IFISAcava
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Post by IFISAcava on Aug 6, 2017 21:32:12 GMT
Sure - but even at 5.9% the rate is still a lot higher than eg AC 30-day notice account. For that sort of access/rate/low maintenance mix, where else would one go? You are not actually getting 5.9% as the loans are pretty short term, sometimes money is waiting a day or two to be lent out, that quickly reduces your return, had one the other week that took about 4 days to lend out granted that was longest but even still. well if it's 2 days to get matched at priority on average, that reduces it by 1/15th, 3 days 1/10th - so 5.9% becomes 5.3% (approx) still way better than ratesetter (where waiting for a decent rate also comes at the cost of a day or two's wait) and AC 30 day account
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IFISAcava
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Post by IFISAcava on Aug 6, 2017 21:34:13 GMT
Terrible model this one. RS monthly can achieve 4% if you have time to watch and invest which is much more than GS pays with all the cash drag. no, not if you do priority rate yes if you stick with normal, albeit that you do need to spend time with RS to get that so there's opportunity cost too.
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ding
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Post by ding on Aug 6, 2017 22:23:24 GMT
Wow, looks like it is a 30 day moving average, and is dropping even quicker than 0.1%/month than I had thought previously "The Market Rate is the volume-weighted average rate of the loans matched in the prior 30 days." In a scenario where matching is spread evenly across the month (I know it isn't), wouldn't it drop every 15 days providing all matched money is at priority rate. We could be looking at 3% in just over a years time?! As I understood it was month rolling (or call it 30 days). Not sure where 5.9% comes from. Site says 6.1% www.growthstreet.co.uk/investing
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Post by p2plender on Aug 7, 2017 0:03:00 GMT
Clearly GS rate will keep falling until it is on a par with likes of RS monthly. GS must be cleaning up given they were lending at 6.5% not 3 months ago or maybe the borrowers are getting the much better rate... Yeah right. Just another platform that starts well and grinds investors down until the next one arrives then rinse and repeat. RS was once paying 7%+ on 5yr and now look at it! LY was 12% and near instant access with a very liquid sm. Still it keeps me on my toes!
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IFISAcava
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Post by IFISAcava on Aug 7, 2017 1:05:09 GMT
Wow, looks like it is a 30 day moving average, and is dropping even quicker than 0.1%/month than I had thought previously "The Market Rate is the volume-weighted average rate of the loans matched in the prior 30 days." In a scenario where matching is spread evenly across the month (I know it isn't), wouldn't it drop every 15 days providing all matched money is at priority rate. We could be looking at 3% in just over a years time?! As I understood it was month rolling (or call it 30 days). Not sure where 5.9% comes from. Site says 6.1%www.growthstreet.co.uk/investingsite's out of date. A new lending order gives 6.0%, or 5.9% priority.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Aug 7, 2017 6:55:16 GMT
site's out of date. A new lending order gives 6.0%, or 5.9% priority. Is it worth reporting this misleading statement (the site's not IFISAcava's) to some authority?
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treeman
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Post by treeman on Aug 7, 2017 9:22:51 GMT
Worth remembering the site-quoted rates are AER - your month contract return is lower.
eg 6.0% AER = 5.84% monthly
and 5.9% AER = 5.75% monthly
see your contracts on the site
I'll sit tight on current investment till bonus time and see where we at then...............
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Post by df on Aug 7, 2017 17:16:31 GMT
Terrible model this one. RS monthly can achieve 4% if you have time to watch and invest which is much more than GS pays with all the cash drag. For me, the amount of time it requires to achieve 4% is not worth it. With GS I haven't had more than 2 days cash drag yet. I still have some 5%+ loans with RS, but not re-investing any more.
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greatmarko
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Post by greatmarko on Aug 8, 2017 8:27:01 GMT
... With GS I haven't had more than 2 days cash drag yet.... I currently have money that's been sat waiting 4 days (and counting) now to be invested at "Priority Rate"  Who knows what the queue length is like for market rate if "Priority" rate itself is over four days!!
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Post by df on Aug 8, 2017 11:32:15 GMT
... With GS I haven't had more than 2 days cash drag yet.... I currently have money that's been sat waiting 4 days (and counting) now to be invested at "Priority Rate" Who knows what the queue length is like for market rate if "Priority" rate itself is over four days!! My current order is now waiting for 3 days (at priority rate). I guess, over time the queues will get longer and the rates will be constantly dropping I don't see much point in setting reinvestments at market rate - longer cash drag will bring returns to a lower rate than at 'priority rate'.
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beh
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Post by beh on Aug 8, 2017 16:30:32 GMT
I expect most people will have given up on the market rate now so the idea of the priority rate is meaningless and waiting longer to get a match seems inevitable.
Will play it by ear until I receive my bonus, so they've a few months yet to get their act together. Mostly they just need to manage people's expectations better by providing more up to date information.
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ben
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Post by ben on Aug 8, 2017 21:03:09 GMT
Looks like there drive for investors was much more successful then the drive for borrowers.
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Post by df on Aug 9, 2017 3:26:28 GMT
I expect most people will have given up on the market rate now so the idea of the priority rate is meaningless and waiting longer to get a match seems inevitable. Will play it by ear until I receive my bonus, so they've a few months yet to get their act together. Mostly they just need to manage people's expectations better by providing more up to date information. Demand doesn't match the supply. GS has done very well attracting new investors (the bonus is very generous), but now there are too many for the amount of loans they have. It could make sense to stop new money coming in until demand and supply are more balanced. Zopa did it 6 months ago and that was a very responsible move.
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Post by khampson on Aug 9, 2017 10:12:24 GMT
I am out of GS now, they focused too much on the borrower and not the lender, each month the platform becomes less attractive, I wanted a fire and forget platform, at first this is what it was, money matched at priority rate, within a few hours, them I found myself logging in each day just to see if I had been matched and forgetting why I was here in the first place, I could achieve much higher rates on other platform's doing this so I have now left and getting much higher returns elsewhere.
To me it's the borrower that brings in the revenue for GS, and to make it more attractive to the borrower all they had to do was flood the market with lenders, driving the rates down and they have done a pretty good job of that, they are making the package attractive for the borrower while disregarding the lender (the hand that feeds) so for this I'm out
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Post by khampson on Aug 9, 2017 10:41:23 GMT
Clearly GS rate will keep falling until it is on a par with likes of RS monthly. GS must be cleaning up given they were lending at 6.5% not 3 months ago or maybe the borrowers are getting the much better rate... Yeah right. Just another platform that starts well and grinds investors down until the next one arrives then rinse and repeat. RS was once paying 7%+ on 5yr and now look at it! LY was 12% and near instant access with a very liquid sm. Still it keeps me on my toes! What platform abbreviation is LY ?
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