Savings

on the rebuildingsociety.com blog

07th Jan, 2015

New for 2015: Invest in rebuildingsociety through a SIPP

We’re delighted to announce that in partnership with SIPPclub, qualifying rebuildingsociety investors are now able to invest through a specially-designed SIPP.

The EvolutionSIPP, which is exclusively for SIPPclub members, has been approved for investments on rebuildingsociety.

All investments made through a SIPP are tax-free, regardless of your existing tax status.  As you qualify for tax relief on your SIPP contributions at your highest rate of Income Tax, you’ll be able to generate more net interest by investing through a SIPP, compared with investing on rebuildingsociety with your cash. However, SIPPs are quite exclusive products for wealthy individuals and SIPPclub can only proceed with those that meet the qualifying requirements.

To get the process started, please fill out the form on this page and SIPPclub will contact you to discuss your circumstances and requirements, helping you decide whether you should invest your pension money on rebuildingsociety.

If you’ve previously expressed an interest in investing through a SIPP, then we still have your details on file and SIPPclub will be in touch with you.


05th Jan, 2015

Our Highlights – 2014

2014 was a big year for rebuildingsociety and the markets we operate in – here are a few of our highlights!

January – Our first Roadshow event in Leeds. 150 friends, members, future members, advisers and fellow alternative finance entrepreneurs joined us for a day of insightful presentations, networking and raising awareness of this exciting new sector. We published recorded content from the day throughout the next months, including Viv Parry, owner of Exquisite Handmade Cakes on how rebuildingsociety’s lenders propelled her business forward.

(more…)


11th Dec, 2014

Summary of our NISA Consultation Response

rebuildingsociety responded to the recent Treasury consultation on peer-to-peer loans falling under ISA wrappers. We’ll keep you posted on the outcome of the consultation – ultimately we’re delighted that we’ve reached this stage so quickly and with the tax breaks for losses on p2p loans recently announced in the Autumn Statement, the case for investing in UK businesses is becoming even more compelling.

Here is a summary of our sentiment and response:

– We believe p2p platforms should have a secondary market to facilitate liquidity, although we don’t believe it is practical to enforce ‘guaranteed sale timescales’, as it is an open market. (more…)


18th Jun, 2014

Treasury Set to Launch Peer-to-Peer ISA Consultation Next Month

(From the FT, 6 June 2014)

The Treasury is poised to launch a consultation next month on how investors might gain access to the peer-to-peer lending market through individual savings accounts – and whether a new type of Isa should be created for the purpose.

The move follows an announcement in the Budget that peer-to-peer investing can be included within the Isa tax-free wrapper for the first time next April.

Wrapping p2p lending in an Isa will boost returns by making them exempt from income tax – saving 40 per cent for higher-rate taxpayers.

But the practicalities of wrapping p2p within an Isa are proving complex, and the Treasury plans to launch a consultation in July.

(more…)


19th Mar, 2014

P2P Lending to be Included in ISAs

George Osborne certainly surprised a few people today in his budget, but the standout part for us was the decision to allow peer-to-peer loans to be included in ISAs by scrapping the securities maturity date rules.

It’s too early to say when all this will actually happen, but the commitment by the Government is a huge positive. This is what we do know:

  • Peer-to-peer lending will fall under the new single ISA allowance of £15k
  • Interest on savings up to £15,000 will be tax free each year, any amounts over this limit will be taxed as normal

There will be some technical considerations for us and each lender will have to instruct us to transfer their ISA wrapper to rebuildingsociety.com, but we’ll let you know how that will work in due course.

Watch this space! 


01st Dec, 2013

The best way to invest money for a property deposit in 2014

In 2014, it might be time to look at innovative ways of putting enough cash aside to get on the bottom rung of the housing ladder as the future of Help to Buy comes into the spotlight, as Nick Moules explains.

The reality

Since the housing crash, it has been well-publicised that first-time buyers (FTBs) have been frozen out of the housing market. The Help to Buy scheme has an uncertain future (before it has really started) and if evidence of a housing bubble grows, political pressure to cancel the scheme will be ramped up.

From a lender’s perspective, it’s a tough ask to support FTBs as they’re typically the riskiest part of the market without the incentives; loans are at a high loan to value (LTV) and they’re under regulatory pressure to reduce risk and balance their books.

But it’s worse for the would-be borrowers for several reasons: (more…)


28th Mar, 2013

Quick – get a TV ad done, it’s ISA season

It’s that time of year when marketing agencies fill their boots. Banks throw their money at media campaigns designed to tempt the public into filling ISA allowances before the deadline. If you’re drawn to this sort of advertising, there’s billboards, TV ads, newspaper ads and all manner of chatter on consumer websites.

You could argue it’s going to need a lot of publicity this year for the public to put their money in ISAs.

(more…)


10th Dec, 2012

Spare Cash? Shares vs. P2P

If you’re not comfortable with the notion that your money could be lost or the chance that your cash might be worth less than when you started, then you should stick to savings accounts.

However, if you’re the type of person who wants their money to work harder and be worth more, then you should consider shares or the peer-to-peer (P2P) or peer-to-business (P2B) lending markets.

This is a short compare and contrast between the two markets.

Returns

Both markets offer higher returns than savings accounts, but neither are covered by the FSCS – that’s the most important point. However…

(more…)


11th Oct, 2012

How many instant access savings accounts beat inflation?

Think low, very low. It’s actually none. According to the website savingschampion.co.uk, there are no instant access savings accounts on the market at the moment that give basic rate taxpayers the power to beat CPI inflation. To do this they would need to pay 3.13% or higher, something achieved by six notice accounts and a range of cash ISAs, but nothing where you can get to your money easily.

There’s a mention of Barclays’ e-savings account which caught our eye, because a member of our team closed his account last year once he realised it was only paying 0.10% interest. It’s taking liberties even calling that a savings account…

(more…)


28th Sep, 2012

A Matter of Time

Data released by the British Bankers Association this week has revealed consumers are saving more money than last year, rising by 5.8 per cent from the previous August. They’re also shunning savings accounts for ISAs and it’s easy to see why. To beat inflation, basic tax rate payers need to find an account that pays more the 3.14 per cent and higher rate taxpayers 4.18 per cent – no easy task when the best buys are typically lower than that.

This data coincides with news that complaints about banks have risen by 59 per cent. Although PPI complaints are skewing the data a bit, apparently there is increasing concern from consumers about savings accounts, loans and credit cards too.

At rebuildingsociety.com all this tells us that people are slowly realising that savings accounts are not worth having at the moment (according to Watchdog the average interest rate is hanging around at 0.94 per cent) and are looking for better returns. However, the ISAs that these savers are targeting don’t do much better and you can still only add a finite amount each year.

(more…)


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