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Post by ranjeb on Mar 3, 2015 8:31:32 GMT
Looking at ISA rates is always bad news, about 1.5-1.8% for 1-2 years at time of writing. I'm sure it was 3% last year. With the new FY approaching fast I'm wondering if a lot of people will be ditching in favour of p2p come April. Personally I've a substantial amount (for me) coming to the end of it's fixed term and plan to stick a large chunk into p2p.
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bigfoot12
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Post by bigfoot12 on Mar 3, 2015 8:49:13 GMT
I'm not sure how far on the horizon the ISA is.
It looks as though there is still more to agree (see various posts on this forum) and so probably not before the election, and then with coalition discussions it could be a while. I hope not.
Like many existing P2P lenders I hope to move some of my lending to an ISA. But that wouldn't be an increase from me. I think that is true of many existing lenders. If some companies manage to start an ISA before others they might attract a significant pool of money from the others, but I don't know how much will be new money. It will depend on how easy it is to transfer in and out and costs and lots of other details we don't know yet.
The simple provision funded companies such Ratesetter and Wellesley should do well from having a simple offering, but at the same time the tax problem of losses goes away which means provision funds aren't as necessary.
Who knows?
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Mike
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Post by Mike on Mar 3, 2015 12:39:39 GMT
Agreed. With the new large ISA allowance, and my fixed rate 4.25% coming to an end in April, my money will be heading to P2P as quick as I can send it. Mind you - for many others tax may be quite a hurdle if done correctly?
I would fathom a guess that many others in similar situations will do likewise, but old fixed-term ISA accounts aren't always that big.
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