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Post by brokenbiscuits on Dec 15, 2015 19:02:14 GMT
I personally dont log onto ratesetter several times a day, but where does the only 0.5 percent argument stop though?
When it drops a whole percent under what you consider an acceptable risk/reward, do you say ah well its only another 0.5 percent?
Would you even risk coming on ratesetter at all if high Street banks were only 0.5 percent less?
I guess I could take 0.5 percent less on all my savings and maybe retire a year or two later than planned. Maybe more so as the figure I have in mind will not only take longer to get to but will generate less income.
0.5 percent when retirement planning can definitely be significant!
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alender
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Post by alender on Dec 15, 2015 19:54:31 GMT
I agree, 0.5% equates to approx 10% reduction on income in the 3 year market. Not sure you would be very happy if your income from salary or house rental for the next 3 years was reduced by this amount because you did the negations in the morning rather than the afternoon. However a number of times I have seen it reduced but as much as 1.5% in a short period and even more at the end of an offer.
This means I have constantly monitor the rate to get what I consider acceptable given the risks, it has taken 6 months to get about 1/4 of money I would like to invest away at an acceptable rate. If the rates were not so volatile I would probably have got the other 3/4 invested by now. For a time I used the one month market to park funds while rates are low but stopped doing this once I found I could be locked in at a monthly rate for up to 2 years.
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adrianc
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Post by adrianc on Dec 15, 2015 20:26:45 GMT
I think you're overthinking.
Just put the money onto the minimum you'd be willing to accept, and wait until it matches. Then it doesn't matter if you put in on in the morning or afternoon - in fact, if you put it on in the morning, you'll be further forward in the queue than if you put it on in the afternoon!
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ben
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Post by ben on Dec 15, 2015 20:48:13 GMT
all I do is put it to rate I want and leave it rarely makes much difference
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alender
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Post by alender on Dec 15, 2015 21:13:04 GMT
I think you're overthinking. Just put the money onto the minimum you'd be willing to accept, and wait until it matches. Then it doesn't matter if you put in on in the morning or afternoon - in fact, if you put it on in the morning, you'll be further forward in the queue than if you put it on in the afternoon! I need to over think to prevent quite large sums sitting for a time getting no interest or below optimal interest rates. The morning and afternoon was an example of how quickly interest rates can change, I work mostly on a combination of monthly and weekly cycles. If you are happy to accept a lower rate or have your money sitting for weeks getting no interest that is fine but it does not work for me.
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adrianc
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Post by adrianc on Dec 15, 2015 21:33:12 GMT
If you are happy to accept a lower rate or have your money sitting for weeks getting no interest that is fine but it does not work for me. I'm not happy to do that - and I don't spend more than five minutes in a morning. I don't know what your walk-away rate is, but I don't put money on the 5yr for less than 6.4%*. If I think it'll go out higher than that, I'll put it higher. If it doesn't, I'll slide it down to 6.4% - one point every couple of days - until it does go. If 6.4% hasn't happened in a week or so, it goes on the monthly. No reason why that won't apply to higher walk-away rates, but obviously with longer lulls, which means less need to keep checking-up. Mostly, the contracts are higher rates than 6.4% - there's even the odd 7.0% in there. Just looking back through contract dates, the only blanks since Feb this year were April, early July, early August, and November - and the summer ones were probably due to coinciding with holidays - I think I just shoved it all to monthly while I was away. * - except for ten quid place-markers, which I'll have at point rates from 6.3% upwards, 6.2% if it's been a prolonged quiet spell - like it was until this week.
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alender
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Post by alender on Dec 16, 2015 0:05:18 GMT
It only takes a couple of minutes a day to check the rates, when I see it approaching my desired rate I will commit funds unless it late afternoon as the borrowing slows at this time. I am especially cautious Friday Afternoon because if I do not match I lose 4 to 5 days of interest (3 for the weekend 1 to 2 days to get the money returned) and I never get matches on a Monday as rates are low.
On the 3 year market I have managed to get 6% average, I think it is well worth the effort for a minute or two for 3 or 4 days a week.
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