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Post by nesako on Jan 18, 2017 10:44:29 GMT
Hey guys, I am sooo new (in fact, my first post), but I was secretly reading some of the posts for a while... Now what I realised, there are SO MANY P2P platforms out there that it is impossible for a hands-off human being who wants to "live" to keep a track of what is going on. Hence I need your advise, based on these requirements, what is, in your opinion best Platform and Product combo: - Hands-off, or very minimal maintenance (put money in - money works for you)
- Best Low risk / Reward ratio: Must have Provision fund
- Almost instant access - Someone should be able to get money out to Bank account, without incurring massive fees within say a 3-4 days
- Platform with a decent track record - Initially I was thinking with 1B+ investments to date, but that would limit options to only a couple, so anything "sensible"
I do not expect High Returns for this, to be honest, anything over 3% is good as long as there is Security and Easy Access to money
PS. I only currently use Ratesetter's Rolling option @ 3.1%, mostly because of £100 bonus, but it does tick almost all the boxes above!
Thanks guys!
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archie
Posts: 1,866 
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Post by archie on Jan 18, 2017 11:07:48 GMT
Take a look at BondMason. No provision fund (some platforms they invest in might have) and might take longer to get your money out (14 days). Returns are around 7%. It's not quite what you want but worth considering.  |
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Post by d_saver on Jan 18, 2017 11:09:38 GMT
I' be interested to see what people come up with.
Only ones I know of that fit the bill are Ratesetter 1mo rolling and Assetz qaa, but whilst they have both so far allowed quick access to money, they might not always and you might need to wait for the debts to be repaid, worst case. You could even loose the money, so nothing is quite the same as a bank account in that respect (which I'm sure you already know). Both have provision funds. Both are completely hands off.
>additional comment. You could do like I did and split your risk between these 2 or more if you have the balance to justify it.
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Post by nesako on Jan 18, 2017 11:37:53 GMT
I' be interested to see what people come up with. Only ones I know of that fit the bill are Ratesetter 1mo rolling and Assetz qaa, but whilst they have both so far allowed quick access to money, they might not always and you might need to wait for the debts to be repaid, worst case. You could even loose the money, so nothing is quite the same as a bank account in that respect (which I'm sure you already know). Both have provision funds. Both are completely hands off. >additional comment. You could do like I did and split your risk between these 2 or more if you have the balance to justify it. The one's I personally know are: Ratesetter Rolling (Rate varies, but can get 3.1% within a day normally, at the moment) Assetz QAA (3.75% Target) Zopa Access (Seems to Target 3.1%) I may be missing some though. What I also fail to identify is whether Assetz one is actually any riskier than the other two, you could guess that given Higher return rate. Also, I do not know whether all 3 offer comparable easy access / same level of "hands off" experience / protection (on the "paper" they seem to?). Splitting across is surely sensible
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Post by sayyestocress on Jan 18, 2017 11:42:54 GMT
The benefits of a provision fund are debatable and shouldn't be considered a guarantee of protection, so I would recommend researching the topic further before ruling platforms without one out. Not all provision funds are born equal and are likely discretionary. Personally I think provision funds should not exist on platforms where you pick loans yourself (though these are not the platforms you seem to be looking for), and they offer a false sense of security on platforms where you have no control where your money goes and reduce your return. Personally I would take secured lending without a provision fund over un-secured lending with a provision fund. My recommendations for 'hands-off' money would be bondmason and octopus choice. Neither have provision funds but liquidity is currently strong, though you may find you have to wait a while for your money to be put to work on these platforms. Good luck.
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Jan 18, 2017 13:34:52 GMT
I do not expect High Returns for this, to be honest, anything over 3% is good as long as there is Security and Easy Access to money
Thanks guys!
Please don't think that these are in any way a replacement for a bank account. There is no 100% security and no guarantee of liquidity. There is no FSCS protection. Only invest funds that would not be life changing to lose. Spread your investments as widely as possible and expect some losses. At best these will reduce your net income and at worst you will lose money.
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dandy
Posts: 427
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Post by dandy on Jan 18, 2017 13:49:52 GMT
I do not expect High Returns for this, to be honest, anything over 3% is good as long as there is Security and Easy Access to money
Thanks guys!
