The Lemon Fool

Just got myself a Ratesetter account, mainly because of the potential £100 bonus at 1yr.
Any customers out there, satisfied or otherwise? Any hints and tips ?

Obviously I'm going through the small print, but would be interested in people's experiences

I opened an account about 8 months ago, and have savings in the Rolling, 1 and 3 year markets. The 3 year market is no longer available but there is a 5 year market for the longer term. The 3 and 5 year markets repay capital as well as interest monthly, so you receive a capital return each month like a repayment mortgage in reverse. Rates have fallen for each product since I opened my acc. I obtained just over 4% for the 1 year market but it now looks difficult to get much over 3%. There is a graph on the RS site which show recent\historical rates which is useful to see what rates you are likely to get and whether it might be worth waiting for a slightly higher rate. I have returns of capital and interest automatically reinvested in the Rolling market. All of my re-investments in the RM have been for loans of about one month duration which are then rolled over again at the end of the month. Almost all re-investments in the RM have been at rates of 2.9\3.0%. I regard Ratesetter as a relatively low risk p2p and have been quite content with the service so far. You can set the rate at which you wish to lend and I have used this once or twice to get a small increase in interest compared with the price then advertised; obviously if you ask for too high a rate it will remain unfulfilled. I think I can claim to be a satisfied customer.

HTH

RC

Thanks, interesting info , will look at site in more detail when i stop getting bothered by work
Do ratesetter supply a nice simple tax statement at the end of the (financial) year?

AleisterCrowley wrote:Thanks, interesting info , will look at site in more detail when i stop getting bothered by work
Do ratesetter supply a nice simple tax statement at the end of the (financial) year?

It looks like they do.

RC

I'm guessing the £100 bonus will be treated as taxable interest rather than a capital gain

AleisterCrowley wrote:I'm guessing the £100 bonus will be treated as taxable interest rather than a capital gain

There's a discussion on the aspect here http://forum.p2pmoney.co.uk/thread/5038 ... -rs?page=1 where the RateSetter representative said (the penultimate post), due to different individual circumstances, one would need to ask customer services.

Hmmm... thanks PD, will investigate
Not directly comparable, but I recall my 'takeover bonus' from Portman BS (or Staffordshire?) was taxed as interest (when it was clearly not interest, although tiered depending on amount invested)

its fine - getting around 3% , plus they gave me £50 - dont know why !

jackdaww wrote:... plus they gave me £50 - dont know why !

The introductory bonus was at some stage £50 or you received a referral bonus.