littleoldlady
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Post by littleoldlady on Apr 11, 2017 9:49:58 GMT
For someone who needs more interest than offered by a FSCS backed account but wants the maximum security (can't be 100%) which platform comes closest to a savings account?
Typo - should be Octopus
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kaya
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Post by kaya on Apr 11, 2017 10:10:37 GMT
For a 5 year fixed term account RS may well be the winner, but for a real access account perhaps Growth Street wins with its monthly rolling account. New platform though, might be riskier. Assetz QAA probably feels more like a bank account than any other.
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SteveT
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Post by SteveT on Apr 11, 2017 10:36:47 GMT
On the basis that interest paid on a building society's savings accounts is funded by income from the building society's mortgages (until some got greedy and started raising money on the wholesale markets), I'd say Landbay comes pretty close.
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Post by nesako on Apr 11, 2017 13:58:59 GMT
Assetz QAA is closest to "Instant Access" savings account.
GrowthStreet is one of the better options if you can wait 1 month, offering 6.5% APR. Plus, they have extended the secret "Tell a friend" bonus of £100 if you invest £1000 for a year - can provide a link if anyone is interested.
Zopa - Had invested for just one month on a trial and still managed to get some loans which got Delayed within days, now have to wait 4 months until Provision fund kicks in... I would not compare it with Savings
Ratesetter - Rolling is quite similar to instant access, but there are days when you could not sell-out immediately, so may need to wait up to 1 month. Also chasing better rates requires some time...5 year can offer decent rate, but selling could be very expensive wiping off any gains.
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stevio
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Post by stevio on Apr 11, 2017 17:50:34 GMT
For someone who needs more interest than offered by a FSCS backed account but wants the maximum security (can't be 100%) which platform comes closest to a savings account? Typo - should be Octopus Firstly, this thread could be miss-leading to a novice who could assume there is little to no risk if a P2P account is classed as 'close to savings' I presume you have maxed the bank accounts currently on offer? If not, then the interest there won't be far off most of your alternatives, so why take the risk with P2P (some of those are unsecured consumer lending, which is very high risk IMHO)
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mason
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Post by mason on Apr 11, 2017 19:25:17 GMT
Other: Uninvested cash at Abundance, paying 2% for the time being.
I don't see that any of these are substantially less risky than the 12% loans offered by several other platforms.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Apr 11, 2017 19:28:59 GMT
For someone who needs more interest than offered by a FSCS backed account but wants the maximum security (can't be 100%) which platform comes closest to a savings account? Typo - should be Octopus Firstly, this thread could be miss-leading to a novice who could assume there is little to no risk if a P2P account is classed as 'close to savings' I presume you have maxed the bank accounts currently on offer? If not, then the interest there won't be far off most of your alternatives, so why take the risk with P2P (some of those are unsecured consumer lending, which is very high risk IMHO) "Closest" does not mean close. The closest galaxy is 2 million light years away. Light reaching us now left before modern humans evolved. I also say that security can't be 100%. However for the benefit of any novice reading this who thinks there is "little to no risk" in p2p please note that there most certainly is. But not all platforms are equally risky and IMHO there is not a very strong correlation between risk and interest rate.
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stevio
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Post by stevio on Apr 12, 2017 3:25:47 GMT
Firstly, this thread could be miss-leading to a novice who could assume there is little to no risk if a P2P account is classed as 'close to savings' I presume you have maxed the bank accounts currently on offer? If not, then the interest there won't be far off most of your alternatives, so why take the risk with P2P (some of those are unsecured consumer lending, which is very high risk IMHO) "Closest" does not mean close. The closest galaxy is 2 million light years away. Light reaching us now left before modern humans evolved. I also say that security can't be 100%. However for the benefit of any novice reading this who thinks there is "little to no risk" in p2p please note that there most certainly is. But not all platforms are equally risky and IMHO there is not a very strong correlation between risk and interest rate. 5% Nationwide vs 5% RS - seems close in rate to me? Yes there are restrictions, but unless you have maxed these FCA protected accounts first, why would you even contemplate these other far riskier products?
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TheDriver
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Post by TheDriver on Apr 12, 2017 7:32:12 GMT
I previously took advantage of interest-paying current accounts, specifically TSB and Santander. Unfortunately they have become dramatically less attractive due to increased charges and reduced rates, which is how I came to P2P! Current offerings seem to have very onerous terms for transfer/ funding/ operation (eg DDs)/ longevity, and are at best a few £k. Fine if you're looking for some benefit of a current account, but frankly my time is worth more than any gain in playing the market for savings.
