We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Ratesetter Cash ISA - safe?
roytom
Posts: 354 Forumite
Is Ratesetter at all safe?
I think it is not covered by things like the FSA protection guarantee.
It is not just where they put the money going bust but I think it is the Ratesetter outfit themselves that could be the problem as well.
Any ideas?
I think it is not covered by things like the FSA protection guarantee.
It is not just where they put the money going bust but I think it is the Ratesetter outfit themselves that could be the problem as well.
Any ideas?
0
Comments
-
They offer Innovative Finance ISAs so you could still contribute to a Cash ISA elsewhere subject to the overall £20k annual ISA limit.
Their business model has origins in the ancient world with money flowing from deposits into loans. The difference is that you the borrower rather than the bank are at risk of incurring losses if they exceed the value of the protection fund. As such you are not covered by FSCS protection.
In some ways this could make the RateSetter company safer than a bank as they are not carrying as many potential liabilities - their customers are. You can dig around in the past circa 10 years of Companies House returns for Retail Money Market Ltd who trade as RateSetter to better understand their position.
It's a matter if judgement on if you feel the risk is worth the potential additional return. My view is that with the signup bonus it was worth a punt for the experience however I will probably not extend our exposure above the £1k plus accumulated returns each and have limited the loan durations to 1 year so I can excercise an exit strategy.
See also dedicated forum at
http://p2pindependentforum.com/board/34/ratesetter
Alex0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards