Close Fixed Rate ISA within 14 day cancellation period

colsten

How would using Ratesetter meet the OP's requirements, which include instant access to their money?

Got to wonder at times why some posters ramp P2P.

Keep_pedalling

colsten wrote: »

How would using Ratesetter meet the OP's requirements, which include instant access to their money?

Got to wonder at times why some posters ramp P2P.

The OP has stated that opening more accounts with other banks is not an option, so I gave him a perfectly valid alternative. Just because some people on here think P2P is something brewed up by satan and should not be touched with a barge pole does not make it so.

No where in Supermum's post say she needs instant access to her money, but in an emergency you can cash out early but if all your Ratesetter money is in the monthly option you don't exactly have to wait long to get it out.

Keep_pedalling

PeacefulWaters wrote: »

I'm a big fan of the contingency fund.


I prefer 5% with instant terms and FSCS thanks.

But that does not seem to be an option for the OP

colsten

Keep_pedalling wrote: »

The OP has stated that opening more accounts with other banks is not an option, so I gave him a perfectly valid alternative. Just because some people on here think P2P is something brewed up by satan and should not be touched with a barge pole does not make it so.

No where in Supermum's post say she needs instant access to her money, but in an emergency you can cash out early but if all your Ratesetter money is in the monthly option you don't exactly have to wait long to get it out.

You seem to misunderstand, and you haven't read Supermum's other thread of yesterday. She needs instant access to her money but made a mistake by signing up to a fixed term ISA that she now wants to get rid of.

Nobody is against Ratesetter or other P2P, it's just not the right solution for Supermum.

Also, as Archi Bald commented, she should probably be focusing on her debts, so she is not really in a position to lend out money.

Keep_pedalling

masonic wrote: »

So how well did it perform during the last financial crisis? "It hasn't been around that long", you say? The provision fund is hardly proven.

That is true but for most of the time it has been trading times have not exactly been easy and the actual defaults have been well below estimated levels.

Is there a risk if another 2008 hits us? Yes but not as risky as s&s or P2B lenders such as Funding Circle. The worst I could see happening with my RS account is perhaps a 10% loss, but I don't see much chance of that happening in the near future.

Archi_Bald

supermum1988 wrote: »

Who says I'm not paying my debts? I am working extra shifts to put this money away. Its a £10 pm, not exactly a massive amount.

Nobody said you are not paying your debts but the question is why do you want an ISA, or other savings, whilst you have a huge amount of debt? See http://www.moneysavingexpert.com/savings/which-saving-account

It doesn't really matter whether the savings are small or large - the principle remains the same: the interest of your loans is almost certainly a lot higher than the interest you can get in an ISA, so you are effectively wasting money, not saving it.

Keep_pedalling

colsten wrote: »

You seem to misunderstand, and you haven't read Supermum's other thread of yesterday. She needs instant access to her money but made a mistake by signing up to a fixed term ISA that she now wants to get rid of.

Nobody is against Ratesetter or other P2P, it's just not the right solution for Supermum.

Also, as Archi Bald commented, she should probably be focusing on her debts, so she is not really in a position to lend out money.

No, I had not read the other thread so was missing that vital fact. Agree get rid of the dept first.

masonic

Keep_pedalling wrote: »

That is true but for most of the time it has been trading times have not exactly been easy and the actual defaults have been well below estimated levels.

Is there a risk if another 2008 hits us? Yes but not as risky as s&s or P2B lenders such as Funding Circle. The worst I could see happening with my RS account is perhaps a 10% loss, but I don't see much chance of that happening in the near future.

Trading times have been exceptionally good. Unemployment has been low and falling, so people can afford to pay their debts. If we were to fall into a deep recession, then that would change significantly, but I agree that the investment risk might be lower than for equities, but you don't seem to be considering the counterparty risk. S&S platforms have £50k of FSCS protection if the platform is subject to fraud etc. There isn't the same protection for P2P platforms.

Of course, the above wouldn't stop me investing in P2P. What's stopped me so far is that I would have untaxed income I would need to declare to HMRC, but it seems that might change in the future.