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Post by kylemac on Feb 18, 2017 20:26:01 GMT
Hello, being new to the P2P lending world, I have decided to have a go at P2P lending. After researching risks thoroughly, I have decided to look into RS.
After browsing multiple threads about the PF changes etc, is this a good time to invest in a rolling rate of approx 3.5%?
Current have approx £15k in a non-interest savings account
Apologies for lack of knowledge Thanks
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teddy
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Post by teddy on Feb 18, 2017 22:18:12 GMT
I wouldn't start putting money in RS now. Because of my RS 6.2% average interest rate, I've pretty much decided against using the fee free withdrawal since the change in the PF terms, but will continue winding down my RS exposure as I've been doing for the last 6 months, and sticking the money across Assetz Capital's two 7% accounts.
3.5% isn't much of a return. What kind of return are you looking for? What's your attitude to risk?
Assetz Capital 30 day notice account is at least 4.25%, while its GBBA pays 7%. While I realise that £15K isn't, in the grand scheme of things, a huge amount of money, I might suggest you'd be better off not using RS.
You say you've had £15K sitting in a non interest bearing account. If you're only looking for 3.5%, you'll soon find inflation fast eating away at your capital. Low risk 7% is easily achievable with little effort. If you have a higher risk appetite, there are plenty of 12%+ P2P sites. Not my cuppa, but that's just me. Nothing wrong with some of those site as long as you have good diversification.
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Post by jackpease on Feb 19, 2017 7:12:15 GMT
I'd counter that 3.5% with RS is a great as part of a well balanced 'diet' eg some in RS, some in Assetz etc etc. Remember Ratesetter is a rare beast if you are anxious about the property bubble. There's a lot of current resentment at RS (and SS) at the moment - partly as a result of rate cuts compared to the past and the inevitable 'communication' gripes but i'm not sure the underlying USP has changed. It'd be quite hard for a newbie to make a mistake on RS but on the higher interest higher risk sites, quite easy to get what all the experienced investors don't want. Jack P
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Post by WestonKevTMP on Feb 19, 2017 7:44:37 GMT
My view is that ideally you need some diversification across platforms. However, I would argue that both RateSetter and Zopa+ could be considered core safe holdings. Although a little dull for some of the more adventurous lender types on this platform.
A new lender would then diversity outwards to the likes of Lending Works, Assetz, BondMason, Abundance and Funding Circle before venturing smaller holdings to the higher risk platforms (typically identified by the returns...).
I wouldn't lend on any if the European platforms, nor on the real estate platforms where the security is considered more important than the integrity of the individuals borrowing. But that's my opinion.
Kevin.
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Post by jackpease on Feb 19, 2017 7:49:28 GMT
>>>nor on the real estate platforms where the security is considered more important than the integrity of the individuals borrowing Kevin. Ouch! Which riverside critters could you possibly mean! Jack P
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jlend
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Post by jlend on Feb 19, 2017 8:21:33 GMT
I also share the view that it is worth considering Ratesetter.
They are not perfect and there are some things I wish they would do but that is the same for all platforms, particularly as they scale up their lending volumes.
I know past performance shouldn't be the only metric. They have served me well since I first signed up with them in 2010 and they have a large proportion of my p2p investment.
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Post by newlender on Feb 19, 2017 9:08:20 GMT
You don't say what % of your total capital the £15K represents. If that's your only cash deposit/emergency fund then P2P is not the right place to put it. If you are prepared to take the risk, then in my opinion RS is a good bet. I have RS and Zopa - both are very efficient and have a degree of protection (except the Zopa Plus product). Watch the rates on the Rolling product though as they do vary from month to month (usually over 3% though).
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wapping35
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Post by wapping35 on Feb 19, 2017 10:32:15 GMT
As a Newbie looking at Rolling I would just caution (and it is all on the RS website) that Rolling is investing in (quote):
"Loan terms: Your money will be invested in loan terms between 6 months and 5 years"
"Access: You can access your money freely as long as there are funds in the market to replace the amount being withdrawn...... If replacement funds aren’t available, your money will be returned as the borrower(s) repays over their loan term. To date no customer has ever had to wait for their money although it's not a guarantee. RateSetter is an investment not a deposit account."
====== In summary Rolling relies on liquidity from other lenders. There is a risk that that 3.5% you get could be tied in for 6mths - 5 years, albeit as RS mention to date no liquidity delay in accessing funds has been experienced.
I think if you invest acknowledging the above, it is fine as an investment.
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Post by kylemac on Feb 19, 2017 11:41:12 GMT
Thanks for all the useful information, the money is solely long term savings and separate from emergency fund etc.
After reviewing RS and Assetz, it would appear Assetz is the most simplified option in terms of ease of use, and a slightly higher rate (3.75%) for instant access.
Anyone else had experience with the instant access accounts? And any information about the Provision fund on Assetz?
Thanking you all
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oik
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Post by oik on Feb 19, 2017 12:34:30 GMT
Thanks for all the useful information, the money is solely long term savings and separate from emergency fund etc. Would we be right to assume from that you're already making full use of the various high-interest current accounts in many cases still paying 3-5%. They all have quite low balance limits but still easy enough to get several times your £15k tucked away with full FSCS protection before considering any p2p investments at just 3-4%.