Please don't think that these are in any way a replacement for a bank account. There is no 100% security and no guarantee of liquidity. There is no FSCS protection. Only invest funds that would not be life changing to lose. Spread your investments as widely as possible and expect some losses. At best these will reduce your net income and at worst you will lose money. they are a replacement for a bank account. you do not get 100% security in the bank either and in fact you are GUARANTEED to lose money in a bank account when measured in real terms against inflation. keep your money in a bank account for ~ 50 years and close to 100% loss is certain
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Post by sayyestocress on Jan 18, 2017 17:13:53 GMT
Please don't think that these are in any way a replacement for a bank account. There is no 100% security and no guarantee of liquidity. There is no FSCS protection. Only invest funds that would not be life changing to lose. Spread your investments as widely as possible and expect some losses. At best these will reduce your net income and at worst you will lose money. they are a replacement for a bank account. you do not get 100% security in the bank either and in fact you are GUARANTEED to lose money in a bank account when measured in real terms against inflation. keep your money in a bank account for ~ 50 years and close to 100% loss is certain It depends which out of the plethora of bank accounts we're talking here and how much money, though. With up to 5% available on current accounts (for limited amounts) and locked in savings up to about 2% (if my memory serves) you can beat inflation and it will always be prudent to keep some money in an FSCS protected account in case investments turn sour or you need liquidity fast. I would not be comfortable replacing all my cash held in banks with p2p investments, I would say "supplement" rather than "replacment"
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Jan 18, 2017 17:18:40 GMT
One big platform failure and there will be a lot of very unhappy lenders, particularly if they thought it was a replacement bank account.
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elliotn
Member of DD Central
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Post by elliotn on Jan 18, 2017 17:36:33 GMT
Worth a look at Landbay and Octopus Choice, got money out of both quickly without fees but, as noted above, something like a Brexit or p2p shock could affect liquidity of most secondary markets.
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Post by bobthebuilder on Jan 18, 2017 17:51:27 GMT
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archie
Posts: 1,866
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Post by archie on Jan 18, 2017 17:59:56 GMT
You can get defaults on any platform. P2P isn't totally safe by definition. Each investment on BM is limited to 1 or 2 percent of the total invested (user choice) so you wouldn't actually lose very much for any individual default. OP was only looking for 3% return, the higher rates would offset the risks. I'm not an investor at BM but I think they add a useful service.
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Post by stevefindlay on Jan 18, 2017 22:46:37 GMT
@nesako - welcome to the world of P2P lending! There are some good returns possible, but not without risk. To reiterate a few of the points above: - no P2P lending service is protected by the FSCS. So your capital is at risk. - chasing higher returns will lead to higher volatility (spread in your expected returns) - liquidity can't be guaranteed by any platform, but some can demonstrate better liquidity than others In terms of getting started: - platform selection is more important than loan selection - make sure you get a good feel for the proposition (review their website, comments on this forum etc) - diversify - one of the best ways to spread risk is to lend across many loans (50+ ideally) - take your time - don't dive in, dip your toe, get a feel for it, and don't over commit your cash resources to P2P Lending (see points on liquidity and losses above). Most of our clients don't allocate more than 10-25% of their 'spare' cash to P2P Lending A quick word on BondMason (thank you to those who've mentioned us above): - we've reviewed 80+ platforms in the UK and lend through 1 in 4 - we have an 'Introduction to P2P Lending' guide on our home page: www.bondmason.com (you can download for free) - We enable clients to target 7% p.a. and beat this in 2015 (part year, since launch) and 2016 (full year). You can see our statistics here: www.bondmason.com/statistics - we have had losses...£809.66 out of £8.5M to date (less than 0.01%). But we'd expect 0.5%-2% over the long run. Happy to try to answer any questions you may have. Good luck! |
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Jan 19, 2017 8:46:59 GMT
IMO that may be the best post ever from a platform rep.
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Post by ruralres66 on Jan 19, 2017 9:40:33 GMT
Yes and it does inspire a little confidence. I will look at BM as a consequence.
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