£12000 very short term investment

Ryan_Futuristics

masonic wrote: »

What you seem to be missing is that the money will be needed in a matter of weeks and probably on very short notice. Risk/reward for P2P does not make it an even slightly attractive proposition in those circumstances.

I don't think it's that simple

The £85k FSCA cover only came into existence in 2010/11, and only because banks had a habit of gambling with and losing everyone's money ... Before 2001, there was no FSCA cover at all

P2P lending is what a bank does, it's just a slightly more efficient system ... Risk can only be assessed on the way the system's implemented ... Right now, there isn't a bank on the planet that's lost clients less money than RateSetter


Presumably with these current account siphoning schemes, you get delays as money's sent around the system? I've never known a bank complete a transfer to another bank, and start earning interest on it immediately

So with such a large proportion of your savings flying around, and presumably lag as one account goes over the limit, as a payment's waiting to clear, and lag as money exists in bank void-space when it's between accounts ... Along with charges on accounts like TSB

... Has anyone actually worked this out on a spreadsheet? Would just depositing £12k into RateSetter on a 1-Month term, and earning 3%, be so out of the question?

Archi_Bald

Ryan_Futuristics wrote: »

The £85k FSCA cover only came into existence in 2010/11, and only because banks had a habit of gambling with and losing everyone's money ... Before 2001, there was no FSCA cover at all

Ryan_Futuristics wrote: »

It depends what kind of money we're talking about ... My money with my local bank is covered for a lot more than the government's FSCA, for a start ... If you're trying to get a mortgage or a business loan or you want to spend over your credit limit when you're abroad, or you want to buy a plot of land in Chelsea that's going to be sold in about 3 minutes, it makes the world of difference having a manager on side

Tell us more as this is an entirely different world you are talking about

1. who is your local bank? Handelsbanken or some such?
2. what is FSCA?
3. assuming you mean FSCS, why do you think it is "the government's"? (hint: it isn't).
4. how much more than the FSCS guarantee does your local bank guarantee, and what are the terms of that guarantee?

Now, my money is on RF not answering these questions at all, or give evasive and/or condescending answers.

masonic

Ryan_Futuristics wrote: »

I don't think it's that simple

The £85k FSCA cover only came into existence in 2010/11, and only because banks had a habit of gambling with and losing everyone's money ... Before 2001, there was no FSCA cover at all

P2P lending is what a bank does, it's just a slightly more efficient system ... Risk can only be assessed on the way the system's implemented ... Right now, there isn't a bank on the planet that's lost clients less money than RateSetter

RateSetter has only been around for 5 years, so the statement about how much money it's lost is just weasel words. Risk of actual loss is non-zero with RateSetter, but zero with other banks by virtue of FSCS protection up to £85,000. The bigger risk is that with RateSetter, the money isn't instant access and the OP might need it at very short notice.

Presumably with these current account siphoning schemes, you get delays as money's sent around the system? I've never known a bank complete a transfer to another bank, and start earning interest on it immediately

Since faster payments were introduced, I've not known anything else. Transfers are done in seconds and my worst experience was having to wait 2 hours on an account I'd just set up. In my experience, standing orders arrive early morning on the transaction date and start earning interest straight away. Who is it that you bank with that gives you such a bad experience? Or are you just trying to sling mud in the hope that some of it will stick?

So with such a large proportion of your savings flying around, and presumably lag as one account goes over the limit, as a payment's waiting to clear, and lag as money exists in bank void-space when it's between accounts ... Along with charges on accounts like TSB

What charges does the TSB account have? I'm not aware of any and I've held 2 accounts since they were launched last summer, so I ought to have seen them by now.

... Has anyone actually worked this out on a spreadsheet? Would just depositing £12k into RateSetter on a 1-Month term, and earning 3%, be so out of the question?

I don't think you need a spreadsheet to work out which is better out of a 3% rate with a 1 month term and a 5% rate with instant access.

Archi_Bald

Ryan Futuristics, may be go back to posting pretty charts. You have aptly demonstrated that are thoroughly out of your depth on current accounts and multi-accounting. Don't embarrass yourself further. Unless, of course, you enjoy embarrassing yourself.

