The Lemon Fool

chas49 wrote:

AleisterCrowley wrote:It's an ISA. I may well transfer to a Cash ISA at some point.

Good point. Though with rates as low as they are generally, the advantages of the tax shelter are less clear than they used to be.

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i cant see any advantages to cash isa's at present .

even when rates where better , most of the tax savings were channelled away by provider charges .

I'm a higher rate tax payer (just..) so cash ISAs are marginally better. There's the personal savings allowance (£500 for HRT tax payers) but they could remove that at any point. It's very difficult to get any zero risk return in an equities ISA

Lanark wrote:

AleisterCrowley wrote:Just been looking at it today and I can't work out how the reinvestment/contract rolling works

I think its basically impossible to unravel what they are doing to match borrowers and lenders.
All the borrowing is on terms of 3 to 10 years, while most of the lending is on much shorter terms. When you lend money it will be split into multiple pots for different borrowers with different repayment dates.
Some of those borrowers will reach the end their loan term or choose to repay it early and so that contract rolling will happen to parts of your investment, seemingly at random and far more often than I would have expected.

When I looked into the contract details a lot of borrowers seem to be paying quite high rates, around 15-17% from memory.

Personally, I don't see the point of "unravel[ling] what they are doing to match borrowers and lenders", but it is something you can only do with RS because they give you so much information. RS is very transparent and gives you all the information about how the money has been lent - amounts, periods and interest. If you save with/lend to a 'normal' bank or building society, your money is put into one large pot; then when they lend it out all the lenders are put into another large pot as far as you are concerned and a single interest rate applied to your savings. You have no idea how much interest margin the bank/BS makes, whereas with RS you do as they take a known commission. A much fairer system for both borrower and lender.

Nocton wrote: A much fairer system for both borrower and lender.

Well it depends on your definition of "fairer" of course, but many might argue the "normal bank" model is fairer when if comes to liquidity, and borrower defaults.

All my money is out of Ratesetter now, I have no other p2p save a bad debt of a few quid with Wellesey which I might get pennies in the pound as they wind up.

got my last £100 out today .

so thats the end of peer to peer for me.

jackdaww wrote:got my last £100 out today .

so thats the end of peer to peer for me.

What about the £3?

i have £103 in my account

from earlier.

PinkDalek wrote:

jackdaww wrote:got my last £100 out today .

so thats the end of peer to peer for me.

What about the £3?

i have £103 in my account

from earlier.

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there is still £2 something there !

cup of tea money ...

but i will get it !