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Post by cautious on Aug 19, 2016 12:25:46 GMT
As you're probably aware Santander are cutting their 123 rate from 3% to 1.5%....which will realistically be 1.2% after the monthly fee.
Have two accounts........20k each....so 40k total to use.
I live off my savings income so will bail out in November, and am looking to replicate the £1200 pa interest currently received @ 3% rate.
First thought Ratesetter 5yr @ 5% £14,000 with £26,000 elsewhere @ 2% 4 yr fix (with FSCS).
Second thought Zopa 5yr @ 4.3% £18,000 and £22,000 @ 2% as above.
Third thought All 40k into Ratestter mthly @ 3%
Fourth thought .....Don't be stupid....i'm already over exposed in P2P......stick it all in at the 2% monthly compounded.
My overall return target is 4% for the year....actual so far = 3.8% for first 7 months of this year...(last year managed 4.06%).
My P2P exposure is currently 38% of total savings (down from 42% at the beginning of the year).
Your pearls of wisdom please.
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SteveT
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Post by SteveT on Aug 19, 2016 12:28:43 GMT
If you feel you're already overexposed to P2P then you probably are!
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jimbob
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Post by jimbob on Aug 19, 2016 12:31:35 GMT
Diversify the P2P into a few other platforms - MT & SS potentially ?
Also how many bank accounts do you want to hold, TSB do 5% up to 2k, and Lloyds do 4% up to 5k - you can open up a couple with each, one for you and one with you and your 'Sig Other'.
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Post by Financial Thing on Aug 19, 2016 13:58:09 GMT
If you invested £10,000 inside the 12% sites like SS & MT, that would give you close to your interest needs minus some for dead money time. Then you can take the other £30k and put it in those annoying other banks like TSB.
Problem is I think all high st banks will be following the Santander lead soon so don't bet on being able to snag 4% at your high street bank for too much longer. I've received several email notifications from banks such as Virgin showing interest drops.
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Post by cautious on Aug 20, 2016 8:01:41 GMT
Thanks for those replies..........food for thought.
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Post by GSV3MIaC on Aug 20, 2016 8:08:50 GMT
It also depends on your tax position,and whether this is your only emergency capital reserve, and what you think inflation is going to do, and what else you hold. Outside of p2p, a lot of my income comes from unit trusts held in ISAs and sipps.
Capital value fluctuates widely but interest/dividends keep rolling in. Get advice though!
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Post by davee39 on Aug 20, 2016 13:52:50 GMT
My own personal strategy & NOT advice. I planned my retirement based on a dislike of annuity rip off's and the then common 5% returns. All my decent Bonds have matured leaving me with investments in
Ratesetter
Zopa Classic
Zopa+
About 20p a week going into Assetz 7% GBBA (promises promises promises , always jam tomorrow, June was going to be a bumper month ?!?!!!!)
A mixture of High yield bond and equity unit trusts
I bailed out of FC, they are still a heavily loss making platform, have dreadful IT Quality Control, too many bots getting the higher rate loans and woeful rates on the property loans.
I invested a good chunk in P2P global Investment Trust , and promptly lost 6% capital as they continued to fall. Currently, @830p & an 18% discount with a 7% yield. I think they remain attractive.
The rest gets 2% in a legacy cash ISA (Not available to new savers) and 1% online from the Yorkshire
I have avoided the 12%'s after a brief dabble with Funding Secure & Saving Stream. I did not lose any capital or interest but they did not feel right for me
High interest current accounts always struck me as a faffy teaser deal and I have avoided them.
You could consider the Assetz 30 day investment account at 4.25%. I would rather take 1% for instant access than fix for 4 years at 2%, my optimistic view is that if the economy is sufficiently strong, or sterling falls to dollar parity, rates will go back up.
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Post by brokenbiscuits on Aug 20, 2016 14:16:30 GMT
Your user name is cautious but you have near 40% of your wealth in p2p and are considering more.
This seems too much.
Appreciate you are on a p2p forum, but would consider moving some money away from p2p If I was you.
