GMT
For people looking for higher returns than bank deposits there are some very good yields on corporate bonds with Blue Chips atm. Way Lower Risk than P2P IMO, I consider my corporate bond holdings pretty low risk and offer a yield of 8% on average (way lower risk than my P2P portfolio in the golden era of P2P 2010-2017 - RIP). Thank you for the heads up. If there were yields of 8% for a moderate risk then that seems fair. Such corporate bonds are what I know relatively little about. Where can we find out more about these investments? Any links and/or suggestions please?
He's pretty good at explaining things, so it could be a useful introduction to the subject.
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69m
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Post by 69m on May 18, 2024 14:57:28 GMT
Interesting that Prosper is introducing a tracker product (0.55% gross above BoE base rate, less a 0.2% fee) just as the base rate is likely to reduce. Indeed, as the article says, "Savers should bear in mind that the base rate is predicted to fall and if cuts do arrive, the pay rate on the account will fall too. Base rate would need to see two 0.25 percentage point cuts for the Prosper deal to fall to the level of the top one-year fixed rates."
Not really sure why anybody would want to be locked into this for 365 days, unless they're convinced that the base rate drop will be extremely slow and gradual.
Although the name states 'Tracker', does it mention that it'll be a guaranteed rate above the Base rate ? Or can they pull people in and lock them for 1 year and then simply reduce it ? I'd be very surprised if Prosper can alter the margin above base rate (certainly not without allowing customers to exit the product immediately). That sort of thing should be explicitly stated in the terms, which unfortunately you can't see until you've signed up.
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Post by df on May 18, 2024 19:10:57 GMT
Interesting that Prosper is introducing a tracker product (0.55% gross above BoE base rate, less a 0.2% fee) just as the base rate is likely to reduce. Indeed, as the article says, "Savers should bear in mind that the base rate is predicted to fall and if cuts do arrive, the pay rate on the account will fall too. Base rate would need to see two 0.25 percentage point cuts for the Prosper deal to fall to the level of the top one-year fixed rates."
Not really sure why anybody would want to be locked into this for 365 days, unless they're convinced that the base rate drop will be extremely slow and gradual.
Although the name states 'Tracker', does it mention that it'll be a guaranteed rate above the Base rate ? Or can they pull people in and lock them for 1 year and then simply reduce it ? I don't think I've ever seen a savings product advertised without any basic t&c. I gave it a miss.
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Post by oppsididitagain on May 19, 2024 7:44:09 GMT
Thank you for the heads up. If there were yields of 8% for a moderate risk then that seems fair. Such corporate bonds are what I know relatively little about. Where can we find out more about these investments? Any links and/or suggestions please?
I buy them through my stock broker who also provide a pretty good guide: www.ig.com/uk/bonds/what-are-corporate-bonds-how-to-buy . You can buy individual bonds - which I prefer since it is more fun or you can buy through ETFs. There is obviously risk involved but alot less than P2P in my opinion, alot of the time you are lending to highstreet names not some dude on the internet no one has heard of. FYI- HL.co.uk. has upto £100 free trading fee's on stock/bonds/ETF's. until 21 june . So if you wanna save a bit of cash investing this might be for you. Something to think about is the exit trade. They are not the cheapest platform so if you decide to sell before maturity it could cost you £11.95 (or cheaper if you trade more) Full fee's are here www.hl.co.uk/charges. I bought the LIV4. bond which is a Lendinvest bond..it's paying 11.5% coupons and still trading at PAR (100). seems great value to me..
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angrysaveruk
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Back and to the left..
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Post by angrysaveruk on May 19, 2024 9:31:21 GMT
I buy them through my stock broker who also provide a pretty good guide: www.ig.com/uk/bonds/what-are-corporate-bonds-how-to-buy . You can buy individual bonds - which I prefer since it is more fun or you can buy through ETFs. There is obviously risk involved but alot less than P2P in my opinion, alot of the time you are lending to highstreet names not some dude on the internet no one has heard of. FYI- HL.co.uk. has upto £100 free trading fee's on stock/bonds/ETF's. until 21 june . So if you wanna save a bit of cash investing this might be for you. Something to think about is the exit trade. They are not the cheapest platform so if you decide to sell before maturity it could cost you £11.95 (or cheaper if you trade more) Full fee's are here www.hl.co.uk/charges. I bought the LIV4. bond which is a Lendinvest bond..it's paying 11.5% coupons and still trading at PAR (100). seems great value to me.. Thanks for the info I dont trade very often - I tend to buy and hold to maturity or hold stocks/ETFs for the long term. I like the IG platform and the interface but they are not the cheapest - they also have pretty good security in my opinion which is important given I have a few quid invested (they offer additional security options for larger portfolios).
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Post by overthehill on May 21, 2024 11:10:51 GMT
Virgin Money, generous to a fault. M Plus Account is actually their current account but their app doesn't call it that so you need to do the cognitive translation in notifications to differentiate from their M Plus Saver account whose current rates aren't much better, 2.5% for sums up to 25k.
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We’re reducing the standard interest rate payable on your M Plus Account ending 6843 on 1 August 2024. The current interest rate is 2.02% AER1/2.00% Gross2 and the new rate will be 1.00% AER1/Gross2 on balances up to and including £1,000. For further information about your rates, please see the table below. We appreciate that a reduction in the interest rate you’re earning is never good news, and we want to make sure you’re aware of the change and the alternative options that are available to you.
