Obviously a rise in interest rates is brilliant for lenders like myself. When I noticed the 3.0% figure yesterday for monthly lending I deposited some cash into my RateSetter account. Unfortunately due to more unexpected expenses this month I only made a small deposit. The money just cleared this morning and I have set my limit at 2.9% so I can get it lent out quickly. Earning 2.9% on my money for a month is better than most 1 year returns available at this moment in time. It equates to 2.32% for a basic rate taxpayer which is a reasonable return for only fixing your money for a month. Of course with this site your capital is at risk so I never invest large amounts monthly, just a little that I will not miss. To be honest the money I invest monthly would pay for one night's cocktails in my favourite bar and since I am pregnant I am saving this money anyhow.
I am guessing the rates are rising as it is approaching near payday and people are short of cash and looking for a little to tide them over until next week. Increased demand combined with decreased supply is every investors dream.
If you want to know more about RateSetter you can check out my review here