Not all crowdfunding pays back in meat and small businesses are crying out for funding right now. We can't complain about bankers and the government then continue to pay them all our capital to do with as they wish. As I said, the Zopa investment is a more regular form of peer to peer lending and far better rates than ISA's. |
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Bodger |
I know very little about crowd funding and that's probably because I haven't read the threads on the subject but being a conservative with a little 'C' in life, aren't businesses large and small going down the pan everyday? | ||||||||||||||||||||||||
Rob R |
Well, yes, that's one of the reasons savings are so rubbish. Also banks are pulling funding on perfectly good businesses to add to their profits.
It helps if you know and trust the business, but doesn't have to be that way - I've received funding through Twitter from someone I've never met for the other half of the weigh system funding, and cash basis borrowing through family loans have helped build some of the buildings on the farm. I got a bank loan for the office but now that's paid off I don't intend going bank to bank loans. |
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Bodger |
In the meantime, I'm lending my money to the banks for less than nothing and tax exempt interest on nothing is still nothing. | ||||||||||||||||||||||||
Nicky cigreen |
money saving expert is a good place to start looking | ||||||||||||||||||||||||
Treacodactyl |
Sadly it is very much a borrowers market and it's likely to continue for years to come.
One thing worth remembering is savings rate vs inflation, although your rate may have gone from 1.75% to 0.9% as the inflation rate has fallen from 4% to 2% you're actually better off (although that does depend on what you're saving for). With premium bonds the prize fund is based on an interest rate (currently 1.3%) so you can use that to compare to other rates. As for savings rates vs funds or investments, generally as the rate of return goes up so does the risk. Personally I can't see the stock market going up in the next couple of years as much as it has done in the last few years. If you've got a large chunk to invest I'd seriously consider seeing a financial adviser if you don't know what you're doing, but read up on what to expect first so you don't get stung on charges. There's plenty of DIY guides out there. And here's something on peer-to-peer lending: http://www.moneysavingexpert.com/savings/peer-to-peer-lending |
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Rob R |
Here's another MSE link that I came across last night on the subject of Premium Bonds; http://www.moneysavingexpert.com/savings/premium-bonds | ||||||||||||||||||||||||
Nick |
Rob - I can hardly invest my mothers money in a scheme that will basically pay her back in meat - I mean she stopped eating a few months back. Id end up in jail!
I realise the cash ISA thing is crap right now, but am looking at wider investments also - government bonds, anything really. |
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in·vest [in-vest] Show IPA verb (used with object) 1. to put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value. |
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It's the final ISA countdown - de-de dur-dur...
Warning: Use it or lose it. Only ONE MONTH left to take advantage of this year's tax-free savings allowance Don't get scared off cash ISAs - they're not complex, they're just savings accounts where you don't pay tax on the interest. You can put £5,760 per tax year in, and after that the money stays tax-free year after year. So if you've not saved any cash in one since 6 Apr 2013, and have savings, consider using yours ASAP. Full info in Top Cash ISAs, here are the best buys... Get 1.75% AER variable with the ability to take money out. Many wrongly believe you need to lock money away in a cash ISA. National Counties (min £100) pays 1.65% & allows unlimited withdrawals. Britannia's a higher 1.75% (min £500) but only allows 2 withdrawals a year; though you can transfer in past years' ISAs to up their rates. Lock cash away to earn up to 2.75% AER. If you don't need to access the cash, Top Fixed Cash ISAs pay more. Though beware locking in, in case other rates bounce back. Top 1 & 2-yr fix: Britannia 1.85% and 2.05% (2% and 2.2% for existing custs). 3 yr: Coventry BS 2.75% (no transfers). Should I use a 3% AER easy access savings instead of an 1.75% ISA? If you're willing to switch to Santander's 123 bank account (2nd top for service in our poll), it pays 3% if you've £3,000-£20,000 in it. Does this beat an ISA? Often, yes. It pays 2.4% after basic rate tax, 1.8% after higher rate. Yet by putting cash in an ISA you protect it from tax year after year. So balance higher rates now versus building up a bigger tax-free savings pot each year. Does your local credit union offer up to 3% AER? A few of these local non-profit savings and loan co-ops offer higher rate cash ISAs, eg, Voyager Alliance (open to those working in transport) pays 3%. See Credit Unions guide. Cash ISA golden rules. 1) Monitor your rate. If it drops, ditch & ISA transfer. 2) You can use your ISA allowance for share investing too - see the ISA Guide for more. 3) ) All accounts listed have full £85k savings safety. |
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in·vest [in-vest] Show IPA verb (used with object) 1. to put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value. |
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in·vest [in-vest] Show IPA verb (used with object) 1. to put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value. |
Money Saving Expert wrote: |
How quickly can you withdraw money? You get monthly repayments. But if you need your capital back before your term ends, its not-that-rapid Rapid Return system takes three to five days to get you the cash. It'll cost you an additional 1% fee. |
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It's the final ISA countdown - de-de dur-dur...
