Zopa no longer has a provision fund so is now higher risk for the level of return offered.
People need to be aware that as soon as the economy takes a downturn there will be no guarantee you can get your money out of any of these P2P schemes if the market dries up as everyone tries to sellout.
Collateral has gone bust, Lendy is struggling and even Ratesetters provision fund coverage has dropped. Defaults are rising across the board.
People should only risk what they can afford to lose and not put all their eggs into the P2P basket.
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Reply to: How are people's Zopa accounts doing?
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Previously on "How are people's Zopa accounts doing?"
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Originally posted by SorenLorensen View PostHas anyone withdrawn their money from any of these sites? I've been trying to do so on Funding Circle and it has not been the greatest experience. I understand the issues with doing so, but there's not much in the way of transparency.
In general it very much depends on the platform. If there is a secondary market for loan parts, the investing method and how many people are investing to buy it off you etc.
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Has anyone withdrawn their money from any of these sites? I've been trying to do so on Funding Circle and it has not been the greatest experience. I understand the issues with doing so, but there's not much in the way of transparency.
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Ive been lending using Ratesetter for about 5 years, never lost any money on it, averaging about 5% return per year. Im sure the other platforms do this also but they have a fund which covers any bad loans (up to a point)
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Originally posted by northernladuk View PostI opened an account for this years ago but never used it as I went for the higher return platforms like FundingCircle and Lendy (formally SavingStream). I see a bit of noise around returns going down and seem to be in the 4-5% now but lower risk than most. The company appears to be making a profit now as well.
What do you guys that are in it think of it? Still working for you or have people started pulling out and going elsewhere?
I'm asking as a friend of mine is interested in a low risk P2P option and thought Zopa might be one of the better options around but keen to hear people's thoughts.
Invested in Zopa since the early days (so get the 0.5% early adopter bonus, which helps with returns) and got burned with Plus. I don't think their diversification algorithm is particularly good so would only invest at least a middling 5-figures with transfers in of £1999 to stay in the £10 loan chunk range.
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I’m finding Zopa works. Turning 5% year on year, with no bad debt.
Switched to a zopa ISA now as the returns are the same.
Good to see they’re turning a profit as it means they’re not going to piss off with my dosh.
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Originally posted by Spoiler View PostOnly small issue was not being able to get a typical account balance statement, which was a minor headache for year end accounts.
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Originally posted by northernladuk View PostI opened an account for this years ago but never used it as I went for the higher return platforms like FundingCircle and Lendy (formally SavingStream). I see a bit of noise around returns going down and seem to be in the 4-5% now but lower risk than most. The company appears to be making a profit now as well.
What do you guys that are in it think of it? Still working for you or have people started pulling out and going elsewhere?
I'm asking as a friend of mine is interested in a low risk P2P option and thought Zopa might be one of the better options around but keen to hear people's thoughts.
Only small issue was not being able to get a typical account balance statement, which was a minor headache for year end accounts.
Leave a comment:
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How are people's Zopa accounts doing?
I opened an account for this years ago but never used it as I went for the higher return platforms like FundingCircle and Lendy (formally SavingStream). I see a bit of noise around returns going down and seem to be in the 4-5% now but lower risk than most. The company appears to be making a profit now as well.
What do you guys that are in it think of it? Still working for you or have people started pulling out and going elsewhere?
I'm asking as a friend of mine is interested in a low risk P2P option and thought Zopa might be one of the better options around but keen to hear people's thoughts.Tags: None
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