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  • FIRST POST
    • oxford1987
    • By oxford1987 5th Sep 10, 2:22 PM
    • 16Posts
    • 1Thanks
    oxford1987
    Best thing to do with £3k
    • #1
    • 5th Sep 10, 2:22 PM
    Best thing to do with £3k 5th Sep 10 at 2:22 PM
    Afternoon all,

    I've been squirrelling away and have put £3k in the bank which at the moment is earning next to nothing in an HSBC savings account. I can be without it for a year, and would obviously like to get the best return I can on it. I've checked out the links in the main section of the site, but also came across the Funding Circle, which is like Zopa except that you lend to businesses. Anyone had any experience with it, or have any insight into the wisdom of putting some money into it?

    Their site is at fundingcircle.com

    Thanks
Page 1
    • CLAPTON
    • By CLAPTON 5th Sep 10, 2:51 PM
    • 39,867 Posts
    • 28,475 Thanks
    CLAPTON
    • #2
    • 5th Sep 10, 2:51 PM
    • #2
    • 5th Sep 10, 2:51 PM
    for only 3k just open the best cash ISA you can find... tax free and instant access if you need the money
    • cashbackproblems
    • By cashbackproblems 5th Sep 10, 7:30 PM
    • 1,381 Posts
    • 508 Thanks
    cashbackproblems
    • #3
    • 5th Sep 10, 7:30 PM
    • #3
    • 5th Sep 10, 7:30 PM
    hey just checked out the site and everything seems legit! I have lent with zopa before and made 7% but never heard of this site and am thinking of lending some myself! Its double ud get from an ISA and as long as u spread the loan among many businesses u'll be safe!
  • Sackagold
    • #4
    • 5th Sep 10, 7:44 PM
    • #4
    • 5th Sep 10, 7:44 PM
    haven't heard of neither zopa nor fundingcircle before, very interesting. thanks for the links.
    • gt94sss2
    • By gt94sss2 5th Sep 10, 8:41 PM
    • 3,873 Posts
    • 1,733 Thanks
    gt94sss2
    • #5
    • 5th Sep 10, 8:41 PM
    • #5
    • 5th Sep 10, 8:41 PM
    I've been squirrelling away and have put £3k in the bank which at the moment is earning next to nothing in an HSBC savings account. I can be without it for a year, and would obviously like to get the best return I can on it.
    Originally posted by oxford1987
    The best 1 year fixed rate bond is from Aldermore who offer 3.01% (see Post 7), while ICICI Bank offer 3%.

    If you wanted to stay with HSBC, they offer 2.8% for one year and 3.1% for 18 months.

    If you are a tax payer, its also worth looking at ISA accounts, if you don't have one already.

    Regards
    Sunil
    Last edited by gt94sss2; 05-09-2010 at 9:23 PM.
    • cashbackproblems
    • By cashbackproblems 5th Sep 10, 9:08 PM
    • 1,381 Posts
    • 508 Thanks
    cashbackproblems
    • #6
    • 5th Sep 10, 9:08 PM
    • #6
    • 5th Sep 10, 9:08 PM
    Just signed up and lent some money, with this site the lenders far outweight customers looking for loans, so it would take a while for ur money to be lent and unless u set a low rate which would in fact still earn u more than a bank.

    Personally id advise to stick to zopa, much more established.
    • atypical
    • By atypical 5th Sep 10, 9:09 PM
    • 1,324 Posts
    • 830 Thanks
    atypical
    • #7
    • 5th Sep 10, 9:09 PM
    • #7
    • 5th Sep 10, 9:09 PM
    The best 1 year fixed rate bond is from Aldermore who offer 3.01%, while ICICI Bank offer 3%.
    Originally posted by gt94sss2
    Bank of Baroda offer 3.15% for 1 year:
    https://www.bankofbarodauk.com/bmxacopn/acopn/bobmaxcmpn.aspx
    "An economist is a surgeon with an excellent scalpel and a rough-edged lancet, who operates beautifully on the dead and tortures the living." - Nicholas Chamfort
    • Gorgeous George
    • By Gorgeous George 6th Sep 10, 10:03 AM
    • 7,787 Posts
    • 8,466 Thanks
    Gorgeous George
    • #8
    • 6th Sep 10, 10:03 AM
    • #8
    • 6th Sep 10, 10:03 AM
    I love Zopa but have also made some loans at Funding Circle. Zopa launched in 2005 and have a history to give lenders some confidence. FC, OTOH, is new.

    The benefits of FC are that for a limited time, lenders get 2% cashback. There is also a secondary market for loan parts. I have made six loans and sold five of them. But it is new and that brings its own risks.

    The benefits of Zopa are the 5+ years of success.

    GG
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