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Funding Circle
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AnnJackson wrote: »I have put some capital into the Funding Circle. It's early days, but seems fine. Money growing quicker than expected - my average interest is about 8%. It's very rewarding to feel you are providing a service that banks aren't, and it's a win-win - I get higher interest than in any savings account, and they get a loan at lower interest than a bank would make available. Previously, I had money in a Sainsbury's Saver that had limited withdrawals in a year. With Funding Circle, you are getting monthly repayments of both interest and capital, so it is possible to draw some money out when needed, if you keep a bit floating around, without losing all your interest as you would if withdrawing from a limited access or fixed saver.0
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Presumably the interest you make on FC is liable for (income?) tax?
How and when is this taken / paid?A big believer in karma, you get what you give :A
If you find my posts useful, "pay it forward" and help someone else out, that's how places like MSE can be so successful.0 -
Lifes_Grand_Plan wrote: »Presumably the interest you make on FC is liable for (income?) tax?
How and when is this taken / paid?
By completing a S/A Tax return, and paying the HMRC when any tax is due.0 -
WHITEVANMAN wrote: »By completing a S/A Tax return, and paying the HMRC when any tax is due.
Thought that would be the case... so for someone like me who only wanted to dabble rather than seriously invest, I doubt its worth it...
I used to mystery shop but for <£100 a year pay it took me an hour or two to do the SA....A big believer in karma, you get what you give :A
If you find my posts useful, "pay it forward" and help someone else out, that's how places like MSE can be so successful.0 -
id love to have a go at lending? is it still worthwhile? Any tips? best way to go about it? How much can you make?
could someone give a run down of best way to approach it please?:footie:0 -
Hi Folks
I am also interested in lending.
However, how can I make sure that I will get back at least the amount that I have lent?
Thank You.0 -
Hi,
You never know how well a scheme like this is working until you've taken out all your money. And even then there's a doubt.
Otherwise you're only reporting on how well you're being told it is working. Not necessarily the same thing.
FWIW I have some money invested as the return looks interesting. I suspect too many people will sign up at unrealistically low rates though and the risk will outweigh the rewards, especially when interest rates go up and inflation starts to bite.
Two.0 -
Can anyone explain how the loan parts sale works? Why are some of the loan parts offered at a premium and does the return include the purchase price or the original price?
Why are some loan parts sold at a discount?
I am not impressed with the amount of information on the site explaining this.0 -
When a lender sells a loan part they have the option of charging a premium to see if they can make a profit on the sale, or a discount. The ability to sell at a discount - giving the lender a loss of up to 3% plus the 0.25% Funding Circle (FC) commission, is a way to help a lender cash in their loans if they need the money back quickly rather than waiting for the loans to be fully paid up (12 or 36 months).
The rate the loan part is offered is the rate the buyer of the loan part receives before the 1% fee FC takes on repayments.
Many lenders simply try to sell loan parts to make a profit, mainly on the 0.5% cashback offer on lending than ends this week. Other lenders may be trying to balance their exposure so they are not lending too much to any one business.0
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