|
|
Post by khampson on May 26, 2016 13:51:12 GMT
Hi I am new to p2p lending (less than 12 months), I have around 2k invested in Landbay but I am putting an extra £150 per month to add to it (currently 4%) I am planning on investing long term 3 years + but I need an account to get to my money in an emergency, I do have a little savings set aside other than my p2p loans, What are my options to get more than 4% ? I understand the risks involved and I am happy with that. I have also used Ratesetter and Funding Circle but withdrew the maney to put in landbay, Anyone suggest another p2p platform that will give me a better return?
Thanks
|
|
ben
Posts: 2,020 
Likes: 589
|
Post by ben on May 26, 2016 13:55:15 GMT
I would use ratesetter again and maybe Zopa those are the lower risks ones (although obviously still have a risk)
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,334
Likes: 11,558
|
Post by ilmoro on May 26, 2016 14:21:20 GMT
The AC accounts are also possible options, 30DAA@4.25% & the slightly more risky GBBA@7% - access to funds in the latter is currently fairly quick but not guarenteed to stay like that
Of the high paying riskier options, both SS & MT@12% currently offer easy access due to very liquid SM but again no guarentee to stay like that.
I assume you have maxxed out the various current account options like TSB, Nationwide & Lloyds which all offer 4% or more on low sums.
|
|
|
|
Post by khampson on May 26, 2016 17:09:18 GMT
Hi I only have money in p2p, my Santander 123 only pays 3% before tax, am I correct in thinking that the first £1000 is tax free from April 2016?
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,334
Likes: 11,558
|
Post by ilmoro on May 26, 2016 17:21:59 GMT
Hi I only have money in p2p, my Santander 123 only pays 3% before tax, am I correct in thinking that the first £1000 is tax free from April 2016? Might be worth exploring your normal bank options then. Yes £1000 tax free for basic rate, maybe more as you can earn up to £17k before you pay tax on interest. There is £5k starting band at 0% for intrest. (Not advice) Discussed here p2pindependentforum.com/post/104190/thread
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on May 26, 2016 17:22:50 GMT
yes the first £1000 interest is tax free, LLyods has 4% on upto £5,000 plus a monthly saver, TSB has 5% on £2,500 plus an monthly saver numerous other companies have similar that could be worth opening if married can open one in each name so can put a fair amount away. Also there is ISA that pay a little less but again is tax free.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,334
Likes: 11,558
|
Post by ilmoro on May 26, 2016 17:36:33 GMT
TSB is 2k, Nationwide is 2.5k both @5%, both need minimum monthly funding but no DDs, LLoyds needs two paying DD and minimum funding, no DD no interest, no funding there's a fee. TSB also gives you 5% CB on contactless payments up to £100 (so max £5) Check CB websites as some pay CB if you apply through them, if you know anyone with a Nationwide account who can refer you can both get £100 I think.
|
|
|
|
Post by GSV3MIaC on May 26, 2016 19:48:30 GMT
I've got a nationwide regular saver too (not an offer!), but IIRC the 5% runs out after some period (reduces to something less exciting). The £1k tax free is also a bit more complicated than that, depending on what your overall tax status is (could be better, could be worse). As usual the government has put a patch on the bulge on the patch on the sticker on the side of the exceptions to the tax regime(s) .. resulting in another few pages they can promise to 'simplify' one day. 8>.
All the P2P suggestions above are reasonable IMO (but please read the .sig!), however there is a lot of money looking for a home right now (eg Savingstream, and some of the Assetz accounts look a bit full), and probably more when ('if') they ever sort the IFISA out. Anything over 7 or 8% has to involve some risk, IMO, and if liquidity is important to you that's an extra risk above and beyond 'your capital is at risk'.
