pikestaff
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Post by pikestaff on Aug 6, 2014 10:13:19 GMT
I've recently helped my mum to set up an RS account (5 year money). She wants to auto-withdraw interest every month but I'm not sure it's quite possible to do this. As far as I can see:
- she can set reinvestment to capital only, so interest will go to her holding account
- she can set up auto-withdraw to take out her holding account balance each month
- but the holding account balance will consist of BOTH interest for the previous month AND any sub-£10 capital receipts that have yet to be placed on the market.
Is this right?
If it is right, it seems to me that she can avoid accidentally withdrawing capital by setting up auto-withdraw for just after a large instalment comes in. Does anyone know at what time of day auto-withdraw is applied? Is it before or after the daily instalments are processed?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 6, 2014 11:06:50 GMT
I've recently helped my mum to set up an RS account (5 year money). She wants to auto-withdraw interest every month but I'm not sure it's quite possible to do this. As far as I can see: - she can set reinvestment to capital only, so interest will go to her holding account - she can set up auto-withdraw to take out her holding account balance each month - but the holding account balance will consist of BOTH interest for the previous month AND any sub-£10 capital receipts that have yet to be placed on the market. Is this right? If it is right, it seems to me that she can avoid accidentally withdrawing capital by setting up auto-withdraw for just after a large instalment comes in. Does anyone know at what time of day auto-withdraw is applied? Is it before or after the daily instalments are processed? Sounds right. Auto-withdraw is after any repayments
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pikestaff
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Post by pikestaff on Aug 6, 2014 14:51:12 GMT
Thank you.
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Post by p2plender on Sept 22, 2015 8:28:26 GMT
I've set this up for my Mrs so that £700 is withdrawn on the 25th of each month. Looking at her account only about £80 is coming back this next few days so not sure what's going to happen and where the £700 is coming from.. Probably my bank account I suspect..
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Post by p2plender on Sept 23, 2015 14:02:10 GMT
Suddenly (tmrw) the Mrs has a loan being repaid early. Does this mean loans may be liquidated to return capital for auto-withdrawal or is this loan being repaid early just a coincidence?
I presumed auto withdrawal would trigger loan repayments going into the holding account until the figure for the auto withdrawal was filled.
Obviously if loans are liquidated early to enable auto withdrawal then I'll have to change auto withdrawal date.
Any 'auto withdrawers' care to comment. Thanks.
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pikestaff
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Post by pikestaff on Sept 23, 2015 14:24:09 GMT
Loans can be repaid early for one of two reasons:
1. All borrowers are allowed to repay early if they wish.
2. If a borrower defaults. In this case the loan is taken over by the provision fund, and lenders are "repaid" by the fund.
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Post by p2plender on Sept 23, 2015 14:52:26 GMT
Thanks pikestaff, I kind of know that. I'm perplexed with the auto withdrawal because without this early repayment then there would be insufficient money returning to her account before the 25th - the day the auto withdrawal is set up for.
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Post by davee39 on Sept 23, 2015 16:44:46 GMT
Thanks pikestaff, I kind of know that. I'm perplexed with the auto withdrawal because without this early repayment then there would be insufficient money returning to her account before the 25th - the day the auto withdrawal is set up for. You can set re-investment instructions using the reinvestment option under the instructions section at the left of the screen. Here you can choose which account to reinvest to and whether this should be for all repayments or capital only. If you select capital only the interest will drop into your holding account. (This is explained on the re-investment page). The repayment was a coincidence. Because there is a fee to liquidate early you have to positively agree to a loan sale. I assume if you have insufficient funds for a withdrawal the system will transfer what is available, or it may of course do nothing.
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arbster
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Post by arbster on Sept 24, 2015 5:05:46 GMT
I assume if you have insufficient funds for a withdrawal the system will transfer what is available, or it may of course do nothing. [EDITED: Something vaguely amusing and surely(!) not even remotely plausible, but why let the truth get in the way of a good story?]
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Post by oldnick on Sept 24, 2015 5:45:14 GMT
Stand by for a thinly researched article in the press citing "investors'fears" and ignoring your modifying emoticon.
Maybe best not to joke about it on a particular company's discussion board?
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Post by p2plender on Sept 24, 2015 6:46:02 GMT
did you put gin on your weetabix arbster?
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arbster
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Post by arbster on Sept 24, 2015 6:54:33 GMT
Post edited, although I'd be worried if a press story based on an obvious conspiracy theory were to give any established lender any cause for concern.
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Post by oldnick on Sept 24, 2015 7:01:12 GMT
Post edited, although I'd be worried if a press story based on an obvious conspiracy theory were to give any established lender any cause for concern. Thanks arbster. I took it as a joke and I'm sure all readers with an ounce of common sense would have too. But then there's the others...
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