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Post by kylemac on Feb 19, 2017 12:39:51 GMT
Thanks for all the useful information, the money is solely long term savings and separate from emergency fund etc. Would we be right to assume from that you're already making full use of the various high-interest current accounts in many cases still paying 3-5%. They all have quite low balance limits but still easy enough to get several times your £15k tucked away with full FSCS protection before considering any p2p investments at just 3-4%. Have tried, many involve low limits (1000-2500) and most require current accounts with the selected bank or at least 2 direct debits. If you have any bank account suggestions it would be appreciated Thanks
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oik
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Post by oik on Feb 19, 2017 13:48:45 GMT
Have tried, many involve low limits (1000-2500) and most require current accounts with the selected bank or at least 2 direct debits. If you have any bank account suggestions it would be appreciated Thanks You could start by opening 2 Tesco current accounts and one or two Tesco Internet Savers for generating direct debits. The current accounts have no DD or minimum pay-in requirement and you can hold £3000 in each at 3%. The Internet Savers (or the Tesco Instant Access Savings accounts) will let you set up as many DDs to them as you require from any of your new current accounts. You could just DD current account monthly interest split between two DDs for example. Then you can look at Bank of Scotland allowing £5000 per account at 3%, and TSB also paying 3% but only on £1500 per account now. Nationwide FlexDirect pays 5% on £2500, for first 12 months but can be 'renewed'. Nationwide also pay a £200 "refer a friend" bonus if you transfer your account to them (half each to referee and referrer though most people would be happy to split it 75/25 I'd expect). Santander allows £20k per account but recently dropped their rate to 1.5% and has an account fee (though does pay up to 3% cashback on some DDs). Lloyds has dropped its rate to 2% on £5000 so goes to the end of list unless you want one of its various small perks (such as 6 Vue cinema tickets per account holder per year etc.). Most of the current accounts require a minimum monthly pay-in but not Tesco. If required, just set up a daisy-chain of standing orders all for the same day - say £1000 from A to B to C to D... and back to A. Sounds complicated but if it takes you more than 20 minutes you aren't trying. Once set up you'll only notice from your statements. Then there are the regular savers if you want them. Lots of them and also paying 2-5%.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 19, 2017 14:13:21 GMT
Have tried, many involve low limits (1000-2500) and most require current accounts with the selected bank or at least 2 direct debits. If you have any bank account suggestions it would be appreciated Thanks You could start by opening 2 Tesco current accounts and one or two Tesco Internet Savers for generating direct debits. The current accounts have no DD or minimum pay-in requirement and you can hold £3000 in each at 3%. The Internet Savers (or the Tesco Instant Access Savings accounts) will let you set up as many DDs to them as you require from any of your new current accounts. You could just DD current account monthly interest split between two DDs for example. Then you can look at Bank of Scotland allowing £5000 per account at 3%, and TSB also paying 3% but only on £1500 per account now. Nationwide FlexDirect pays 5% on £2500, for first 12 months but can be 'renewed'. Nationwide also pay a £200 "refer a friend" bonus if you transfer your account to them (half each to referee and referrer though most people would be happy to split it 75/25 I'd expect). Santander allows £20k per account but recently dropped their rate to 1.5% and has an account fee (though does pay up to 3% cashback on some DDs). Lloyds has dropped its rate to 2% on £5000 so goes to the end of list unless you want one of its various small perks (such as 6 Vue cinema tickets per account holder per year etc.). Most of the current accounts require a minimum monthly pay-in but not Tesco. If required, just set up a daisy-chain of standing orders all for the same day - say £1000 from A to B to C to D... and back to A. Sounds complicated but if it takes you more than 20 minutes you aren't trying. Once set up you'll only notice from your statements. Then there are the regular savers if you want them. Lots of them and also paying 2-5%. Tesco Current account is not avaliable at moment due to volume of applicants after they guarenteed rates until 2019, can still open the savings account for the DD generation. Should add that the TSB account pays 5% on contactless debit card transaction (max £5pm) which actually boosts the return to £105pa or 7% (little less if you only top up account once each month.
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jlend
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Post by jlend on Feb 19, 2017 15:01:28 GMT
Thanks for all the useful information, the money is solely long term savings and separate from emergency fund etc. After reviewing RS and Assetz, it would appear Assetz is the most simplified option in terms of ease of use, and a slightly higher rate (3.75%) for instant access. Anyone else had experience with the instant access accounts? And any information about the Provision fund on Assetz? Thanking you all I use both the assetz capital and ratesetter instant accounts to spread the risk. Others have commented that this is worth you thinking about as well. If it is long term savings as you say you could consider either the 30 day account or the GBBA or Green account on assetz capital if you like the look of them as a company and want some backup albeit not guaranteed from a provision fund.
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oik
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Post by oik on Feb 19, 2017 15:59:00 GMT
Tesco Current account is not avaliable at moment due to volume of applicants after they guarenteed rates until 2019, can still open the savings account for the DD generation. I hadn't spotted that. Just in last week or so I see. Possibly not unconnected with Martin Lewis keeping pumping it on his TV show. It's being suggested that when applications reopen it could be at a lower rate for new customers. Should add that the TSB account pays 5% on contactless debit card transaction (max £5pm) which actually boosts the return to £105pa or 7% (little less if you only top up account once each month. Ends December I think for customers opening an account now. Mine ended last year and I was fairly relieved when it did - it was bit of a pain. Sainsbury's don't do contactless, nor Asda I think, and £30 was too little for a weekly shop anyway or to fill a tank. Was even more peeved when it regularly demanded a PIN, so no cashback, or the bill was £30.25p. (I see Tesco are to give an extra 'clubcard point' from 1 April when using a Tesco debit card at their stores. So worth another £1 off a £100 spend. I haven't decided what to fritter my extra pound on yet.)
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