tag:blogger.com,1999:blog-2875915890415125655.post7393242864397558289..comments2023-05-18T10:37:34.608+01:00Comments on <a href="http://www.retirementinvestingtoday.com">Retirement Investing Today</a>: Best UK Savings Account Interest Rates & The RateSetter ExperimentRetirementInvestingTodayhttp://www.blogger.com/profile/03088383743670046657noreply@blogger.comBlogger19125tag:blogger.com,1999:blog-2875915890415125655.post-49297062905540769112015-01-08T10:31:58.979+00:002015-01-08T10:31:58.979+00:00Coventry BS are now doing a cash NISA at 2.4% fixe...Coventry BS are now doing a cash NISA at 2.4% fixed rate until Nov 2018. It comes with an 120 day interest penalty for withdrawals. No partial withdrawals. Interest paid annually. Online and telephone access.<br />I'm using two (with partner) for the next 2-3 years for the house deposit savings, along with a smaller slush/emergency instant access savings account.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-46426868368246551292014-07-26T15:01:18.186+01:002014-07-26T15:01:18.186+01:00I don't know anyone who thinks p2p is equivale...I don't know anyone who thinks p2p is equivalent to cash. Yes there are risks but let's not over egg it. Saying it will "clearly all end in tears" then giving some suggestions of how this could come about isn't exactly backing up your bold statement.<br /><br />The current HSBC lending rate is 3.9% according to their website...but these loans are only available to its Aidannoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-62785838328412587072014-07-24T17:04:57.548+01:002014-07-24T17:04:57.548+01:00BTS,
Thank you for your response. An interesting ...BTS,<br /><br />Thank you for your response. An interesting point. I certainly never consider P2P lending as equivalent to cash. I would suggest slightly less risk than equities, perhaps on a par with B+ (ish) bonds?<br /><br />Regarding arbitrage, surely what P2P offers to the individual investor is not too different to what the city boys have been doing for ever? After all HSBC is still gettingAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-51815776163927135382014-07-23T19:30:24.798+01:002014-07-23T19:30:24.798+01:00Obviously nothing about the future is certain but ...Obviously nothing about the future is certain but I've given some reasons why it could happen. At the moment lots of people are treating P2P 'saving' as equivalent to holding cash, but without understanding the risks. The rates available on P2P have dropped significantly since the early days but has there been a commensurate fall in the level of risk? Another point to bear in mind is BeatTheSeasonsnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-74012806574175931242014-07-23T14:40:47.495+01:002014-07-23T14:40:47.495+01:00That wasn't the question.That wasn't the question.Davenoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-21033055614231687942014-07-23T12:51:45.263+01:002014-07-23T12:51:45.263+01:00Why is it clear that P2P lending will "all en...Why is it clear that P2P lending will "all end in tears?"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-21430644689831917982014-07-23T11:58:51.925+01:002014-07-23T11:58:51.925+01:00Hi RIT,
Good article. I have invested in P2P lend...Hi RIT,<br /><br />Good article. I have invested in P2P lending since the early days. I have tried ZOPA, Funding Circle & RS. I have now settled on RS as my preferred platform.<br /><br />I would agree that FC is a much higher risk than RS or ZOPA. I prefer RS over ZOPA since I have much more control over the rates and amount I can lend.<br /><br />Although higher risk than a vanilla savings Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-29534583191381646152014-07-20T15:32:54.414+01:002014-07-20T15:32:54.414+01:00I look at it as further portfolio diversification....I look at it as further portfolio diversification. I also intend to only allocate a relatively small portion of my total wealth towards peer-to-peer just in case.