Ratesetter help

jcb208

Hi I have started using ratesetter and have just had the first months repayment of 1 of my the investments . I set this to go in to my holding account and cant seem to be able to lend it out again as im told to deposit money as I don't have enough money in my holding account to place the order .Amount of money in my holding account is £5.62 .The amount I want to lend out is £5.62.Any help what Im doing wrong please

mikb

jcb208 wrote: »

Hi I have started using ratesetter ... Amount of money in my holding account is £5.62 .The amount I want to lend out is £5.62.Any help what Im doing wrong please

Welcome to RateSetter!

All you've done wrong is shown too much enthusiasm ... the minimum amount you can lend in one offer is £10.

I know that seems a pain at first, but just wait a little bit, and as soon as you cross £10, you can make an offer.

jcb208

Thanks for clearing that up.is this still the case If you set to auto re investment

paddyrg

Yes you can, but the rates are dirt low at the moment when you consider what you can get in some current accounts or ISAs, net, with your money protected.

It's only really laziness that means I've still got any cash in ratesetter, now world + dog are in there pushing rates so low.

blizeH

I think Ratesetter is 5.6% if you lock in for 5 years, and the money should be safe* - that's quite a lot better than any account I've found at least.

* famous last words...

ChopperST

blizeH wrote: »

I think Ratesetter is 5.6% if you lock in for 5 years

Thats if the funds remain lent at the same rate as the original loan as interest is received and returned to your holding account.

I used to lend on both ZOPA and Ratesetter but the returns without FCA protection are not worth it.

I used to really like the listings format on ZOPA until they withdrew it, it seemed to fit with the whole purpose of "social lending" and I for one never had one default and achieved returns of up to 10% from using them.

If I had money I wanted to tie up for 5+ years I'd be investing in a S&S ISA in equities rather than P2P which is what I've done.

OP - Have you factored in your tax liabilities?

mikb

jcb208 wrote: »

Thanks for clearing that up.is this still the case If you set to auto re investment

Yes it is, minimum order is £10 no matter what. However, you may wish to not use "auto reinvest" as it picks a figure that will lend your money almost straight away, but at a rate that is lower than you could achieve if you just waited a little -- and did it manually.

jcb208

mikb wrote: »

Yes it is, minimum order is £10 no matter what. However, you may wish to not use "auto reinvest" as it picks a figure that will lend your money almost straight away, but at a rate that is lower than you could achieve if you just waited a little -- and did it manually.

Thanks that's why I did not set to auto investment as I have found out the rates seem to varie from day to day by a little

easteregg_2

ChopperST wrote: »

I used to lend on both ZOPA and Ratesetter but the returns without FCA protection are not worth it.

I used to really like the listings format on ZOPA until they withdrew it, it seemed to fit with the whole purpose of "social lending" and I for one never had one default and achieved returns of up to 10% from using them.

If I had money I wanted to tie up for 5+ years I'd be investing in a S&S ISA in equities rather than P2P which is what I've done.

OP - Have you factored in your tax liabilities?

Lending rates have fallen on a lot of the established platforms, but some of the newer platforms offer higher rates, perhaps with higher risk purely because they have less history.


There are also some cashback offers for new lenders or borrowers on these platforms. Just Google P2P cashback.

Jonbvn

ChopperST wrote: »

If I had money I wanted to tie up for 5+ years I'd be investing in a S&S ISA in equities rather than P2P which is what I've done.

I agree. In our case our ISA's are full for this tax year, and RS offers good diversity away from equities.

ChopperST

Possibly an alternative for a bond % if you look at the 5 year rates.

With all the funny money washing around can't see UK Guilts giving any kind of return over the next 5-10 years.