Diversify.
Without knowing who the 40% is with or where the other 60% is or any other information about you it's hard to offer an alternative suggestion.
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Post by cautious on Aug 20, 2016 15:51:15 GMT
We have;
27% across the current accounts chasing those rates,
28% in cash Isa's (all on earlier fixes and so closed to new deposits,
7% premium bonds (which I was building up from running P2P down)
12% Zopa,
26% Ratesetter
Just started dabbling in Lendinvest.....not yet reached 1%, was with Wellesley but did not reinvest after they left P2PFA.
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duck
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Post by duck on Aug 20, 2016 17:33:27 GMT
Personally I would throw 'caution' to the wind! Well, I would temper that a bit. As Financial Thing has suggested I would put some money in one of the high interest platforms that has a very liquid aftermarket (my current suggestion would be MT) but I would set myself a strict time limit - say 3 months - and then I would sell everything and then consider how comfortable I felt for those 3 months. Not comfortable, put it down to experience and don't repeat. Comfortable then perhaps repeat the exercise. Either way you should have made some decent interest. I live off my savings and have been returning over 8% in P2P/P2B for some years now but fully utilising your tax position is just as important as interest, always worth making certain that you are utilising all (obviously legal!) opportunities. |
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Post by jonboy73 on Aug 20, 2016 19:37:15 GMT
You would be able to get some of that cash into, tesco 3%, lloyds 4%, tsb 5%.
There are several accounts (m&s, halifax and others) offering sign up bonuses too if you switch, but you may wish to keep 123 for the bills cash back.
Mse use has some good comparison tables.
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ilmoro
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Post by ilmoro on Aug 20, 2016 21:33:15 GMT
Careful of Lloyds as rates are under review. Also Bos current with vantage is worth considering as you can have 3 accounts of £5000 each @3%, will need two DD per account (tesco saver easily covers) shortly and Halifax rates are under review which probably covers Bos
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Post by bluechip on Aug 20, 2016 23:02:12 GMT
I just put some money in Orchard Lending Club - 4% for 1 year, they guarantee the repayment pretty much. Have a look at these as it seems like a reasonably sound bet to me. Couple of quotes from their website FYI:
"ALL investments are secured by Orchard Lending Club through our BuyBack Guarantee. Orchard Lending Club is also part of the Orchard Funding Group - as a group we have over 20 years of lending experience to UK professional practices which means we have great relationships with trusted professional practices throughout the UK.
The BuyBack Guarantee is backed by our parent company Orchard Funding Group PLC, a public company listed on the London Stock Exchange (AIM: ORCH). We are the first peer-to-peer lending platform that offers a BuyBack guarantee, backed by a LSE listed company. We want our lenders to feel comfortable that we will be able to back our guarantee, should the need arise."
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Greenwood2
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Post by Greenwood2 on Aug 21, 2016 6:52:17 GMT
Or BondMason, no guarantee but diversified across platforms (property, business and invoice financing) and aiming for 7% after fees and losses.
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Post by brokenbiscuits on Aug 22, 2016 21:17:37 GMT
We have; 27% across the current accounts chasing those rates, 28% in cash Isa's (all on earlier fixes and so closed to new deposits, 7% premium bonds (which I was building up from running P2P down) 12% Zopa, 26% Ratesetter Just started dabbling in Lendinvest.....not yet reached 1%, was with Wellesley but did not reinvest after they left P2PFA. The most obvious things missing are stocks and bonds. I don't invest with hl.co.uk but find their site really useful for research. www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results?page=1&tab=prices (Click on the magnifying glass, leaving the field blank and then select some filters down the left hand side) From the above link you can play around with a few filters to find some bond funds that should suit your more cautious approach, which could continue to grow in size while also paying a monthly or quarterly payout direct to your account. 4-6% returns are achievable. Appreciate you are now comfortable with p2p but in my opinion you already seem to have too much in one sector here. It wouldnt take much reading and research to make yourself familiar with this new (to you) style of investing as you did with p2p when you made the transition of diversifying here.
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