Zopa

[DimPrawn]

Yes.

When you lend, you can lend to different pools of borrowers. The C pool are real dodgy characters who probably wouldn't get a loan from the Kray twins.

If you lend to these feckwits, even taking into account some losses (they do a runner) I think the ave return is around 14%

[Bagpuss]

If you don't mind a bit more risk, you can get 14% return on Zopa. All taxable though.

Does that mean they have now opened it up to less credit worthy borrowers?

[DimPrawn]

The average return isn't that fantastic given icici 1 year is 6.3%, Anyone on here using it and getting better returns?

If you don't mind a bit more risk, you can get 14% return on Zopa. All taxable though.

[ChimpMaster]

Rates are variable as far as I know, and follow the RPI rather than core inflation, so it's a much better measure of what money worth is. So as inflation goes up, so does the amount oif interest you get. Same theory should apply to banks but we all know they don't like to pass on rate increases.

[Bagpuss]

Thanks I'll have a look at that.
If they are offering 3 year bonds at >6% they must thing interest rates are going to continue on the up.

[ChimpMaster]

I looked into it some time ago and found it to be a poor choice. You might as well invest in NS&I investments, where a 3 year bond is paying 6.15% tax free right now. You can put in 15k per bond issue.

[Bagpuss]

The average return isn't that fantastic given icici 1 year is 6.3%, Anyone on here using it and getting better returns?