Peer-to-peer lending sites: MSE guide discussion
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Ratesetter is a good platform for the most part, but the rates in the monthly market are low and they are stopping people from choosing their own rate soon. No one has ever lost a penny and liquidity is very good (But this is subject to the state of the platform/economy going forward!). They stepped in to stop investors losing money a while ago but they said they will not be doing it again, so we have to hope they learnt a few lessons.0
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U reckon this is the best offer to go with at the moment if i am investing £1000? How is rate settler?
It's a good offer although it's not necessarily the best
For example Kuflink are doing an offer at the moment. You have to be referred by someone to get it. If you are referred and invest £500 for a year you get £100 cash and the person who sent you there gets £100 cash as well. My understanding (I've not completed it yet so dont hold me to this) is that the £100 bonuses are immediately withdrawable as cash when you get them, 2 weeks after the investment. There are people on the referal boards here at MSE offering £75 of their £100 if you use their codes so you might want to check that out. I am due my £100 in a few days along with a £75 backhander so will be reporting back then on the relevant threads.
There are other offers for similar things. Orbis are a stocks and shares platform who do a £100 for £100 (invested for a year) regularly - that's only for ISA's most of the time but occasionally its for unwrapped investments also. Other p2p's such as growth street make offers as well.
The ratesetter one is good. I did it myself and no hassles got the £100 without chasing. Ended up about a 14% return on £1000 for a year. It's maybe not the best around but it's up there. Once I got it I just withdrew everything and now use them as a £10 a month direct debit for current accounts . I don't think they offer great returns without the bonus.0 -
fun4everyone wrote: »It's a good offer although it's not necessarily the best
For example Kuflink are doing an offer at the moment. You have to be referred by someone to get it. If you are referred and invest £500 for a year you get £100 cash and the person who sent you there gets £100 cash as well. My understanding (I've not completed it yet so dont hold me to this) is that the £100 bonuses are immediately withdrawable as cash when you get them, 2 weeks after the investment. There are people on the referal boards here at MSE offering £75 of their £100 if you use their codes so you might want to check that out. I am due my £100 in a few days along with a £75 backhander so will be reporting back then on the relevant threads.
There are other offers for similar things. Orbis are a stocks and shares platform who do a £100 for £100 (invested for a year) regularly - that's only for ISA's most of the time but occasionally its for unwrapped investments also. Other p2p's such as growth street make offers as well.
The ratesetter one is good. I did it myself and no hassles got the £100 without chasing. Ended up about a 14% return on £1000 for a year. It's maybe not the best around but it's up there. Once I got it I just withdrew everything and now use them as a £10 a month direct debit for current accounts . I don't think they offer great returns without the bonus.
Thanks for your help with this. So i could open a ratesettler and kuflink if i have £1500 to invest and use both options? I will look on the referrals now. I may do both. I already have a cash isa and a s&s's ISA... so i can't contribute to any more this year. Doing both these Peer to Peer services won't affect this, will they? Thanks.0 -
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as long as you don't choose the ISA options then both are fine to invest in (not advice, just a reference to the ISA query).I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
Thanks for all the helps guys. Just one more question, since i have never used a P2P service before. Does it just auto invest all your money for you, or do you pick and choose funds? Coz i would have no clue what to invest in. Any advice?0
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Thanks for all the helps guys. Just one more question, since i have never used a P2P service before. Does it just auto invest all your money for you, or do you pick and choose funds? Coz i would have no clue what to invest in. Any advice?
It depends on the platform, some you pick and choose, some auto invest, some you can do either.
Ratesetter you pick how long you want the money tied up for (rolling, 1yr, 5yr) and the rates you can get varies depending on that then they do the investing for you - it is made to look and feel quite like a savings account.
Kuflink it seems you can pick and choose or auto invest, up to you.
Other (higher rate) platforms like funding secure you have to pick and choose trust me you don't want to be heading there unless you fancy fighting for the scraps available on the few good loans they have :rotfl:0 -
it's poorly invested for an environment of rising interest rates, so further capital price losses can be expected. Since this is an accumulation fund the interest payments might mask that.
It doesn't look like a good investment choice at the moment. If a bond fund is desired, something with lower average term looks like a better idea.
i disagree.
attempting to predict the direction of interest rates is best avoided, IMHO. nobody really knows. (and although this is an actively managed fund, it may well be that vanguard choose not to take a very active view on the direction of interest rates.)
it is not enough to predict that rates will rise and to be right about that. because that's already in the price: interest rates are expected to rise. you have to predict that rates will rise more than "the market" expects, and be right about that.
because an anticipated rate rise (or rises) can be "in the price", it is not true that bonds will necessarily fall when rates are rising. roughly speaking, bonds will fall if interest rates rise further and faster than is expected. but they will rise if rates rise less far and slower than expected. so bonds can rise when rates are rising.
many people have been predicting more rapidly rising interest rates and falling bond prices for about a decade. and have been wrong for most of that time. sticking to shorter-term bonds has reduced returns.
not sticking to shorter-term bonds is taking a risk (term risk). but on average you are paid something for taking on that risk. there is no reason to avoid this risk completely. you could have too much of it (e.g. all of your portfolio in 30-year gilts). it's best to have a portfolio which is diversified across different kinds of risk. some term risk, mixed with other kinds of risk, can be a good idea.Of course you have to worry about capital loss and with this fund it looks more likely than not that capital will be lost by those who invest now.Minimal chance of losing all of the capital but if the broker where you hold the fund fails you can be locked in for the duration of the administration and be compelled to take large capital losses from the administration costs, if you hold more than £50,000 of total investments at the broker.0 -
Thanks for all the helps guys. Just one more question, since i have never used a P2P service before. Does it just auto invest all your money for you, or do you pick and choose funds? Coz i would have no clue what to invest in. Any advice?0
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fun4everyone wrote: »It's a good offer although it's not necessarily the best
For example Kuflink are doing an offer at the moment. You have to be referred by someone to get it. If you are referred and invest £500 for a year you get £100 cash and the person who sent you there gets £100 cash as well. My understanding (I've not completed it yet so dont hold me to this) is that the £100 bonuses are immediately withdrawable as cash when you get them, 2 weeks after the investment. There are people on the referal boards here at MSE offering £75 of their £100 if you use their codes so you might want to check that out. I am due my £100 in a few days along with a £75 backhander so will be reporting back then on the relevant threads.
There are other offers for similar things. Orbis are a stocks and shares platform who do a £100 for £100 (invested for a year) regularly - that's only for ISA's most of the time but occasionally its for unwrapped investments also. Other p2p's such as growth street make offers as well.
The ratesetter one is good. I did it myself and no hassles got the £100 without chasing. Ended up about a 14% return on £1000 for a year. It's maybe not the best around but it's up there. Once I got it I just withdrew everything and now use them as a £10 a month direct debit for current accounts . I don't think they offer great returns without the bonus.
If, for example, you have your £20k ISA allowance to invest, Kufflink have a 5% cashback through Quidco. Thats a grand.illegitimi non carborundum0
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