DPS to launch new "insurance"-based version of their deposit scheme

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    DPS to launch new "insurance"-based version of their deposit scheme

    See: http://www.depositprotection.com/insured-deposit-info

    #2
    Am I being thick (don't answer that one) but I don't get what you are paying for that is not supplied with the free system.



    Freedom at the point of zero............

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      #3
      Originally posted by Interlaken View Post
      Am I being thick (don't answer that one) but I don't get what you are paying for that is not supplied with the free system.
      You get to keep the deposit, which might or might not have advantages.
      At the moment instant access saving accounts pay about 0.5% gross so paying to keep the deposit is not really worth it financially imho. (Maybe that's why the DPS is launching this service: To get hard cash)

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        #4
        Oh er! I've only just got the hang of the original deposit scheme.

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          #5
          I would consider moving away from TDSL if DPS didn't require a new fee every time I renewed a tenancy. Can't see any indication yet, but will watch with interest.
          I offer my advice freely, but I am not an expert, solicitor or judge. It is simply my experience of being a landlord and what I have learnt along the way. I make no warranty for my opinion.

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            #6
            Originally posted by jjlandlord View Post
            You get to keep the deposit, which might or might not have advantages.
            At the moment instant access saving accounts pay about 0.5% gross so paying to keep the deposit is not really worth it financially imho. (Maybe that's why the DPS is launching this service: To get hard cash)
            Does the money have to be in a current account instantly available?
            Allow tenants to protect their own deposits. I want free money when they do it wrong

            Comment


              #7
              Originally posted by thesaint View Post
              Does the money have to be in a current account instantly available?
              I don't know if it has to.
              If not it can indeed be invested in a fixed term product for the duration of a fixed term tenancy.
              But during periodic tenancies (or if break clause in fixed term, etc) LL should be able to pay out basically at a month notice.

              Point being: Low interests - £20 protection cost - effort to manage = Not really financially attractive for a small landlord.

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                #8
                If it can be used, then I think it's fair to say that landlords/organisations will invest it into projects that have significantly higher returns than 0.5% gross.
                It wouldn't need to be a fixed term product.
                Allow tenants to protect their own deposits. I want free money when they do it wrong

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                  #9
                  If you have tips on such high yield, 0 risk, short notice access products I'm interested!

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                    #10
                    Originally posted by jjlandlord View Post
                    If you have tips on such high yield, 0 risk, short notice access products I'm interested!
                    If those are your requirements, then the insurance backed product/investments are not for you.
                    Allow tenants to protect their own deposits. I want free money when they do it wrong

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                      #11
                      Originally posted by thesaint View Post
                      If those are your requirements, then the insurance backed product/investments are not for you.
                      Ah I see...
                      Investing tenants' money in anything else than 0 risk products somehow does not look like either a good idea or a good policy.

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                        #12
                        Originally posted by jjlandlord View Post
                        Ah I see...
                        Investing tenants' money in anything else than 0 risk products somehow does not look like either a good idea or a good policy.
                        The tenants money is safe.
                        Allow tenants to protect their own deposits. I want free money when they do it wrong

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                          #13
                          Originally posted by thesaint View Post
                          The tenants money is safe.
                          As I said, if it's 0 risk I'm sure we're all interested here!

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                            #14
                            Originally posted by jjlandlord View Post
                            As I said, if it's 0 risk I'm sure we're all interested here!
                            I think you'd be better off sticking with your premium bonds or your 0.5% deposit account.
                            Allow tenants to protect their own deposits. I want free money when they do it wrong

                            Comment


                              #15
                              Originally posted by thesaint View Post
                              The tenants money is safe.
                              It may be "safe", but it has to be harder to get back

                              The hoops that T has to jump though to get an insurance scheme to pay out of their own pocket are bound to be greater than just persuading them to give you back some "stored money".

                              Personally (as a T) I believe that the insurance scheme shouldn't be allowed and see a move to yet another one as disappointing.

                              Comment

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