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Post by mostlywrong on May 21, 2024 17:51:01 GMT
Interactive Investor is offering 3 month and 6 month Treasury Bills.
They reckon that the return will be the equivalent of roughly 5% pa.
You will pay roughly £98 (and you bid to pay an unknown amount...) and receive £100 in due course. There must be a minimum sum but I have not found that detail yet.
As I was reminded one month ago, that gain is taxed as income. If you are a higher rate taxpayer etc, you need to understand how you report that gain.
The last tranche sold out in about 4 days.
Other brokers including Primary Bid might also be offering this tranche.
MW
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 21, 2024 19:22:30 GMT
Interactive Investor is offering 3 month and 6 month Treasury Bills.
They reckon that the return will be the equivalent of roughly 5% pa.
You will pay roughly £98 (and you bid to pay an unknown amount...) and receive £100 in due course. There must be a minimum sum but I have not found that detail yet.
As I was reminded one month ago, that gain is taxed as income. If you are a higher rate taxpayer etc, you need to understand how you report that gain.
The last tranche sold out in about 4 days.
Other brokers including Primary Bid might also be offering this tranche.
MW
Freetrade are doing 1 month T-bills with c5% yield (subject to bid price) Min £50, no fee freetrade.io/treasury
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 21, 2024 21:19:42 GMT
Trading 212 have just launched their flexible cash isa, 5.2% variable on £, different rates on other currencies - obviously the catch is that funds are invested in QMMF so slightly more risk than just cash on deposit.
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69m
Member of DD Central
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Post by 69m on May 21, 2024 23:30:28 GMT
Trading 212 have just launched their flexible cash isa, 5.2% variable on £, different rates on other currencies - obviously the catch is that funds are invested in QMMF so slightly more risk than just cash on deposit. Interestingly, the updated terms that were sent out with the Cash ISA launch email state that this new product won't be using QMMFs to help achieve the advertised rate.
So, from that perspective at least, it's not as risky as 'uninvested cash' in a Shares ISA or a GIA.
However, while the Cash ISA is fully FSCS-protected to £85k, Trading 212 seems to be a bit vague about how this will actually work. Its web site says "Your funds are kept safe in a segregated account" and "Your cash is held at some of the world’s largest banks" without naming those third-party banks. Perhaps they're declared when you open an account?
Either way, my question would be what happens if one of those third-party banks fails? Is the FSCS protection applied directly to the third-party bank, bypassing Trading 212 altogether? That could cause issues. For example, what if the bank in question is foreign and falls outside of the FSCS? Or, if customers already directly hold £85k at the failed bank, then they'll find that their Trading 212 account isn't safeguarded at all because they've unintentionally exceeded the protection limit.
By contrast, Wealthify recently started offering an instant access savings account. Its prospectus is very clear that Wealthify provides day-to-day servicing of the account, ClearBank provides the account itself, and the FSCS protection relates solely to ClearBank's banking licence.
TLDR: I'd want to be very sure about the FSCS arrangements before opening a Trading 212 Cash ISA.
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alender
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Post by alender on May 23, 2024 12:12:20 GMT
Got an email from Nationwide
"When we profit, we think you should too, so we are delighted to let you know that we are giving you £100.
Sharing our profits through the Nationwide Fairer Share payment is one of our ways of rewarding you for choosing us"
Did not get this last time as for some reason did not hit the criteria, think I miss out on a payment/balance or something by a couple of days. Only downside is this is taxed as interest.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 23, 2024 12:47:03 GMT
Got an email from Nationwide "When we profit, we think you should too, so we are delighted to let you know that we are giving you £100. Sharing our profits through the Nationwide Fairer Share payment is one of our ways of rewarding you for choosing us" Did not get this last time as for some reason did not hit the criteria, think I miss out on a payment/balance or something by a couple of days. Only downside is this is taxed as interest. Yeah same here ... made sure I qualified after getting stitched by a few days last year ... slightly frustrating as had been suggested would have been bigger this year. Instead they have launched a 5.5% fixed 18m bond, 10k, & another switch incentive fir non-current current account holders.
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Post by df on May 24, 2024 12:03:22 GMT
Got an email from Nationwide "When we profit, we think you should too, so we are delighted to let you know that we are giving you £100. Sharing our profits through the Nationwide Fairer Share payment is one of our ways of rewarding you for choosing us" Did not get this last time as for some reason did not hit the criteria, think I miss out on a payment/balance or something by a couple of days. Only downside is this is taxed as interest. I've missed it last year and thought this is unlikely to happen again. In February this year I've decided to give it a go just in case they might do this again. Followed the rules from February until May, but this was a month too late as they count January to March only. I'm going to do it properly next year .
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benaj
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Post by benaj on May 24, 2024 12:17:10 GMT
I didn’t even know they would have do this again. I missed out last year by a few quid and this year, I hope I could get qualified.
It’s a bit annoying can’t re-read “notifications” to confirm “ The Nationwide Fairer Share payment is our way of rewarding you.”
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Post by overthehill on May 25, 2024 19:17:36 GMT
Right then who uses Charter Savings Bank ? Requested a withdrawal from their (not so) easy access saver yesterday about 1pm and I'm still waiting. Don't tell me they shut at weekends.
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