<br /><br />The other thing in the back of my mind is just how secure is the £85,000 FSCS Deposit Guarantee Limit. Our rulers have a bad habit of changing their minds and the rules when it suits them. For example, savers in eurozone RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-32864532673860103402014-07-20T15:18:39.455+01:002014-07-20T15:18:39.455+01:00Anonymous below is correct. I use the typically h...Anonymous below is correct. I use the typically higher RPI as my inflation comparator.RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-46987648336594262732014-07-20T15:17:11.457+01:002014-07-20T15:17:11.457+01:00Funding Circle were in my original P2P shortlist. ...Funding Circle were in my original P2P shortlist. They were however quickly eliminated as the risk profile looked far higher than I wanted for this portion of my wealth.RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-91445690616314039262014-07-20T15:13:08.653+01:002014-07-20T15:13:08.653+01:00Do you think the 2% increase in interest is worth ...Do you think the 2% increase in interest is worth the default risk you are taking vs a 100% principal guarantee on bank deposits up to £85k under FCS?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-10269150703700604372014-07-20T15:11:23.914+01:002014-07-20T15:11:23.914+01:00Unfortunately the UK government is going to discri...Unfortunately the UK government is going to discriminate against me by preventing me from purchasing NS&I pensioner bonds so I have to be more creative. I also fear that they mean the death of NS&I Index Linked Savings Certificates which were pillars of my original strategy.<br /><br />I have no knowledge of HOUSA investments. Thanks for the tip though. I'll do some research when IRetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-56957355404330110352014-07-20T15:11:05.723+01:002014-07-20T15:11:05.723+01:00@ anonymous - RIT is using RPI, probably because i...@ anonymous - RIT is using RPI, probably because it includes housing costs which CPI does notAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-88260502746393810092014-07-20T10:00:33.598+01:002014-07-20T10:00:33.598+01:00I thought latest BoE inflation figure was 1.6%
How...I thought latest BoE inflation figure was 1.6%<br />How are you calculating 2.6%? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-57700606531972991542014-07-19T19:40:29.533+01:002014-07-19T19:40:29.533+01:00I decided to dabble with peer to peer lending a co...I decided to dabble with peer to peer lending a couple of months ago too - though only a small amount (£2k) and I went with Ratesetter and Lending Works. Both for 3 years and I'm getting a rate of about 4.5%. <br /><br />I can certainly vouch for the ease with regards to setting the whole thing up and it's great that as the payments are made, you can withdraw the money or reinvest it.<br weeniehttps://www.blogger.com/profile/01602950445306813601noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-6891534474386647112014-07-19T14:17:49.642+01:002014-07-19T14:17:49.642+01:00I suppose somebody with a different purpose could ...I suppose somebody with a different purpose could build a ladder of 3 or 5 year investments. I think I'll wait until these thingies are available in NISAs. Meantime we may have access to a 4% p.a. 3-year NS&I pensioner bond come January. <br /><br />Tell me, do you have any views on the HOUSA investment from castle Trust? It might seem to be a "natural" for someone saving todeariemenoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-52469145857854322492014-07-19T12:55:28.913+01:002014-07-19T12:55:28.913+01:00Early repayment can also lead to money being reinv...Early repayment can also lead to money being reinvested at a higher rate to new borrowers if interest rates are moving in your favour, ie up, as they have over the last 12 months since I first started using Ratesetter. I use the 3 &5 year options. Fatlaksh.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-9932164578658145852014-07-19T09:41:49.739+01:002014-07-19T09:41:49.739+01:00Good point. I'm reinvesting back into the 3 y...Good point. I'm reinvesting back into the 3 year at the moment. A few months from now I'll switch all reinvestment to the 1 Year Bond option then when I'm 6 months from financial independence I'll be reinvesting all into the Monthly Access option.<br /><br />This should maximise return while also ensure I have access to all my cash 6 months post financial independence which is RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-10328012977088203072014-07-19T09:04:43.984+01:002014-07-19T09:04:43.984+01:00Because ratesetter allows borrows to repay early (...Because ratesetter allows borrows to repay early (which I think is a good thing) you won't necessarily achieve the expected interest because some of that money you will get back early and will need to be reinvested e.g. in the monthly market, at a lower rate. Check out the reinvestment section of ratesetter to see how your money that is repaid early is dealt with (you can choose to reinvest Anonymousnoreply@blogger.com