|
|
jonah
Member of DD Central
Posts: 2,031
Likes: 1,113
|
Post by jonah on May 27, 2016 17:10:05 GMT
I've got a nationwide regular saver too (not an offer!), but IIRC the 5% runs out after some period (reduces to something less exciting). Nw REgular saver is 500 a month @ 5%. You need a current account and to meet that accounts paying in threshold to qualify. nw flex direct is 5% on 2.5k for 1 year, then it drops to 1%. Unless you close it, wait a year and open a new one of course! Needs 1k a month payed in.... Or transferred out and back in from another none nw account. This is a current account so a full credit check is done. You can usually get cash back eg quidco and nw 'refer a friend' also works if you know someone who already has one, such as me or half this thread! Or tsb.... 2k @ 5%, transfer 500 a month. Or have both.... And bounce cash between them! As offers a 250 a month regular saver. Not advocating any particular product, but generally it makes sense to max out the 5 and 4% (lloyds is 4%) accounts and associated regular savers with Fscs protection before going for higher risk p2p. You could even consider the raft of 3% options (tesco, Santander, BoS).
|
|
bob76
Posts: 103
Likes: 22
|
Post by bob76 on May 30, 2016 9:53:04 GMT
First Direct's Regular Saver will pay you 6% gross annually for saving between £25 and £300 monthly. Interest is calculated daily and paid out at the end of the 12 month term. I believe they pay the equivalent of 6% gross interest rate annually, on amounts actually invested. Meaning that if you have invested 12 x £300, you won't get 6% interest on £3,600, but a lot less. Therefore, effective annual rate is a lot less than 6%, more like 2.8%, making it not such a great deal, particularly when money is locked for up to 1 year.
|
|
|
|
Post by trentenders on May 30, 2016 10:15:12 GMT
First Direct's Regular Saver will pay you 6% gross annually for saving between £25 and £300 monthly. Interest is calculated daily and paid out at the end of the 12 month term. I believe they pay the equivalent of 6% gross interest rate annually, on amounts actually invested. Meaning that if you have invested 12 x £300, you won't get 6% interest on £3,600, but a lot less. Therefore, effective annual rate is a lot less than 6%, more like 2.8%, making it not such a great deal, particularly when money is locked for up to 1 year. Well, yeah, they only pay you interest on the money that you have saved with them for the duration that they've held it. Isn't that normal?
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on May 30, 2016 10:57:53 GMT
First Direct's Regular Saver will pay you 6% gross annually for saving between £25 and £300 monthly. Interest is calculated daily and paid out at the end of the 12 month term. I believe they pay the equivalent of 6% gross interest rate annually, on amounts actually invested. Meaning that if you have invested 12 x £300, you won't get 6% interest on £3,600, but a lot less. Therefore, effective annual rate is a lot less than 6%, more like 2.8%, making it not such a great deal, particularly when money is locked for up to 1 year. Thats why its called a regular saver account
|
|
bob76
Posts: 103
Likes: 22
|
Post by bob76 on May 30, 2016 11:30:07 GMT
Well, yeah, they only pay you interest on the money that you have saved with them for the duration that they've held it. Isn't that normal? Yeah, very normal. However, some people don't seem to get it, and compare various investments against the FD rate of 6% per year... 6% would indeed be a good rate. 2.8% is not so great, and can be beaten by many "safe" P2P investments.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on May 30, 2016 11:48:12 GMT
Well, yeah, they only pay you interest on the money that you have saved with them for the duration that they've held it. Isn't that normal? Yeah, very normal. However, some people don't seem to get it, and compare various investments against the FD rate of 6% per year... 6% would indeed be a good rate. 2.8% is not so great, and ca n be beaten by many "safe" P2P investments. There is no safe p2p investment. The FD rate is good if you have small amounts you want to save each month, using the FD, LLyods, TSB, Nationwide accounts you can easily save over £1000 a month with each one between 4/6%. Unless you have big ammounts to invest that is far better then the monthly/yearly p2p accounts.
|
|
borofan
Member of DD Central
Posts: 65
Likes: 13
|
Post by borofan on May 30, 2016 13:20:09 GMT
Problem with RS accounts is that most of them only last one year at decent rates and have small limits.
And I think the calculation for the interest is /12, then x6.5, so 6% interest over the year is actually 3.25%.
|
|