Ryan_Futuristics wrote: »

Presumably with these current account siphoning schemes, you get delays as money's sent around the system? I've never known a bank complete a transfer to another bank, and start earning interest on it immediately

There are no delays. Interest is paid on the account balance at the end of each day, however much you might have transferred throughout the day.

Ryan_Futuristics wrote: »

So with such a large proportion of your savings flying around, and presumably lag as one account goes over the limit, as a payment's waiting to clear, and lag as money exists in bank void-space when it's between accounts ...

what money is flying about? how high a proportion of the savings is being transferred? What accounts go over the limit? What lags are there? What payments are waiting to clear? It's pretty obvious you don't understand what you are talking about there.

Ryan_Futuristics wrote: »

Along with charges on accounts like TSB

what charges at TSB? and what about charges at any other accounts?

Ryan_Futuristics wrote: »

... Has anyone actually worked this out on a spreadsheet? Would just depositing £12k into RateSetter on a 1-Month term, and earning 3%, be so out of the question?

Most people don't need a spreadsheet to work out whether £12K tied up for a month in a 3% AER account pays more than £12K in instant access 4 and 5% AER accounts.

N1AK

Ryan_Futuristics wrote: »

- and frequently they'll try and clamp down on it

If the best arguments you can come up with are it's questionable ethically to follow the terms you agreed with the bank, and that banks are 'frequently' clamping down on behavior within their rules, then that's an incredible weak case.

Ryan_Futuristics wrote: »

I also think you'll learn at some point it's good to have banks on your side sometimes

And you'd find out at the same time that they don't choose sides based on whether you have a couple of maxed out current accounts with them or not.


- - -
If you're only keeping the money for a short period just stick it in a 123 account and get your 3%. I can think of few things that would be worth the effort if you're only talking about a few £k and a few months. Ratesetter strikes me as a particularly big waste of time for this purpose.

Gadfium

Archi_Bald wrote: »

Ryan Futuristics, may be go back to posting pretty charts. You have aptly demonstrated that are thoroughly out of your depth on current accounts and multi-accounting. Don't embarrass yourself further. Unless, of course, you enjoy embarrassing yourself.

If he has any sense then he will realise that the First Law of Holes applies here.

Ryan_Futuristics

Archi_Bald wrote: »

Tell us more as this is an entirely different world you are talking about

1. who is your local bank? Handelsbanken or some such?
2. what is FSCA?
3. assuming you mean FSCS, why do you think it is "the government's"? (hint: it isn't).
4. how much more than the FSCS guarantee does your local bank guarantee, and what are the terms of that guarantee?

Now, my money is on RF not answering these questions at all, or give evasive and/or condescending answers.

- I've already mentioned my local bank

- iPad seemed to be correcting it to FSCA - I didn't question this ... I was wrong and apologise for the confusion

- Because the scheme was funded by the Bank of England, which is owned by the government

- I don't really think it's necessary to disclose that

Good questions

N1AK

masonic wrote: »

What charges does the TSB account have? I'm not aware of any and I've held 2 accounts since they were launched last summer, so I ought to have seen them by now.

Just when you think he'd dug as deep as possible he's moved onto to making up blatantly false things and hoping no one calls him on it!

masonic

Ryan_Futuristics wrote: »

- Because the scheme was funded by the Bank of England, which is owned by the government

It's actually funded through a levy on the banks themselves. If you are interested, perhaps have a read of their site.

Ryan_Futuristics

masonic wrote: »

It's actually funded through a levy on the banks themselves. If you are interested, perhaps have a read of their site.

No the compensation scheme was initially funded by the Bank of England and pushed through by government ... Not really relevant

masonic wrote: »

What charges does the TSB account have? I'm not aware of any and I've held 2 accounts since they were launched last summer, so I ought to have seen them by now.

To answer both of you asking this - TSB charges £2/month, and on the tiny sums of money and interest we're talking here, that would hit your rate, I'd imagine


Okay, well I'm only here to learn

I've got £50k sitting completely aimlessly in a Money Market account

Even if you have to copy and paste, can you give me a simple, numbered, idiot's guide to exactly how to distribute and arrange this money, across specific platforms, so it'll make me an easy £1,500-2,000/year

Then maybe the OP can use it too

I'll keep a spreadsheet charting exactly how much it returns and how much work's involved in maintaining it