Specifically, while the FlexDirect seems to only need £1k paid in each month, it is limited to £2.5k so you have to set up another SO to recycle it, and it only lasts 12 months - I can't be bothered for £125 at best!
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r00lish67
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Post by r00lish67 on Apr 12, 2017 8:28:29 GMT
I previously took advantage of interest-paying current accounts, specifically TSB and Santander. Unfortunately they have become dramatically less attractive due to increased charges and reduced rates, which is how I came to P2P! Current offerings seem to have very onerous terms for transfer/ funding/ operation (eg DDs)/ longevity, and are at best a few £k. Fine if you're looking for some benefit of a current account, but frankly my time is worth more than any gain in playing the market for savings. Specifically, while the FlexDirect seems to only need £1k paid in each month, it is limited to £2.5k so you have to set up another SO to recycle it, and it only lasts 12 months - I can't be bothered for £125 at best! Agree with the general sentiment of decline, but would personally argue FlexDirect is still just about worth it when you factor in a £100 account referral bonus for joining, plus a regular saver at 5% for £500pm in addition to the current account interest.
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Post by msa on Apr 12, 2017 8:52:16 GMT
Assetz QAA for when it comes to "instant" liquidity. wiseAlpha for floating rate loans when the objective is to have a savings product where the return reflects changes in base / market interest rates. They just added a Libor + 6.00% MyDentist (IDH) offer. See wiseAlpha thread. |
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beh
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Post by beh on Apr 12, 2017 10:48:35 GMT
I previously took advantage of interest-paying current accounts, specifically TSB and Santander. Unfortunately they have become dramatically less attractive due to increased charges and reduced rates, which is how I came to P2P! Current offerings seem to have very onerous terms for transfer/ funding/ operation (eg DDs)/ longevity, and are at best a few £k. Fine if you're looking for some benefit of a current account, but frankly my time is worth more than any gain in playing the market for savings. Specifically, while the FlexDirect seems to only need £1k paid in each month, it is limited to £2.5k so you have to set up another SO to recycle it, and it only lasts 12 months - I can't be bothered for £125 at best! Agree with the general sentiment of decline, but would personally argue FlexDirect is still just about worth it when you factor in a £100 account referral bonus for joining, plus a regular saver at 5% for £500pm in addition to the current account interest. Aye, I hope people exhaust options like the NW Flexdirect and regular saver before using Zopa/RS or anything else ~<5%. I don't think it's any trouble seeing as these accounts can be set up and managed online. If you need to create a couple DDs for the switch/referral, paypal and £1/month to a charity (again, done online).
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Post by yorkshireman on Apr 12, 2017 11:35:31 GMT
I previously took advantage of interest-paying current accounts, specifically TSB and Santander. Unfortunately they have become dramatically less attractive due to increased charges and reduced rates, which is how I came to P2P! Current offerings seem to have very onerous terms for transfer/ funding/ operation (eg DDs)/ longevity, and are at best a few £k. Fine if you're looking for some benefit of a current account, but frankly my time is worth more than any gain in playing the market for savings. Specifically, while the FlexDirect seems to only need £1k paid in each month, it is limited to £2.5k so you have to set up another SO to recycle it, and it only lasts 12 months - I can't be bothered for £125 at best! Agree with the general sentiment of decline, but would personally argue FlexDirect is still just about worth it when you factor in a £100 account referral bonus for joining, plus a regular saver at 5% for £500pm in addition to the current account interest. And, whilst the flex direct current account drops to 1% after a year, you can open another regular saver at 5% for £500pm, more or less immediately the first regular saver matures provided you keep the current account open but that only needs to be £0.01 in credit.
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mason
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Post by mason on Apr 12, 2017 17:50:07 GMT
Agree with the general sentiment of decline, but would personally argue FlexDirect is still just about worth it when you factor in a £100 account referral bonus for joining, plus a regular saver at 5% for £500pm in addition to the current account interest. And, whilst the flex direct current account drops to 1% after a year, you can open another regular saver at 5% for £500pm, more or less immediately the first regular saver matures provided you keep the current account open but that only needs to be £0.01 in credit. Better to downgrade the current account to a FlexAccount, so you can potentially have another bite of the cherry in 12 months.
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mikeh
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Post by mikeh on Apr 12, 2017 19:51:19 GMT
And, whilst the flex direct current account drops to 1% after a year, you can open another regular saver at 5% for £500pm, more or less immediately the first regular saver matures provided you keep the current account open but that only needs to be £0.01 in credit. Better to downgrade the current account to a FlexAccount, so you can potentially have another bite of the cherry in 12 months. Does that work?
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