Warning: Use it or lose it. Only ONE MONTH left to take advantage of this year's tax-free savings allowance Don't get scared off cash ISAs - they're not complex, they're just savings accounts where you don't pay tax on the interest. You can put £5,760 per tax year in, and after that the money stays tax-free year after year. So if you've not saved any cash in one since 6 Apr 2013, and have savings, consider using yours ASAP. Full info in Top Cash ISAs, here are the best buys... Get 1.75% AER variable with the ability to take money out. Many wrongly believe you need to lock money away in a cash ISA. National Counties (min £100) pays 1.65% & allows unlimited withdrawals. Britannia's a higher 1.75% (min £500) but only allows 2 withdrawals a year; though you can transfer in past years' ISAs to up their rates. Lock cash away to earn up to 2.75% AER. If you don't need to access the cash, Top Fixed Cash ISAs pay more. Though beware locking in, in case other rates bounce back. Top 1 & 2-yr fix: Britannia 1.85% and 2.05% (2% and 2.2% for existing custs). 3 yr: Coventry BS 2.75% (no transfers). Should I use a 3% AER easy access savings instead of an 1.75% ISA? If you're willing to switch to Santander's 123 bank account (2nd top for service in our poll), it pays 3% if you've £3,000-£20,000 in it. Does this beat an ISA? Often, yes. It pays 2.4% after basic rate tax, 1.8% after higher rate. Yet by putting cash in an ISA you protect it from tax year after year. So balance higher rates now versus building up a bigger tax-free savings pot each year. Does your local credit union offer up to 3% AER? A few of these local non-profit savings and loan co-ops offer higher rate cash ISAs, eg, Voyager Alliance (open to those working in transport) pays 3%. See Credit Unions guide. Cash ISA golden rules. 1) Monitor your rate. If it drops, ditch & ISA transfer. 2) You can use your ISA allowance for share investing too - see the ISA Guide for more. 3) ) All accounts listed have full £85k savings safety. |
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Quick. 2.9% AER cash ISA loophole
Take advantage of two cash ISAs that you're meant to lock cash away in, but let you escape if needed A cash ISA is just a tax-free savings account. If you've not opened one since last April, you've until 5 April to save up to £5,760 so the taxman can't bite your interest. Most ISA rates aren't great, but we've spotted two fixed cash ISAs with manipulatable terms. Warning: Go quick. Last time we found a trick like this, it was pulled hours after we put it in the email. The 2.9% AER cash ISA. Newcastle BS's 5-year 2.9% fixed rate ISA (min £500) accepts new money and transfers. Like all fixes it's designed for locking cash away, but 5yrs is a long time to do that, especially as interest rates may bounce back. By law, technically even fixed-rate cash ISAs must allow you to access the cash, so instead they levy hefty interest penalties. Yet with a penalty of just 120 days' interest, Newcastle's is low for a long fix & it allows partial withdrawals (the penalty's only on what you withdraw). So the trick is to get this, even if you may need to access your cash much earlier. If you withdraw after just a year, after the penalty you'd have got an avg rate of 1.95%, compared to 1.75% easy access, or 1.9% in the top 1-yr fix. Withdraw after 2 yrs and it's 2.4%, compared to 2.05% in the top 2-yr fix. If Newcastle's pulled, Coventry BS 2.75% 3yr fix (new money only) also has just 120-day penalties, though you need to close it to withdraw. 1.65% AER variable with unlimited access to cash. If you'll need to dip into your ISA regularly, National Counties' Online Cash ISA allows unlimited withdrawals, paying 1.65% AER. Slightly boost this with Britannia's Select Access ISA, paying 1.75% AER if you don't withdraw cash more than twice a year (0.25% if you do). Does Santander 123's 3% beat the best easy-access cash ISAs? Read Martin's new Santander v ISAs blog. Cash ISA golden rules. 1) Monitor your rate on variable deals. If it drops, ditch & ISA transfer. 2) NEVER withdraw cash to transfer. Ask the new provider to shift it for you. 3) All accounts listed have full £85k Savings Safety. |