Want to earn more than a couple percent in a bank account?
I am a regular family guy (not a financial advisor) who has been investing since I was old enough to do so. Up until 2008 and the GFC like many others I did pretty well … but since then it seems to me like everything has been turned on its head. The stock market is overvalued by any metric. Bond yields are at historic lows and in bubble territory. Property has only one way it can go. The interest paid by banks on your savings are terrible… and if when they do go up well things are going to get interesting for lenders.
But there are bright spots in this new economy.
Recently signed up signing with Ratesetter with plans to be a part of the P2P revolution and (hopefully) some safe and solid returns.
So far the returns look pretty great to me. (Rates offered 14 March 2017)
But what I wanted to know was:
- How onerous is it sign up?
- Once you have signed up, whats next?
- How do you invest?
The Sign Up Process
Step 1 – Name and Contact Details
The first step is concerned with your basic personal details and is very straight forward.
Step 2 – Investing Entity
The next step gets into some of the practicalities like if you are operating as a business or individual, address and bank account details so you can be paid.
Step 3 – Confirm
Just like opening a bank account or other account with a financial institution, Ratesetter requires that you prove you are who you say you are.
In my experience, this is where many companies make it hard. I have seen where some give you the option to FAX them – how do you even do that? I forget. Usually everything looks easy on the surface
Ratesetter seems to provide a number of options to make it simple.
In may case, option 2 was the easiest for me and I uploaded a bill which had been sent to me by email – it was very easy.
Question remains: Did the system work?
Step 4 – Complete
The final hurdle … we all hope.
By now I was pretty much ready to start investing … OK yes perhaps I was a little impatient – excited to get started.
Just a few little things extra.
The PDS or Product Disclosure Statement
and as you would expect – agreeing to all the stuff required by regulators, lawyers and many other people…
Terms and Conditions and Privacy Statement and
To this point I had spent 7 minutes including about 3 minutes getting my drivers license and the bill I had to send.
Funny enough I missed the bit where it said, “This process is usually completely within one business day” all I saw was the phone number so I thought I would try customer service out.
The phone was answered quickly and the lady who answered could not have been nicer – especially considering she could have just said, “We take one business day to review applications” but instead said, “just a moment and I will have a look into your account” or something very similar.
Then she came back on the phone and told me I was all set.
Meantime I discover there was some emails I had received as well which explain the one day waiting period and the Quick Start Guide.
Now it gets fun!
Quick Start Guide
Of course before you begin, you need to have some funds in the Ratesetter account which you need to organise through your bank.
Meanwhile they do have a pretty well done – Quick Start Guide that is a good read. The page below is the one I found most helpful in understanding how it all works.
To be honest, I always feel a little apprehensive whenever I fill out forms with my personal details. I chose Ratesetter because they are well established.
In general, I cannot see how Ratesetter could be much easier and quicker. It is reassuring that you can call a live person who actually seems to care and I definitely appreciate the efforts taken to make it easy.
About the only thing I could possibly quibble about is the welcome message you get after completing step four was not clear enough or reassuring enough for those who like me are a bit impatient.
Time to transfer to money to my new account … and do some meditation.